Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

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

Equity Bottom-Up

Entree Resources Ltd. operates as a mining company. The Company develops and discovers gold and copper resources. Entree Resources is currently conducting exploration on its mineral concessions in Mongolia.

<ul>
<li>Late 2024 <a href="https://www.smartkarma.com/entities/entree-resources-ltd-3aeeb68c-80d0-4ada-822e-898883fbb28e" target="_blank" data-smartkarma-citation="entities:26727:1" rel="noopener">Entree Resources (ETG CN)</a> announced it won its arbitration against <a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a>. The vote by the three judges was unanimously in favor of Entree. </li>
<li>
<a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a> held its investor day in early December 2024 where almost its entire growth plan for 2025-2030 is predicated on Oyu Tolgoi's (OT) performance.</li>
<li>
<a href="https://www.smartkarma.com/entities/rio-tinto-ltd" target="_blank" data-smartkarma-citation="entities:13:1" rel="noopener">Rio Tinto Ltd (RIO AU)</a> is now backed into a corner to find a solution for OT's minority shareholder Entree Resources. The most logical outcome? RIO buys ETG in 2025.</li>
</ul>


Late 2024 Entree Resources (ETG CN) announced it won its arbitration against Rio Tinto Ltd (RIO AU). The vote by the three judges was unanimously in favor of Entree. 

Rio Tinto Ltd (RIO AU) held its investor day in early December 2024 where almost its entire growth plan for 2025-2030 is predicated on Oyu Tolgoi's (OT) performance.

Rio Tinto Ltd (RIO AU) is now backed into a corner to find a solution for OT's minority shareholder Entree Resources. The most logical outcome? RIO buys ETG in 2025.


Rio Tinto Loses Arbitration Against Entree Resources; Now What?

Thematic (Sector/Industry)

<ul>
<li>The 2024 vintage of "5 High Conviction Ideas" showed three stocks with positive performance and two with losses.</li>
<li>Our best performer was <a href="https://www.smartkarma.com/entities/plover-bay-technologies-ltd" target="_blank" data-smartkarma-citation="entities:24191:1" rel="noopener">Plover Bay Technologies (1523 HK)</a> which increased 157% in FY24. While our worst performer was <a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> down over 60%.</li>
<li>Our 2025 vintage of top ideas is heavily copper-focused as we continue to believe the supply crunch in copper is real and set to get worse.</li>
</ul>


The 2024 vintage of "5 High Conviction Ideas" showed three stocks with positive performance and two with losses.
Our best performer was Plover Bay Technologies (1523 HK) which increased 157% in FY24. While our worst performer was AEM (AEM SP) down over 60%.
Our 2025 vintage of top ideas is heavily copper-focused as we continue to believe the supply crunch in copper is real and set to get worse.


Overview of My Winners and Losers in 2024...and 5 High Conviction Ideas Going Into 2025

Solaris Resources Inc. provides exploration and mining services. The Company explores and develops copper and gold projects in the Americas. Solaris Resources serves customers worldwide.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/solaris-resources-inc" target="_blank" data-smartkarma-citation="entities:40176:1" rel="noopener">Solaris Resources (SLS CN)</a> announced sweeping changes to its management and ties to Canada. It will also spin-off some of its exploration targets in a new company.</li>
<li>While its listing will remain in Canada for now, its physical presence in the country will cease and operations will be run out of Switzerland, Ecuador and Peru.</li>
<li>The shake-up is an answer to the Canadian government's decision earlier this year blocking Chinese <a href="https://www.smartkarma.com/entities/zijin-mining-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:6358:1" rel="noopener">Zijin Mining Group Co Ltd H (2899 HK)</a> from making an investment in Solaris.</li>
</ul>



Solaris Resources (SLS CN) announced sweeping changes to its management and ties to Canada. It will also spin-off some of its exploration targets in a new company.
While its listing will remain in Canada for now, its physical presence in the country will cease and operations will be run out of Switzerland, Ecuador and Peru.
The shake-up is an answer to the Canadian government's decision earlier this year blocking Chinese Zijin Mining Group Co Ltd H (2899 HK) from making an investment in Solaris.


Solaris Resources: Showing Canada the Middle Finger

AEM Holdings Limited designs and manufactures semiconductor manufacturing equipment and related tooling parts and precision machining of components for semiconductor industry.  The Company also manufactures and distributes electronics, engineering, chemical and related products. AEM provides engineering services.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> released 3Q24 numbers and bumped its guidance higher as its key customer pulled forward some orders.</li>
<li>In 2025 it will be the first year where customers outside of Intel will make up the majority of AEM's revenues. This is a big milestone for AEM.</li>
<li>Continued business from Intel and growth in new key accounts means we should expect FY25 revenue growth. Guidance for FY25 will come by February 2025. </li>
</ul>



AEM (AEM SP) released 3Q24 numbers and bumped its guidance higher as its key customer pulled forward some orders.
In 2025 it will be the first year where customers outside of Intel will make up the majority of AEM's revenues. This is a big milestone for AEM.
Continued business from Intel and growth in new key accounts means we should expect FY25 revenue growth. Guidance for FY25 will come by February 2025. 


Micro Mechanics (Holdings) / Equity Bottom-Up

Micro-Mechanics Holdings Limited designs and manufactures precision tools.  The Company also provides effective solutions and total support services to its customers.

<ul>
<li>We attended <a href="https://www.smartkarma.com/entities/micro-mechanics-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19384:1" rel="noopener">Micro Mechanics (Holdings) (MMH SP)</a> AGM in Singapore on 30 October.</li>
<li>Management also released 1Q25 results on the same day which showed QoQ improvements and the first green shoots after 3 years of falling results.</li>
<li>Micro Mechanics has zero debt, yet posts consistent high ROE's and pays impressive dividends</li>
</ul>


We attended Micro Mechanics (Holdings) (MMH SP) AGM in Singapore on 30 October.
Management also released 1Q25 results on the same day which showed QoQ improvements and the first green shoots after 3 years of falling results.
Micro Mechanics has zero debt, yet posts consistent high ROE's and pays impressive dividends


Micro-Mechanics AGM: Green Shoots Emerging

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.

Nicolas Van Broekhoven
Insight Provider
• CrossASEAN Research

Rio Tinto Loses Arbitration Against Entree Resources; Now What?

Entree Resources wins arbitration against Rio Tinto, leading to speculation that Rio may acquire Entree in 2025 due to reliance on Oyu Tolgoi's...

Nicolas Van Broekhoven

Overview of My Winners and Losers in 2024...and 5 High Conviction Ideas Going Into 2025

2024's "5 High Conviction Ideas" had mixed results, with Plover Bay Technologies soaring 157% while AEM Holdings plummeted over 60%. 2025's focus...

Nicolas Van Broekhoven

Solaris Resources: Showing Canada the Middle Finger

Solaris Resources announces management changes and spin-off, shifting operations out of Canada in response to government restrictions on Chinese...

Nicolas Van Broekhoven

Aem: Hoping for Better 2025

AEM increased guidance for FY24 signals a shift towards revenue from non-Intel customers, setting the stage for growth in FY25.

Nicolas Van Broekhoven

Micro-Mechanics AGM: Green Shoots Emerging

Micro Mechanics (Holdings) AGM reveals Q1 results with first signs of improvement after 3 years of decline, showcasing strong financials with zero...

Nicolas Van Broekhoven

Rio Tinto Loses Arbitration Against Entree Resources; Now What?

​Entree Resources wins arbitration against Rio Tinto, leading to speculation that Rio may acquire Entree in 2025 due to reliance on Oyu Tolgoi's...

Nicolas Van Broekhoven

Overview of My Winners and Losers in 2024...and 5 High Conviction Ideas Going Into 2025

​2024's "5 High Conviction Ideas" had mixed results, with Plover Bay Technologies soaring 157% while AEM Holdings plummeted over 60%. 2025's focus...

Nicolas Van Broekhoven

Solaris Resources: Showing Canada the Middle Finger

​Solaris Resources announces management changes and spin-off, shifting operations out of Canada in response to government restrictions on Chinese...

Nicolas Van Broekhoven

Aem: Hoping for Better 2025

​AEM increased guidance for FY24 signals a shift towards revenue from non-Intel customers, setting the stage for growth in FY25.

Nicolas Van Broekhoven

Micro-Mechanics AGM: Green Shoots Emerging

​Micro Mechanics (Holdings) AGM reveals Q1 results with first signs of improvement after 3 years of decline, showcasing strong financials with zero...

Nicolas Van Broekhoven

Entree Resources wins arbitration against Rio Tinto, leading to speculation that Rio may acquire Entree in 2025 due to reliance on Oyu Tolgoi's...

2024's "5 High Conviction Ideas" had mixed results, with Plover Bay Technologies soaring 157% while AEM Holdings plummeted over 60%. 2025's focus...

Solaris Resources announces management changes and spin-off, shifting operations out of Canada in response to government restrictions on Chinese...

AEM increased guidance for FY24 signals a shift towards revenue from non-Intel customers, setting the stage for growth in FY25.

Micro Mechanics (Holdings) AGM reveals Q1 results with first signs of improvement after 3 years of decline, showcasing strong financials with zero...