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

<p><a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener"></a><a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> has not been very fortunate in the past few weeks; rising cases in Bangkok that caused the management to call off the BeerCo IPO, dampened investors' excitement on the value unlocking event. Its high debt also is another factor that its share price does not get re-rated compared to its peers. In ASEAN, <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> is trading at a slight discount to <a href="https://www.smartkarma.com/entities/saigon-beer-alcohol-beverage" target="_blank" data-smartkarma-citation="entities:23645:1" rel="noopener">Saigon Beer Alcohol Beverage (SAB VN)</a> although the latter's profitability is much higher with little debt. </p>
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<p><strong>For Asian beverage investors, there are other stocks with similar profitability profiles with lower debt and much bigger markets (North Asia) such as <a href="https://www.smartkarma.com/entities/tsingtao-brewery-co-ltd-h" target="_blank" data-smartkarma-citation="entities:1296:1" rel="noopener">Tsingtao Brewery Co Ltd H (168 HK)</a> , <a href="https://www.smartkarma.com/entities/china-resources-beer-holdings" target="_blank" data-smartkarma-citation="entities:399:1" rel="noopener">China Resources Beer Holdings (291 HK)</a> that receive more attention from investors.</strong></p>
<p><strong> For ASEAN beverage investors, Thai Beverage is one of the bigger and more prominent beverage companies although it is not the most profitable and the debt burden has caused some investors to shun it but it should still be a valid choice especially when it is trading at a discount such as currently. </strong></p>
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Thai Beverage (THBEV SP) has not been very fortunate in the past few weeks; rising cases in Bangkok that caused the management to call off the BeerCo IPO, dampened investors' excitement on the value unlocking event. Its high debt also is another factor that its share price does not get re-rated compared to its peers. In ASEAN, Thai Beverage (THBEV SP) is trading at a slight discount to Saigon Beer Alcohol Beverage (SAB VN) although the latter's profitability is much higher with little debt. 

For Asian beverage investors, there are other stocks with similar profitability profiles with lower debt and much bigger markets (North Asia) such as Tsingtao Brewery Co Ltd H (168 HK) , China Resources Beer Holdings (291 HK) that receive more attention from investors.
 For ASEAN beverage investors, Thai Beverage is one of the bigger and more prominent beverage companies although it is not the most profitable and the debt burden has caused some investors to shun it but it should still be a valid choice especially when it is trading at a discount such as currently. 


Thai Beverage (Thbev): Delayed Beer IPO and Undervaluation

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Toshiba, Grab, Huarong, Invesco Office, Intouch, Jardines

Last Week in Event SPACE: Naspers/Tencent, Toshiba, Coca-Cola Amatil, Invesco J-REIT, Tabcorp

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<p>Back on the <a href="https://ccaauauesprdrsg057str001.blob.core.windows.net/media/media/ccamatil/ccamatilau/files/asx/2020/201026_ccepindicativeproposalandamatiltradingupdate.pdf" target="_blank" rel="noopener">26 October</a>, Australia's largest non-alcoholic beverage bottler <a href="https://www.smartkarma.com/entities/coca-cola-amatil-ltd" target="_blank" data-smartkarma-citation="entities:675:1" rel="noopener">Coca Cola Amatil (CCL AU)</a> announced an indicative proposal of A$12.75/share from Coca-Cola European Partners plc (CCEP). A firm Offer was <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02304483-2A1261358?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> on the 4 November. Reports immediately <a href="https://www.afr.com/companies/manufacturing/coca-cola-amatil-takeover-delayed-as-investors-call-for-higher-bid-20210125-p56wqp" target="_blank" rel="noopener">surfaced</a> that some major shareholders considered the proposal inadequate. </p>
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<p>Responding to shareholder pushback, CCEP and CCL <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02340945-2A1280279?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">entered into</a> a Scheme Implementation Deed at A$13.50/share on the 15 February, a 5.9% bump to the firm Offer on the <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02304483-2A1261358?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">4 November</a>, and a  25.6% premium to the undisturbed price. The Offer was declared best and final. </p>
<p>Independent CCL shareholders will vote on the proposal at the Scheme Meeting to be held on the 16 April. <a href="https://www.smartkarma.com/entities/coca-cola-co-the" target="_blank" data-smartkarma-citation="entities:979:1" rel="noopener">Coca-Cola Co (KO US)</a> (TCCC) with 30.808% of shares out, will abstain from voting. </p>
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<div>CCEP has now <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02359882-2A1290488?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">advised</a> CCL that it has elected to purchase all the remaining shares held by TCCC at the implementation of the Scheme, for cash. TCCC will subsequently cease to be a shareholder of CCL.</div>
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<p>As always, more below the fold.</p>
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Back on the 26 October, Australia's largest non-alcoholic beverage bottler Coca Cola Amatil (CCL AU) announced an indicative proposal of A$12.75/share from Coca-Cola European Partners plc (CCEP). A firm Offer was announced on the 4 November. Reports immediately surfaced that some major shareholders considered the proposal inadequate. 


Responding to shareholder pushback, CCEP and CCL entered into a Scheme Implementation Deed at A$13.50/share on the 15 February, a 5.9% bump to the firm Offer on the 4 November, and a  25.6% premium to the undisturbed price. The Offer was declared best and final. 
Independent CCL shareholders will vote on the proposal at the Scheme Meeting to be held on the 16 April. Coca-Cola Co (KO US) (TCCC) with 30.808% of shares out, will abstain from voting. 

CCEP has now advised CCL that it has elected to purchase all the remaining shares held by TCCC at the implementation of the Scheme, for cash. TCCC will subsequently cease to be a shareholder of CCL.


As always, more below the fold.


Last Week in Event SPACE: Xiaomi, AGL Energy, TOPIX's Big April Basket, Evergrande Auto

Australia

Coca-Cola Amatil Limited manufactures, distributes and sells carbonated soft drinks along with still and mineral waters, fruit drinks, ready-to-drink coffee and tea and flavored milk drinks. The Company also rents and services commercial refrigeration equipment to food/beverage manufacturers.

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Coca Cola Amatil (CCL AU)

Thai Beverage (Thbev): Delayed Beer IPO and Undervaluation

Thai Bev has not been very fortunate in the past few weeks; rising cases in Bangkok that caused the management to call off the BeerCo IPO, dampened...

Henry Soediarko

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The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Last Week in Event SPACE: Naspers/Tencent, Toshiba, Coca-Cola Amatil, Invesco J-REIT, Tabcorp

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett