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

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>Energy is scarce, thus, besides renewable energy, energy efficiency should also be the key focus. </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> customers have grown from domestic grids to both non-grid and grid domestic as well as overseas customers (Latin America). </li>
<li>Despite a 65% YTD return, it is still trading at 11x PER, with a 4% dividend yield, 6x EV/EBITDA, and 1.2x PBR. </li>
</ul>


Energy is scarce, thus, besides renewable energy, energy efficiency should also be the key focus. 

Wasion Group Holdings (3393 HK) customers have grown from domestic grids to both non-grid and grid domestic as well as overseas customers (Latin America). 
Despite a 65% YTD return, it is still trading at 11x PER, with a 4% dividend yield, 6x EV/EBITDA, and 1.2x PBR. 


Xinyi Glass Holdings Ltd, through its subsidiaries, produces a variety of processed glass products for automobile, construction and household applications. The Company also tenders for glass curtain wall projects and conducts installation service of glass curtain wall in China.

<ul>
<li>The majority of its revenue comes from selling float glass, which is used in buildings and construction. </li>
<li>The Chinese government has started home ownership relaxation that will reinvigorate the real estate market. </li>
<li>It is still trading at 67% lower to 3 years ago. </li>
</ul>


The majority of its revenue comes from selling float glass, which is used in buildings and construction. 
The Chinese government has started home ownership relaxation that will reinvigorate the real estate market. 
It is still trading at 67% lower to 3 years ago. 


Xinyi Glass (868): Beneficiary of Chinese RE Rejuvenation

Cafe De Coral Holdings / Equity Bottom-Up

Cafe De Coral Holdings Limited, through its subsidiaries, operates quick service restaurants, fast casual dining, institutional catering and specialty restaurant chains, and food manufacturing business.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cafe-de-coral-holdings-ltd" target="_blank" data-smartkarma-citation="entities:2568:1" rel="noopener">Cafe De Coral Holdings (341 HK)</a> share price never really rebounded post COVID despite its operating numbers gradually improving. </li>
<li>
<a href="https://www.smartkarma.com/entities/haidilao-international-holding" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao International Holding (6862 HK)</a> share price has rallied along with the <a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899:1" rel="noopener">Hang Seng Index (HSI INDEX)</a> and <a href="https://www.smartkarma.com/entities/hang-seng-china-enterprises-index" target="_blank" data-smartkarma-citation="entities:22900:1" rel="noopener">Hang Seng China Enterprises Index (HSCEI INDEX)</a> but not Cafe de Coral.</li>
<li>Recent profit alert that, excluding pandemic subsidies, the group's net profit will rise 470% YoY. </li>
</ul>



Cafe De Coral Holdings (341 HK) share price never really rebounded post COVID despite its operating numbers gradually improving. 

Haidilao International Holding (6862 HK) share price has rallied along with the Hang Seng Index (HSI INDEX) and Hang Seng China Enterprises Index (HSCEI INDEX) but not Cafe de Coral.
Recent profit alert that, excluding pandemic subsidies, the group's net profit will rise 470% YoY. 


PT Industri Jamu Dan Farmasi Sido Muncul Tbk manufactures and produces herbal products. The Company's products consist of medicinal herbs, energy drinks, sweets and other beverages.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/industri-jamu-dan-farmasi-sido-muncul-tbk-pt" target="_blank" data-smartkarma-citation="entities:6033:1" rel="noopener">Sido Muncul (SIDO IJ)</a> had a poor Q2-Q3 numbers, and investors sold off. </li>
<li>The recent uptick is driven by revenue growth and cost cutting exercises (mainly in wages) that improve margins.  </li>
<li>Productivity may not stay at the same level thus Q2 24 numbers are key. Take your win first. </li>
</ul>



Sido Muncul (SIDO IJ) had a poor Q2-Q3 numbers, and investors sold off. 
The recent uptick is driven by revenue growth and cost cutting exercises (mainly in wages) that improve margins.  
Productivity may not stay at the same level thus Q2 24 numbers are key. Take your win first. 


Keisei Electric Railway Co / Equity Bottom-Up

Keisei Electric Railway Co., Ltd. provides passenger rail and bus transportation services in the Metropolitan Tokyo and Chiba prefecture areas.  The Company operates department and supermarket stores, hotels, travel agents, movie theater and restaurants, and sells, leases, and maintains real estate.  Keisei Electric is a shareholder of Oriental Land Co., Ltd. which operates Tokyo Disneyland.

<ul>
<li>The activist investor is back and has demanded further action to unlock value from <a href="https://www.smartkarma.com/entities/keisei-electric-railway-co" target="_blank" data-smartkarma-citation="entities:10876:1" rel="noopener">Keisei Electric Railway Co (9009 JP)</a>  management.</li>
<li>Operational numbers are still healthy, but growth is not as large due to the high base.</li>
<li>Immediate pressure to divest Oriental Land thus short <a href="https://www.smartkarma.com/entities/oriental-land-co-ltd" target="_blank" data-smartkarma-citation="entities:13517:1" rel="noopener">Oriental Land (4661 JP)</a>  and long Keisei.</li>
</ul>


The activist investor is back and has demanded further action to unlock value from Keisei Electric Railway Co (9009 JP)  management.
Operational numbers are still healthy, but growth is not as large due to the high base.
Immediate pressure to divest Oriental Land thus short Oriental Land (4661 JP)  and long Keisei.


Keisei Electric Rail (9009): For Relative Value Trade

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