ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN 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

<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> has seen an aggressive sell-off in its share price, despite announcing a reasonable set of 2Q2020 results, with especially strong growth coming from its digital advertising through RCTI+ and its YouTube Multichannel Network (MCN), which now has a staggering 101m subscribers.  </p>
<p>2Q2020 saw some impact from COVID-19, with overall revenues falling by -18%, to a large extent due to the cancellation of a number of big promotional events, as well as sporting fixtures such as the European Cup soccer league. </p>
<p>Overall ad-revenue fell by -20% in 2Q2020 but digital revenue grew by +27% YoY, with non-digital falling by -24%. This was better than the overall industry given its ability to continue to produce fresh content at its studios and more non-time-consuming (NTC) ads. </p>
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> also saw rapid growth in its 3rd party content licensing business to PayTV and OTT players, which grew +54% in 1H2020 IDR113bn. </p>
<p>The company has also teamed up with <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> to air its content and is in the process of signing an agreement with Tik Tok, which will also encompass talent management. </p>
<div class="content-highlight">
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> will continue to benefit from a return to growth for its core free-to-air advertising business as the economy recovers but will also see increasing importance for its digital business, which does not look to be reflected in the share price. The company looks attractive from a valuation perspective, now trading on 4.4x FY21E PER versus its 3-year average of 8.4x forward PER, with the prospect of a +20% rebound in EPS in FY21E. It trades on 0.77x FY20E PBV yet generates an FY20E ROE of 15.5%</p>
</div>

Media Nusantara Citra (MNCN IJ) has seen an aggressive sell-off in its share price, despite announcing a reasonable set of 2Q2020 results, with especially strong growth coming from its digital advertising through RCTI+ and its YouTube Multichannel Network (MCN), which now has a staggering 101m subscribers.  
2Q2020 saw some impact from COVID-19, with overall revenues falling by -18%, to a large extent due to the cancellation of a number of big promotional events, as well as sporting fixtures such as the European Cup soccer league. 
Overall ad-revenue fell by -20% in 2Q2020 but digital revenue grew by +27% YoY, with non-digital falling by -24%. This was better than the overall industry given its ability to continue to produce fresh content at its studios and more non-time-consuming (NTC) ads. 
Media Nusantara Citra (MNCN IJ) also saw rapid growth in its 3rd party content licensing business to PayTV and OTT players, which grew +54% in 1H2020 IDR113bn. 
The company has also teamed up with Facebook Inc A (FB US) to air its content and is in the process of signing an agreement with Tik Tok, which will also encompass talent management. 

Media Nusantara Citra (MNCN IJ) will continue to benefit from a return to growth for its core free-to-air advertising business as the economy recovers but will also see increasing importance for its digital business, which does not look to be reflected in the share price. The company looks attractive from a valuation perspective, now trading on 4.4x FY21E PER versus its 3-year average of 8.4x forward PER, with the prospect of a +20% rebound in EPS in FY21E. It trades on 0.77x FY20E PBV yet generates an FY20E ROE of 15.5%


Media Nusantara Citra (MNCN IJ) - No Credit Given for Metamorphosis

Cross Asset Strategy

<div class="content-highlight">
<p><em><strong>Corrigenda: There is an error in this Insight. Please note the correction.</strong></em></p>
<p><em><strong>Correction: The <a href="https://www.smartkarma.com/insights/singapore-sti-macro-bear-pressure-mounting-with-tactical-relief-from-2-400" target="_blank" data-smartkarma-citation="insights:42932" rel="noopener">Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400</a> Insight is improperly attributed to Thomas Monaco. That Insight was published by <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a>.</strong></em></p>
</div>
<hr>
<div class="content-highlight">
<p>The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma.</a></p>
</div>
<h3>Equity Bottom-Up Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/kalbe-farma-klbf-ij-a-nutritional-spin-off" target="_blank" data-smartkarma-citation="insights:42533" rel="noopener">Kalbe Farma (KLBF IJ) - A Nutritional Spin-Off?,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits South East Asia's largest pharmaceutical company in light of news that the company is considering spinning off its Nutritionals division to raise around US$500m. </p>
<p>In <a href="https://www.smartkarma.com/insights/link-net-tbk-pt-link-ij-summer-migration-at-last" target="_blank" data-smartkarma-citation="insights:42829" rel="noopener">Link Net Tbk Pt (LINK IJ) - Summer Migration at Last,</a> <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits Indonesia's highest quality high-speed broadband provider following a call with managment, which focused on its recent results, as well as the decision to build its own pole infrastructure to carry its fibre.  </p>
<p>In <a href="https://www.smartkarma.com/insights/singtel-make-the-call" target="_blank" data-smartkarma-citation="insights:42900" rel="noopener">SingTel: Make The Call,</a> <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> zeros in on Singapore's leading telecom provider and finds deep value appearing in the stock.</p>
<p>In <a href="https://www.smartkarma.com/insights/scg-packaging-ipo-initiation-shrink-wrapping" target="_blank" data-smartkarma-citation="insights:42967" rel="noopener">SCG Packaging IPO Initiation: Shrink Wrapping,</a> <a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" data-smartkarma-citation="accounts:1680" rel="noopener">Arun George</a> takes a first look at the upcoming spin-off from <a href="https://www.smartkarma.com/entities/siam-cement-pcl-the" target="_blank" data-smartkarma-citation="entities:2589:1" rel="noopener">Siam Cement (SCC TB)</a> and IPO of SCG Packaging, which will get a lot of investor focus given ist size and share in of the packaging market in SE Asia. </p>
<p>In <a href="https://www.smartkarma.com/insights/sembcorp-last-chance-before" target="_blank" data-smartkarma-citation="insights:42886" rel="noopener">Sembcorp - Last Chance Before...</a> <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> looks at the enormously dilutive rights issue and de-merger of Semcorp Marine. </p>
<p> In <a href="https://www.smartkarma.com/insights/singapore-sti-macro-bear-pressure-mounting-with-tactical-relief-from-2-400" target="_blank" data-smartkarma-citation="insights:42932" rel="noopener">Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400,</a> technical analysis specialist <a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" data-smartkarma-citation="accounts:1716" rel="noopener">Thomas J. Monaco</a> works his technical magic on the <a href="https://www.smartkarma.com/entities/ftse-straits-times-index-sti" target="_blank" data-smartkarma-citation="entities:22902:1" rel="noopener">FTSE Straits Times Index (STI) (STI INDEX).</a></p>
<p>In <a href="https://www.smartkarma.com/insights/ratch-3q20-earnings-to-improve-from-overseas-performance" target="_blank" data-smartkarma-citation="insights:42789" rel="noopener">RATCH: 3Q20 Earnings to Improve from Overseas Performance</a>, our friend at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> report back on <a href="https://www.smartkarma.com/entities/ratch-group-pcl" target="_blank" data-smartkarma-citation="entities:15338:1" rel="noopener">Ratchaburi Electric (RATCH TB)</a> post its more recent analyst meeting, which left a positive impression.  </p>
<p>In <a href="https://www.smartkarma.com/insights/b-work-good-dividend-yield-makes-an-attractive-investment" target="_blank" data-smartkarma-citation="insights:42782" rel="noopener">B-WORK: Good Dividend Yield Makes an Attractive Investment,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> revisits <a href="https://www.smartkarma.com/entities/bualuang-office-leasehold-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:26187:1" rel="noopener">Bualuang Office Leasehold Real Estate Investment Trust (B-WORK TB)</a> and takes a positive view. </p>
<p>In <a href="https://www.smartkarma.com/insights/rbf-the-excessive-outperformance-may-come-to-a-halt" target="_blank" data-smartkarma-citation="insights:42788" rel="noopener">RBF: The Excessive Outperformance May Come to a Halt,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> upgrades his recommendation on <a href="https://www.smartkarma.com/entities/r-b-food-supply-pcl" target="_blank" data-smartkarma-citation="entities:28949:1" rel="noopener">R&amp;B Food Supply PCL (RBF TB)</a> to HOLD from SELL based on raising his target price of THB9.25 from THB8.70, implying a downside of 9% from the current price. </p>
<p>In <a href="https://www.smartkarma.com/insights/sti-acquisition-benefits-are-not-fully-priced-in-strong-buy" target="_blank" data-smartkarma-citation="insights:42785" rel="noopener">STI: Acquisition Benefits Are Not Fully Priced In, Strong BUY,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> revisits <a href="https://www.smartkarma.com/entities/stonehenge-inter-pcl" target="_blank" data-smartkarma-citation="entities:27353:1" rel="noopener">Stonehenge Inter (STI TB)</a> with a BUY recommendation based on his target of THB10.10, implying an upside of 31% from the current share price. </p>
<p>In <a href="https://www.smartkarma.com/insights/dod-strong-performance-deserves-a-re-rating" target="_blank" data-smartkarma-citation="insights:42676" rel="noopener">DOD: Strong Performance Deserves a Re-Rating,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> upgrades his recommendation on <a href="https://www.smartkarma.com/entities/dod-biotech-pcl" target="_blank" data-smartkarma-citation="entities:26179:1" rel="noopener">DOD Biotech PCL (DOD TB)</a> to BUY from HOLD based on raising his target price to Bt10.70 from Bt7.55, implying an upside of 26% from the current price. </p>
<p>In <a href="https://www.smartkarma.com/insights/vranda-the-calm-before-challenging-times" target="_blank" data-smartkarma-citation="insights:42781" rel="noopener">VRANDA: The Calm Before Challenging Times,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> has a SELL recommendation on <a href="https://www.smartkarma.com/entities/veranda-resort-pcl" target="_blank" data-smartkarma-citation="entities:29176:1" rel="noopener">Veranda Resort PCL (VRANDA TB)</a> based on a target price of THB4.30, implying a downside of 26% from the current share price. </p>
<p>In <a href="https://www.smartkarma.com/insights/ace-results-are-not-stunning-stay-on-hold" target="_blank" data-smartkarma-citation="insights:42784" rel="noopener">ACE: Results Are Not Stunning, Stay on HOLD,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> upgrades his recommendation on <a href="https://www.smartkarma.com/entities/absolute-clean-energy-pcl" target="_blank" data-smartkarma-citation="entities:29155:1" rel="noopener">Absolute Clean Energy PCL (ACE TB)</a> to HOLD from SELL based on raising his target price to THB3.49 from THB2.64, implying an upside of 8% from the current price. </p>
<p>In <a href="https://www.smartkarma.com/insights/spa-weak-demand-continues-to-pressure-2h20-earnings" target="_blank" data-smartkarma-citation="insights:42813" rel="noopener">SPA: Weak Demand Continues to Pressure 2H20 Earnings,</a> <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr. Andrew Stotz, CFA</a> downgrades <a href="https://www.smartkarma.com/entities/siam-wellness-group-pcl" target="_blank" data-smartkarma-citation="entities:3765:1" rel="noopener">Siam Wellness Group (SPA TB)</a> from BUY to HOLD rating and cut his target price by 31% to THB6.6 to factor in weakening earnings momentum in 2H20. </p>
<p>In <a href="https://www.smartkarma.com/insights/gunkul-new-60mw-power-plant-to-drive-2h20-earnings" target="_blank" data-smartkarma-citation="insights:42820" rel="noopener">GUNKUL: New 60MW Power Plant to Drive 2H20 Earnings,</a> <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> maintain a BUY rating on <a href="https://www.smartkarma.com/entities/gunkul-engineering-pcl" target="_blank" data-smartkarma-citation="entities:15272:1" rel="noopener">Gunkul Engineering (GUNKUL TB)</a> with a target price of THB3.24 derived using DCF method (WACC 7.8% and TG 1%) implying 11.4x FY20E PER or 0.5x relative PER to Thai utility sector. </p>
<h3>Sector and Thematic Insights</h3>
<p>In <a href="https://www.smartkarma.com/insights/telecom-review-sept-2020-ais-and-asiasoft-get-aggressive-on-gaming" target="_blank" data-smartkarma-citation="insights:41022" rel="noopener">Telecom Review (Sept 2020): AIS and AsiaSoft Get Aggressive on Gaming,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> takes a look at gaming, specifically related to <a href="https://www.smartkarma.com/entities/advanced-info-service-pcl" target="_blank" data-smartkarma-citation="entities:947:1" rel="noopener">Advanced Info Service (ADVANC TB)</a> and <a href="https://www.smartkarma.com/entities/asiasoft-corp-pcl" target="_blank" data-smartkarma-citation="entities:5429:1" rel="noopener">Asiasoft Corp (AS TB)</a> in Thailand. </p>


Corrigenda: There is an error in this Insight. Please note the correction.
Correction: The Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400 Insight is improperly attributed to Thomas Monaco. That Insight was published by Thomas Schroeder.



The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma.

Equity Bottom-Up Insights
In Kalbe Farma (KLBF IJ) - A Nutritional Spin-Off?, CrossASEAN Insight Provider Angus Mackintosh revisits South East Asia's largest pharmaceutical company in light of news that the company is considering spinning off its Nutritionals division to raise around US$500m. 
In Link Net Tbk Pt (LINK IJ) - Summer Migration at Last, Angus Mackintosh revisits Indonesia's highest quality high-speed broadband provider following a call with managment, which focused on its recent results, as well as the decision to build its own pole infrastructure to carry its fibre.  
In SingTel: Make The Call, David Blennerhassett zeros in on Singapore's leading telecom provider and finds deep value appearing in the stock.
In SCG Packaging IPO Initiation: Shrink Wrapping, Arun George takes a first look at the upcoming spin-off from Siam Cement (SCC TB) and IPO of SCG Packaging, which will get a lot of investor focus given ist size and share in of the packaging market in SE Asia. 
In Sembcorp - Last Chance Before... Travis Lundy looks at the enormously dilutive rights issue and de-merger of Semcorp Marine. 
 In Singapore STI Macro Bear Pressure Mounting with Tactical Relief from 2,400, technical analysis specialist Thomas J. Monaco works his technical magic on the FTSE Straits Times Index (STI) (STI INDEX).
In RATCH: 3Q20 Earnings to Improve from Overseas Performance, our friend at Country Group report back on Ratchaburi Electric (RATCH TB) post its more recent analyst meeting, which left a positive impression.  
In B-WORK: Good Dividend Yield Makes an Attractive Investment, Dr. Andrew Stotz, CFA revisits Bualuang Office Leasehold Real Estate Investment Trust (B-WORK TB) and takes a positive view. 
In RBF: The Excessive Outperformance May Come to a Halt, Dr. Andrew Stotz, CFA upgrades his recommendation on R&amp;B Food Supply PCL (RBF TB) to HOLD from SELL based on raising his target price of THB9.25 from THB8.70, implying a downside of 9% from the current price. 
In STI: Acquisition Benefits Are Not Fully Priced In, Strong BUY, Dr. Andrew Stotz, CFA revisits Stonehenge Inter (STI TB) with a BUY recommendation based on his target of THB10.10, implying an upside of 31% from the current share price. 
In DOD: Strong Performance Deserves a Re-Rating, Dr. Andrew Stotz, CFA upgrades his recommendation on DOD Biotech PCL (DOD TB) to BUY from HOLD based on raising his target price to Bt10.70 from Bt7.55, implying an upside of 26% from the current price. 
In VRANDA: The Calm Before Challenging Times, Dr. Andrew Stotz, CFA has a SELL recommendation on Veranda Resort PCL (VRANDA TB) based on a target price of THB4.30, implying a downside of 26% from the current share price. 
In ACE: Results Are Not Stunning, Stay on HOLD, Dr. Andrew Stotz, CFA upgrades his recommendation on Absolute Clean Energy PCL (ACE TB) to HOLD from SELL based on raising his target price to THB3.49 from THB2.64, implying an upside of 8% from the current price. 
In SPA: Weak Demand Continues to Pressure 2H20 Earnings, Dr. Andrew Stotz, CFA downgrades Siam Wellness Group (SPA TB) from BUY to HOLD rating and cut his target price by 31% to THB6.6 to factor in weakening earnings momentum in 2H20. 
In GUNKUL: New 60MW Power Plant to Drive 2H20 Earnings, Country Group maintain a BUY rating on Gunkul Engineering (GUNKUL TB) with a target price of THB3.24 derived using DCF method (WACC 7.8% and TG 1%) implying 11.4x FY20E PER or 0.5x relative PER to Thai utility sector. 
Sector and Thematic Insights
In Telecom Review (Sept 2020): AIS and AsiaSoft Get Aggressive on Gaming, our Thai guru Athaporn Arayasantiparb, CFA takes a look at gaming, specifically related to Advanced Info Service (ADVANC TB) and Asiasoft Corp (AS TB) in Thailand. 

The Week that Was in ASEAN@Smartkama - Kalbe Spin-Off, SingTel's Deep Value, and Thailand's Gamers

<div class="content-highlight">
<p>This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma.</a></p>
</div><h2>Macro Insights</h2><p>In <a href="https://www.smartkarma.com/insights/labour-market-slack-remains-but-fomc-will-need-to-tighten-by-mid-2021" target="_blank" data-smartkarma-citation="insights:40185" rel="noopener">Labour Market Slack Remains but FOMC Will Need to Tighten by Mid-2021,</a> CrossASEAN Cheif Economist <a href="https://www.smartkarma.com/profiles/prasenjit-k-basu" target="_blank" data-smartkarma-citation="accounts:612" rel="noopener">Prasenjit K. Basu</a> revisits the US Economy, where he sees inflationary risks ahead. </p><p>In <a href="https://www.smartkarma.com/insights/post-covid-19-economic-reality-bites" target="_blank" data-smartkarma-citation="insights:40286" rel="noopener">Post-COVID 19 - Economic Reality Bites,</a><a href="https://www.smartkarma.com/profiles/sharmila-whelan" target="_blank" data-smartkarma-citation="accounts:1728" rel="noopener">Sharmila Whelan</a> suggests that we may be about to see a change in market sentiment as the realisation of the true impact of COVID-19 dawns on liquidity-driven markets. </p><h2>Equity Bottom-Up Insights</h2><p>In <a href="https://www.smartkarma.com/insights/bank-mandiri-persero-bmri-ij-biting-the-bullet-on-restructuring" target="_blank" data-smartkarma-citation="insights:40167" rel="noopener">Bank Mandiri Persero (BMRI IJ) - Biting the Bullet on Restructuring,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits this leading Indonesian lender as it lays out its COVID-19 restructuring plans.</p><p>In <a href="https://www.smartkarma.com/insights/sats-traffic-99-5-in-april-and-may-how-much-worse-can-it-get" target="_blank" data-smartkarma-citation="insights:40142" rel="noopener">SATS: Traffic -99.5% in April and May; How Much Worse Can It Get?,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits Singapore's leading aircraft maintenance player and asks whether we have hit the bottom.</p><p><a href="https://www.smartkarma.com/insights/in-malaysia-carlsberg-or-heineken" target="_blank" data-smartkarma-citation="insights:40195" rel="noopener">In Malaysia - Carlsberg or Heineken?,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko</a> zeros in on the Malaysian brewery space. </p><p>In <a href="https://www.smartkarma.com/insights/btps-exceptional-core" target="_blank" data-smartkarma-citation="insights:40179" rel="noopener">BTPS – Exceptional Core,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> revisits Indonesia's most interesting Sharia lender and finds an encouraging picture. </p><p>In <a href="https://www.smartkarma.com/insights/keppel-corp-stretched-vs-proxy-baskets-and-now-with-new-risk" target="_blank" data-smartkarma-citation="insights:40339" rel="noopener">Keppel Corp - Stretched Vs Proxy Baskets And Now With New Risk</a>, <a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> revisits this long-in-the-tooth partial offer. </p><p>In <a href="https://www.smartkarma.com/insights/sembcorp-marine-rights-offer-cast-away" target="_blank" data-smartkarma-citation="insights:40164" rel="noopener">Sembcorp Marine Rights Offer - Cast Away,</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> comments on the recently announced <a href="https://www.smartkarma.com/entities/sembcorp-marine-ltd" target="_blank" data-smartkarma-citation="entities:11:1" rel="noopener">Sembcorp Marine (SMM SP)</a> S$2.1bn rights issue. </p><p>In <a href="https://www.smartkarma.com/insights/sembcorp-industries-sembcorp-marine-rights-issue-and-demerger" target="_blank" data-smartkarma-citation="insights:40193" rel="noopener">Sembcorp Industries/Sembcorp Marine Rights Issue and Demerger,</a><a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" data-smartkarma-citation="accounts:1680" rel="noopener">Arun George</a> also comments on this ongoing transaction.</p><p>In <a href="https://www.smartkarma.com/insights/smm-rights-issue-demerger-is-one-step-closer-to-keppel-o-m-smm-merger" target="_blank" data-smartkarma-citation="insights:40152" rel="noopener">SMM Rights Issue &amp; Demerger Is One Step Closer to Keppel O&amp;M+SMM Merger,</a><a href="https://www.smartkarma.com/profiles/ke-yan-cfa-frm" target="_blank" data-smartkarma-citation="accounts:9" rel="noopener">Ke Yan, CFA, FRM</a> looks at this ongoing situation but sees a longer-term endgame ahead. </p><p>In <a href="https://www.smartkarma.com/insights/bts-solid-core-operation-with-huge-potential-upside" target="_blank" data-smartkarma-citation="insights:40251" rel="noopener">BTS: Solid Core Operation with Huge Potential Upside</a>, our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit <a href="https://www.smartkarma.com/entities/bts-group-holdings-pcl" target="_blank" data-smartkarma-citation="entities:15943:1" rel="noopener">BTS Group Holdings (BTS TB)</a> and expect some softening in the outlook. </p><p>In <a href="https://www.smartkarma.com/insights/spa-major-beneficiary-of-return-chinese-tourist-arrivals-in-thailand" target="_blank" data-smartkarma-citation="insights:40276" rel="noopener">SPA: Major Beneficiary of Return Chinese Tourist Arrivals in Thailand,</a><a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> upgrade <a href="https://www.smartkarma.com/entities/siam-wellness-group-pcl" target="_blank" data-smartkarma-citation="entities:3765:1" rel="noopener">Siam Wellness Group (SPA TB)</a> to BUY as it will be a beneficiary of Chinese tourists returning to Thailand. </p><h2>Sector and Thematic Insights</h2><p>In <a href="https://www.smartkarma.com/insights/indonesian-consumers-this-transformation-is-forever-buy-staples-and-healthcare" target="_blank" data-smartkarma-citation="insights:40256" rel="noopener">Indonesian Consumers - This Transformation Is Forever - BUY Staples and Healthcare</a>, CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> zeros in on the changing behaviour of the Indonesian consumer over COVID-19. </p><p>In <a href="https://www.smartkarma.com/insights/indonesian-media-a-tale-of-two-cities-buy-mncn" target="_blank" data-smartkarma-citation="insights:40211" rel="noopener">Indonesian Media - A Tale of Two Cities - BUY MNCN,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits the sector in light of the ongoing COVID-19 impact.</p><p>In <a href="https://www.smartkarma.com/insights/indonesia-banks-loan-forbearance" target="_blank" data-smartkarma-citation="insights:40143" rel="noopener">Indonesia Banks – Loan Forbearance,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> zooms in on the Indonesian banking sector, where he sees a relatively promising outlook.</p><p>In <a href="https://www.smartkarma.com/insights/sathorn-series-o-thai-banks-expand-abroad" target="_blank" data-smartkarma-citation="insights:38468" rel="noopener">Sathorn Series O: Thai Banks Expand Abroad,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> zeroes in on Thai Banks as they look overseas for future growth. </p><p>In <a href="https://www.smartkarma.com/insights/whatsapp-paypal-funding-to-fortify-go-jek-s-go-pay-business" target="_blank" data-smartkarma-citation="insights:40197" rel="noopener">WhatsApp, PayPal Funding To Fortify Go-Jek's Go-Pay Business,</a><a href="https://www.smartkarma.com/profiles/aqila-ali" target="_blank" data-smartkarma-citation="accounts:1652" rel="noopener">Aqila Ali</a> takes a look at the reasoning behind <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US)</a>'s recent investment into <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ).</a></p><h2>Credit Insights</h2><p>In <a href="https://www.smartkarma.com/insights/chandra-asri-earnings-flash-q1-fy-2020-results-lucror-analytics" target="_blank" data-smartkarma-citation="insights:40154" rel="noopener">Chandra Asri - Earnings Flash - Q1 FY 2020 Results,</a><a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" data-smartkarma-citation="accounts:7108" rel="noopener">Trung Nguyen</a> zeros in on recent results from <a href="https://www.smartkarma.com/entities/chandra-asri-petrochemical" target="_blank" data-smartkarma-citation="entities:2556:1" rel="noopener">Chandra Asri Petrochemical (TPIA IJ)</a>,  which were weaker than expected. </p>


This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma.
Macro InsightsIn Labour Market Slack Remains but FOMC Will Need to Tighten by Mid-2021, CrossASEAN Cheif Economist Prasenjit K. Basu revisits the US Economy, where he sees inflationary risks ahead. In Post-COVID 19 - Economic Reality Bites,Sharmila Whelan suggests that we may be about to see a change in market sentiment as the realisation of the true impact of COVID-19 dawns on liquidity-driven markets. Equity Bottom-Up InsightsIn Bank Mandiri Persero (BMRI IJ) - Biting the Bullet on Restructuring, CrossASEAN Insight Provider Angus Mackintosh revisits this leading Indonesian lender as it lays out its COVID-19 restructuring plans.In SATS: Traffic -99.5% in April and May; How Much Worse Can It Get?, CrossASEAN Insight Provider Nicolas Van Broekhoven revisits Singapore's leading aircraft maintenance player and asks whether we have hit the bottom.In Malaysia - Carlsberg or Heineken?, CrossASEAN Insight Provider Henry Soediarko zeros in on the Malaysian brewery space. In BTPS – Exceptional Core, banking specialist Daniel Tabbush revisits Indonesia's most interesting Sharia lender and finds an encouraging picture. In Keppel Corp - Stretched Vs Proxy Baskets And Now With New Risk, Travis Lundy revisits this long-in-the-tooth partial offer. In Sembcorp Marine Rights Offer - Cast Away,Travis Lundy comments on the recently announced Sembcorp Marine (SMM SP) S$2.1bn rights issue. In Sembcorp Industries/Sembcorp Marine Rights Issue and Demerger,Arun George also comments on this ongoing transaction.In SMM Rights Issue &amp; Demerger Is One Step Closer to Keppel O&amp;M+SMM Merger,Ke Yan, CFA, FRM looks at this ongoing situation but sees a longer-term endgame ahead. In BTS: Solid Core Operation with Huge Potential Upside, our friends at Country Group revisit BTS Group Holdings (BTS TB) and expect some softening in the outlook. In SPA: Major Beneficiary of Return Chinese Tourist Arrivals in Thailand,Country Group upgrade Siam Wellness Group (SPA TB) to BUY as it will be a beneficiary of Chinese tourists returning to Thailand. Sector and Thematic InsightsIn Indonesian Consumers - This Transformation Is Forever - BUY Staples and Healthcare, CrossASEAN Insight Provider Angus Mackintosh zeros in on the changing behaviour of the Indonesian consumer over COVID-19. In Indonesian Media - A Tale of Two Cities - BUY MNCN, CrossASEAN Insight Provider Angus Mackintosh revisits the sector in light of the ongoing COVID-19 impact.In Indonesia Banks – Loan Forbearance, banking specialist Daniel Tabbush zooms in on the Indonesian banking sector, where he sees a relatively promising outlook.In Sathorn Series O: Thai Banks Expand Abroad, our Thai guru Athaporn Arayasantiparb, CFA zeroes in on Thai Banks as they look overseas for future growth. In WhatsApp, PayPal Funding To Fortify Go-Jek's Go-Pay Business,Aqila Ali takes a look at the reasoning behind Facebook Inc A (FB US) and Paypal Holdings (PYPL US)'s recent investment into Gojek (1379371D IJ).Credit InsightsIn Chandra Asri - Earnings Flash - Q1 FY 2020 Results,Trung Nguyen zeros in on recent results from Chandra Asri Petrochemical (TPIA IJ),  which were weaker than expected. 

The Week that Was in ASEAN@Smartkarma - Consumer Transformation, Indonesian Banks, and Semcorp

Thematic (Sector/Industry)

<p>The Indonesian media sector should be a port in the storm during COVID-19, with the population watching 50% more TV during large-scale social distancing (PSBB) period. Apart from some reduction in advertising budgets, the offsetting factor which clouds the picture somewhat, is that of the production of fresh sinetron (drama series) content has ground to a halt for most companies including <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ).</a> </p>
<p>The exception to this is <a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ),</a> which was quick to move production to its MNC Studio rather than filming outside, which was disallowed under PSBB rules. This has started to be reflected in audience share numbers for <a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ),</a> which has moved to the number one spot overall in May, ahead of <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ).</a></p>
<p><a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ)</a> has addressed this issue by showing more feature-length drama films, which has proved a relatively successful strategy and its has also meant a reduction in production costs, which is a key focus for the company. </p>
<p>As a result of being able to show fresh content, <a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> has seen relatively strong demand for advertising but more especially for non-time consuming ads (NTC), which are higher margin by nature. </p>
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> has also seen strong growth in its digital advertising through both its YouTube multi-channel network and RCTI+. It has 80m subscribers on YouTube and 10m for RCTI+. </p>
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> has also just seen the completion a placement of its shares by <a href="https://www.smartkarma.com/entities/global-mediacom-tbk-pt" target="_blank" data-smartkarma-citation="entities:14005:1" rel="noopener">Global Mediacom (BMTR IJ)</a> to institutional investors bringing the free-float to more than 40% from just under 35% previously. This will help the stock's liquidity but also mean a lower tax rate for the company. </p>
<div class="content-highlight">
<p>At this juncture, we would prefer <a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> over <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ)</a> given its ability to exploit its fresh content for NTC ads as well as higher audience share making it more attractive. The increased in the free-float lifts an overhang, creates more liquidity, and a lower tax rate is a positive. We still like <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-smartkarma-citation="entities:14739:1" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ)</a> on a long-term view but would wait for evidence of a real turnaround. Liquidity permitting this would be an interesting pair trade.</p>
</div>

The Indonesian media sector should be a port in the storm during COVID-19, with the population watching 50% more TV during large-scale social distancing (PSBB) period. Apart from some reduction in advertising budgets, the offsetting factor which clouds the picture somewhat, is that of the production of fresh sinetron (drama series) content has ground to a halt for most companies including PT Surya Citra Media Tbk (SCMA IJ). 
The exception to this is Media Nusantara Citra (MNCN IJ), which was quick to move production to its MNC Studio rather than filming outside, which was disallowed under PSBB rules. This has started to be reflected in audience share numbers for Media Nusantara Citra (MNCN IJ), which has moved to the number one spot overall in May, ahead of PT Surya Citra Media Tbk (SCMA IJ).
PT Surya Citra Media Tbk (SCMA IJ) has addressed this issue by showing more feature-length drama films, which has proved a relatively successful strategy and its has also meant a reduction in production costs, which is a key focus for the company. 
As a result of being able to show fresh content, Media Nusantara Citra (MNCN IJ) has seen relatively strong demand for advertising but more especially for non-time consuming ads (NTC), which are higher margin by nature. 
Media Nusantara Citra (MNCN IJ) has also seen strong growth in its digital advertising through both its YouTube multi-channel network and RCTI+. It has 80m subscribers on YouTube and 10m for RCTI+. 
Media Nusantara Citra (MNCN IJ) has also just seen the completion a placement of its shares by Global Mediacom (BMTR IJ) to institutional investors bringing the free-float to more than 40% from just under 35% previously. This will help the stock's liquidity but also mean a lower tax rate for the company. 

At this juncture, we would prefer Media Nusantara Citra (MNCN IJ) over PT Surya Citra Media Tbk (SCMA IJ) given its ability to exploit its fresh content for NTC ads as well as higher audience share making it more attractive. The increased in the free-float lifts an overhang, creates more liquidity, and a lower tax rate is a positive. We still like PT Surya Citra Media Tbk (SCMA IJ) on a long-term view but would wait for evidence of a real turnaround. Liquidity permitting this would be an interesting pair trade.


Indonesian Media - A Tale of Two Cities - BUY MNCN

<div class="content-highlight">
<p>This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights.</p>
<p>Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma.</a></p>
</div><h2>Macro Insights</h2><p>In <a href="https://www.smartkarma.com/insights/mid-year-thai-strategy-review-2020-focus-on-recovery-plays" target="_blank" data-smartkarma-citation="insights:38781" rel="noopener">Mid-Year Thai Strategy Review 2020: Focus on Recovery Plays,</a> our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> lays out his thoughts and recommendations for 2H2020 in Thailand. </p><h2>Equity Bottom-Up  Insights</h2><p>In <a href="https://www.smartkarma.com/insights/telekomunikasi-indonesia-tlkm-ij-nurturing-the-new-economy" target="_blank" data-smartkarma-citation="insights:40041" rel="noopener">Telekomunikasi Indonesia (TLKM IJ) - Nurturing the New Economy,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits Indonesia's largest telco and finds it making significant strides into the digital economy. </p><p>In <a href="https://www.smartkarma.com/insights/valuetronics-value-sp-cash-is-an-important-asset-expansion-in-vietnam-continues" target="_blank" data-smartkarma-citation="insights:40015" rel="noopener">Valuetronics (VALUE SP): Cash Is an Important Asset + Expansion in Vietnam Continues,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits this electronics player and although valuations look cheap, it faces headwinds from its predominantly Chinese production together with a large market focus on the USA. </p><p>In <a href="https://www.smartkarma.com/insights/comfort-delgro-cd-back-to-office-bto" target="_blank" data-smartkarma-citation="insights:40020" rel="noopener">Comfort Delgro (CD): Back-To-Office (BTO),</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" data-smartkarma-citation="accounts:1006" rel="noopener">Henry Soediarko</a> circles back to this Singapore taxi operator in light of a lifting of the circuit breaker in the near future.</p><p>In <a href="https://www.smartkarma.com/insights/bdo-unibank-is-a-capital-raise-next" target="_blank" data-smartkarma-citation="insights:39969" rel="noopener">BDO Unibank – Is A Capital Raise Next?,</a><a href="https://www.smartkarma.com/profiles/thomas-j-monaco" target="_blank" data-smartkarma-citation="accounts:1716" rel="noopener">Thomas J. Monaco</a> zeros in on Philippine bank <a href="https://www.smartkarma.com/entities/bdo-unibank-inc" target="_blank" data-smartkarma-citation="entities:329:1" rel="noopener">BDO Unibank Inc (BDO PM)</a> after the announcement of a special loan loss provision. </p><p>In <a href="https://www.smartkarma.com/insights/singapore-air-the-rights-distribution-vol-is-your-friend" target="_blank" data-smartkarma-citation="insights:39991" rel="noopener">Singapore Air - The Rights Distribution - Vol Is Your Friend,</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> revisits <a href="https://www.smartkarma.com/entities/singapore-airlines-ltd" target="_blank" data-smartkarma-citation="entities:74:1" rel="noopener">Singapore Airlines (SIA SP)</a> post its rights issue. </p><p>In <a href="https://www.smartkarma.com/insights/singapore-air-aftermath-of-the-rights" target="_blank" data-smartkarma-citation="insights:39837" rel="noopener">Singapore Air - Aftermath of the Rights,</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> takes a step back and reviews the potential post-rights positioning for <a href="https://www.smartkarma.com/entities/singapore-airlines-ltd" target="_blank" data-smartkarma-citation="entities:74:1" rel="noopener">Singapore Airlines (SIA SP).</a></p><p>In <a href="https://www.smartkarma.com/insights/vgi-most-solid-player-in-media-sector" target="_blank" data-smartkarma-citation="insights:40073" rel="noopener">VGI: Most Solid Player in Media Sector,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit <a href="https://www.smartkarma.com/entities/vgi-pcl" target="_blank" data-smartkarma-citation="entities:12409:1" rel="noopener">VGI PCL (VGI TB)</a> having attended the analyst meeting on 2nd June, where they came back with a neutral tone. </p><p>In <a href="https://www.smartkarma.com/insights/gulf-fastest-growing-utility-player-in-thailand" target="_blank" data-smartkarma-citation="insights:40103" rel="noopener">GULF: Fastest Growing Utility Player in Thailand,</a><a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> initiate coverage of <a href="https://www.smartkarma.com/entities/gulf-energy-development-public-company-limited" target="_blank" data-smartkarma-citation="entities:26038:1" rel="noopener">Gulf Energy Development Public Company (GULF TB)</a> with a BUY rating, based on a 2021E target price of Bt44.6, derived from a sum-of-the-parts (SOTP) methodology.</p><p>In <a href="https://www.smartkarma.com/insights/singapore-press-reach-for-1-18" target="_blank" data-smartkarma-citation="insights:39976" rel="noopener">Singapore Press Reach for SGD1.18,</a> technical analysis specialist <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a> works his magic on <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press Holdings (SPH SP)</a> and takes a bearish view on the removal from the Index the company created.</p><h2>
<a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener"></a>Sector and Thematic Insights</h2><p>In <a href="https://www.smartkarma.com/insights/singapore-reits-new-rental-relief-framework-for-smes" target="_blank" data-smartkarma-citation="insights:40053" rel="noopener">Singapore REITs - New Rental Relief Framework for SMEs,</a><a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" data-smartkarma-citation="accounts:4" rel="noopener">Sumeet Singh</a> revisits the Singapore REITs sector post the announcement of rental relief for SMEs by the Government. </p><p>In <a href="https://www.smartkarma.com/insights/sti-index-review-and-ironic-it-is" target="_blank" data-smartkarma-citation="insights:40037" rel="noopener">STI Index Review - And Ironic It Is!,</a><a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> comments the review of the <a href="https://www.smartkarma.com/entities/ftse-straits-times-index-sti" target="_blank" data-smartkarma-citation="entities:22902:1" rel="noopener">FTSE Straits Times Index (STI) (STI INDEX)</a> which took place last week. </p><p>In <a href="https://www.smartkarma.com/insights/klci-index-review-liquidity-play" target="_blank" data-smartkarma-citation="insights:40040" rel="noopener">KLCI Index Review - Liquidity Play,</a><a href="https://www.smartkarma.com/profiles/brian-freitas" target="_blank" data-smartkarma-citation="accounts:4091" rel="noopener">Brian Freitas</a> comments on the recent changes to the <a href="https://www.smartkarma.com/entities/kuala-lumpur-composite-index" target="_blank" data-smartkarma-citation="entities:22913:1" rel="noopener">Kuala Lumpur Composite Index (KLCI) (FBMKLCI INDEX). </a></p><p>In <a href="https://www.smartkarma.com/insights/singapore-sti-laggard-play" target="_blank" data-smartkarma-citation="insights:39943" rel="noopener">Singapore STI Laggard Play,</a> technical analysis specialist <a href="https://www.smartkarma.com/profiles/thomas-schroeder" target="_blank" data-smartkarma-citation="accounts:381" rel="noopener">Thomas Schroeder</a> comments on Singapore's ST Index and sees it as an attractive laggard. </p><h2>Credit Insights</h2><p>In <a href="https://www.smartkarma.com/insights/olam-international-cocoa-against-covid" target="_blank" data-smartkarma-citation="insights:40059" rel="noopener">Olam International: Cocoa Against COVID,</a> Credit specialist <a href="https://www.smartkarma.com/profiles/warut-promboon" target="_blank" data-smartkarma-citation="accounts:1226" rel="noopener">Warut Promboon</a> initiates coverage on Singapore-based commodity player <a href="https://www.smartkarma.com/entities/olam-international-ltd" target="_blank" data-smartkarma-citation="entities:765:1" rel="noopener">Olam International (OLAM SP),</a> as management shifts to more value-added businesses and processes. </p><p>In <a href="https://www.smartkarma.com/insights/oue-ltd-bonds-not-joining-the-party" target="_blank" data-smartkarma-citation="insights:39999" rel="noopener">OUE Ltd. - Bonds Not Joining the Party,</a> Credit Specialist <a href="https://www.smartkarma.com/profiles/lakshmi-iyer-cfa" target="_blank" data-smartkarma-citation="accounts:9363" rel="noopener">Lakshmi Iyer, CFA</a> takes a look at this Singapore property company's 2023 bonds. </p><div><div id="ember56480"><section></section></div></div><div><div id="ember56622"><div id="ember56623"><div></div></div></div></div>


This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma.
Macro InsightsIn Mid-Year Thai Strategy Review 2020: Focus on Recovery Plays, our Thai guru Athaporn Arayasantiparb, CFA lays out his thoughts and recommendations for 2H2020 in Thailand. Equity Bottom-Up  InsightsIn Telekomunikasi Indonesia (TLKM IJ) - Nurturing the New Economy, CrossASEAN Insight Provider Angus Mackintosh revisits Indonesia's largest telco and finds it making significant strides into the digital economy. In Valuetronics (VALUE SP): Cash Is an Important Asset + Expansion in Vietnam Continues, CrossASEAN Insight Provider Nicolas Van Broekhoven revisits this electronics player and although valuations look cheap, it faces headwinds from its predominantly Chinese production together with a large market focus on the USA. In Comfort Delgro (CD): Back-To-Office (BTO), CrossASEAN Insight Provider Henry Soediarko circles back to this Singapore taxi operator in light of a lifting of the circuit breaker in the near future.In BDO Unibank – Is A Capital Raise Next?,Thomas J. Monaco zeros in on Philippine bank BDO Unibank Inc (BDO PM) after the announcement of a special loan loss provision. In Singapore Air - The Rights Distribution - Vol Is Your Friend,Travis Lundy revisits Singapore Airlines (SIA SP) post its rights issue. In Singapore Air - Aftermath of the Rights,Travis Lundy takes a step back and reviews the potential post-rights positioning for Singapore Airlines (SIA SP).In VGI: Most Solid Player in Media Sector, our friends at Country Group revisit VGI PCL (VGI TB) having attended the analyst meeting on 2nd June, where they came back with a neutral tone. In GULF: Fastest Growing Utility Player in Thailand,Country Group initiate coverage of Gulf Energy Development Public Company (GULF TB) with a BUY rating, based on a 2021E target price of Bt44.6, derived from a sum-of-the-parts (SOTP) methodology.In Singapore Press Reach for SGD1.18, technical analysis specialist Thomas Schroeder works his magic on Singapore Press Holdings (SPH SP) and takes a bearish view on the removal from the Index the company created.
Sector and Thematic InsightsIn Singapore REITs - New Rental Relief Framework for SMEs,Sumeet Singh revisits the Singapore REITs sector post the announcement of rental relief for SMEs by the Government. In STI Index Review - And Ironic It Is!,Brian Freitas comments the review of the FTSE Straits Times Index (STI) (STI INDEX) which took place last week. In KLCI Index Review - Liquidity Play,Brian Freitas comments on the recent changes to the Kuala Lumpur Composite Index (KLCI) (FBMKLCI INDEX). In Singapore STI Laggard Play, technical analysis specialist Thomas Schroeder comments on Singapore's ST Index and sees it as an attractive laggard. Credit InsightsIn Olam International: Cocoa Against COVID, Credit specialist Warut Promboon initiates coverage on Singapore-based commodity player Olam International (OLAM SP), as management shifts to more value-added businesses and processes. In OUE Ltd. - Bonds Not Joining the Party, Credit Specialist Lakshmi Iyer, CFA takes a look at this Singapore property company's 2023 bonds. 

The Week that Was in ASEAN@Smartkarma - Thai Strategy, New Economy Telco, and Olam

Indonesia

PT Media Nusantara Citra Tbk is the largest integrated media company in Southeast Asia. The Company has 3 main businesses 1) 4 free-to-air TV stations with a dominant audience share of 40% 2) The largest content production house producing up to 20,000 hours annually while managing the largest talent agency with almost 400 talents 3) Digital businesses: the largest social media presence in Indonesia through Youtube (100 million subscribers), Facebook and TikTok. 3 online portals, okezone.com, sindonews.com and inews.id with more than 24 million unique visitors daily. RCTI+, the largest entertainment super app in Indonesia with AVOD business model.

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

Media Nusantara Citra (MNCN IJ)