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

<p><a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> reported results which disappointed the market. See my latest insight for more details <a href="https://www.smartkarma.com/insights/aem-temporary-weakness-creates-buying-opportunity-going-into-new-product-cycle-as-of-3q21" target="_blank" data-smartkarma-citation="insights:51051" rel="noopener">AEM: Temporary Weakness Creates Buying Opportunity Going into New Product Cycle as of 3Q21. </a>As a result the stock is now lower by 1% YTD.</p><p>Over the past week the company has been buying back shares almost every day. Does this signal a bottom?  We looked at similar episodes in 2019 and 2020 and conclude that when the company is aggressively buying it is a pre-cursor of strong share price performance going forward. Unlike some US companies which are perennially buying back their own stock <a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> is very specific in their timing and it usually reflects management sentiment that AEM is undervalued.</p><p>Bottom line: while 2Q21 results might not be glorious we expect strong performance in 2H21 and into 2022. Management was very clear on the call "big" new customer wins by 2022 are very likely. If AEM can prove other big customer wins outside <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a> this would be a game-changer and increase its M&amp;A appeal going forward. Fair Value remains unchanged at 5 SGD (43% upside from 3.5 SGD).</p>

AEM (AEM SP) reported results which disappointed the market. See my latest insight for more details AEM: Temporary Weakness Creates Buying Opportunity Going into New Product Cycle as of 3Q21. As a result the stock is now lower by 1% YTD.Over the past week the company has been buying back shares almost every day. Does this signal a bottom?  We looked at similar episodes in 2019 and 2020 and conclude that when the company is aggressively buying it is a pre-cursor of strong share price performance going forward. Unlike some US companies which are perennially buying back their own stock AEM (AEM SP) is very specific in their timing and it usually reflects management sentiment that AEM is undervalued.Bottom line: while 2Q21 results might not be glorious we expect strong performance in 2H21 and into 2022. Management was very clear on the call "big" new customer wins by 2022 are very likely. If AEM can prove other big customer wins outside Intel Corp (INTC US) this would be a game-changer and increase its M&amp;A appeal going forward. Fair Value remains unchanged at 5 SGD (43% upside from 3.5 SGD).

AEM Holding: Aggressively Buying Their Own Stock; Historically Pre-Cursor to Strong Performance

<p><a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> posted 1Q21 results which were relatively soft YoY. Management noted that 1Q21 was still much stronger than 1Q19 and 1Q20 was an anomaly. AEM also shared annual guidance between 460-520M SGD for 2021. This was the first time management shared guidance for the year. Given AEM's history we believe this guidance is conservative.</p><p>During the call the CEO and CFO were confident that growth would significantly pick up from 3Q21 as its largest customer <a href="https://www.smartkarma.com/entities/intel-corp" target="_blank" data-smartkarma-citation="entities:16764:1" rel="noopener">Intel Corp (INTC US)</a> ramps up requirement for its latest test handlers. Longer term the company is hopeful to announce multiple new significant customer wins by 2022. This has been a multi-year process which could now bear fruits next year and would be an important catalyst for the company. We remain convinced AEM also becomes an M&amp;A target at some point which provides downside support to the stock.</p><p>Nothing in 1Q21 results changes the long-term bull thesis on AEM. Fair Value remains unchanged 5 SGD (40% upside). </p>

AEM (AEM SP) posted 1Q21 results which were relatively soft YoY. Management noted that 1Q21 was still much stronger than 1Q19 and 1Q20 was an anomaly. AEM also shared annual guidance between 460-520M SGD for 2021. This was the first time management shared guidance for the year. Given AEM's history we believe this guidance is conservative.During the call the CEO and CFO were confident that growth would significantly pick up from 3Q21 as its largest customer Intel Corp (INTC US) ramps up requirement for its latest test handlers. Longer term the company is hopeful to announce multiple new significant customer wins by 2022. This has been a multi-year process which could now bear fruits next year and would be an important catalyst for the company. We remain convinced AEM also becomes an M&amp;A target at some point which provides downside support to the stock.Nothing in 1Q21 results changes the long-term bull thesis on AEM. Fair Value remains unchanged 5 SGD (40% upside). 

AEM: Temporary Weakness Creates Buying Opportunity Going into New Product Cycle as of 3Q21

APAC IPOs & Placements

Zhen Zhou, Toh

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.

Equity Capital Markets

<div>
<p><a href="https://www.smartkarma.com/entities/aztech-global" target="_blank" data-smartkarma-citation="entities:32153:1" rel="noopener">Aztech Global (1869224D SP)</a> raised about US$225m in its Singapore IPO.</p>
</div>
<div>
<p>Aztech Global (Aztech) is a manufacturing company that offers Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), Joint Development Manufacturing (JDM), and Contract Manufacturing Service (CMS) services to businesses. The company’s key products are Internet of Things (IoT) devices and data-communications products, LED lighting products, and other electrical products.</p>
</div>
<div>
<p>In this note, we will discuss past Singapore IPO performance and update the peer valuation table.</p>
</div>
<div>
<ul style="list-style-type: disc;">
<li>
<a href="https://www.smartkarma.com/insights/aztech-ipo-a-lucky-break-marred-by-checkered-past" target="_blank" data-smartkarma-citation="insights:48616" rel="noopener">Aztech IPO - A Lucky Break Marred by Checkered Past</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/aztech-ipo-undemanding-valuation" target="_blank" data-smartkarma-citation="insights:48696" rel="noopener">Aztech IPO - Undemanding Valuation</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/aztech-ipo-notes-from-analyst-briefing" target="_blank" data-smartkarma-citation="insights:48925" rel="noopener">Aztech IPO - Notes from Analyst Briefing</a> </li>
</ul>
</div>


Aztech Global (1869224D SP) raised about US$225m in its Singapore IPO.


Aztech Global (Aztech) is a manufacturing company that offers Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), Joint Development Manufacturing (JDM), and Contract Manufacturing Service (CMS) services to businesses. The company’s key products are Internet of Things (IoT) devices and data-communications products, LED lighting products, and other electrical products.


In this note, we will discuss past Singapore IPO performance and update the peer valuation table.




Aztech IPO - A Lucky Break Marred by Checkered Past 

Aztech IPO - Undemanding Valuation 

Aztech IPO - Notes from Analyst Briefing 



Aztech IPO Trading - Heading for a Modest Debut

<div><p><a href="https://www.smartkarma.com/entities/aztech-global" target="_blank" data-smartkarma-citation="entities:32153:1" rel="noopener">Aztech Global (1869224D SP)</a>  is looking to raise about US$225m in its Singapore IPO.</p></div><div><p>Aztech Global (Aztech) is a manufacturing company that offers Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), Joint Development Manufacturing (JDM), and Contract Manufacturing Service (CMS) services to businesses. The company’s key products are Internet of Things (IoT) devices and data-communications products, LED lighting products, and other electrical products.</p></div><div>
<p>In this note, we will discuss forecast and assumptions and share our thoughts on valuation.</p>
<ul><li>
<a href="https://www.smartkarma.com/insights/aztech-ipo-a-lucky-break-marred-by-checkered-past" target="_blank" data-smartkarma-citation="insights:48616" rel="noopener">Aztech IPO - A Lucky Break Marred by Checkered Past</a> </li></ul>
</div>

Aztech Global (1869224D SP)  is looking to raise about US$225m in its Singapore IPO.Aztech Global (Aztech) is a manufacturing company that offers Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), Joint Development Manufacturing (JDM), and Contract Manufacturing Service (CMS) services to businesses. The company’s key products are Internet of Things (IoT) devices and data-communications products, LED lighting products, and other electrical products.
In this note, we will discuss forecast and assumptions and share our thoughts on valuation.

Aztech IPO - A Lucky Break Marred by Checkered Past 


Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<p>On 11th January 2021, Singapore-based electronic components manufacturer <a href="https://www.smartkarma.com/entities/cei-limited" target="_blank" data-smartkarma-citation="entities:16816:1" rel="noopener">CEI Limited (CEI SP)</a> received a <a href="https://links.sgx.com/FileOpen/Pre-Conditional%20Offer%20Announcement.ashx?App=Announcement&amp;FileID=644825" target="_blank" rel="noopener">Pre-conditional Voluntary Offer</a> from a wholly-owned subsidiary of <a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM Holdings (AEM SP)</a> valuing the company at S$100mn.</p><p>The making of the Offer was subject to the satisfaction of the pre-condition which required approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. </p><p>Today, AEM <a href="https://links.sgx.com/FileOpen/AEM%20Holdings%20-%20AIP%20Announcement%2015%20Feb%202021.ashx?App=Announcement&amp;FileID=648282" target="_blank" rel="noopener">confirmed</a> that the pre-condition has been satisfied. </p><div><p>Below is a look at what this means to the Deal Timeline and how the various cash and scrip alternatives compare against each other. </p></div><p></p><hr><div><div><div class="content-remarks"><p>For more information about M&amp;A rules, regulations, and practices in Singapore, please refer to <a href="https://www.smartkarma.com/insights/quiddity-singapore-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:28849" rel="noopener">Quiddity Singapore M&amp;A Guide 2019</a> </p></div></div></div>

On 11th January 2021, Singapore-based electronic components manufacturer CEI Limited (CEI SP) received a Pre-conditional Voluntary Offer from a wholly-owned subsidiary of AEM Holdings (AEM SP) valuing the company at S$100mn.The making of the Offer was subject to the satisfaction of the pre-condition which required approval-in-principle of the SGX-ST for the listing and quotation of the New AEM Holdings Shares. Today, AEM confirmed that the pre-condition has been satisfied. Below is a look at what this means to the Deal Timeline and how the various cash and scrip alternatives compare against each other. For more information about M&amp;A rules, regulations, and practices in Singapore, please refer to Quiddity Singapore M&amp;A Guide 2019 

AEM's Privatization Deal for CEI Limited (CEI SP): Pre-Condition Satisfied

Singapore

AEM is a global leader in providing customized, application-specific test and handling solutions for the semiconductor and electronics industries. The company's offerings, including handlers and test inserts, are crucial for ensuring the quality and reliability of advanced chips used in AI and high-performance computing. AEM was established in 1990 and is headquartered in Singapore.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

AEM (AEM SP)

AEM Holding: Aggressively Buying Their Own Stock; Historically Pre-Cursor to Strong Performance

AEM Holdings has been aggressively buying back stock in the last week. History teaches us this is a pre-cursor to strong share price performance...

Nicolas Van Broekhoven

AEM: Temporary Weakness Creates Buying Opportunity Going into New Product Cycle as of 3Q21

AEM had a weaker quarter but it is very confident that a new growth cycle will start in 3Q21 well into 2022. New customer wins in 2022 could start...

Nicolas Van Broekhoven

Aztech IPO Trading - Heading for a Modest Debut

Aztech Global (1869224D SP) is looking to raise about US$225m in its Singapore IPO. In this note, we will discuss past Singapore IPO performance...

Zhen Zhou, Toh

Aztech IPO - Undemanding Valuation

Aztech Global (1869224D SP) is looking to raise about US$225m in its Singapore IPO. In this note, we will discuss forecast and assumptions and...

Zhen Zhou, Toh

AEM's Privatization Deal for CEI Limited (CEI SP): Pre-Condition Satisfied

CEI AEM deal pre-condition satisfied. Now it is only the minimum acceptance condition of 50%. This deal should complete as-is and with the 70/30...

Janaghan Jeyakumar, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)