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.

Event-Driven

<p><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). </p><p>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. </p><div class="content-highlight"><p>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. </p></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 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.

Equity Bottom-Up

<p><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?</p><p><strong> In this insight,</strong> 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 <strong>Smartkarma webinar</strong> last month.</p><p><strong>Key stock upside triggers - earnings and valuation expansion potential.</strong> 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. </p>

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

<p>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.</p>
<p>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.</p>
<p>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.</p>
<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>
<p>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.</p>

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

Thai Equity - Bottom-up - Equities, Pi Securities PCL, Thailand

Pi Research

Thai Equity - Bottom-up - Equities

Leading, full-service investment firm in Thailand

Pi Securities PCL, Thailand

Pi Securities is a well known securities company with 40 years experience in the industry, serving more than 60,000 clients. We offer one - stop service providing full range of financial products and services including extensive Brokerage, Proprietary Trading (Equities and Bonds), Advisory Services, Structured Products.

Moreover, our new research team tailored for institutional clients to focus on mid to small cap of Thai equities and trading strategies. Our services offered to our premium clients also include arrangement of company or site visits to with the managements of Thai listed companies.

Note: Effective on 1 March 2022, Country Group Securities PCL changed its name to Pi Securities

<p><strong>We reiterate our BUY recommendation with a new target price at Bt22.0 (from Bt20.0), based on 16.5xPE’21 which is equal +1SD to its 5 year average.</strong></p><div>• ASIAN reported 2Q21 net profit at Bt293m (-2%YoY, +37%QoQ), driven by growth in pet food and frozen businesses together with margin expansion from baht depreciation.</div><div></div><div>• We expect 2H21 earnings to continue growing HoH on the back of i) strong demand in pet food OEM and value added frozen food, ii) gradual growth in its own brand pet food, Monchou and Hajiko, iii) recovery in China dry pet food sales and iv) capacity expansion in pet and frozen food.</div><div></div><div>• We revise earnings in 2021-23E up by 30%.</div>

We reiterate our BUY recommendation with a new target price at Bt22.0 (from Bt20.0), based on 16.5xPE’21 which is equal +1SD to its 5 year average.• ASIAN reported 2Q21 net profit at Bt293m (-2%YoY, +37%QoQ), driven by growth in pet food and frozen businesses together with margin expansion from baht depreciation.• We expect 2H21 earnings to continue growing HoH on the back of i) strong demand in pet food OEM and value added frozen food, ii) gradual growth in its own brand pet food, Monchou and Hajiko, iii) recovery in China dry pet food sales and iv) capacity expansion in pet and frozen food.• We revise earnings in 2021-23E up by 30%.

ASIAN: Strong Profit in 2Q21 Will Continue in 3Q21

<p><strong>Analyst meeting came out with positive tone. Demand in pet food and value added frozen products remains strong in 2Q21. Own brand pet food grows progressively. New capacity will come in by 2H21 and 1Q22.</strong></p><div>• ASIAN reported 1Q21 net profit at Bt215m (+105%YoY, +2%QoQ), supported by growth in pet food and frozen business transformation toward high margin product.</div><div>• We have a positive view on 2Q21 from growing pet food sales, strong demand in value added frozen food, seasonality in commodity frozen food and recovery in China dry pet food sales.</div><div>• We revise earnings in 2021-23E up by 14%.</div><div>
<br>
</div><p><strong>We reiterate our BUY recommendation with a new target price at Bt20.0 (from Bt18.0), based on 16.5xPE’21 (from 13.5xPE’21E) which is equal +1SD to its 5 year average, to reflect a strong earnings momentum in 2Q21-2022 and transformation to higher margin business.</strong></p>

Analyst meeting came out with positive tone. Demand in pet food and value added frozen products remains strong in 2Q21. Own brand pet food grows progressively. New capacity will come in by 2H21 and 1Q22.• ASIAN reported 1Q21 net profit at Bt215m (+105%YoY, +2%QoQ), supported by growth in pet food and frozen business transformation toward high margin product.• We have a positive view on 2Q21 from growing pet food sales, strong demand in value added frozen food, seasonality in commodity frozen food and recovery in China dry pet food sales.• We revise earnings in 2021-23E up by 14%.
 
We reiterate our BUY recommendation with a new target price at Bt20.0 (from Bt18.0), based on 16.5xPE’21 (from 13.5xPE’21E) which is equal +1SD to its 5 year average, to reflect a strong earnings momentum in 2Q21-2022 and transformation to higher margin business.

ASIAN: Bright Outlook in 2Q21 in All Businesses

Thailand

Asian Sea Corporation Public Company Limited processes and exports frozen seafood and Pet Food. The Company offers frozen shrimp, canned tuna, breaded sillago fish fillet, and pet foods in canes and pouches. Asian Sea serves customers worldwide.

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Asian Sea (ASIAN TB)

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

ASIAN: Strong Profit in 2Q21 Will Continue in 3Q21

We reiterate our BUY recommendation with a new target price at Bt22.0 (from Bt20.0), based on 16.5xPE’21 which is equal +1SD to its 5 year average.

Pi Securities PCL, Thailand

ASIAN: Bright Outlook in 2Q21 in All Businesses

Analyst meeting came out with positive tone. Demand in pet food and value added frozen products remains strong in 2Q21. Own brand pet food grows...

Pi Securities PCL, Thailand

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