Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Was on the buyside for 15 years, most recently at a medium-sized boutique asset management firm. I grew up in Europe, went to university in the US and have been living in Singapore for the last 7 years which has given me a broad scope on the world and investing in general.

Consider myself a generalist investor with a preference for small and mid-cap companies and special situations. However, a large cap that has gone temporarily out of favor might also pique my interest. 

My style of investing could be categorized as more of value investor, rather than growth at any cost. Learning from Charlie Munger on the importance of quality of a company has been of tremendous value over the years.I like businesses with real earnings, cash flows, dividends, book value and insider ownership.

Insight Provider

Sunpower: Full Steam Ahead with GI; 84% Upside to 1.18 SGD Fair Value

Sunpower: 2023 China Re-Opening Stock, but CB Conversion Uncertainty Needs To Be Resolved

Sunpower: Extension of CB's Puts Focus Back on GI Business Fundamentals

Sunpower: Good FY20 Figures; Now in Transition to 100% GI by 2H21. Risk/Reward Highly Attractive

Sunpower (SPWG SP): GI Continues to Deliver; Re-Rating to 1 SGD Just a Matter of Time

M&S Div. Sold Resulting in 28% Special Dividend; Company Now 100% GI Story; Fair Value To 1.42 SGD

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sunpower-group-ltd" target="_blank" data-smartkarma-citation="entities:18395:1" rel="noopener">Sunpower Group (SPWG SP)</a> reported its 1Q21 results which are likely the last in its combined M&amp;S/GI format. 1Q21 were very strong but the YoY comparison is skewed because 1Q20 was heavily impacted by a nationwide lockdown in China. Before the end of June (our estimate) shareholders will receive 0.2359 SGD as a special dividend. After this the focus will be 100% on GI as the M&amp;S divestment completes by end of 1H21. Investors in GI can look forward to:<ul>
<li>lower operating cost </li>
<li>lower labor cost </li>
<li>lower debt</li>
<li>better working capital management</li>
<li>lower receivables</li>
<li>lower interest costs</li>
<li>higher ROE </li>
<li>higher profit margins</li>
<li>more predictable earnings</li>
</ul>Our call is that in 2H21 a substantial re-rating is on the cards as investors "discover" the highly attractive aspects of being a GI pure play. On the call management was the most bullish we have heard them in years. Our Fair Value estimate remains unchanged at 1.38 SGD (including 0.2359 SGD dividend). This leaves another +/- 78% upside from its recent 0.80-0.81 SGD range. Once investor confusion abates, the deal closes we expect a serious re-discovery phase.

Sunpower Group (SPWG SP) reported its 1Q21 results which are likely the last in its combined M&amp;S/GI format. 1Q21 were very strong but the YoY comparison is skewed because 1Q20 was heavily impacted by a nationwide lockdown in China. Before the end of June (our estimate) shareholders will receive 0.2359 SGD as a special dividend. After this the focus will be 100% on GI as the M&amp;S divestment completes by end of 1H21. Investors in GI can look forward to:
lower operating cost 
lower labor cost 
lower debt
better working capital management
lower receivables
lower interest costs
higher ROE 
higher profit margins
more predictable earnings
Our call is that in 2H21 a substantial re-rating is on the cards as investors "discover" the highly attractive aspects of being a GI pure play. On the call management was the most bullish we have heard them in years. Our Fair Value estimate remains unchanged at 1.38 SGD (including 0.2359 SGD dividend). This leaves another +/- 78% upside from its recent 0.80-0.81 SGD range. Once investor confusion abates, the deal closes we expect a serious re-discovery phase.

Sunpower: Ex-Dividend Date Coming Soon; 100% GI Should Lead to Re-Rating; Fair Value Remains $1.38