Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

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

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<li>Launched 30 new SKUs during COVID-19 in multiple areas of health that can transform the company from herbal remedies into a bigger conglomerate of health providers. </li>
<li>PE firm that backed SIDO in the earlier years reduced its holdings but it should not be seen as a vote of negative confidence in the company. </li>
<li>
<a href="https://www.smartkarma.com/entities/industri-jamu-dan-farmasi-sido-muncul-tbk-pt" target="_blank" data-smartkarma-citation="entities:6033:1" rel="noopener">Sido Muncul (SIDO IJ)</a> can be compared to <a href="https://www.smartkarma.com/entities/blackmores-ltd" target="_blank" data-smartkarma-citation="entities:928:1" rel="noopener">Blackmores Ltd (BKL AU)</a> which has a wide range of health products but trades at a 100% premium to SIDO. </li>
</ul>


Launched 30 new SKUs during COVID-19 in multiple areas of health that can transform the company from herbal remedies into a bigger conglomerate of health providers. 
PE firm that backed SIDO in the earlier years reduced its holdings but it should not be seen as a vote of negative confidence in the company. 

Sido Muncul (SIDO IJ) can be compared to Blackmores Ltd (BKL AU) which has a wide range of health products but trades at a 100% premium to SIDO. 


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.

In this insight, we evaluate <a href="https://www.smartkarma.com/entities/health-and-happiness-h-h-int" target="_blank" data-smartkarma-citation="entities:20582:1" rel="noopener">Health And Happiness (H&amp;H) (1112 HK)</a> 's results announced yesterday to assess its operational and financial outlook going forward. We discuss its valuations and investment potential and compare its stretched working capital cycle with industry peers, to address investor concerns on the same.<a href="https://www.smartkarma.com/entities/health-and-happiness-h-h-int" target="_blank" data-smartkarma-citation="entities:20582:1" rel="noopener">Health And Happiness (H&amp;H) (1112 HK)</a> has reported a steady recovery in 2H2020 revenue led by double-digit sequential growth in sales from Mainland China even as pandemic-induced weakness in the daigou trade persisted in the ANZ markets given travel restrictions continue to be in place. The growth in sales was mainly led by (1) new product launches in the Infant milk formula segment and extended offline distribution in China (2) online and cross border e-commerce for adult nutrition products.

In this insight, we evaluate Health And Happiness (H&amp;H) (1112 HK) 's results announced yesterday to assess its operational and financial outlook going forward. We discuss its valuations and investment potential and compare its stretched working capital cycle with industry peers, to address investor concerns on the same.Health And Happiness (H&amp;H) (1112 HK) has reported a steady recovery in 2H2020 revenue led by double-digit sequential growth in sales from Mainland China even as pandemic-induced weakness in the daigou trade persisted in the ANZ markets given travel restrictions continue to be in place. The growth in sales was mainly led by (1) new product launches in the Infant milk formula segment and extended offline distribution in China (2) online and cross border e-commerce for adult nutrition products. 

Health & Happiness (1112 HK): 2H2020 -Strong Sales Growth in China Calms Daigou Pain. Stock Upside

The vaccination has already started in Indonesia and although it may take 15 months to complete, it could be an early catalyst for investors to start booking profit on SIDO especially after it made 25% last year. The business will still grow as Tolak Angin remains the most affordable solution for an immune system compared to the other local and imported brands such as <a href="https://www.smartkarma.com/entities/health-and-happiness-h-h-int" target="_blank" data-smartkarma-citation="entities:20582:1" rel="noopener">Health And Happiness (H&amp;H) (1112 HK)</a> Swisse, which are especially important when the health care system is already overwhelmed. 
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Despite a 25% increase in 2020, Sido is still trading at 5%, 14%, and 26% EV/EBITDA, PER, and PBR discount respectively to the peers. 
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The vaccination has already started in Indonesia and although it may take 15 months to complete, it could be an early catalyst for investors to start booking profit on SIDO especially after it made 25% last year. The business will still grow as Tolak Angin remains the most affordable solution for an immune system compared to the other local and imported brands such as Health And Happiness (H&amp;H) (1112 HK) Swisse, which are especially important when the health care system is already overwhelmed. 

Despite a 25% increase in 2020, Sido is still trading at 5%, 14%, and 26% EV/EBITDA, PER, and PBR discount respectively to the peers. 


Sido Muncul (SIDO): Still the Most Affordable Solution in the Pandemic

What are the drivers for <a href="https://www.smartkarma.com/entities/20582" target="_blank" data-smartkarma-citation="entities:20582:1">Health and Happiness (H&amp;H) (1112 HK)</a> ? Many will argue that the loosening of single child policy in China is one of the more important growth drivers. I would like to add that the adult nutrition care business is equally important because of the inverted triangle shaped demographic in China which means more adults in the country compared to the numbers of child-births. Report structure:<ol><li>Adult nutrition care market size</li><li>Swisse product</li><li>Valuation</li><li>Trade idea</li></ol>

What are the drivers for Health and Happiness (H&amp;H) (1112 HK) ? Many will argue that the loosening of single child policy in China is one of the more important growth drivers. I would like to add that the adult nutrition care business is equally important because of the inverted triangle shaped demographic in China which means more adults in the country compared to the numbers of child-births. Report structure:Adult nutrition care market sizeSwisse productValuationTrade idea

Health & Happiness: The Supplement to Your Portfolio

Macro & Asian equity Technical Strategies, BBSP Asia

Federico D'Inca

Macro & Asian equity Technical Strategies

BBSP Asia

Technical Analysis

Mid Term Country Allocation (Tactical view) in terms of Relative Value vs MXAPWhat's new from last week • Although ASX remains within its 3-month range (below 5775) the ratio ASX/MXAP drifted to key support for an expected bounce reaction. Therefore, giving bias for ASX to shape a bullish exit from its range and outperform MXAP. (ref new AU strategies). • Rating unchanged for the rest of the countries. Outperformance in progress for Japan (Nikkei), Korea (Kospi) and HK, China (HSI, HSCEI). Still…

Mid Term Country Allocation (Tactical view) in terms of Relative Value vs MXAPWhat's new from last week • Although ASX remains within its 3-month range (below 5775) the ratio ASX/MXAP drifted to key support for an expected bounce reaction. Therefore, giving bias for ASX to shape a bullish exit from its range and outperform MXAP. (ref new AU strategies). • Rating unchanged for the rest of the countries. Outperformance in progress for Japan (Nikkei), Korea (Kospi) and HK, China (HSI, HSCEI). Still…

Equity Asia Weekly Research - 11 Oct 2017

Australia

Blackmores Limited manufactures and markets vitamin, herbal, mineral supplements and natural skin and hair treatment products in Australia and New Zealand. These products are supplied to the over the counter retail market and to health care professionals. The Company also has a line of natural beauty and aromatherapy products and its products are distributed in South East Asia.

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Blackmores Ltd (BKL AU)

Sido Muncul (SIDO): The Dawn of New Era

SIDO has gone full beast mode launching products in non-herbal remedies such as essential oil, and energy drinks (Gatorade lookalike), prompting...

Henry Soediarko

Health & Happiness (1112 HK): 2H2020 -Strong Sales Growth in China Calms Daigou Pain. Stock Upside

2H2020 improves earnings growth visibility, underpin stock upside. Attractive dividend yield offers strong downside protection. Quicker resumption...

Devi Subhakesan

Sido Muncul (SIDO): Still the Most Affordable Solution in the Pandemic

The vaccination already started in Indonesia and although it takes 15 months to complete, it could be an early catalyst for investors to book...

Henry Soediarko

Health & Happiness: The Supplement to Your Portfolio

What are the drivers for Health and Happiness (H&H) (1112 HK) ? Many will argue that the loosening of single child policy in China is one of...

Henry Soediarko

Equity Asia Weekly Research - 11 Oct 2017

Mid Term Country Allocation (Tactical view) in terms of Relative Value vs MXAPWhat's new from last week• Although ASX remains within its 3-month...

BBSP Asia

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