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 Capital Markets

<p>This report gives an update on <a href="https://www.smartkarma.com/entities/bumble-inc" target="_blank" data-smartkarma-citation="entities:31309:1" rel="noopener">Bumble (BMBL US)</a>'s IPO valuations and upside potential, company's revenue drivers, risks and overview of online dating segment and its growth outlook. Pandemic-led social isolation has led singles <em>(or the romantically alone)</em> to increasingly resort to dating apps to find companionship. Online dating had become more popular over the last decade. <a href="https://www.smartkarma.com/entities/bumble-inc" target="_blank" data-smartkarma-citation="entities:31309:1" rel="noopener">Bumble (BMBL US)</a>, that owns the second highest-grossing dating app globally, will list today (Feb 11th), just ahead of Valentine's day, the <em>big day of love</em> for couples worldwide. Interestingly, Bumble's IPO was so overwhelmingly wooed by investors that it had to<strong> upsize the offer twice</strong>!! It has now issued 50 million shares at USD43/share (raising around USD2.15 Bn and valuing the company at USD 8 Bn) as against earlier upsized issue size of 45 million shares at USD39/share (vs. original IPO offer of 34.5 million shares at a price range of $28 to $30 a share). </p><p><a href="https://www.smartkarma.com/entities/bumble-inc" target="_blank" data-smartkarma-citation="entities:31309:1" rel="noopener">Bumble (BMBL US)</a> 's eponymous dating app is noted for its first-of-the-kind '<em>women make the first move</em>' feature that seeks to reset dating norms (and offer a better user experience) distinguishes it from other players by attracting more women users/subscribers to the platform. It has been favourably rated ahead of other dating apps when it comes to singles 'actually' seeking a relationship. <a href="https://www.smartkarma.com/entities/bumble-inc" target="_blank" data-smartkarma-citation="entities:31309:1" rel="noopener">Bumble (BMBL US)</a> was founded by Whitney Wolfe, previously co-founder of Tinder, the bigger and widely known dating app for all occasions. Bumble stands out as one of the few US-based tech companies founded by a woman, with a predominantly women-led board and management team. <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a> is a significant private investor in Bumble. </p>

This report gives an update on Bumble (BMBL US)'s IPO valuations and upside potential, company's revenue drivers, risks and overview of online dating segment and its growth outlook. Pandemic-led social isolation has led singles (or the romantically alone) to increasingly resort to dating apps to find companionship. Online dating had become more popular over the last decade. Bumble (BMBL US), that owns the second highest-grossing dating app globally, will list today (Feb 11th), just ahead of Valentine's day, the big day of love for couples worldwide. Interestingly, Bumble's IPO was so overwhelmingly wooed by investors that it had to upsize the offer twice!! It has now issued 50 million shares at USD43/share (raising around USD2.15 Bn and valuing the company at USD 8 Bn) as against earlier upsized issue size of 45 million shares at USD39/share (vs. original IPO offer of 34.5 million shares at a price range of $28 to $30 a share). Bumble (BMBL US) 's eponymous dating app is noted for its first-of-the-kind 'women make the first move' feature that seeks to reset dating norms (and offer a better user experience) distinguishes it from other players by attracting more women users/subscribers to the platform. It has been favourably rated ahead of other dating apps when it comes to singles 'actually' seeking a relationship. Bumble (BMBL US) was founded by Whitney Wolfe, previously co-founder of Tinder, the bigger and widely known dating app for all occasions. Bumble stands out as one of the few US-based tech companies founded by a woman, with a predominantly women-led board and management team. Blackstone Group LP (BX US) is a significant private investor in Bumble. 

Bumble IPO: The Dating App Where Women Lead. Likely Pop on Listing Today

Event-Driven

<p>In this note, we look at how Amazon's foray into India's booming EdTech sector could impact the existing players and sector dynamics/growth trajectory. <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a> formally launched its online learning venture in India - <em><strong><a href="https://academy.amazon.in/" target="_blank" rel="noopener">Amazon Academy</a></strong></em> - this week. Presently on Beta mode, the online learning tools and live classes on Amazon Academy (currently available for free) are designed to help students prepare for the highly competitive selection tests to gain admission at top-rated Engineering colleges in the country. Amazon's reported foray into the booming Edtech sector in India had already set off a flurry of M&amp;A activity as existing lead players attempt to fortify their positions. Edtech sector witnessed rapid growth last year as COVID-led lockdowns disrupted formal education and students across age groups were forced to resort to online learning options. </p><p>India's heavily underinvested (and often badly managed) public education system and highly restrictive regulations governing the private education sector have helped create a large and attractive opportunity for EdTech players. Lead players have attracted funding from who's who of private investing (see appendix), a testimony to the sector's attractiveness and potential. Will that change with the foray of Amazon, known for its aggressive and competitive operating style? While little is known about Amazon's operating pricing plans and strategy, we present our expectation on the same and how it could impact existing players and sector dynamics/growth. </p>

In this note, we look at how Amazon's foray into India's booming EdTech sector could impact the existing players and sector dynamics/growth trajectory. Amazon.com Inc (AMZN US) formally launched its online learning venture in India - Amazon Academy - this week. Presently on Beta mode, the online learning tools and live classes on Amazon Academy (currently available for free) are designed to help students prepare for the highly competitive selection tests to gain admission at top-rated Engineering colleges in the country. Amazon's reported foray into the booming Edtech sector in India had already set off a flurry of M&amp;A activity as existing lead players attempt to fortify their positions. Edtech sector witnessed rapid growth last year as COVID-led lockdowns disrupted formal education and students across age groups were forced to resort to online learning options. India's heavily underinvested (and often badly managed) public education system and highly restrictive regulations governing the private education sector have helped create a large and attractive opportunity for EdTech players. Lead players have attracted funding from who's who of private investing (see appendix), a testimony to the sector's attractiveness and potential. Will that change with the foray of Amazon, known for its aggressive and competitive operating style? While little is known about Amazon's operating pricing plans and strategy, we present our expectation on the same and how it could impact existing players and sector dynamics/growth. 

Amazon Forays into India EdTech - Expect Shift in Sector Dynamics, Rest May Brace to Pivot

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.

Soilbuild Business Space REIT / Event-Driven

<p><a href="https://www.smartkarma.com/entities/soilbuild-business-space-reit" target="_blank" data-smartkarma-citation="entities:13446:1" rel="noopener">Soilbuild Business Space REIT (SBREIT SP)</a> has announced a privatisation offer from Mr Lim Chap Huat (executive Chairman) and <a href="https://www.smartkarma.com/entities/blackstone-group-inc" target="_blank" data-smartkarma-citation="entities:27166:1" rel="noopener">Blackstone Group LP (BX US)</a> at S$0.55 cash per unit. The privatisation price is a premium of 8% to the last close price of S$0.51 per unit (8 December prior to the trading halt) and a 27.9% to the unaffected price of S$0.430 per unit (31 August 2020 prior to the announcement of a possible transaction involving Mr Lim Chap Huat’s stake). The effective date for the trust scheme meeting is targeted for the end of March 2021 with delisting in early April 2021. </p><div class="content-highlight"><p>SB REIT faces challenging market conditions due to the fallout from the COVID-19 pandemic. A combination of high DPU yield and limited debt headroom is a constraint to driving growth through DPU accretive acquisitions. Over the past few years, SB REIT’s sponsor has received several privatisation proposals and the current offer is the highest offer price received to date. Overall, while the bid is not a knockout bid particularly for long-term unitholders, we think that a reasonable offer (offer values SB REIT broadly in line with its latest adjusted NAV) makes it likely that the offer succeeds. </p></div>

Soilbuild Business Space REIT (SBREIT SP) has announced a privatisation offer from Mr Lim Chap Huat (executive Chairman) and Blackstone Group LP (BX US) at S$0.55 cash per unit. The privatisation price is a premium of 8% to the last close price of S$0.51 per unit (8 December prior to the trading halt) and a 27.9% to the unaffected price of S$0.430 per unit (31 August 2020 prior to the announcement of a possible transaction involving Mr Lim Chap Huat’s stake). The effective date for the trust scheme meeting is targeted for the end of March 2021 with delisting in early April 2021. SB REIT faces challenging market conditions due to the fallout from the COVID-19 pandemic. A combination of high DPU yield and limited debt headroom is a constraint to driving growth through DPU accretive acquisitions. Over the past few years, SB REIT’s sponsor has received several privatisation proposals and the current offer is the highest offer price received to date. Overall, while the bid is not a knockout bid particularly for long-term unitholders, we think that a reasonable offer (offer values SB REIT broadly in line with its latest adjusted NAV) makes it likely that the offer succeeds. 

Soilbuild Business Space REIT’s Privatisation Bid

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.

Embassy Office Parks REIT / Equity Capital Markets

<section><div id="ember1549">
<div><p><a href="https://www.smartkarma.com/entities/embassy-office-parks-reit" target="_blank" data-smartkarma-citation="entities:27925:1" rel="noopener">Embassy Office Parks REIT (EOP IN) </a> plans to acquire assets worth US$1.3bn, and aims to fund part of the purchase via a US$500m institutional placement, later in the year.  </p></div>
<div><p>The stock was listed in Apr 2019 and we have covered the listing and previous placement as well, links for which are below: </p></div>
<div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-good-assets-but-projections-might-be-a-tad-too-bullish" target="_blank" rel="noopener">Embassy Office Parks REIT - Good Assets but Projections Might Be a Tad Too Bullish</a></li>
<li>
<a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-comparison-with-ait-and-a-look-at-the-required-yield" target="_blank" rel="noopener">Embassy Office Parks REIT - Comparison with AIT and a Look at the Required Yield</a>, and</li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-ipo-fy19-revised-down-yield-propped-up-by-zero-coupon-bond" target="_blank" rel="noopener">Embassy Office Parks REIT IPO - FY19 Revised Down, Yield Propped up by Zero Coupon Bond</a></li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-trading-update-lowest-volume-traded-for-any-indian-listing-since-2018" target="_blank" rel="noopener">Embassy Office Parks REIT Trading Update - Lowest Volume Traded for Any Indian Listing Since 2018</a></li>
<li><a href="https://www.smartkarma.com/insights/embassy-office-parks-reit-placement-to-big-to-swallow-if-its-not-a-reverse-enquiry" target="_blank" rel="noopener">Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry</a></li>
</ul></div>
</div></section><p>In this insight, I'll take an early look at the deal.</p>


Embassy Office Parks REIT (EOP IN)  plans to acquire assets worth US$1.3bn, and aims to fund part of the purchase via a US$500m institutional placement, later in the year.  
The stock was listed in Apr 2019 and we have covered the listing and previous placement as well, links for which are below: 

Embassy Office Parks REIT - Good Assets but Projections Might Be a Tad Too Bullish

Embassy Office Parks REIT - Comparison with AIT and a Look at the Required Yield, and
Embassy Office Parks REIT IPO - FY19 Revised Down, Yield Propped up by Zero Coupon Bond
Embassy Office Parks REIT Trading Update - Lowest Volume Traded for Any Indian Listing Since 2018
Embassy Office Parks REIT Placement - To Big to Swallow if Its Not a Reverse Enquiry

In this insight, I'll take an early look at the deal.

Embassy Office Parks REIT Placement - Early Look - Big Deal but Will Come with Ample Warning

Alpha-Centric ESG Research

Kyle Rudden

<p>This Insight is a relatively brief, high-level overview of the sustainability framework ecosystem. It will be followed (soon) by deeper dives into individual frameworks, starting with the "Big Three."</p><ol>
<li>
<strong>UN Sustainable Development Goals</strong> (SDGs), a framework for society-level sustainability</li>
<li>
<strong>Global Reporting Initiative</strong> (GRI), a company-level framework for a very broad audience</li>
<li>
<strong>Sustainability Accounting Standards Board</strong> (SASB), company-level but investor-focused</li>
</ol><p>These Insights aren't merely an academic exercise.</p><p>They will have educational value vis-à-vis sustainable/ESG investing, but their primary purpose is as context for upcoming reports on integrating the SDGs into ESG investing strategies, such as:</p><ul>
<li>
<strong>ESG Alpha:</strong> Mapping country-level SDG data to securities since larger diversified portfolios are often impacted by SDG outcomes; SDGS serving as a barometer for macro risk and alpha.</li>
<li>
<strong>ESG Impact:</strong> Mapping security-level ESG performance (based on GRI and SASB standards) to the SDGs, guiding securities selection in a way that enhances a portfolio's societal impact.</li>
</ul><p>After explaining key concepts like global sustainability, sustainable development, and the Triple Bottom Line – all prerequisites to the framework stuff – the report roughly takes this outline:</p><ul>
<li>Overview of the sustainable investing spectrum and relative prioritsation of alpha and impact</li>
<li>Bird's-eye view of the overall sustainability/ESG ecosystem (framework, standards, and other)</li>
<li>Quick sight-seeing sojourn to look at the handful of listed companies dotting this landscape</li>
<li>Final destination, an overview of the "Big Three" and other major sustainability frameworks</li>
</ul>

This Insight is a relatively brief, high-level overview of the sustainability framework ecosystem. It will be followed (soon) by deeper dives into individual frameworks, starting with the "Big Three."

UN Sustainable Development Goals (SDGs), a framework for society-level sustainability

Global Reporting Initiative (GRI), a company-level framework for a very broad audience

Sustainability Accounting Standards Board (SASB), company-level but investor-focused
These Insights aren't merely an academic exercise.They will have educational value vis-à-vis sustainable/ESG investing, but their primary purpose is as context for upcoming reports on integrating the SDGs into ESG investing strategies, such as:

ESG Alpha: Mapping country-level SDG data to securities since larger diversified portfolios are often impacted by SDG outcomes; SDGS serving as a barometer for macro risk and alpha.

ESG Impact: Mapping security-level ESG performance (based on GRI and SASB standards) to the SDGs, guiding securities selection in a way that enhances a portfolio's societal impact.
After explaining key concepts like global sustainability, sustainable development, and the Triple Bottom Line – all prerequisites to the framework stuff – the report roughly takes this outline:
Overview of the sustainable investing spectrum and relative prioritsation of alpha and impact
Bird's-eye view of the overall sustainability/ESG ecosystem (framework, standards, and other)
Quick sight-seeing sojourn to look at the handful of listed companies dotting this landscape
Final destination, an overview of the "Big Three" and other major sustainability frameworks


United States

Blackstone Inc. operates as an investment company. The Company focuses on real estate, hedge funds, private equity, leveraged lending, senior debts, and rescue financing. Blackstone serves customers worldwide.

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Blackstone (BX US)

Bumble IPO: The Dating App Where Women Lead. Likely Pop on Listing Today

Bumble's IPO has been upsized twice before listing today. Insight offers an update on IPO valuations and upside, company's revenue drivers, risks...

Devi Subhakesan

Amazon Forays into India EdTech - Expect Shift in Sector Dynamics, Rest May Brace to Pivot

Amazon Academy's possible aggressive pricing plans and potential subscriber base. Analysis of how it could impact existing players and sector...

Devi Subhakesan

Soilbuild Business Space REIT’s Privatisation Bid

SB REIT announced a privatisation offer from Mr Lim Chap Huat and Blackstone at S$0.55 cash per unit, a 27.9% to the unaffected price of S$0.430...

Arun George

Embassy Office Parks REIT Placement - Early Look - Big Deal but Will Come with Ample Warning

Embassy Office Parks REIT plans to acquire assets worth US$1.3bn, and aims to fund part of the purchase via a US$500m institutional placement,...

Sumeet Singh

Sustainability/ESG Frameworks: Overview

This Insight is a relatively brief, high-level overview of the sustainability framework ecosystem. It will be followed (soon) by deeper dives into...

Kyle Rudden

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