Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" data-smartkarma-citation="entities:32188:1" rel="noopener">Monde Nissin Corp (0191881D PM)</a>, the market leader in instant noodles, biscuits, oyster sauce and drinking yogurt in Philippines, filled for an IPO on The Philippine Stock Exchange on 2<sup>nd</sup> March 2021. The company will issue 3.6bn new shares at an offer price of ₱17.50 per share to raise to raise about ₱63.0bn ($1.3bn), making Monde Nissin the largest ever listing on The Philippine Stock Exchange.</li>
<li>The company has two business lines, The APAC Food &amp; Beverages segment, which sells the market leading instant noodle brand Lucky Me!, biscuits brands, SkyFlakes, Fita, Nissin, M.Y. San Grahams, the drinking yogurt brand Dutch Mill and the oyster sauce brand Mama Sita’s, had stable revenue and OP growth over the years.</li>
<li>However, the hidden gem is the relatively small alternative meat business, that competes with the likes <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a>, <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc (1249597D US)</a> and other major alternative meat companies.</li>
<li>Our early thoughts on the Monde Nissin IPO is mostly positive as the company provides a discounted way into the high growth meat alternatives market.</li>
</ul>



Monde Nissin Corp (0191881D PM), the market leader in instant noodles, biscuits, oyster sauce and drinking yogurt in Philippines, filled for an IPO on The Philippine Stock Exchange on 2nd March 2021. The company will issue 3.6bn new shares at an offer price of ₱17.50 per share to raise to raise about ₱63.0bn ($1.3bn), making Monde Nissin the largest ever listing on The Philippine Stock Exchange.
The company has two business lines, The APAC Food &amp; Beverages segment, which sells the market leading instant noodle brand Lucky Me!, biscuits brands, SkyFlakes, Fita, Nissin, M.Y. San Grahams, the drinking yogurt brand Dutch Mill and the oyster sauce brand Mama Sita’s, had stable revenue and OP growth over the years.
However, the hidden gem is the relatively small alternative meat business, that competes with the likes Beyond Meat (BYND US), Impossible Foods Inc (1249597D US) and other major alternative meat companies.
Our early thoughts on the Monde Nissin IPO is mostly positive as the company provides a discounted way into the high growth meat alternatives market.


Monde Nissin IPO: A Discounted Way Into Fast Growing Alternative Meat

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>In this report on <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a>, we discuss (1) potential near term positive stock and sector news flow (2) Beyond's strategic tie-ups with <a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> and <a href="https://www.smartkarma.com/entities/yum-brands-inc" target="_blank" data-smartkarma-citation="entities:984:1" rel="noopener">Yum! Brands Inc (YUM US)</a> (3) company's 4Q2020 results and its near and long term operational outlook (4)  and our investment view on the stock.</p><p>During the investor call held yesterday, Beyond's management reiterated their focus on investing for the long term both in terms of improving the product and in expanding capacity despite near term business weakness. Without giving operational details of their preferred supplier relation with Mcdonalds and Yum, Ethan Brown described the deals as 'enormous'; the impact on sales will be meaningful only from 2022.</p>

In this report on Beyond Meat (BYND US), we discuss (1) potential near term positive stock and sector news flow (2) Beyond's strategic tie-ups with Mcdonald's Corp (MCD US) and Yum! Brands Inc (YUM US) (3) company's 4Q2020 results and its near and long term operational outlook (4)  and our investment view on the stock.During the investor call held yesterday, Beyond's management reiterated their focus on investing for the long term both in terms of improving the product and in expanding capacity despite near term business weakness. Without giving operational details of their preferred supplier relation with Mcdonalds and Yum, Ethan Brown described the deals as 'enormous'; the impact on sales will be meaningful only from 2022.

Beyond Meat: Season of News Flow Positives and Quarterly Negatives

<p><a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> share price dropped nearly 7% on news reports that Impossible Foods would cut the prices of its patties by 20% at grocery stores in the US as they ramp up production. It had earlier announced a 30% price cut in the International markets - Canada, Singapore, and Hong Kong. In an unrelated event, Bloomberg <a href="https://www.bloomberg.com/news/articles/2021-02-01/mcdonald-s-quietly-rolls-out-mcplant-burger-in-test-markets?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link&amp;sref=SVEekGzB" target="_blank" rel="noopener">reported</a> that <a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> has begun selling the McPlant burger in Denmark and Sweden on a trial basis; the report added that McPlant, which McDonald’s reportedly co-developed with Beyond Meat is made from pea-based protein, according to McDonald’s <a href="https://www.mcdonalds.com/dk/da-dk/product/mcplant.html#collapseOne" target="_blank" rel="noopener">Danish</a> and Swedish websites. </p>
<p>Beyond Meat has not provided any details of its collaboration with <a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> in Europe. However, we see this as a notable positive given it highlights (1) the expanding market demand for plant-based products and (2) <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)'s</a> competitive advantage over <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc</a> in international markets given its different input profile. In the note below we discuss our detailed view on these reported developments.</p>

Beyond Meat (BYND US) share price dropped nearly 7% on news reports that Impossible Foods would cut the prices of its patties by 20% at grocery stores in the US as they ramp up production. It had earlier announced a 30% price cut in the International markets - Canada, Singapore, and Hong Kong. In an unrelated event, Bloomberg reported that Mcdonald's Corp (MCD US) has begun selling the McPlant burger in Denmark and Sweden on a trial basis; the report added that McPlant, which McDonald’s reportedly co-developed with Beyond Meat is made from pea-based protein, according to McDonald’s Danish and Swedish websites. 
Beyond Meat has not provided any details of its collaboration with Mcdonald's Corp (MCD US) in Europe. However, we see this as a notable positive given it highlights (1) the expanding market demand for plant-based products and (2) Beyond Meat (BYND US)'s competitive advantage over Impossible Foods Inc in international markets given its different input profile. In the note below we discuss our detailed view on these reported developments.

Beyond Meat: McPlant Trial in Europe Is More Important than Impossible's Price Cut

<p>In this note, we discuss how <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)'s</a> stock gets an unanticipated stroke of positive lift from a win-win with  <a href="https://www.smartkarma.com/entities/pepsico-inc" target="_blank" data-smartkarma-citation="entities:4967:1" rel="noopener">Pepsico Inc (PEP US)</a> to produce and market plant-based protein snacks and beverages. As consumer brands globally strive to align themselves with the "Better for You and Planet too" value that resonates strongly with younger customers, plant-based foods are clearly in focus. <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> with its widely recognized brand presence in plant-based protein is well-positioned to benefit from the rising demand for plant-based foods. </p><p>We believe this deal could help Beyond accelerate growth in the retail segment, thus widen product reach and enhance product visibility. Although operational or financial details of the deal are not available yet, in the note below we look at what it could mean for either parties and surmise that it could be a win-win for both. </p>

In this note, we discuss how Beyond Meat (BYND US)'s stock gets an unanticipated stroke of positive lift from a win-win with  Pepsico Inc (PEP US) to produce and market plant-based protein snacks and beverages. As consumer brands globally strive to align themselves with the "Better for You and Planet too" value that resonates strongly with younger customers, plant-based foods are clearly in focus. Beyond Meat (BYND US) with its widely recognized brand presence in plant-based protein is well-positioned to benefit from the rising demand for plant-based foods. We believe this deal could help Beyond accelerate growth in the retail segment, thus widen product reach and enhance product visibility. Although operational or financial details of the deal are not available yet, in the note below we look at what it could mean for either parties and surmise that it could be a win-win for both. 

Beyond Meat: A Win-Win Deal with PepsiCo to Sell Plant-Based Snacks, Drinks

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 this week's Webinar, we welcome back Insight Provider <a href="https://www.smartkarma.com/profiles/devi-subhakesan" target="_blank" data-smartkarma-citation="accounts:1913" rel="noopener">Devi Subhakesan</a> to discuss <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a>'s latest stock moves and long-term outlook. While Beyond and other alternative protein companies rose to prominence with their plant-based meat solutions, but the pandemic impacted their institutional sales as F&amp;B outlets floundered. So what does the way forward look like?</p>
<div>
<div>
<h3>The webinar was hosted on Wednesday, 20 January 2021, 17:00 SGT/HKT.</h3>
<p>Watch the session here:</p>
<p><iframe src="https://www.youtube.com/embed/PdLH1HAZ52M" width="560" height="315" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<p></p>
<p>Or subscribe to our podcast and listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed/episode/4KpVi0YinLD0jhR1ptRRlH" width="100%" height="232" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p>
</div>
</div>
<div>Devi Subhakesan is an Equity Analyst with an Asia Consumer Sector Focus. She has been part of Buy-side and Sell-side Institutions, and has covered Oil, Gas &amp; Coal, Media, Textiles, and Consumer Discretionary sectors across ASEAN, India, and North Asia.</div>

For this week's Webinar, we welcome back Insight Provider Devi Subhakesan to discuss Beyond Meat (BYND US)'s latest stock moves and long-term outlook. While Beyond and other alternative protein companies rose to prominence with their plant-based meat solutions, but the pandemic impacted their institutional sales as F&amp;B outlets floundered. So what does the way forward look like?


The webinar was hosted on Wednesday, 20 January 2021, 17:00 SGT/HKT.
Watch the session here:


Or subscribe to our podcast and listen on the go:



Devi Subhakesan is an Equity Analyst with an Asia Consumer Sector Focus. She has been part of Buy-side and Sell-side Institutions, and has covered Oil, Gas &amp; Coal, Media, Textiles, and Consumer Discretionary sectors across ASEAN, India, and North Asia.

Smartkarma Webinar | Beyond Meat: Upbeat Long-Term Outlook

United States

Beyond Meat Inc. develops plant based protein food products. The Company offers burgers, sausage, crumbles, strips, and other related products. Beyond Meat serves customers in the United States.

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Beyond Meat (BYND US)

Monde Nissin IPO: A Discounted Way Into Fast Growing Alternative Meat

Mode Nissin provides a way into the fast-growing alternative meat market at a 20% discount to Beyond Meat (which is currently trading at 23.1x...

Oshadhi Kumarasiri

Beyond Meat: Season of News Flow Positives and Quarterly Negatives

Expect positive stock and sector-related newsflow - details on strategic tie-ups and Oatly's big-ticket IPO - to keep the stock upbeat despite...

Devi Subhakesan

Beyond Meat: McPlant Trial in Europe Is More Important than Impossible's Price Cut

Beyond Meat enjoys a competitive advantage over Impossible Foods in International markets. Mcdonald's trial of McPlant in Europe is a significant...

Devi Subhakesan

Beyond Meat: A Win-Win Deal with PepsiCo to Sell Plant-Based Snacks, Drinks

Discuss how Beyond Meat (BYND US) gets an unanticipated stroke of positive lift from a win-win deal with Pepsico to sell Plant-based snacks and...

Devi Subhakesan

Smartkarma Webinar | Beyond Meat: Upbeat Long-Term Outlook

On Jan 20, 5PM SGT, join us as we welcome back Devi Subhakesan, to discuss Beyond Meat's latest stock moves and long-term outlook, as sales growth...

Smartkarma Research

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