Research from Asian Century Stocks, Asian Century Stocks

Michael Fritzell

Research from Asian Century Stocks

Providing financial journalism in the Asia-Pacific

Asian Century Stocks

Asian Century Stocks is a newsletter providing financial journalism for companies and stocks in the Asia-Pacific. 
The Asian Century Stocks logotype “百” stands for “one hundred” or a “century”. The economic centre of gravity is moving towards Asia. Yet most global investors are missing out.

Equity Bottom-Up

NagaCorp (3918 HK - US$3.5 billion) is a Hong Kong-listed casino operator based in Cambodia’s capital city of Phnom Penh.
Its two “NagaWorld” casinos with 480 gaming tables and 3,700 slot machines, and hotels with 2,700 rooms and related commercial properties.
What makes NagaWorld unique is that it has a monopoly on running casinos in a 200km radius of Phnom Penh, lasting until 2045.

NagaCorp (3918 HK - US$3.5 billion) is a Hong Kong-listed casino operator based in Cambodia’s capital city of Phnom Penh.
Its two “NagaWorld” casinos with 480 gaming tables and 3,700 slot machines, and hotels with 2,700 rooms and related commercial properties.
What makes NagaWorld unique is that it has a monopoly on running casinos in a 200km radius of Phnom Penh, lasting until 2045.

Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

<ul><li>We have researched NagaCorp as a potential beneficiary of lifting travel restrictions, growing tourism in Cambodia, and massive internal expansion projects.</li><li>This company paid out ~70% of profits on average in the last five years before pandemics and is currently attractively priced.</li><li>Multiples: 2.3x EV/2019 Revenue and 6.55x EV/2019 EBITDA at $4+ bn. Market Cap.</li><li>We have observed stable margins, monopoly, and tax advantages versus competitors.</li><li>Risk of the exacerbated growth plan, excessive dilution, and prolonged COVID effects - for us, the risk outweighs the potential reward.</li></ul>

We have researched NagaCorp as a potential beneficiary of lifting travel restrictions, growing tourism in Cambodia, and massive internal expansion projects.This company paid out ~70% of profits on average in the last five years before pandemics and is currently attractively priced.Multiples: 2.3x EV/2019 Revenue and 6.55x EV/2019 EBITDA at $4+ bn. Market Cap.We have observed stable margins, monopoly, and tax advantages versus competitors.Risk of the exacerbated growth plan, excessive dilution, and prolonged COVID effects - for us, the risk outweighs the potential reward.

NagaCorp Ltd: Appealing At First Sight But Risky Underneath

Bond market data and technology, BondEvalue

BondEvalue

Bond market data and technology

BondEvalue is a Singapore-based Fintech that specializes in bond market data and technology. The company's information services business offers bond market data on hard-currency corporate & sovereign bonds across Asia, Middle East, Europe and the Americas. The data, which includes bond prices, yields, news and analytics, is offered to end investors via interactive Mobile and Web Apps. Investors can sign up for a free trial of the service either via the company's website (https://bondevalue.com) or by downloading the BondEvalue Mobile App (http://onelink.to/wej7jq). BondEvalue is also developing an electronic bond exchange, BondbloX in Singapore that allows investors to trade bonds electronically in smaller sizes (US$1,000 or equivalent). For more information, visit https://www.bondblox.com/

Bond Market Data and Technology

Credit

US stock markets ended the week in the green after the Non-Farm Payrolls report for May, where 559k jobs were added vs. 278k in April. The number was lower than the expectation of 671k. S&amp;P was up 0.9% and the tech heavy Nasdaq was up 1.5% on Friday. The unemployment rate dropped to 5.8% from 6.1%, better than the expectation of 5.9%.  US 10Y Treasury yields were 7bp lower to 1.56%. In Europe, DAX led the gains, higher by 0.4% while FTSE and CAC were up ~0.1% each. US IG and HY CDS spreads tightened 0.7bp and 4.5bp respectively. EU main and crossover CDS spreads tightened 0.6bp and 2.9bp respectively. Asian markets are flat with Asia ex-Japan CDS spreads tightening 2.5bp.

Suntec REIT, Yango, NagaCorp Launch Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top ...

Cambodia

NagaCorp Limited is a leisure and tourism company with casino operations in Phnom Penh, the capital city of Cambodia. The Company also offers hotel accommodation, manages food and beverage outlets, recreational facilities, entertainmentand retail operations.

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NagaCorp Ltd (3918 HK)

Deep-Dive 2023-8: NagaCorp (3918 HK)

NagaCorp (3918 HK - US$3.5 billion) is a Hong Kong-listed casino operator based in Cambodia’s capital city of Phnom Penh.

Asian Century Stocks

NagaCorp Ltd: Appealing At First Sight But Risky Underneath

We have researched NagaCorp as a potential beneficiary of lifting travel restrictions, growing tourism in Cambodia, and massive internal expansion...

Moat Investing

Suntec REIT, Yango, NagaCorp Launch Bonds; Macro; Rating Changes; New Issues; Talking Heads; Top ...

US stock markets ended the week in the green after the Non-Farm Payrolls report for May, where 559k jobs were added vs. 278k in April. The number...

BondEvalue

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