Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

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

<a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> has been on a tear since we highlighted the opportunity in our insight <a href="https://www.smartkarma.com/insights/del-monte-pacific-delm-sp-cook-from-home-and-multiple-subsidiary-ipo-s-to-unlock-large-upside" target="_blank" data-smartkarma-citation="insights:48689" rel="noopener">Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside?</a> early March. The stock was trading at 0.24 SGD in early March and just hit 0.32 SGD this morning (+33%).We see two reasons for this outperformance:<ul>
<li>Competitor Monde Nissin will list on PSE shortly after regulatory approval was granted yesterday. Monde Nissin will be the largest ever listing in the Philippines setting up a good benchmark for Del Monte Philippines. </li>
<li>Moody's upgraded Del Monte Foods debt to B3 opening up debt refinancing going forward.</li>
</ul>Del Monte Pacific remains a balance sheet story where the Enterprise Value could be reshuffled in favor of equity holders as debt is lowered and interest costs diminish. Should either the Philippines unit or USA unit succeed in an IPO we think Del Monte Pacific doubles from here. See our previous insight for more details.Next catalyst? We expect broker coverage on Del Monte as investment banks vying for the IPO's of the Philippines and US units will get into action.

Del Monte Pacific (DELM SP) has been on a tear since we highlighted the opportunity in our insight Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside? early March. The stock was trading at 0.24 SGD in early March and just hit 0.32 SGD this morning (+33%).We see two reasons for this outperformance:
Competitor Monde Nissin will list on PSE shortly after regulatory approval was granted yesterday. Monde Nissin will be the largest ever listing in the Philippines setting up a good benchmark for Del Monte Philippines. 
Moody's upgraded Del Monte Foods debt to B3 opening up debt refinancing going forward.
Del Monte Pacific remains a balance sheet story where the Enterprise Value could be reshuffled in favor of equity holders as debt is lowered and interest costs diminish. Should either the Philippines unit or USA unit succeed in an IPO we think Del Monte Pacific doubles from here. See our previous insight for more details.Next catalyst? We expect broker coverage on Del Monte as investment banks vying for the IPO's of the Philippines and US units will get into action. 

Del Monte Pacific: Monde Nissin IPO Approved; Moody's Upgraded Debt Profile = All Positive

<a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> is a part of the once sprawling worldwide Del Monte food empire. Over the past couple of decades, that empire was subsequently fragmented into several geographical blocks, creating confusion and investors have lost the forest from the trees.Change is in the air and multiple IPO's could unlock substantial value over the coming 12-18 months. Del Monte's core business has benefited from CFH (Cook-From-Home) as lockdowns and home-office arrangements have people dine-in rather than dine-out. DELM is also a food-inflation play as it will be easier for Del Monte to pass on price increases to their customers in a rising price environment.Below we will explain in detail why DELM has the potential to be radically transformed and how a multi-bagger return could be on the table. DELM currently has no analyst coverage. Just as we saw with <a href="https://www.smartkarma.com/entities/straits-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:15745:1" rel="noopener">Straits Trading (STRTR SP)</a> it only takes one broker (who is interested in IPO fees) to highlight the opportunity to investors to put some spice under DELM's valuation. Another analogy would be <a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)</a> and the listing of its Chinese subsidiary <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdin-a" target="_blank" data-smartkarma-citation="entities:29184:1" rel="noopener">Yihai Kerry Arawana Holdin-A (YKIVCZ CH)</a>.Risks to the story are a reversal in CFH, continued large debt burden, and execution issues.

Del Monte Pacific (DELM SP) is a part of the once sprawling worldwide Del Monte food empire. Over the past couple of decades, that empire was subsequently fragmented into several geographical blocks, creating confusion and investors have lost the forest from the trees.Change is in the air and multiple IPO's could unlock substantial value over the coming 12-18 months. Del Monte's core business has benefited from CFH (Cook-From-Home) as lockdowns and home-office arrangements have people dine-in rather than dine-out. DELM is also a food-inflation play as it will be easier for Del Monte to pass on price increases to their customers in a rising price environment.Below we will explain in detail why DELM has the potential to be radically transformed and how a multi-bagger return could be on the table. DELM currently has no analyst coverage. Just as we saw with Straits Trading (STRTR SP) it only takes one broker (who is interested in IPO fees) to highlight the opportunity to investors to put some spice under DELM's valuation. Another analogy would be Wilmar International (WIL SP) and the listing of its Chinese subsidiary Yihai Kerry Arawana Holdin-A (YKIVCZ CH).Risks to the story are a reversal in CFH, continued large debt burden, and execution issues.

Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside?

We ask the questions that need to be asked, Hong Bao Media Holdings Pte Ltd

Mark Laudi • Investor Central

We ask the questions that need to be asked

Hong Bao Media Holdings Pte Ltd

The centrepiece of any conversation about Del Monte would be its huge debt. By buying over its namesake in the United States in 2014 and taking on a lot of debt in the process, Del Monte is playing a high stakes game. And with each passing quarter its investors and lenders are waiting to see whether it can pull it off.Del Monte's net debt increased to US$2 bln as of the end of October 2015, and it has been paying about US$22 mln-US$24 mln per quarter this year in interest.The company needs to integrate the new US business and start generating steady cash and profit to pay off its debts. But in the meantime it is still borrowing money and selling rights and shares on the two exchanges it is listed in.How will it reduce its interest expense?

The centrepiece of any conversation about Del Monte would be its huge debt. By buying over its namesake in the United States in 2014 and taking on a lot of debt in the process, Del Monte is playing a high stakes game. And with each passing quarter its investors and lenders are waiting to see whether it can pull it off.Del Monte's net debt increased to US$2 bln as of the end of October 2015, and it has been paying about US$22 mln-US$24 mln per quarter this year in interest.The company needs to integrate the new US business and start generating steady cash and profit to pay off its debts. But in the meantime it is still borrowing money and selling rights and shares on the two exchanges it is listed in.How will it reduce its interest expense?

Del Monte Pacific Limited: Can It Bear the Weight of Interest Costs?

United States

Fresh Del Monte Produce Inc. produces and markets bananas, pineapples, deciduous fruit, melons, and other fresh produce and non-produce items.  The Company grows, distributes, transports, and markets its products worldwide.

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Fresh Del Monte Produce (FDP US)

Del Monte Pacific: Monde Nissin IPO Approved; Moody's Upgraded Debt Profile = All Positive

Del Monte Pacific has appreciated by 33% over the past 45 days as competitor Monde Nissin is listing on the PSE and Moody's upgraded Del Monte's...

Nicolas Van Broekhoven

Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside?

Del Monte Pacific, dual-listed in Singapore and the Philippines, is valued at a mere 350M USD but potentially sits on a treasure trove of...

Nicolas Van Broekhoven

Del Monte Pacific Limited: Can It Bear the Weight of Interest Costs?

The centrepiece of any conversation about Del Monte would be its huge debt. By buying over its namesake in the United States in 2014 and taking on...

Mark Laudi • Investor Central

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