Asia Consumer Sector Research, Investory

Devi Subhakesan

Asia Consumer Sector Research

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 Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)'s </a>reported weak 3Q2021 results and muted sales guidance could trigger a downward revision in street sales forecasts for FY2022. Downside risk to stock price from sales downgrades and likely lower valuation multiples.</li>
<li>Slow down in sales growth in the US and a rise in competitive pressure has impacted revenue growth and margin outlook adversely. International markets could be key growth driver in the medium term.</li>
<li>IPO prospects of other alternative protein companies could be negatively impacted. Notable players in this space - <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc (1249597D US)</a> , Eat Just Inc - that had raised private funds at steep valuations earlier, may delay listing plans.</li>
</ul>



Beyond Meat (BYND US)'s reported weak 3Q2021 results and muted sales guidance could trigger a downward revision in street sales forecasts for FY2022. Downside risk to stock price from sales downgrades and likely lower valuation multiples.
Slow down in sales growth in the US and a rise in competitive pressure has impacted revenue growth and margin outlook adversely. International markets could be key growth driver in the medium term.
IPO prospects of other alternative protein companies could be negatively impacted. Notable players in this space - Impossible Foods Inc (1249597D US) , Eat Just Inc - that had raised private funds at steep valuations earlier, may delay listing plans.


Beyond Meat 3Q21: Weak Sales/Guidance, Weaker Margins. Downside Risk.

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.

Equity Capital Markets

<div><p>Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.</p></div><div><p>It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.</p></div><div><p>MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. </p></div><div>
<p>In our previous notes, </p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-positives-high-market-share" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Positives - High Market Share</a>, and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-the-negatives-high-debt-div-payments-floundering-ma" target="_blank" rel="noopener">Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA</a> we spoke about the company background and its past performance.</li>
<li>In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-food-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Food Business</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-peer-comparison-for-meat-alternative-business" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business</a> we compared the two business with their regional and global peers.</li>
<li>In <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Thoughts on Valuation</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-pre-ipo-not-cheap-but-sensible" target="_blank" rel="noopener">Monde Nissin Pre-IPO - Not Cheap but Sensible</a> we discussed our thoughts on valuation. </li>
</ul>
</div><div><p>In this note, we’ll talk about the final pricing and other dynamics.</p></div>

Monde Nissin (MNC), a food manufacturer in the Philippines, aims to raise around US$1bn in its Philippines IPO.It has two main businesses: Asia-Pacific Branded Food and Beverage Business (BFB), which sells instant noodles, biscuits and other products, and meat alternative (MA) business which includes Quorn and Cauldron meat alternatives brands.MNC has a high market share in the Philippines in the instant noodles and biscuits segment along with a few other categories as well. Quorn as well has a strong lead over its next largest peers in the Chicken alternative meat segment in the grocery channel. 
In our previous notes, 


Monde Nissin Pre-IPO - The Positives - High Market Share, and Monde Nissin Pre-IPO - The Negatives - High Debt, Div Payments, Floundering MA we spoke about the company background and its past performance.
In Monde Nissin Pre-IPO - Peer Comparison for Food Business and Monde Nissin Pre-IPO - Peer Comparison for Meat Alternative Business we compared the two business with their regional and global peers.
In Monde Nissin Pre-IPO - Thoughts on Valuation and Monde Nissin Pre-IPO - Not Cheap but Sensible we discussed our thoughts on valuation. 

In this note, we’ll talk about the final pricing and other dynamics.

Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good

Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" data-smartkarma-citation="entities:32188:1" rel="noopener">Monde Nissin Corp (0191881D PM)</a> received necessary approvals from the Philippine Stock Exchange and the Securities and Exchange Commission for an IPO that could fetch over US$1.3bn at the indicated offer price of P17.50 per share.</li>
<li>The final offer price will be determined on 18<sup>th</sup> May 2021 after the completion of the book-building process. The offer period will commence on 24<sup>th</sup> May and end on 28<sup>th</sup> May 2021. The listing date is still tentative, and it will most likely fall on 7<sup>th</sup> June 2021.</li>
<li>We have previously expressed our desire to subscribe to this IPO in <a href="https://www.smartkarma.com/insights/monde-nissin-ipo-a-discounted-way-into-fast-growing-alternative-meat" target="_blank" rel="noopener">Monde Nissin IPO: A Discounted Way Into Fast Growing Alternative Meat</a> and <a href="https://www.smartkarma.com/insights/monde-nissin-ipo-likely-to-pop-like-beyond-meat" target="_blank" rel="noopener">Monde Nissin IPO: Likely to Pop Like Beyond Meat</a>.</li>
<li>We take a look a look at Monde Nissin’s IPO valuation in details below.</li>
</ul>



Monde Nissin Corp (0191881D PM) received necessary approvals from the Philippine Stock Exchange and the Securities and Exchange Commission for an IPO that could fetch over US$1.3bn at the indicated offer price of P17.50 per share.
The final offer price will be determined on 18th May 2021 after the completion of the book-building process. The offer period will commence on 24th May and end on 28th May 2021. The listing date is still tentative, and it will most likely fall on 7th June 2021.
We have previously expressed our desire to subscribe to this IPO in Monde Nissin IPO: A Discounted Way Into Fast Growing Alternative Meat and Monde Nissin IPO: Likely to Pop Like Beyond Meat.
We take a look a look at Monde Nissin’s IPO valuation in details below.


Monde Nissin IPO Valuation: Offered at a Decent Discount

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.

<p><a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" data-smartkarma-citation="entities:32188:1" rel="noopener">Monde Nissin Corp (0191881D PM)</a> is a leading food manufacturer in the Philippines with flagship brands such as <em>Lucky Me!</em> for instant noodles and <em>Quorn</em> for meat alternative products. Monde Nissin ranked first in retail sales value in the Philippines with its instant noodles, biscuits, oyster sauce and yoghurt drinks in 2020, according to Nielsen. Monde Nissin will launch pre-marketing for an IPO to raise up to PHP63 billion ($1.3 billion) in April, according to press reports. </p><div class="content-highlight"><p>Monde Nissin is a play on the growing demand for consumer staples in the Philippines and Thailand and the healthy food category on a global scale. Monde Nissin’s financial track record shows it has been able to combine modest top-line growth with improving margins and cash generation. Overall, we believe that Monde Nissin’s fundamentals are attractive.</p></div>

Monde Nissin Corp (0191881D PM) is a leading food manufacturer in the Philippines with flagship brands such as Lucky Me! for instant noodles and Quorn for meat alternative products. Monde Nissin ranked first in retail sales value in the Philippines with its instant noodles, biscuits, oyster sauce and yoghurt drinks in 2020, according to Nielsen. Monde Nissin will launch pre-marketing for an IPO to raise up to PHP63 billion ($1.3 billion) in April, according to press reports. Monde Nissin is a play on the growing demand for consumer staples in the Philippines and Thailand and the healthy food category on a global scale. Monde Nissin’s financial track record shows it has been able to combine modest top-line growth with improving margins and cash generation. Overall, we believe that Monde Nissin’s fundamentals are attractive.

Monde Nissin IPO Initiation: Instant Karma

<ul>
<li>
<a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" data-smartkarma-citation="entities:32188:1" rel="noopener">Monde Nissin Corp (0191881D PM)</a>, the market leader in instant noodles, biscuits, oyster sauce and drinking yogurt in Philippines, filled for an IPO on The Philippine Stock Exchange on 2<sup>nd</sup> March 2021. The company will issue 3.6bn new shares at an offer price of ₱17.50 per share to raise to raise about ₱63.0bn ($1.3bn), making Monde Nissin the largest ever listing on The Philippine Stock Exchange.</li>
<li>The company has two business lines, The APAC Food &amp; Beverages segment, which sells the market leading instant noodle brand Lucky Me!, biscuits brands, SkyFlakes, Fita, Nissin, M.Y. San Grahams, the drinking yogurt brand Dutch Mill and the oyster sauce brand Mama Sita’s, had stable revenue and OP growth over the years.</li>
<li>However, the hidden gem is the relatively small alternative meat business, that competes with the likes <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a>, <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc (1249597D US)</a> and other major alternative meat companies.</li>
<li>Our early thoughts on the Monde Nissin IPO is mostly positive as the company provides a discounted way into the high growth meat alternatives market.</li>
</ul>



Monde Nissin Corp (0191881D PM), the market leader in instant noodles, biscuits, oyster sauce and drinking yogurt in Philippines, filled for an IPO on The Philippine Stock Exchange on 2nd March 2021. The company will issue 3.6bn new shares at an offer price of ₱17.50 per share to raise to raise about ₱63.0bn ($1.3bn), making Monde Nissin the largest ever listing on The Philippine Stock Exchange.
The company has two business lines, The APAC Food &amp; Beverages segment, which sells the market leading instant noodle brand Lucky Me!, biscuits brands, SkyFlakes, Fita, Nissin, M.Y. San Grahams, the drinking yogurt brand Dutch Mill and the oyster sauce brand Mama Sita’s, had stable revenue and OP growth over the years.
However, the hidden gem is the relatively small alternative meat business, that competes with the likes Beyond Meat (BYND US), Impossible Foods Inc (1249597D US) and other major alternative meat companies.
Our early thoughts on the Monde Nissin IPO is mostly positive as the company provides a discounted way into the high growth meat alternatives market.


Monde Nissin IPO: A Discounted Way Into Fast Growing Alternative Meat

United States

Impossible Foods Inc. provides food products. The Company offers meat products from plants. Impossible Foods serves customers in the United States.

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Impossible Foods Inc (1249597D US)

Beyond Meat 3Q21: Weak Sales/Guidance, Weaker Margins. Downside Risk.

Downside risk to stock from downward revisions to FY2022 sales estimates and likely lower valuation multiples in the near-to-medium term given...

Devi Subhakesan

Monde Nissin IPO - Might Not Be a High Flyer but Worth the Ride, Quorn Tastes Good

Monde Nissin aims to raise around US$1bn in its Philippines IPO. It has two main businesses: Food and Beverage, which sells instant noodles, and...

Sumeet Singh

Monde Nissin IPO Valuation: Offered at a Decent Discount

Monde Nissin is reasonably priced and has a cash cow with stable earnings growth guaranteeing dividends and sufficient cash flows to facilitate...

Oshadhi Kumarasiri

Monde Nissin IPO Initiation: Instant Karma

Monde Nissin will launch pre-marketing for an IPO to raise up to PHP63 billion ($1.3 billion) in April, according to press reports. Overall, we...

Arun George

Monde Nissin IPO: A Discounted Way Into Fast Growing Alternative Meat

Mode Nissin provides a way into the fast-growing alternative meat market at a 20% discount to Beyond Meat (which is currently trading at 23.1x...

Oshadhi Kumarasiri

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