Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

Anheuser Busch Inbev Sa/Nv / Equity Bottom-Up

<ul>
<li>AB InBev has one of the strongest fundamentals in the sector, but share price performance is still akin to a high-risk cyclical stock.</li>
<li>Lingering capital allocation mistakes still overshadow the company's industry-leading gross margin, which is now in a downtrend.</li>
<li>The overall debt risk has declined, however, AB InBev returns are now more sensitive to macroeconomic factors.</li>
</ul>


AB InBev has one of the strongest fundamentals in the sector, but share price performance is still akin to a high-risk cyclical stock.
Lingering capital allocation mistakes still overshadow the company's industry-leading gross margin, which is now in a downtrend.
The overall debt risk has declined, however, AB InBev returns are now more sensitive to macroeconomic factors.


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

Stable result in Q2 2021 despite the increasing COVID-19 cases in Thailand from nightclubs and concerts prompting the Thai government to extend the ban for nightlife entertainment. The interesting part is that contrary to <a href="https://www.smartkarma.com/entities/berli-jucker-public-co-ltd" target="_blank" data-smartkarma-citation="entities:3685:1" rel="noopener">Berli Jucker (BJC TB)'s </a>observation that the Thais are quite happy to drink and socialize at home versus Vietnamese, who tend to consume outside the home, Sabeco (Saigon Bev Company)'s sales volume actually went up during this period and lifted <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> results, further reiterating that the Thai may be happy to drink at home but the difficult period has dampened their home drinking appetite. Thai Beverage is still trading at a lower valuation to its peak, the current valuation at 17x PER is still higher than 14x forward PER.  The recent Q2 2021 result brought some optimism especially when the management displayed cost savings ability but the spirits and beer outlook remain soft as long as the pandemic is still there.

Stable result in Q2 2021 despite the increasing COVID-19 cases in Thailand from nightclubs and concerts prompting the Thai government to extend the ban for nightlife entertainment. The interesting part is that contrary to Berli Jucker (BJC TB)'s observation that the Thais are quite happy to drink and socialize at home versus Vietnamese, who tend to consume outside the home, Sabeco (Saigon Bev Company)'s sales volume actually went up during this period and lifted Thai Beverage (THBEV SP) results, further reiterating that the Thai may be happy to drink at home but the difficult period has dampened their home drinking appetite. Thai Beverage is still trading at a lower valuation to its peak, the current valuation at 17x PER is still higher than 14x forward PER.  The recent Q2 2021 result brought some optimism especially when the management displayed cost savings ability but the spirits and beer outlook remain soft as long as the pandemic is still there. 

Thai Beverage (THBEV): Weak Quarter Ahead

Alpha-Centric ESG Research

Kyle Rudden

February has seen several very large ESG-linked and sustainability bond issuances, some in double-digits billions of dollars and setting records. Issuers include <a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem (051910 KS)</a>, <a href="https://www.smartkarma.com/entities/anheuser-busch-inbev-sa-nv" target="_blank" data-smartkarma-citation="entities:865:1" rel="noopener">Anheuser Busch Inbev (ABI BB)</a>, and <a href="https://www.smartkarma.com/entities/hennes-mauritz-ab" target="_blank" data-smartkarma-citation="entities:22380:1" rel="noopener">Hennes &amp; Mauritz Ab (HMB SS)</a>.Unlike green bonds, the proceeds from which usually finance one specific project, these deals allow issuers to invest proceeds in multiple areas of sustainability/ESG like renewable energy, recycling, and various Social-pillar initiatives. This has the potential to create a virtuous cycle, as it were.Importantly, a common characteristic of the deals discussed herein is that interest rates are tied to sustainability or ESG performance; if issuers fall short of targets the cost of servicing the debt goes up. Demand has been strong; H&amp;M's was seven times over, and it was able to price at lower rates.More than US$15 billion, just one month into the year.

February has seen several very large ESG-linked and sustainability bond issuances, some in double-digits billions of dollars and setting records. Issuers include LG Chem (051910 KS), Anheuser Busch Inbev (ABI BB), and Hennes &amp; Mauritz Ab (HMB SS).Unlike green bonds, the proceeds from which usually finance one specific project, these deals allow issuers to invest proceeds in multiple areas of sustainability/ESG like renewable energy, recycling, and various Social-pillar initiatives. This has the potential to create a virtuous cycle, as it were.Importantly, a common characteristic of the deals discussed herein is that interest rates are tied to sustainability or ESG performance; if issuers fall short of targets the cost of servicing the debt goes up. Demand has been strong; H&amp;M's was seven times over, and it was able to price at lower rates.More than US$15 billion, just one month into the year.

Recent ESG-Linked and Sustainable Bond Issues Are Breaking Records in Size and Demand

In <a href="https://www.smartkarma.com/insights/delisting-deceitful-chinese-companies-act-not-a-slam-dunk-and-has-more-bark-than-bite-if-it-passes" target="_blank" data-smartkarma-citation="insights:40025" rel="noopener">"Delisting Deceitful Chinese Companies Act" Not a Slam Dunk and Has More Bark Than Bite if It Passes</a>, I made three "predictions." First, the U.S. House of Representatives would not get around to voting on the "delisting act" before the end of the Congressional session. Second, if the House does vote, it would likely pass the bill. Third, if the bill passes, it would have more bark than bite.As a bloke called Meat Loaf once sung, "two out of three ain't bad."On Wednesday, the House voted and passed Senate Bill 945, titled the "Holding Foreign Companies Accountable Act." That the House managed to vote amidst the dual chaos of a raging pandemic and an unhinged President – so close to adjourning this 116th Congress – is a surprise. That it voted to pass S945 is not at all surprising, however, given widespread bi-partisan support for the bill.The real epiphany comes from additional details provided during House testimony just prior to the vote. Not many, but those details that were disclosed (plus the tone in which they were articulated) shed light on how S945 will be implemented and enforced by the SEC, and why foreign issuers and investors should duly-cautious but not overly-concerned. And why this "delisting bill" is ...... more bark than bite.This Insight presents an updated analysis of S945 (general and China/Hong Kong-specific aspects), shares new details provided by Representative Brad Sherman, offers an opinion on the SEC's likely approach to writing and enforcing S945 rules, analyses China/Hong Kong stocks most at risk under S945, and stocks affected by the France/Belgium angle (similar to China/Hong Kong).

In "Delisting Deceitful Chinese Companies Act" Not a Slam Dunk and Has More Bark Than Bite if It Passes, I made three "predictions." First, the U.S. House of Representatives would not get around to voting on the "delisting act" before the end of the Congressional session. Second, if the House does vote, it would likely pass the bill. Third, if the bill passes, it would have more bark than bite.As a bloke called Meat Loaf once sung, "two out of three ain't bad."On Wednesday, the House voted and passed Senate Bill 945, titled the "Holding Foreign Companies Accountable Act." That the House managed to vote amidst the dual chaos of a raging pandemic and an unhinged President – so close to adjourning this 116th Congress – is a surprise. That it voted to pass S945 is not at all surprising, however, given widespread bi-partisan support for the bill.The real epiphany comes from additional details provided during House testimony just prior to the vote. Not many, but those details that were disclosed (plus the tone in which they were articulated) shed light on how S945 will be implemented and enforced by the SEC, and why foreign issuers and investors should duly-cautious but not overly-concerned. And why this "delisting bill" is ...... more bark than bite.This Insight presents an updated analysis of S945 (general and China/Hong Kong-specific aspects), shares new details provided by Representative Brad Sherman, offers an opinion on the SEC's likely approach to writing and enforcing S945 rules, analyses China/Hong Kong stocks most at risk under S945, and stocks affected by the France/Belgium angle (similar to China/Hong Kong).

House Passes "Delisting Act" Giving SEC 90 Days to Write Its Rules (And Yes, More Bark Than Bite)

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

ASA Capital Management

ASA Capital Management is a boutique Research and Investment Advisory firm focusing on primary research in India. ASA provides bespoke research services to Institutional Clients with a focus on due diligence backed with primary research, Field Trips & Channel Checks.

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Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies. 
<div id="annotable-executive_summary-2"></div>
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<div>
<ul>
<li>
<a href="https://www.smartkarma.com/entities/harley-davidson-inc" target="_blank" data-smartkarma-citation="entities:4386:1" rel="noopener">Harley Davidson (HOG US)</a>  is planning to wind up its assembly operations in India, possibly good news for <a href="https://www.smartkarma.com/entities/eicher-motors-ltd" target="_blank" data-smartkarma-citation="entities:18316:1" rel="noopener">Eicher Motors (EIM IN)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a>  &amp; <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a>  - A monumental clash underway?
</li>
<li>
<a href="https://www.smartkarma.com/entities/anheuser-busch-inbev-sa-adr" target="_blank" data-smartkarma-citation="entities:864:1" rel="noopener">Anheuser-Busch InBev (BUD US) </a>attempts arresting down-trading with smaller packs</li>
<li>Homegrown UPI aims to take on <a href="https://www.smartkarma.com/entities/visa-inc-class-a-shares" target="_blank" data-smartkarma-citation="entities:8707:1" rel="noopener">Visa Inc Class A Shares (V US)</a> and <a href="https://www.smartkarma.com/entities/mastercard-inc-class-a" target="_blank" data-smartkarma-citation="entities:15529:1" rel="noopener">Mastercard Inc Class A (MA US)</a> with its international foray</li>
</ul>
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Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private companies. The sub-sectors covered include payment providers, e-commerce retailers,  social media platforms and consumer companies. 





Harley Davidson (HOG US)  is planning to wind up its assembly operations in India, possibly good news for Eicher Motors (EIM IN) 

Reliance Industries (RIL IN)  &amp; Amazon.com Inc (AMZN US)  - A monumental clash underway?


Anheuser-Busch InBev (BUD US) attempts arresting down-trading with smaller packs
Homegrown UPI aims to take on Visa Inc Class A Shares (V US) and Mastercard Inc Class A (MA US) with its international foray



India Internet & Consumer Weekly | Harley Davidson, Reliance, InBEV, Visa

United States

Anheuser-Busch InBev NV brews beer.  The Company manufactures ale, lager, stout, and bitter beer.  Anheuser-Busch InBev owns brands that are both nationally and internationally prominent.  The Company has production plants in Europe, the Americas, and Asia.

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Anheuser-Busch InBev (BUD US)

Anheuser-Busch InBev: Something Is Amiss

AB InBev has one of the strongest fundamentals in the sector, but share price performance is still akin to a high-risk cyclical stock. Lingering...

Vladimir Dimitrov, CFA

Thai Beverage (THBEV): Weak Quarter Ahead

Q2 2021 result brought some optimism especially when the management displayed cost savings ability but the spirits and beer outlook remain soft as...

Henry Soediarko

Recent ESG-Linked and Sustainable Bond Issues Are Breaking Records in Size and Demand

Recently, three record-setting ESG-linked and sustainability-linked bond issues totaling US$15 billion. Three deals, two months into the year, and...

Kyle Rudden

House Passes "Delisting Act" Giving SEC 90 Days to Write Its Rules (And Yes, More Bark Than Bite)

The U.S. House of Representatives passed Senate Bill 945, the "Holding Foreign Companies Accountable Act." New details support the notion that S945...

Kyle Rudden

India Internet & Consumer Weekly | Harley Davidson, Reliance, InBEV, Visa

Our objective with this weekly is to highlight notable developments in the India internet and consumer sector focusing on public and private...

Pranav Bhavsar

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