Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Distributor and exporter of processed frozen seafood <a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" data-smartkarma-citation="entities:19827:1" rel="noopener">Asian Sea Corp (ASIAN TB)</a> (ASC) has <a href="https://www.set.or.th/set/pdfnews.do?newsId=16341685899620&amp;sequence=0" target="_blank" rel="noopener">announced</a> it intends to spin-off and separately list Asian Alliance International (AAI), a manufacturer of tuna products and pet food.
AAI is currently a wholly-owned subsidiary of ASC. The goal is to issue new shares accounting for 20% of AAI on a fully diluted basis, and for ASC to place out shares totaling 10% on a fully-diluted basis. ASC's effective interest would therefore decline to 70% with 30% in public hands. Pre-emptive rights for existing ASC shareholders will also be afforded, up to 20% of the IPO.
In the 1H21, AAI accounted for 53%, 61%, &amp; 55% of ASC's revenue, net profit &amp; net assets, and has effectively been the group's growth driver in recent years.
At Bt16.30/share ASC's share price is 25% adrift of its all-time high in early August, but still 880% up from its Covid low in March last year.
With an expected implementation of the spin-off in the 4Q22, has the market over-corrected recently?
More below the fold.

Distributor and exporter of processed frozen seafood Asian Sea Corp (ASIAN TB) (ASC) has announced it intends to spin-off and separately list Asian Alliance International (AAI), a manufacturer of tuna products and pet food.
AAI is currently a wholly-owned subsidiary of ASC. The goal is to issue new shares accounting for 20% of AAI on a fully diluted basis, and for ASC to place out shares totaling 10% on a fully-diluted basis. ASC's effective interest would therefore decline to 70% with 30% in public hands. Pre-emptive rights for existing ASC shareholders will also be afforded, up to 20% of the IPO.
In the 1H21, AAI accounted for 53%, 61%, &amp; 55% of ASC's revenue, net profit &amp; net assets, and has effectively been the group's growth driver in recent years.
At Bt16.30/share ASC's share price is 25% adrift of its all-time high in early August, but still 880% up from its Covid low in March last year.
With an expected implementation of the spin-off in the 4Q22, has the market over-corrected recently?
More below the fold.

Towards A New Holdco As Asian Sea (ASIAN TB) Spins Off Pet Food Sub

Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

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.

<a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" data-smartkarma-citation="entities:19827:1" rel="noopener">Asian Sea (ASIAN TB)</a> announced its plans to list the pet food business currently held in the 100% subsidiary Asian Alliance International (AAI), subject to regulatory approvals.  Asian Sea will hold a majority stake (not less than 70%) in the spun-off subsidiary post listing. This could potentially help unlock value for Asian Sea assuming the high growth pet food subsidiary could attract greater investor interest and superior valuation, post listing. Currently <a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" data-smartkarma-citation="entities:19827:1" rel="noopener">Asian Sea (ASIAN TB)</a>  trades at low double digit P/E in line with other Thailand based sea food processing companies.In this insight, we discuss likely value upside to <a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" data-smartkarma-citation="entities:19827:1" rel="noopener">Asian Sea (ASIAN TB)</a>  based on Asian Alliance's possible valuations upon listing (based on its reported financials).

Asian Sea (ASIAN TB) announced its plans to list the pet food business currently held in the 100% subsidiary Asian Alliance International (AAI), subject to regulatory approvals.  Asian Sea will hold a majority stake (not less than 70%) in the spun-off subsidiary post listing. This could potentially help unlock value for Asian Sea assuming the high growth pet food subsidiary could attract greater investor interest and superior valuation, post listing. Currently Asian Sea (ASIAN TB)  trades at low double digit P/E in line with other Thailand based sea food processing companies.In this insight, we discuss likely value upside to Asian Sea (ASIAN TB)  based on Asian Alliance's possible valuations upon listing (based on its reported financials).

Asian Sea Corp (ASIAN TB): Spin-Off Listing of Pet Food Likely Intended to Unlock Value.

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.

<a href="https://www.smartkarma.com/entities/cp-pokphand-co-ltd" target="_blank" data-smartkarma-citation="entities:10135:1" rel="noopener">Cp Pokphand (43 HK)</a> (CPP) is a leading agri-food conglomerate in China and Vietnam. After market close on Thursday, it announced a privatisation offer by way of a scheme of arrangement from <a href="https://www.smartkarma.com/entities/charoen-pokphand-foods-public-company-limited" target="_blank" data-smartkarma-citation="entities:16131:1" rel="noopener">CP FOODS (CPF TB)</a>, the largest shareholder (49.74% of the outstanding shares). The offeror will offer HK$1.15 in cash for each scheme share. The bid represents a premium of 19.79% over the closing price of HK$0.96 per share on the last trading date (24 September prior to the trading halt). For good measure, CPP also released a statement outlining a profit warning. CPP noted that the net profit would decline -75% YoY in 8M21, which marks a deterioration to the net profit decline of -50% YoY in 1H21. The profit warning was attributed mainly to a poor performance in China caused by lower poultry and swine prices. CPP notes that poultry and swine prices in China and swine prices in Vietnam will have fallen further in September. <div class="content-highlight">The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. As disinterested scheme shareholders represent 5,958.8 million shares or 24.75% of shares outstanding, the 10% blocking stake is 595.9 million shares or 2.48% of shares outstanding. No shareholder holds a blocking stake. Overall, we think the offer price is attractive and that the privatisation bid will be successful. </div>

Cp Pokphand (43 HK) (CPP) is a leading agri-food conglomerate in China and Vietnam. After market close on Thursday, it announced a privatisation offer by way of a scheme of arrangement from CP FOODS (CPF TB), the largest shareholder (49.74% of the outstanding shares). The offeror will offer HK$1.15 in cash for each scheme share. The bid represents a premium of 19.79% over the closing price of HK$0.96 per share on the last trading date (24 September prior to the trading halt). For good measure, CPP also released a statement outlining a profit warning. CPP noted that the net profit would decline -75% YoY in 8M21, which marks a deterioration to the net profit decline of -50% YoY in 1H21. The profit warning was attributed mainly to a poor performance in China caused by lower poultry and swine prices. CPP notes that poultry and swine prices in China and swine prices in Vietnam will have fallen further in September. The key condition precedents are the headcount test along with the scheme approved by at least 75% disinterested shareholders and &lt;10% rejection by all disinterested shareholders. As disinterested scheme shareholders represent 5,958.8 million shares or 24.75% of shares outstanding, the 10% blocking stake is 595.9 million shares or 2.48% of shares outstanding. No shareholder holds a blocking stake. Overall, we think the offer price is attractive and that the privatisation bid will be successful. 

C.P. Pokphand’s Privatisation Bid from CPF

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" data-smartkarma-citation="entities:19827:1" rel="noopener">Asian Sea Corporation Public Company Limited (ASIAN TB)</a> has delivered a stock return of nearly 140% over the past year as the company's strategy to expand its presence in high growth pet foods and high margin value-added frozen food products business paid off handsomely in terms of margins and profitability. Is there room for more? In this insight, we discuss stock's valuation and rerating potential as well as the company's segment-wise revenue and earnings growth outlook given the significant shift in its product mix since 2020. Asian Sea's management had discussed the company's business outlook/ growth plans during a Smartkarma webinar last month.Key stock upside triggers - earnings and valuation expansion potential. Asian Sea Corp's ongoing growth momentum led by its pet food and Ready-to-Cook/Eat food business could propel the stock from a small-cap play to mid-cap stock, attracting attention from a wider investor base when the stock's market capitalization crosses USD 500 mn.

Asian Sea Corporation Public Company Limited (ASIAN TB) has delivered a stock return of nearly 140% over the past year as the company's strategy to expand its presence in high growth pet foods and high margin value-added frozen food products business paid off handsomely in terms of margins and profitability. Is there room for more? In this insight, we discuss stock's valuation and rerating potential as well as the company's segment-wise revenue and earnings growth outlook given the significant shift in its product mix since 2020. Asian Sea's management had discussed the company's business outlook/ growth plans during a Smartkarma webinar last month.Key stock upside triggers - earnings and valuation expansion potential. Asian Sea Corp's ongoing growth momentum led by its pet food and Ready-to-Cook/Eat food business could propel the stock from a small-cap play to mid-cap stock, attracting attention from a wider investor base when the stock's market capitalization crosses USD 500 mn. 

Asian Sea Corp(ASIAN TB): Riding on Booming Pet Care Sector. Upside Potential

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

For our next Corporate Webinar, we are glad to welcome the CFO of <a href="https://www.smartkarma.com/entities/asian-sea-corp-pcl" target="_blank" data-smartkarma-citation="entities:19827:1" rel="noopener">Asian Sea (ASIAN TB)</a>, Akamon Prasoppolsujarit, and the CFO of Asian Alliance International, Varanratch Assanupong.
Asian Sea has been in the food manufacturing industry for over 40 years and distributes to customers around the world. Asian Sea continuously expanded and developed from a family-owned business to a listed company on the Stock Exchange of Thailand (SET) using the symbol “ASIAN”. ASIAN currently has four segments - Frozen Food, Pet Food, Tuna, and Aquaculture Feed.
In this upcoming webinar, Akamon and Varanratch will share a short company presentation, after which they will engage in a fireside chat with Smartkarma Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener">Angus Mackintosh</a>. This will be followed by a live Q&amp;A session.
<h3>The Corporate Webinar will be hosted on Tuesday, 24 August 2021, 17:00 SGT</h3>
<div class="content-highlight">
<h2><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=89182265893" target="_blank" rel="noopener">Register for the Webinar here</a></h2>
</div>
Corporate Webinars by <a href="https://www.smartkarma.com/home/corporate-solutions/" target="_blank" rel="noopener">Smartkarma Corporate Solutions</a> feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

For our next Corporate Webinar, we are glad to welcome the CFO of Asian Sea (ASIAN TB), Akamon Prasoppolsujarit, and the CFO of Asian Alliance International, Varanratch Assanupong.
Asian Sea has been in the food manufacturing industry for over 40 years and distributes to customers around the world. Asian Sea continuously expanded and developed from a family-owned business to a listed company on the Stock Exchange of Thailand (SET) using the symbol “ASIAN”. ASIAN currently has four segments - Frozen Food, Pet Food, Tuna, and Aquaculture Feed.
In this upcoming webinar, Akamon and Varanratch will share a short company presentation, after which they will engage in a fireside chat with Smartkarma Insight Provider Angus Mackintosh. This will be followed by a live Q&amp;A session.
The Corporate Webinar will be hosted on Tuesday, 24 August 2021, 17:00 SGT

Register for the Webinar here

Corporate Webinars by Smartkarma Corporate Solutions feature discussions with IROs and Executives, discussing their companies, the challenges they face, and the opportunities in their sectors and markets.

Smartkarma Corporate Webinar | Asian Sea: Pet Food and Frozen Sustainable Growth Drivers

Thailand

Asian Sea Corporation Public Company Limited manufactures, distributes, and exports processed frozen seafood and pet food, serving customers globally. The company offers a range of products including frozen shrimp, fish, and various wet and dry pet food products. It also provides cold storage services. Headquartered in Samut Sakhon, Thailand, the company was founded in 1964.

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Asian Sea (ASIAN TB)

Towards A New Holdco As Asian Sea (ASIAN TB) Spins Off Pet Food Sub

Assuming a typical holding company discount of ~25%, I see little upside here. With a long-dated spin-off, I would expect shares to drift in the...

David Blennerhassett

Asian Sea Corp (ASIAN TB): Spin-Off Listing of Pet Food Likely Intended to Unlock Value.

Discuss valuations and potential upside from proposed spin-off listing of Asian Sea's Pet food subsidiary. Likely catalyst for stock's valuation...

Devi Subhakesan

C.P. Pokphand’s Privatisation Bid from CPF

CPP announced a privatisation offer from CPF at HK$1.15 cash for each scheme share. Overall, we think the offer price is attractive and that the...

Arun George

Asian Sea Corp(ASIAN TB): Riding on Booming Pet Care Sector. Upside Potential

Potential for stock upside and triggers for the same given company's changed product profile and earnings growth outlook

Devi Subhakesan

Smartkarma Corporate Webinar | Asian Sea: Pet Food and Frozen Sustainable Growth Drivers

On 24 August, 5pm SGT, join us for a Corporate Webinar featuring the CFO of Asian Sea, Akamon Prasoppolsujarit, and the CFO of Asian Alliance...

Smartkarma Research

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