Asia Consumer Research, Investory

Devi Subhakesan

Asia Consumer Research

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Event-Driven

Zhejiang Leapmotor Technologie / Event-Driven

Zhejiang Leapmotor Technologies Ltd. operates as an electric vehicles manufacturer. The Company develops and sells electric vehicles and other products. Zhejiang Leapmotor Technologies markets its products throughout China.

<ul>
<li>Stellantis, the European automotive group, unveiled plans to distribute EVs made by <a href="https://www.smartkarma.com/entities/zhejiang-leapmotor-technologie" target="_blank" data-smartkarma-citation="entities:35968:1" rel="noopener">Zhejiang Leapmotor Technology (9863 HK)</a> across Europe, India, Asia Pacific, MEA, and South America via a 51/49 JV.</li>
<li>This could help <a href="https://www.smartkarma.com/entities/zhejiang-leapmotor-technologie" target="_blank" data-smartkarma-citation="entities:35968:1" rel="noopener"> Leapmotor (9863 HK)</a> leapfrog regulatory hurdles and hasten access to EV markets globally by leveraging <a href="https://www.smartkarma.com/entities/stellantis-nv-847415d2-edbe-4b97-b9c9-bece87ed6f72" target="_blank" data-smartkarma-citation="entities:27920:1" rel="noopener">Stellantis NV (STLA IM)</a> 's distribution network and manufacturing facilities.</li>
<li>Leapmotor could likely qualify and stand to benefit from Indian Government's recently announced policy initiatives for budget EVs.</li>
</ul>


Stellantis, the European automotive group, unveiled plans to distribute EVs made by Zhejiang Leapmotor Technology (9863 HK) across Europe, India, Asia Pacific, MEA, and South America via a 51/49 JV.
This could help  Leapmotor (9863 HK) leapfrog regulatory hurdles and hasten access to EV markets globally by leveraging Stellantis NV (STLA IM) 's distribution network and manufacturing facilities.
Leapmotor could likely qualify and stand to benefit from Indian Government's recently announced policy initiatives for budget EVs.


Leapmotor (9863 HK): Global Aspirations in JV with Stellantis - An Opportunity to Leapfrog?

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Perfect Medical Health / Equity Bottom-Up

Perfect Medical Health Management (previously Perfect Shape Medical Limited) offers slimming and beauty treatments. The Company provides fat softens and dissolves services, laser freckle services, and other services. Perfect Shape Medical offers services in China.

<ul>
<li>We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.</li>
<li>Our top picks are <a href="https://www.smartkarma.com/entities/perfect-medical-health-management" target="_blank" data-smartkarma-citation="entities:3639:1" rel="noopener">Perfect Medical Health (1830 HK)</a>, <a href="https://www.smartkarma.com/entities/water-oasis-group-ltd" target="_blank" data-smartkarma-citation="entities:17348:1" rel="noopener">Water Oasis (1161 HK)</a>, <a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet (8371 HK)</a>, <a href="https://www.smartkarma.com/entities/uchi-technologies-bhd" target="_blank" data-smartkarma-citation="entities:10723:1" rel="noopener">Uchi Technologies (UCHI MK)</a>, and <a href="https://www.smartkarma.com/entities/ginebra-san-miguel-inc" target="_blank" data-smartkarma-citation="entities:23029:1" rel="noopener">Ginebra San Miguel (GSMI PM)</a>.</li>
<li>After a massive recent correction for HK stocks, we are more constructive on the names, and yields there look very attractive.</li>
</ul>


We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety.
Our top picks are Perfect Medical Health (1830 HK), Water Oasis (1161 HK), Taste Gourmet (8371 HK), Uchi Technologies (UCHI MK), and Ginebra San Miguel (GSMI PM).
After a massive recent correction for HK stocks, we are more constructive on the names, and yields there look very attractive.


Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety - May 2024

Asia Economist and CEO, Centennial Asia Advisors

Manu Bhaskaran

Asia Economist and CEO

Centennial Asia Advisors

At Centennial Asia Advisors, we tell it like it is. We have no vested interests, no need for a China wall, and no reason to skew our outlook any other way. With over 30 years experience covering Asia’s political economy, you can be sure our conclusions and analyses are based on the unadulterated facts. Through years of fine-tuning our research methodologies, we deliver a quality of macroeconomic analysis few other houses can match.

Centennial Asia Advisors is an independent research and advisory firm that works with governments, multilateral institutions, financial firms and leading MNCs.

Economic Policy and Strategic Advisors

Macroeconomics

<ul>
<li>Asian exports have become more concentrated in the past decade, both in terms of a narrower set of export partners, as well as lower levels of diversification of export products. </li>
<li>While some of this concentration is driven by benign factors, reduced trade diversification comes with key risks that have become more salient in the current geopolitical environment. </li>
<li>Government strategies in the region are underway to remedy some of the downsides, and this will be a key component in the broader trend of supply-chain realignments in the region.</li>
</ul>


Asian exports have become more concentrated in the past decade, both in terms of a narrower set of export partners, as well as lower levels of diversification of export products. 
While some of this concentration is driven by benign factors, reduced trade diversification comes with key risks that have become more salient in the current geopolitical environment. 
Government strategies in the region are underway to remedy some of the downsides, and this will be a key component in the broader trend of supply-chain realignments in the region.


Regional Economics: Reduced Trade Diversification Implies New Economic Strategies

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

GigaCloud Technology Inc operates as a holding company. The Company, through its subsidiaries, offers business-to-business ecommerce platform for global trade services of heavy and large products which connects manufacturers with reseller to execute cross-border transactions. GigaCloud Technology serves customers worldwide.

<ul><li>GCT delivered a solid start in 1Q24, with strong topline and guidance.</li><li>1Q24 net margin was temporarily diluted by new fulfilment centers expenses and FX fluctuation, but will gradually pick up in 2H24E (with improving warehouse utilization and annual freight contracts), in our view.</li><li>We are positive on 2Q24E topline growth (guiding +73%~83% YoY), boosted by rising demand for outdoor furniture. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

GCT delivered a solid start in 1Q24, with strong topline and guidance.1Q24 net margin was temporarily diluted by new fulfilment centers expenses and FX fluctuation, but will gradually pick up in 2H24E (with improving warehouse utilization and annual freight contracts), in our view.We are positive on 2Q24E topline growth (guiding +73%~83% YoY), boosted by rising demand for outdoor furniture. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

GigaCloud (GCT US) - Embracing Continued Outperformance

Equity Analyst, Event-driven, Quiddity Advisors

Janaghan Jeyakumar, CFA

Equity Analyst, Event-driven

Quiddity Advisors

Pan-Asia Catalysts/Events

Country Garden Services Holdings Company Limited provides real estate development services. The Company develops residential apartments, multi-functional complex buildings, government and public facilities, industrial parks, highway service stations, and schools. Country Garden Services Holdings serves clients in China.

<ul>
<li>In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in June 2024.</li>
<li>The index changes for the June 2024 index rebal will be announced on 17th May 2024.</li>
<li>The HSI selection process is highly subjective and does not follow clear-cut rules. This insight is simply an attempt to provide readers with an overall understanding of the possible scenarios.</li>
</ul>


In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes for the Hang Seng Index in June 2024.
The index changes for the June 2024 index rebal will be announced on 17th May 2024.
The HSI selection process is highly subjective and does not follow clear-cut rules. This insight is simply an attempt to provide readers with an overall understanding of the possible scenarios.


Quiddity Leaderboard for Hang Seng Index Jun 24: Could Country Garden Services Get Deleted?

Hong Kong
Insights on Hong Kong

Leapmotor (9863 HK): Global Aspirations in JV with Stellantis - An Opportunity to Leapfrog?

Leapmotor could get to access and compete in emerging EV markets globally within a shorter time frame than peers by leveraging on Stellantis'...

Devi Subhakesan

Shortlist Of High Conviction Ideas: Income, Value, and Margin of Safety - May 2024

We compile our selection of small and mid-cap names with our desired characteristics of high dividend yields, value, and margin of safety. We...

Sameer Taneja

Regional Economics: Reduced Trade Diversification Implies New Economic Strategies

As the region's export patterns become more specialized in terms of markets and products, markets in the region will be adopting new strategies to...

Manu Bhaskaran

GigaCloud (GCT US) - Embracing Continued Outperformance

1Q24 net margin was temporarily diluted by new fulfilment centers expenses and FX fluctuation, but will gradually pick up in 2H24E

CMB International

Quiddity Leaderboard for Hang Seng Index Jun 24: Could Country Garden Services Get Deleted?

The June 2024 index changes for the Hang Seng Index could be confirmed on 17th May 2024. The Inclusion/Exclusion events can be expected at the...

Janaghan Jeyakumar, CFA