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

<p>The SGD 100 Discover Singapore vouchers that were handed out since 1st December 2020 to its citizens have provided the much-needed sparks in Singapore's hospitality industry that also benefits the Singapore transport sector. <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>captures this in two angles; higher revenue in public transport as well as in the taxi segment. The taxi segment has a historically higher gross profit margin compared to public transport although of late, the online ride-hailing app has challenged the former's dominance. </p>
<p>Although Phase 3 is unlikely to happen today after PM Lee's speech, today's speech will highlight more positives rather than negative news on the COVID-19 development for Singapore and will help to increase higher mobility in Singapore that benefits ComfortDelgro. There will be an increase in group size on phase 3 and capacity limits in public places and events including weddings. Borders will also be slowly reopened that invite more tourists to come to Singapore. </p>
<p>Although Hong Kong is still juggling with more pandemic cases compared to Singapore, <a href="https://www.smartkarma.com/entities/mtr-corp" target="_blank" data-smartkarma-citation="entities:13289:1" rel="noopener">MTR Corp (66 HK)</a> share price has held up far better compared to <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> . Thus ComfortDelgro's share price should play a catch-up. </p>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/178/308/original/image_74960535931607934386271.png?1607934386" class="editor-image img-responsive" data-smartkarma-image-id="178308"></figure>
<div class="content-remarks">
<p>source: Capital IQ</p>
</div>

The SGD 100 Discover Singapore vouchers that were handed out since 1st December 2020 to its citizens have provided the much-needed sparks in Singapore's hospitality industry that also benefits the Singapore transport sector. Comfortdelgro Corp (CD SP)captures this in two angles; higher revenue in public transport as well as in the taxi segment. The taxi segment has a historically higher gross profit margin compared to public transport although of late, the online ride-hailing app has challenged the former's dominance. 
Although Phase 3 is unlikely to happen today after PM Lee's speech, today's speech will highlight more positives rather than negative news on the COVID-19 development for Singapore and will help to increase higher mobility in Singapore that benefits ComfortDelgro. There will be an increase in group size on phase 3 and capacity limits in public places and events including weddings. Borders will also be slowly reopened that invite more tourists to come to Singapore. 
Although Hong Kong is still juggling with more pandemic cases compared to Singapore, MTR Corp (66 HK) share price has held up far better compared to Comfortdelgro Corp (CD SP) . Thus ComfortDelgro's share price should play a catch-up. 


source: Capital IQ


ComfortDelgro (CD): Re-Discover Singapore

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul class="">
<li>The Politburo of China said it would prevent capital from expanding disorderly.</li>
<li>Tencent (700 HK): WeChat prevents third-party apps from using WeChat freely.</li>
<li>Fourteen ambassadors visited Xiaomi (1810 HK).</li>
</ul>


The Politburo of China said it would prevent capital from expanding disorderly.
Tencent (700 HK): WeChat prevents third-party apps from using WeChat freely.
Fourteen ambassadors visited Xiaomi (1810 HK).


China Internet Weekly (14Dec2020): WeChat Banned Third-Party Apps, Ambassadors Visited Xiaomi

Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<p style="text-align: justify;">The Politburo released meeting statement pledged to strengthen anti-monopoly efforts in 2021 as it seeks to rein in what it called disorderly capital expansion Xinhua reported. In line with this delegates from 23 provincial SAMRs (The State Administration for Market Regulation ) attended an anti-monopoly conference held in Hangzhou, Zhejiang province, on Thursday.The timing of the meeting comes as eyes are turning towards both the financial regulators and the SAMR in the battle to rein in expansion at the major technology companies. The extent of the action the SAMR will take is unclear, but the trajectory of policy is clear: to rein in the lightly regulated expansion of large tech conglomerates.</p>
<p style="text-align: left;">This conference has not garnered a lot of media attention, but we think the follow-up statements or circulars is worthy of investors’ attention. This comes after the release of several guidelines and opinions from various ministries to regulate online sales promotions and livestreaming.</p>
<p style="text-align: left;">The SAMR, STA, and the CAC (Cyberspace Administration of China) also summoned the major internet platforms including <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" rel="noopener">JD.com Inc (ADR) (JD US)</a> , <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" rel="noopener">Meituan (3690 HK)</a> , <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" rel="noopener">Alibaba Group (BABA US)</a> , ByteDance, Didi, Kuaishou, <a href="https://www.smartkarma.com/entities/pinduoduo-inc" target="_blank" rel="noopener">Pinduoduo (PDD US)</a> to a meeting last month to call for greater self-supervision over market abuse.</p>

The Politburo released meeting statement pledged to strengthen anti-monopoly efforts in 2021 as it seeks to rein in what it called disorderly capital expansion Xinhua reported. In line with this delegates from 23 provincial SAMRs (The State Administration for Market Regulation ) attended an anti-monopoly conference held in Hangzhou, Zhejiang province, on Thursday.The timing of the meeting comes as eyes are turning towards both the financial regulators and the SAMR in the battle to rein in expansion at the major technology companies. The extent of the action the SAMR will take is unclear, but the trajectory of policy is clear: to rein in the lightly regulated expansion of large tech conglomerates.
This conference has not garnered a lot of media attention, but we think the follow-up statements or circulars is worthy of investors’ attention. This comes after the release of several guidelines and opinions from various ministries to regulate online sales promotions and livestreaming.
The SAMR, STA, and the CAC (Cyberspace Administration of China) also summoned the major internet platforms including JD.com Inc (ADR) (JD US) , Meituan (3690 HK) , Alibaba Group (BABA US) , ByteDance, Didi, Kuaishou, Pinduoduo (PDD US) to a meeting last month to call for greater self-supervision over market abuse.

Regulators Holds National Symposium To Strengthen Anti-Monopoly Rules

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/xiaomi-corp" target="_blank" data-smartkarma-citation="entities:24409:1" rel="noopener">Xiaomi Corp (1810 HK)</a> and <a href="https://www.smartkarma.com/entities/anta-sports-products-ltd" target="_blank" data-smartkarma-citation="entities:10261:1" rel="noopener">Anta Sports Products (2020 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/china-construction-bank-h" target="_blank" data-smartkarma-citation="entities:45:1" rel="noopener">China Construction Bank H (939 HK)</a>, <a href="https://www.smartkarma.com/entities/sunac-china-holdings-ltd" target="_blank" data-smartkarma-citation="entities:240:1" rel="noopener">Sunac China Holdings (1918 HK)</a> and <a href="https://www.smartkarma.com/entities/hsbc-holdings-plc" target="_blank" data-smartkarma-citation="entities:516:1" rel="noopener">HSBC Holdings (5 HK)</a>. Shorts decreased in most sectors led by Communication Services, Financials, Industrials, Real Estate, Energy and Utilities.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/ana-holdings-inc" target="_blank" data-smartkarma-citation="entities:5308:1" rel="noopener">Ana Holdings (9202 JP)</a>, <a href="https://www.smartkarma.com/entities/suzuki-motor-corp" target="_blank" data-smartkarma-citation="entities:732:1" rel="noopener">Suzuki Motor (7269 JP)</a>, <a href="https://www.smartkarma.com/entities/shionogi-co-ltd" target="_blank" data-smartkarma-citation="entities:19535:1" rel="noopener">Shionogi &amp; Co (4507 JP)</a> and <a href="https://www.smartkarma.com/entities/mitsubishi-ufj-financial-group" target="_blank" data-smartkarma-citation="entities:218:1" rel="noopener">Mitsubishi UFJ Financial (MUFG) (8306 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/fast-retailing-co-ltd" target="_blank" data-smartkarma-citation="entities:751:1" rel="noopener">Fast Retailing (9983 JP)</a>, <a href="https://www.smartkarma.com/entities/tokyo-electron-ltd" target="_blank" data-smartkarma-citation="entities:280:1" rel="noopener">Tokyo Electron (8035 JP)</a>, <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a> and <a href="https://www.smartkarma.com/entities/tdk-corp" target="_blank" data-smartkarma-citation="entities:18847:1" rel="noopener">TDK Corp (6762 JP)</a>. Sectorally, shorts increased on Industrials, Health Care, Financials and Consumer Discretionary names.</p></div><div><p>In Korea, there was large short covering on <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics Co., (207940 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>. </p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/largan-precision-co-ltd" target="_blank" data-smartkarma-citation="entities:9126:1" rel="noopener">Largan Precision (3008 TT)</a>, <a href="https://www.smartkarma.com/entities/united-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:6450:1" rel="noopener">United Microelectronics Corp (2303 TT)</a> and <a href="https://www.smartkarma.com/entities/compeq-manufacturing-co-ltd" target="_blank" data-smartkarma-citation="entities:9306:1" rel="noopener">Compeq Manufacturing (2313 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a>, <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a>, <a href="https://www.smartkarma.com/entities/unimicron-technology-corp" target="_blank" data-smartkarma-citation="entities:18778:1" rel="noopener">Unimicron Technology (3037 TT)</a> and <a href="https://www.smartkarma.com/entities/nanya-technology-corp" target="_blank" data-smartkarma-citation="entities:3269:1" rel="noopener">Nanya Technology (2408 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Ping An Insurance (H) (2318 HK), Meituan (3690 HK), Xiaomi Corp (1810 HK) and Anta Sports Products (2020 HK) while there was short covering on Tencent Holdings (700 HK), China Construction Bank H (939 HK), Sunac China Holdings (1918 HK) and HSBC Holdings (5 HK). Shorts decreased in most sectors led by Communication Services, Financials, Industrials, Real Estate, Energy and Utilities.In Japan, stocks that saw the most shorts were Ana Holdings (9202 JP), Suzuki Motor (7269 JP), Shionogi &amp; Co (4507 JP) and Mitsubishi UFJ Financial (MUFG) (8306 JP) while shorts decreased on Fast Retailing (9983 JP), Tokyo Electron (8035 JP), Canon Inc (7751 JP) and TDK Corp (6762 JP). Sectorally, shorts increased on Industrials, Health Care, Financials and Consumer Discretionary names.In Korea, there was large short covering on Celltrion Inc (068270 KS), Samsung Biologics Co., (207940 KS), Samsung Electronics (005930 KS) and SK Hynix (000660 KS). Stocks in Taiwan that saw the highest increase in shorts were Evergreen Marine Corp (2603 TT), Largan Precision (3008 TT), United Microelectronics Corp (2303 TT) and Compeq Manufacturing (2313 TT) while shorts were covered on TSMC (2330 TT), Winbond Electronics (2344 TT), Unimicron Technology (3037 TT) and Nanya Technology (2408 TT). 

Asia Short Interest: BIG Covering in HK & Korea

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/pop-mart-international-group-limited" target="_blank" data-smartkarma-citation="entities:29016:1" rel="noopener">POP MART (POP HK)</a> raised around US$775m in its Hong Kong IPO. Pop Mart (PM) is the largest and fastest growing pop toy company in China, in terms of 2019 revenue and revenue CAGR over 2017-19. PM had a 8.5% market share by retail value, making it the largest player in the pop toy retailing market.</p></div><div><p>In our previous insights, we spoke about the various aspects of the deal: </p></div><div><ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-the-positives-expanding-portfolio-wider-distribution-explosive-earnings-growth" target="_blank" rel="noopener">Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth,</a> and</li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-the-negatives-is-it-a-brand-owner-or-just-a-retailer" target="_blank" rel="noopener">Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-peer-set-and-valuation" target="_blank" data-smartkarma-citation="insights:41850" rel="noopener">Pop Mart Pre-IPO - Peer Set and Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-quick-note-on-the-ground-pop-up-stores-are-effective" target="_blank" rel="noopener">Pop Mart Pre-IPO Quick Note - On the Ground - Pop-Up Stores Are Effective</a></li>
</ul></div><div><ul style="list-style-type: disc;"><li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-phip-updates-still-riding-on-past-expansion" target="_blank" rel="noopener">Pop Mart Pre-IPO - PHIP Updates - Still Riding on past Expansion</a></li></ul></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/pop-mart-pre-ipo-valuation-updates" target="_blank" rel="noopener">Pop Mart Pre-IPO - Valuation Updates</a></li>
<li><a href="https://www.smartkarma.com/insights/pop-mart-ipo-making-you-pay-well-for-growth" target="_blank" rel="noopener">Pop Mart IPO - Making You Pay Well for Growth</a></li>
</ul></div><p>In this insight, I'll talk about the subscription levels and provide a table with implied valuations.</p>

POP MART (POP HK) raised around US$775m in its Hong Kong IPO. Pop Mart (PM) is the largest and fastest growing pop toy company in China, in terms of 2019 revenue and revenue CAGR over 2017-19. PM had a 8.5% market share by retail value, making it the largest player in the pop toy retailing market.In our previous insights, we spoke about the various aspects of the deal: 

Pop Mart Pre-IPO - The Positives - Expanding Portfolio+Wider Distribution= Explosive Earnings Growth, and
Pop Mart Pre-IPO - The Negatives - Is It a Brand Owner or Just a Retailer?
Pop Mart Pre-IPO - Peer Set and Valuation
Pop Mart Pre-IPO Quick Note - On the Ground - Pop-Up Stores Are Effective
Pop Mart Pre-IPO - PHIP Updates - Still Riding on past Expansion
Pop Mart Pre-IPO - Valuation Updates
Pop Mart IPO - Making You Pay Well for Growth
In this insight, I'll talk about the subscription levels and provide a table with implied valuations.

Pop Mart IPO Trading - Set for a Pop but We Won't Be Chasing

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

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Meituan (3690 HK)

ComfortDelgro (CD): Re-Discover Singapore

Phase 3 is to happen soon and the speech highlighted more positives than negative news on COVID-19 development in SG and help to raise higher...

Henry Soediarko

China Internet Weekly (14Dec2020): WeChat Banned Third-Party Apps, Ambassadors Visited Xiaomi

The Politburo of China said it would prevent capital from expanding disorderly. Tencent WeChat prevents third-part apps from using WeChat freely....

Ming Lu

Regulators Holds National Symposium To Strengthen Anti-Monopoly Rules

It is significant that Politburo and the delegates from 23 provinces and municipality all gathered to discuss the Anti-Monopoly Rules

Li Tang

Asia Short Interest: BIG Covering in HK & Korea

There was a big drop in short interest in Hong Kong and Korea while shorts rose in Japan mainly led by ANA on the back of the offering. Shorts in...

Brian Freitas

Pop Mart IPO Trading - Set for a Pop but We Won't Be Chasing

POP MART raised around US$775m in its Hong Kong IPO. Pop Mart is the largest and fastest growing pop toy company in China, in terms of 2019 revenue...

Sumeet Singh

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52-week Range

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