ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

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

Thematic (Sector/Industry)

<h2>The Week that Was in <a href="mailto:ASEAN@Smartkarma" target="_blank">ASEAN@Smartkarma</a></h2>Highlights from this week's offering on Smartkarma in ASEAN include a change in view from <a href="https://www.smartkarma.com/profiles/803" target="_blank" data-smartkarma-citation="accounts:803">Valerie Law, CFA</a> on <a href="https://www.smartkarma.com/entities/497" target="_blank" data-smartkarma-citation="entities:497:1">Comfortdelgro Corp Ltd (CD SP)</a> and an inaugural insight from <a href="https://www.smartkarma.com/profiles/1763" target="_blank" data-smartkarma-citation="accounts:1763">Lloyd Moffatt</a> on <a href="https://www.smartkarma.com/entities/23216" target="_blank" data-smartkarma-citation="entities:23216:1">Pryce Corp (PPC PM)</a> in the Philippines. I include a brief summary of this week's equity bottom up and top down and thematic notes below. I also include notes from a company visit to Matahari Department Store at the end of this weekly. Please scroll down to the detail section for a fuller summary.<div class="content-caption">Ring of Fire - Mount Agung on alert</div><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/034/233/original/Screen%20Shot%202017-09-25%20at%2007.32.53.png?1506296059" class="editor-image img-responsive" data-smartkarma-image-id="34233"></figure><div class="content-remarks">Spare a thought for the people of Bali as Mount Agung is on high alert for its first eruption since 1963. 28,000 people have already been evacuated from around the mountain and a 12km exclusion zone imposed,</div><h2>A summary of this week's Insights across ASEAN@Smartkarma</h2>In <a href="https://www.smartkarma.com/insights/singapore-19-sept-on-changing-nature-of-satellite-tech-but-also-a-chance-to-debate-key-issues" target="_blank" data-smartkarma-citation="insights:13661">Singapore 19 Sept: …On Changing Nature of Satellite Tech (But Also a Chance to Debate Key Issues)</a>, insight provider <a href="https://www.smartkarma.com/profiles/36" target="_blank" data-smartkarma-citation="accounts:36">Charles De Trenck</a> takes at the changing nature of the myriad of satellites crowding out earth's atmosphere. In <a href="https://www.smartkarma.com/insights/adaro-energy-possible-new-pricing-regulation-to-hurt-earnings-but-we-maintain-buy-on-valuation" target="_blank" data-smartkarma-citation="insights:13672">Adaro Energy: Possible New Pricing Regulation to Hurt Earnings, but We Maintain Buy on Valuation</a>, <a href="https://www.smartkarma.com/profiles/756" target="_blank" data-smartkarma-citation="accounts:756">Dr. Andrew Stotz, CFA</a>  suggests that high demand from China and growing demand from non-OECD countries in the coming years should support further growth for <a href="https://www.smartkarma.com/entities/6061" target="_blank" data-smartkarma-citation="entities:6061:1">Adaro Energy Tbk Pt (ADRO IJ)</a>.In his insight, <a href="https://www.smartkarma.com/insights/philippines-politics-could-get-in-the-way-of-the-recovery" target="_blank" data-smartkarma-citation="insights:13705">Philippines: Politics Could Get in the Way of the Recovery</a>, <a href="https://www.smartkarma.com/profiles/35" target="_blank" data-smartkarma-citation="accounts:35">Manu Bhaskaran</a> notes industrial production contracted 2.0% YoY in July, after growing 4.7% in June and after 18 months of expansion. Duterte’s rambunctious approach to governance could raise political risks. Already, several senators have warned that the House’s version of the budget bill is unacceptable and that the government could be set for gridlock over the budgetary appropriations.In <a href="https://www.smartkarma.com/insights/malaysia-potential-out-performance-on-the-cards" target="_blank" data-smartkarma-citation="insights:13706">Malaysia: Potential Out-Performance on the Cards</a>, <a href="https://www.smartkarma.com/profiles/48" target="_blank" data-smartkarma-citation="accounts:48">Jason Tan</a> notes that Industrial production rose +6.1% YoY in July 2017, up from a 4% gain in June this year. This was attributed to an acceleration in manufacturing, in particular, electrical and electronic manufactured products surged 10.5% in July, up from June’s 8.3% gain. He expects the Malaysian economy to punch above its weight in 2017.In <a href="https://www.smartkarma.com/insights/untr-massive-growth-in-construction-machinery" target="_blank" data-smartkarma-citation="insights:13710">UNTR: Massive Growth in Construction Machinery</a>, <a href="https://www.smartkarma.com/profiles/756" target="_blank" data-smartkarma-citation="accounts:756">Dr. Andrew Stotz, CFA</a> highlights that as the 5th largest coal producing nation, the Indonesian mining sector's demand for construction machinery should remain strong, with revenue for segment up by 64% 1H17 YoY and with <a href="https://www.smartkarma.com/entities/698" target="_blank" data-smartkarma-citation="entities:698:1">United Tractors</a>'s Komatsu sales volume almost tripling.In <a href="https://www.smartkarma.com/insights/singapore-labour-market-still-vulnerable-despite-trade-uplift" target="_blank" data-smartkarma-citation="insights:13714">Singapore: Labour Market Still Vulnerable Despite Trade Uplift</a>, <a href="https://www.smartkarma.com/profiles/48" target="_blank" data-smartkarma-citation="accounts:48">Jason Tan</a> notes that Singapore's overall unemployment rate remained steady at 2.2% in 2Q17, with the unemployment rate for residents and citizens at 3.1% and 3.3%, down from 3.2% and 3.5% in 1Q17 respectively.  Retrenchment figures improved, with only 3,640 workers were laid off in 2Q17 compared to 4,000 in 1Q17. Worryingly, 75% of the retrenched were Professionals, Managers, Executives, and Technicians. In <a href="https://www.smartkarma.com/insights/agricultural-printing-and-packaging-jsc-the-leading-packaging-company-in-northern-vietnam" target="_blank" data-smartkarma-citation="insights:13680">Agricultural Printing and Packaging JSC: The Leading Packaging Company in Northern Vietnam</a>, our friends at <a href="https://www.smartkarma.com/companies/844" target="_blank" data-smartkarma-citation="companies:844">BAOVIET Securities</a> drill down into the Vietnamese packaging industry and specifically <a href="https://www.smartkarma.com/entities/23722" target="_blank" data-smartkarma-citation="entities:23722:1">Agriculture Printing and Packaging JSC (INN VN)</a> . In <a href="https://www.smartkarma.com/insights/masterkool-another-case-of-dog-ate-my-homework" target="_blank" data-smartkarma-citation="insights:13405">MasterKool: Another Case Of “Dog Ate My Homework”</a>, our Thai guru <a href="https://www.smartkarma.com/profiles/766" target="_blank" data-smartkarma-citation="accounts:766">Athaporn Arayasantiparb, CFA</a> takes a look at <a href="https://www.smartkarma.com/entities/25870" target="_blank" data-smartkarma-citation="entities:25870:1">Masterkool International PCL (KOOL TB)</a> which derives the bulk of its revenues from mobile aircon (which it labels “evaporative cooling”) would tend to do quite well in a hot country like Thailand.In <a href="https://www.smartkarma.com/insights/cromwell-ereit-ipo-downsized-to-save-the-day-but-valuation-remains-unappealing" target="_blank" data-smartkarma-citation="insights:13632">Cromwell EREIT IPO: Downsized to Save the Day but Valuation Remains Unappealing</a>, our own <a href="https://www.smartkarma.com/profiles/9" target="_blank" data-smartkarma-citation="accounts:9">Ke Yan, CFA, FRM</a> looks at <a href="https://www.smartkarma.com/entities/25889" target="_blank" data-smartkarma-citation="entities:25889:1">Cromwell European Real Estate (CROMREIT SP)</a> which is raising EUR740m (downsized from EUR903m) to list on Singapore Exchange.  He suggests that being a pan-European diversified REIT might look interesting to some investors, yet the key question is how much is the fair value. The deal looks attractive on its headline dividend yield but our analysis shows that the deal is overvalued. He suggests that the deal should be avoided.In <a href="https://www.smartkarma.com/insights/cimb-group-placement-end-of-strategic-ties-with-mufg" target="_blank" data-smartkarma-citation="insights:13722">CIMB Group Placement - End of Strategic Ties with MUFG?</a>, our own <a href="https://www.smartkarma.com/profiles/673" target="_blank" data-smartkarma-citation="accounts:673">Toh Zhen Zhou</a> examines <a href="https://www.smartkarma.com/entities/218" target="_blank" data-smartkarma-citation="entities:218:1">Mitsubishi UFJ Financial Group (8306 JP)</a> (MUFG)'s sale of 412m shares in <a href="https://www.smartkarma.com/entities/68" target="_blank" data-smartkarma-citation="entities:68:1">CIMB Group Holdings Bhd (CIMB MK)</a> worth approximately US$605m.In <a href="https://www.smartkarma.com/insights/first-reit-yield-embedded-with-latent-risks-in-the-long-term-horizon" target="_blank" data-smartkarma-citation="insights:13385">First REIT: Yield Embedded with Latent Risks in the Long-Term Horizon</a>, <a href="https://www.smartkarma.com/profiles/1787" target="_blank" data-smartkarma-citation="accounts:1787">Will Tan, CAIA</a> takes a deep dive on <a href="https://www.smartkarma.com/entities/15848" target="_blank" data-smartkarma-citation="entities:15848:1">First Real Estate Investment Trust (FIRT SP)</a>, which is the first healthcare listed REIT in Singapore, with a portfolio of 18 properties* and asset portfolio size of S$1.27 billion. In <a href="https://www.smartkarma.com/insights/what-s-driving-office-demand-in-jakarta" target="_blank" data-smartkarma-citation="insights:13735">What’s Driving Office Demand in Jakarta?</a>, our friends at <a href="https://www.smartkarma.com/companies/884" target="_blank" data-smartkarma-citation="companies:884">Jones Lang Lasalle</a> take a bird's eye view of the office market in Jakarta which is facing unprecedented amounts of new supply.In <a href="https://www.smartkarma.com/insights/yzj-chinese-shipbuilder-gains-momentum" target="_blank" data-smartkarma-citation="insights:13736">YZJ: Chinese Shipbuilder Gains Momentum</a>, <a href="https://www.smartkarma.com/profiles/756" target="_blank" data-smartkarma-citation="accounts:756">Dr. Andrew Stotz, CFA</a> works his magic on <a href="https://www.smartkarma.com/entities/660" target="_blank" data-smartkarma-citation="entities:660:1">Yangzijiang Shipbuilding (YZJSGD SP)</a>, which is one of the largest privately owned shipbuilders in China.In <a href="https://www.smartkarma.com/insights/indonesia-economy-chugging-along" target="_blank" data-smartkarma-citation="insights:13743">Indonesia: Economy Chugging Along</a>, <a href="https://www.smartkarma.com/profiles/35" target="_blank" data-smartkarma-citation="accounts:35">Manu Bhaskaran</a> notes that unlike its trade-dependent neighbors such as Singapore and Malaysia, the rebound in external demand has not translated into a sizeable momentum for the Indonesian economy. This is due to the increasingly inward-looking nature of the economy. In his insight, <a href="https://www.smartkarma.com/insights/garuda-maintenance-facility-ipo-bright-spot-in-a-challenging-industry" target="_blank" data-smartkarma-citation="insights:13629">Garuda Maintenance Facility IPO - Bright Spot in a Challenging Industry</a>, our own <a href="https://www.smartkarma.com/profiles/9" target="_blank" data-smartkarma-citation="accounts:9">Ke Yan, CFA, FRM</a> looks at <a href="https://www.smartkarma.com/entities/25901" target="_blank" data-smartkarma-citation="entities:25901:1">Garuda Maintenance Facility (1536227D IJ)</a>, which is raising approximately US$419m in its upcoming IPO. He suggests taking the deal at the lower end of the price range.In <a href="https://www.smartkarma.com/insights/bank-rakyat-indonesia-a-gold-standard-in-micro-loans-lending" target="_blank" data-smartkarma-citation="insights:13757">Bank Rakyat Indonesia: A Gold Standard in Micro Loans Lending</a>, <a href="https://www.smartkarma.com/profiles/1079" target="_blank" data-smartkarma-citation="accounts:1079">Johannes Salim, CFA</a> comments on microlender <a href="https://www.smartkarma.com/entities/484" target="_blank" data-smartkarma-citation="entities:484:1">Bank Rakyat Indonesia Perser (BBRI IJ)</a> post a call with management and finds the bank an attractive prospect with plenty of room for loan growth in the next few years.In <a href="https://www.smartkarma.com/insights/singapore-set-for-blowout-4-5-growth-in-3q17-mas-to-shift-policy-in-april-2018" target="_blank" data-smartkarma-citation="insights:13780">Singapore Set for Blowout 4.5% Growth in 3Q17; MAS to Shift Policy in April 2018</a>, <a href="https://www.smartkarma.com/profiles/35" target="_blank" data-smartkarma-citation="accounts:35">Manu Bhaskaran</a> notes that the trade-led rebound has injected a generous dose of optimism and vigor into the Singapore economy with recent activity indicators reflecting an across-the-board improvement in economic conditions. In <a href="https://www.smartkarma.com/insights/pt-astra-agro-lestari-tbk-the-paradox-of-mediocre-performance-and-analysts-optimism" target="_blank" data-smartkarma-citation="insights:13748">PT Astra Agro Lestari Tbk: The Paradox Of Mediocre Performance And Analysts’ Optimism</a>, <a href="https://www.smartkarma.com/profiles/1364" target="_blank" data-smartkarma-citation="accounts:1364">Nandini Vijayaraghavan, CFA</a> finds it perplexing that the majority of the analysts hold a neutral to positive view of an oil palm plantation company’s stock, despite an ageing plantation profile, declining plantation productivity, and the share price underperformanceIn <a href="https://www.smartkarma.com/insights/brpt-aims-to-become-a-star-in-energy-as-well" target="_blank" data-smartkarma-citation="insights:13811">BRPT: Aims to Become a Star in Energy as Well</a>, <a href="https://www.smartkarma.com/profiles/756" target="_blank" data-smartkarma-citation="accounts:756">Dr. Andrew Stotz, CFA</a> takes a close look at <a href="https://www.smartkarma.com/entities/8851" target="_blank" data-smartkarma-citation="entities:8851:1">Barito Pacific Tbk Pt (BRPT IJ)</a> , which aims to acquire a majority stake in Star Energy Group by 1Q18. If successful, the deal would reduce cyclicality in revenue through exposure to geothermal power generation and oil &amp; gas exploration. It looks like a cheaper way to gain exposure to strong subsidiary TPIA.In <a href="https://www.smartkarma.com/insights/cct-enhances-portfolio-quality-with-asia-square-tower-2-acquisition-subscribe-to-rights-issue" target="_blank" data-smartkarma-citation="insights:13816">CCT Enhances Portfolio Quality with Asia Square Tower 2 Acquisition; Subscribe to Rights Issue</a>, our friends at <a href="https://www.smartkarma.com/companies/146" target="_blank" data-smartkarma-citation="companies:146">Morningstar</a> take a close look at <a href="https://www.smartkarma.com/entities/1077" target="_blank" data-smartkarma-citation="entities:1077:1">Capitaland Commercial Trust (CCT SP)</a> after the announcement that it will acquire Asia Square Tower 2 in Marina Bay from BlackRock for SGD2.094bn or SGD 2,689 per square foot. In <a href="https://www.smartkarma.com/insights/thailand-revenue-trends-have-improved-but-telcos-need-spectrum-it-will-be-costly" target="_blank" data-smartkarma-citation="insights:13776">Thailand: Revenue Trends Have Improved but Telcos Need Spectrum. It Will Be Costly.</a> our good friends at <a href="https://www.smartkarma.com/companies/151" target="_blank" data-smartkarma-citation="companies:151">New Street Research</a> circle back to the Thai Telecom sector after a period of underestimating growth. If they had to point to one positive factor that stands out, it has been the rapidly rising video consumption (data).In <a href="https://www.smartkarma.com/insights/comfortdelgro-negatives-mostly-priced-in-time-to-look-at-some-near-term-positives" target="_blank" data-smartkarma-citation="insights:13671">ComfortDelgro: Negatives Mostly Priced-In; Time to Look at Some Near-Term Positives</a>, after a long period of feeling negative about <a href="https://www.smartkarma.com/entities/497" target="_blank" data-smartkarma-citation="entities:497:1">Comfortdelgro Corp Ltd (CD SP)</a> , our insight provider <a href="https://www.smartkarma.com/profiles/803" target="_blank" data-smartkarma-citation="accounts:803">Valerie Law, CFA</a> circles back. She suggests that it has been a slew of negative news, from potential losses of taxi drivers to failing to win the bid to operate the Thomson-East Coast Line (TEL) last few weeks. In <a href="https://www.smartkarma.com/insights/thai-macro-watch-september-hurricanes-the-great-escape-and-end-of-mourning" target="_blank" data-smartkarma-citation="insights:13425">Thai Macro Watch (September): Hurricanes, the Great Escape, and End of Mourning</a>, our Thai guru lays out his strategy for the Thai market. He continues to believe that the Thai economic indicators are overstated by official sources, especially when it comes to domestic consumption.In his inaugural insight on Smartkarma, <a href="https://www.smartkarma.com/insights/deep-dive-riding-the-second-wave-in-pryce-corp-for-another-146-upside" target="_blank" data-smartkarma-citation="insights:13813">DEEP DIVE: Riding the Second Wave in Pryce Corp for Another 146% Upside</a>, small and mid-cap analyst, <a href="https://www.smartkarma.com/profiles/1763" target="_blank" data-smartkarma-citation="accounts:1763">Lloyd Moffatt</a> takes a detailed look at <a href="https://www.smartkarma.com/entities/23216" target="_blank" data-smartkarma-citation="entities:23216:1">Pryce Corp (PPC PM)</a> in the Philippines and finds a company with a strong core business and significant hidden value. Pryce Corporation (“Pryce”) is a PSE listed company based in the Philippines which engages in sales and distribution of LPG and industrial gases, and development of memorial parks (cemeteries). The company has built a portfolio of strategically valuable terminals and refilling stations across the Southern Philippines that underpins a stable and highly profitable bottled LPG distribution business. Despite Pryce Gases contributing almost all of the group’s operating income, the value of the company’s memorial parks (real estate) assets is completely unappreciated by the market. Currently, that, along with a large net cash position is weighing down the balance sheet. Trading at just 10x FY17e and growing earnings at 35% CAGR, in various scenarios, where the gas business is valued in line with peers and the property business is spun-off or sold, there is still 100-200% upside remaining.

The Week that Was in ASEAN@SmartkarmaHighlights from this week's offering on Smartkarma in ASEAN include a change in view from Valerie Law, CFA on Comfortdelgro Corp Ltd (CD SP) and an inaugural insight from Lloyd Moffatt on Pryce Corp (PPC PM) in the Philippines. I include a brief summary of this week's equity bottom up and top down and thematic notes below. I also include notes from a company visit to Matahari Department Store at the end of this weekly. Please scroll down to the detail section for a fuller summary.Ring of Fire - Mount Agung on alertSpare a thought for the people of Bali as Mount Agung is on high alert for its first eruption since 1963. 28,000 people have already been evacuated from around the mountain and a 12km exclusion zone imposed,A summary of this week's Insights across ASEAN@SmartkarmaIn Singapore 19 Sept: …On Changing Nature of Satellite Tech (But Also a Chance to Debate Key Issues), insight provider Charles De Trenck takes at the changing nature of the myriad of satellites crowding out earth's atmosphere. In Adaro Energy: Possible New Pricing Regulation to Hurt Earnings, but We Maintain Buy on Valuation, Dr. Andrew Stotz, CFA  suggests that high demand from China and growing demand from non-OECD countries in the coming years should support further growth for Adaro Energy Tbk Pt (ADRO IJ).In his insight, Philippines: Politics Could Get in the Way of the Recovery, Manu Bhaskaran notes industrial production contracted 2.0% YoY in July, after growing 4.7% in June and after 18 months of expansion. Duterte’s rambunctious approach to governance could raise political risks. Already, several senators have warned that the House’s version of the budget bill is unacceptable and that the government could be set for gridlock over the budgetary appropriations.In Malaysia: Potential Out-Performance on the Cards, Jason Tan notes that Industrial production rose +6.1% YoY in July 2017, up from a 4% gain in June this year. This was attributed to an acceleration in manufacturing, in particular, electrical and electronic manufactured products surged 10.5% in July, up from June’s 8.3% gain. He expects the Malaysian economy to punch above its weight in 2017.In UNTR: Massive Growth in Construction Machinery, Dr. Andrew Stotz, CFA highlights that as the 5th largest coal producing nation, the Indonesian mining sector's demand for construction machinery should remain strong, with revenue for segment up by 64% 1H17 YoY and with United Tractors's Komatsu sales volume almost tripling.In Singapore: Labour Market Still Vulnerable Despite Trade Uplift, Jason Tan notes that Singapore's overall unemployment rate remained steady at 2.2% in 2Q17, with the unemployment rate for residents and citizens at 3.1% and 3.3%, down from 3.2% and 3.5% in 1Q17 respectively.  Retrenchment figures improved, with only 3,640 workers were laid off in 2Q17 compared to 4,000 in 1Q17. Worryingly, 75% of the retrenched were Professionals, Managers, Executives, and Technicians. In Agricultural Printing and Packaging JSC: The Leading Packaging Company in Northern Vietnam, our friends at BAOVIET Securities drill down into the Vietnamese packaging industry and specifically Agriculture Printing and Packaging JSC (INN VN) . In MasterKool: Another Case Of “Dog Ate My Homework”, our Thai guru Athaporn Arayasantiparb, CFA takes a look at Masterkool International PCL (KOOL TB) which derives the bulk of its revenues from mobile aircon (which it labels “evaporative cooling”) would tend to do quite well in a hot country like Thailand.In Cromwell EREIT IPO: Downsized to Save the Day but Valuation Remains Unappealing, our own Ke Yan, CFA, FRM looks at Cromwell European Real Estate (CROMREIT SP) which is raising EUR740m (downsized from EUR903m) to list on Singapore Exchange.  He suggests that being a pan-European diversified REIT might look interesting to some investors, yet the key question is how much is the fair value. The deal looks attractive on its headline dividend yield but our analysis shows that the deal is overvalued. He suggests that the deal should be avoided.In CIMB Group Placement - End of Strategic Ties with MUFG?, our own Toh Zhen Zhou examines Mitsubishi UFJ Financial Group (8306 JP) (MUFG)'s sale of 412m shares in CIMB Group Holdings Bhd (CIMB MK) worth approximately US$605m.In First REIT: Yield Embedded with Latent Risks in the Long-Term Horizon, Will Tan, CAIA takes a deep dive on First Real Estate Investment Trust (FIRT SP), which is the first healthcare listed REIT in Singapore, with a portfolio of 18 properties* and asset portfolio size of S$1.27 billion. In What’s Driving Office Demand in Jakarta?, our friends at Jones Lang Lasalle take a bird's eye view of the office market in Jakarta which is facing unprecedented amounts of new supply.In YZJ: Chinese Shipbuilder Gains Momentum, Dr. Andrew Stotz, CFA works his magic on Yangzijiang Shipbuilding (YZJSGD SP), which is one of the largest privately owned shipbuilders in China.In Indonesia: Economy Chugging Along, Manu Bhaskaran notes that unlike its trade-dependent neighbors such as Singapore and Malaysia, the rebound in external demand has not translated into a sizeable momentum for the Indonesian economy. This is due to the increasingly inward-looking nature of the economy. In his insight, Garuda Maintenance Facility IPO - Bright Spot in a Challenging Industry, our own Ke Yan, CFA, FRM looks at Garuda Maintenance Facility (1536227D IJ), which is raising approximately US$419m in its upcoming IPO. He suggests taking the deal at the lower end of the price range.In Bank Rakyat Indonesia: A Gold Standard in Micro Loans Lending, Johannes Salim, CFA comments on microlender Bank Rakyat Indonesia Perser (BBRI IJ) post a call with management and finds the bank an attractive prospect with plenty of room for loan growth in the next few years.In Singapore Set for Blowout 4.5% Growth in 3Q17; MAS to Shift Policy in April 2018, Manu Bhaskaran notes that the trade-led rebound has injected a generous dose of optimism and vigor into the Singapore economy with recent activity indicators reflecting an across-the-board improvement in economic conditions. In PT Astra Agro Lestari Tbk: The Paradox Of Mediocre Performance And Analysts’ Optimism, Nandini Vijayaraghavan, CFA finds it perplexing that the majority of the analysts hold a neutral to positive view of an oil palm plantation company’s stock, despite an ageing plantation profile, declining plantation productivity, and the share price underperformanceIn BRPT: Aims to Become a Star in Energy as Well, Dr. Andrew Stotz, CFA takes a close look at Barito Pacific Tbk Pt (BRPT IJ) , which aims to acquire a majority stake in Star Energy Group by 1Q18. If successful, the deal would reduce cyclicality in revenue through exposure to geothermal power generation and oil &amp; gas exploration. It looks like a cheaper way to gain exposure to strong subsidiary TPIA.In CCT Enhances Portfolio Quality with Asia Square Tower 2 Acquisition; Subscribe to Rights Issue, our friends at Morningstar take a close look at Capitaland Commercial Trust (CCT SP) after the announcement that it will acquire Asia Square Tower 2 in Marina Bay from BlackRock for SGD2.094bn or SGD 2,689 per square foot. In Thailand: Revenue Trends Have Improved but Telcos Need Spectrum. It Will Be Costly. our good friends at New Street Research circle back to the Thai Telecom sector after a period of underestimating growth. If they had to point to one positive factor that stands out, it has been the rapidly rising video consumption (data).In ComfortDelgro: Negatives Mostly Priced-In; Time to Look at Some Near-Term Positives, after a long period of feeling negative about Comfortdelgro Corp Ltd (CD SP) , our insight provider Valerie Law, CFA circles back. She suggests that it has been a slew of negative news, from potential losses of taxi drivers to failing to win the bid to operate the Thomson-East Coast Line (TEL) last few weeks. In Thai Macro Watch (September): Hurricanes, the Great Escape, and End of Mourning, our Thai guru lays out his strategy for the Thai market. He continues to believe that the Thai economic indicators are overstated by official sources, especially when it comes to domestic consumption.In his inaugural insight on Smartkarma, DEEP DIVE: Riding the Second Wave in Pryce Corp for Another 146% Upside, small and mid-cap analyst, Lloyd Moffatt takes a detailed look at Pryce Corp (PPC PM) in the Philippines and finds a company with a strong core business and significant hidden value. Pryce Corporation (“Pryce”) is a PSE listed company based in the Philippines which engages in sales and distribution of LPG and industrial gases, and development of memorial parks (cemeteries). The company has built a portfolio of strategically valuable terminals and refilling stations across the Southern Philippines that underpins a stable and highly profitable bottled LPG distribution business. Despite Pryce Gases contributing almost all of the group’s operating income, the value of the company’s memorial parks (real estate) assets is completely unappreciated by the market. Currently, that, along with a large net cash position is weighing down the balance sheet. Trading at just 10x FY17e and growing earnings at 35% CAGR, in various scenarios, where the gas business is valued in line with peers and the property business is spun-off or sold, there is still 100-200% upside remaining.

Mitsubishi UFJ Financial (MUFG) (8306 JP)

The Week that Was in ASEAN@Smartkarma - Taxis, Satellites, and LPG