IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

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<li>
<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>’s BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion (vs US$2 billion previously), according to press reports. </li>
<li>In 1HFY2022, the group revenue returned to growth due to Vietnam. The easing of restrictions in Thailand should boost volumes in 2HFY2022.  </li>
<li>Creditably despite rising raw material costs, the margins remained steady helped by forward buying contracts. However, the unwinding of the forward contracts will likely lead to margin pressures in FY2023.</li>
</ul>



Thai Beverage (THBEV SP)’s BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion (vs US$2 billion previously), according to press reports. 
In 1HFY2022, the group revenue returned to growth due to Vietnam. The easing of restrictions in Thailand should boost volumes in 2HFY2022.  
Creditably despite rising raw material costs, the margins remained steady helped by forward buying contracts. However, the unwinding of the forward contracts will likely lead to margin pressures in FY2023.


ThaiBev’s BeerCo IPO: Third Time’s the Charm?

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.


Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Thematic (Sector/Industry)

Allocations in Consumer Staples stocks are at decade-long lows.  Average fund weights among active Global managers stand at 7.65% following an aggressive slump after the onset of COVID-19 in early 2020.The spread between Consumer Discretionary weights and Consumer Staples weights in active Global portfolios is close to it's all-time wides, but is turning lower after peaking in April this this year.What stands out in our data is the cutting back of Consumer Staples allocations by Growth investors, with a number of high profile stocks cut from Aggressive Growth portfolios since last 2019 (<a href="https://www.smartkarma.com/entities/reckitt-benckiser-group-plc" target="_blank" data-smartkarma-citation="entities:22105:1" rel="noopener">Reckitt Benckiser (RB/ LN)</a>, <a href="https://www.smartkarma.com/entities/colgate-palmolive-co" target="_blank" data-smartkarma-citation="entities:15093:1" rel="noopener">Colgate Palmolive Co (CL US),</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 Sa/Nv (ABI BB)</a> )For the Consumer Staples sector to see a turnaround, perhaps growth, or at least the perception of growth needs to return for these investors.

Allocations in Consumer Staples stocks are at decade-long lows.  Average fund weights among active Global managers stand at 7.65% following an aggressive slump after the onset of COVID-19 in early 2020.The spread between Consumer Discretionary weights and Consumer Staples weights in active Global portfolios is close to it's all-time wides, but is turning lower after peaking in April this this year.What stands out in our data is the cutting back of Consumer Staples allocations by Growth investors, with a number of high profile stocks cut from Aggressive Growth portfolios since last 2019 (Reckitt Benckiser (RB/ LN), Colgate Palmolive Co (CL US),Anheuser Busch Inbev Sa/Nv (ABI BB) )For the Consumer Staples sector to see a turnaround, perhaps growth, or at least the perception of growth needs to return for these investors.

Global Consumer Staples: Allocations at Rock Bottom as Growth Investors Flee

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

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.

Tsingtao Brewery Co Ltd H / Equity Capital Markets

<div><a href="https://www.smartkarma.com/entities/fosun-international-ltd" target="_blank" data-smartkarma-citation="entities:433:1" rel="noopener">Fosun International (656 HK)</a> aims to raise around US$300m via selling 1.8% of <a href="https://www.smartkarma.com/entities/tsingtao-brewery-co-ltd-h" target="_blank" data-smartkarma-citation="entities:1296:1" rel="noopener">Tsingtao Brewery Co Ltd H (168 HK)</a>.</div><div>
This is not the first selldown by Fosun, we covered the Dec 2020 selldown in <a href="https://www.smartkarma.com/insights/tsingtao-brewery-placement-friday-evening-is-always-a-good-time-for-a-beer-maybe-not-this-one" target="_blank" rel="noopener">Tsingtao Brewery Placement - Friday Evening Is Always a Good Time for a Beer, Maybe Not This One.</a>
This will be the third selldown by Fosun in a little over six months, therefore, its hard to say that it will come as a surprise to the market.
</div>

Fosun International (656 HK) aims to raise around US$300m via selling 1.8% of Tsingtao Brewery Co Ltd H (168 HK).
This is not the first selldown by Fosun, we covered the Dec 2020 selldown in Tsingtao Brewery Placement - Friday Evening Is Always a Good Time for a Beer, Maybe Not This One.
This will be the third selldown by Fosun in a little over six months, therefore, its hard to say that it will come as a surprise to the market.


Tsingtao Brewery Placement - Fosun Is Back Again, Settling into a Pattern

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

Belgium

Anheuser-Busch InBev SA/NV manufactures alcoholic beverages. The Company produces and distributes beers. Anheuser-Busch InBev serves customers worldwide.

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Anheuser Busch Inbev Sa/Nv (ABI BB)

ThaiBev’s BeerCo IPO: Third Time’s the Charm?

BeerCo is once again pre-marketing an SGX IPO to raise US$0.8-1.0 billion. In this note, we look at the latest set of results and highlight the key...

Arun George

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

Global Consumer Staples: Allocations at Rock Bottom as Growth Investors Flee

Allocations in Consumer Staples stocks are at decade-long lows. Average fund weights among active Global managers stand at 7.65% following an...

Steven Holden

Tsingtao Brewery Placement - Fosun Is Back Again, Settling into a Pattern

Fosun International (656 HK) aims to raise around US$300m via selling 1.8% of Tsingtao Brewery Co Ltd H (168 HK). This is not the first selldown by...

Sumeet Singh

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

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