Contextualizing EM Investment Opportunities, Pyramids and Pagodas

Pyramids and Pagodas

Contextualizing EM Investment Opportunities

Established in 2022, Pyramids and Pagodas aims to cover underreported trends and companies across emerging markets (“EM”), with a particular focus on Asia and the Middle East. Our content targets a broad audience of investors and anyone seeking to capitalize on or learn more about undervalued investment opportunities in these regions. We have skin in the game for these ideas with a view to build a strong track record with demonstrable returns in the long run.

Thematic (Sector/Industry)

<ul><li>In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.</li><li>With higher growth rates, less competition, and lower taxes than Macau, now may be an opportune moment for value investors looking to cash in on the gaming boom.</li><li>With a strategic focus on expansion, the operator opened another casino this year in Quezon City, which looks set to be a major driver of group revenues over the few years should it follow a similar growth trajectory to the group’s flagship property in Entertainment City.</li></ul>

In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.With higher growth rates, less competition, and lower taxes than Macau, now may be an opportune moment for value investors looking to cash in on the gaming boom.With a strategic focus on expansion, the operator opened another casino this year in Quezon City, which looks set to be a major driver of group revenues over the few years should it follow a similar growth trajectory to the group’s flagship property in Entertainment City.

Manila Trip Report – An emerging Pacific Tiger (Part 2)

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

<ul>
<li><a target="_blank" rel="noopener">DigiPlus Interactive (PLUS PM)</a> clarified that online gambling by licensed operators is no longer under threat of a government ban (instead, they will target illegal operators: net positive).</li>
<li>Despite H2 2025 headwinds from platform delinks and MAU normalization, the company retains a strong cash fortress (₱23.4B), near-zero debt, and best-in-class operator economics.</li>
<li>The stock trades at 5.9x PE and 3.8x EV-EBITDA, with revenue/margin recovery driven by the <a target="_blank" rel="noopener">International Entertainment (1009 HK)</a> convert purchase / Brazil expansion / South Africa license grant as upcoming catalysts.</li>
</ul>


DigiPlus Interactive (PLUS PM) clarified that online gambling by licensed operators is no longer under threat of a government ban (instead, they will target illegal operators: net positive).
Despite H2 2025 headwinds from platform delinks and MAU normalization, the company retains a strong cash fortress (₱23.4B), near-zero debt, and best-in-class operator economics.
The stock trades at 5.9x PE and 3.8x EV-EBITDA, with revenue/margin recovery driven by the International Entertainment (1009 HK) convert purchase / Brazil expansion / South Africa license grant as upcoming catalysts.


DigiPlus Interactive (PLUS PM): InvestPH Conference Meeting Highlights

<ul>
<li>The <a target="_blank" rel="noopener">ICTSI (ICT PM)</a>, the largest container port terminal operator in the Philippines (also with a global presence), trades at 17x PE, 9x EV-EBITDA trailing, with a dividend yield of ~3.2%.</li>
<li>The company operates container terminals efficiently, boasting EBITDA and net margins of 65% and 31%, respectively, and improving ROCE metrics exceeding 20% (averaging 14% over the past decade).</li>
<li>The company demonstrates strong pricing power in a challenging global environment, presenting an opportunity to explore further if additional market corrections occur.</li>
</ul>


The ICTSI (ICT PM), the largest container port terminal operator in the Philippines (also with a global presence), trades at 17x PE, 9x EV-EBITDA trailing, with a dividend yield of ~3.2%.
The company operates container terminals efficiently, boasting EBITDA and net margins of 65% and 31%, respectively, and improving ROCE metrics exceeding 20% (averaging 14% over the past decade).
The company demonstrates strong pricing power in a challenging global environment, presenting an opportunity to explore further if additional market corrections occur.


ICTSI (ICT PM): Terminal Operator, Serial Grower With Pricing Power, 20% ROCE, 30% Net Margins

<ul>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> reported robust Q1 FY25 results, driven by an increase in MAUs to 7.5 million (6.5 in Q4). The company maintained its market share at ~45%.</li>
<li>Net margins expanded 200 bps QoQ (to 18.2%), as the company benefited from a 500 bps reduction in its share of GGR to PAGCOR. </li>
<li>The stock has increased by &gt;400% since January 2024, but it trades at 14.1x FY25 PE, with growth catalysts from the Philippines and Brazil expected in the future. </li>
</ul>



DigiPlus Interactive (PLUS PM) reported robust Q1 FY25 results, driven by an increase in MAUs to 7.5 million (6.5 in Q4). The company maintained its market share at ~45%.
Net margins expanded 200 bps QoQ (to 18.2%), as the company benefited from a 500 bps reduction in its share of GGR to PAGCOR. 
The stock has increased by &gt;400% since January 2024, but it trades at 14.1x FY25 PE, with growth catalysts from the Philippines and Brazil expected in the future. 


DigiPlus Interactive (PLUS PM): Galloping Away Into A Strong Q2 FY25

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>With 90% of the review period for the August rebalance of the <a href="https://www.smartkarma.com/entities/philippines-stock-exchange-psei-index" target="_blank" data-smartkarma-citation="entities:22912:1" rel="noopener">Philippines Stock Exchange PSEi Index (PCOMP INDEX)</a> complete, there could be one change for the index.</li>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> should replace <a href="https://www.smartkarma.com/entities/bloomberry-resorts-corp" target="_blank" data-smartkarma-citation="entities:17961:1" rel="noopener">Bloomberry Resorts (BLOOM PM)</a> in the index. <a href="https://www.smartkarma.com/entities/bloomberry-resorts-corp" target="_blank" data-smartkarma-citation="entities:17961:1" rel="noopener">Bloomberry Resorts (BLOOM PM)</a> also has some global passive selling at the close on 30 May.</li>
<li>
<a href="https://www.smartkarma.com/entities/digiplus-interactive-corp" target="_blank" data-smartkarma-citation="entities:23060:1" rel="noopener">DigiPlus Interactive (PLUS PM)</a> is up 25x over the last couple of years and is up 46% since we identified the stock as a potential index inclusion.</li>
</ul>


With 90% of the review period for the August rebalance of the Philippines Stock Exchange PSEi Index (PCOMP INDEX) complete, there could be one change for the index.

DigiPlus Interactive (PLUS PM) should replace Bloomberry Resorts (BLOOM PM) in the index. Bloomberry Resorts (BLOOM PM) also has some global passive selling at the close on 30 May.

DigiPlus Interactive (PLUS PM) is up 25x over the last couple of years and is up 46% since we identified the stock as a potential index inclusion.


PCOMP Index Rebalance Preview: One Set of Changes as PLUS Runs Away

Philippines

Bloomberry Resorts Corp is a holding company for its subsidiaries which provide lodging and leisure services. The Subsidiaries operates and develops, tourist facilities, casinos, and hotel and amusement-themed projects.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Bloomberry Resorts (BLOOM PM)

Manila Trip Report – An emerging Pacific Tiger (Part 2)

In the vibrant Philippine gaming industry, we found one casino operator particularly poised to capitalize on the growth story.

Pyramids and Pagodas

DigiPlus Interactive (PLUS PM): InvestPH Conference Meeting Highlights

Digiplus stock trades at 5.9x PE and 3.8x EV-EBITDA, with revenue/margin recovery underway as well as expansions in Brazil and South Africa. We...

Sameer Taneja

ICTSI (ICT PM): Terminal Operator, Serial Grower With Pricing Power, 20% ROCE, 30% Net Margins

We initiate coverage on the ICTSI PM, the largest container port operator in the Philippines, with a global presence. The company has a stellar...

Sameer Taneja

DigiPlus Interactive (PLUS PM): Galloping Away Into A Strong Q2 FY25

We summarize the strong results posted by (PLUS PM) DigiPlus Interactive and our concall with the management. The stock trades at 14.1x FY25 P/E,...

Sameer Taneja

PCOMP Index Rebalance Preview: One Set of Changes as PLUS Runs Away

DigiPlus Interactive could replace Bloomberry Resorts in the PCOMP in August. There will also be selling in BLOOM at the close on 30 May. PLUS is...

Brian Freitas

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)