Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

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

Minth Group Ltd. manufactures exterior automobile body parts.  The Company produces structural body parts, decorative parts, and trim.  Minth supplies multinational automobile manufacturers operating in China.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/minth-group-ltd" target="_blank" data-smartkarma-citation="entities:9232:1" rel="noopener">Minth Group Ltd (425 HK)</a> revenue went up by 14% (almost 3x of China’s passenger vehicle market, which grew 5%) and net income by 20% on 1H 24</li>
<li>It has developed <strong>environmentally friendly collision aluminum</strong>, with a carbon emission of less than 2.5 kg CO2 /Kg.AL while typically it produces 16 CO2/kg.AL</li>
<li>Battery housing business contributed 21% instead of 18% of total revenue with OPM expanded from 18% to 20%. </li>
</ul>



Minth Group Ltd (425 HK) revenue went up by 14% (almost 3x of China’s passenger vehicle market, which grew 5%) and net income by 20% on 1H 24
It has developed environmentally friendly collision aluminum, with a carbon emission of less than 2.5 kg CO2 /Kg.AL while typically it produces 16 CO2/kg.AL
Battery housing business contributed 21% instead of 18% of total revenue with OPM expanded from 18% to 20%. 


Minth (425): Battery Housing as New Growth Driver

Yadea Group is a leading electric two wheeler brand in China. The company produces electric bikes and scooters.

<ul>
<li>The 1H result was poor due to the inventory clearance from the new product standards, which rendered older products less desirable. </li>
<li>Management has proven to be able to manage costs carefully during a down cycle. </li>
<li>
<a href="https://www.smartkarma.com/entities/yadea-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:22706:1" rel="noopener">Yadea Group Holdings (1585 HK)</a> used to trade around 35x PER; now it is only 10x PER. </li>
</ul>


The 1H result was poor due to the inventory clearance from the new product standards, which rendered older products less desirable. 
Management has proven to be able to manage costs carefully during a down cycle. 

Yadea Group Holdings (1585 HK) used to trade around 35x PER; now it is only 10x PER. 


Wasion Group Holdings Limited is engaged in the provision of Advanced Metering Infrastructure solutions, Advanced Distribution Operations solutions; and development, manufacturing and sale of smart power, water, heat and gas meters and smart power distribution devices.

<ul>
<li>1H 24 net profit is expected to grow by 54%, a similar amount to FY 23 with a consistent message that revenue growth helps and cost control is in place. </li>
<li>
<a href="https://www.smartkarma.com/entities/wasion-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:421:1" rel="noopener">Wasion Group Holdings (3393 HK)</a> benefits from the One Belt One Road policy as many of the EM countries do not have smart power meters yet. </li>
<li>Wasion's holding on <a href="https://www.smartkarma.com/entities/willfar-information-technology" target="_blank" data-smartkarma-citation="entities:30341:1" rel="noopener">Willfar Information Technology (688100 CH)</a> is worth around USD 970 million, double the current market capitalization of Wasion.</li>
</ul>


1H 24 net profit is expected to grow by 54%, a similar amount to FY 23 with a consistent message that revenue growth helps and cost control is in place. 

Wasion Group Holdings (3393 HK) benefits from the One Belt One Road policy as many of the EM countries do not have smart power meters yet. 
Wasion's holding on Willfar Information Technology (688100 CH) is worth around USD 970 million, double the current market capitalization of Wasion.


Wasion (3393): Profit Alert and OBOR Beneficiary

ComfortDelGro Corporation Limited provides bus, taxi, car leasing and rental, automotive engineering, maintenance services, and diesel sales.  The Group also provides investment trading and operates vehicle inspection and assessment services, and advertising services.

<ul>
<li>1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. </li>
<li>Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. </li>
<li>
<a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a> is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. </li>
</ul>


1H 24 result was not disappointing, as OPM improved thanks to a few supportive measures that boosted revenue. 
Taxi operating profit margin has improved since 2H 23 and is still producing a higher number than last year, thanks to the ZIG app service charge. 

Comfortdelgro Corp (CD SP) is now trading at 1.2x PBR against 2x PBR 5 years ago pre COVID. 


CS Wind Corporation operates as a wind tower company. The Company manufactures and exports steel wind towers, while also offering aluminum platforms for wind towers. CS Wind extends its products and services globally.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cs-wind-corp" target="_blank" data-smartkarma-citation="entities:4883:1" rel="noopener">CS Wind Corp (112610 KS)</a> is one of the biggest players in wind tower globally with a substantial presence in the US. </li>
<li>Excellent Q2 24 operating numbers led to a sharp increase in the share price that is mainly driven by short covering. </li>
<li>The revenue growth occurred without sacrificing profitability, a sign that the company is in the driving seat.</li>
</ul>



CS Wind Corp (112610 KS) is one of the biggest players in wind tower globally with a substantial presence in the US. 
Excellent Q2 24 operating numbers led to a sharp increase in the share price that is mainly driven by short covering. 
The revenue growth occurred without sacrificing profitability, a sign that the company is in the driving seat.


A Long & Short Investment Ideas generator for Asian Equities with 10 years experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment thesis. Provides on-the-ground insights in various Asian markets with a sway towards ASEAN. Experienced and survived the Asian Financial Crisis in a family business, as well as the Global Financial Crisis in financial markets where lessons learned. It's all about understanding business drivers and navigating business cycles, which has high applicability in generating investment ideas. 

Investment horizon: Mid to Long term