Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

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>Singapore’s small- and mid-cap equities have surged over the past month, defying a generally cautious macroeconomic backdrop.</li>
<li>The rally is widely linked to expectations of significant capital inflows from the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP).</li>
<li>A firm Singapore dollar and comparatively attractive dividend yields have further supported investor interest in these stocks.</li>
</ul>


Singapore’s small- and mid-cap equities have surged over the past month, defying a generally cautious macroeconomic backdrop.
The rally is widely linked to expectations of significant capital inflows from the Monetary Authority of Singapore’s (MAS) Equity Market Development Programme (EQDP).
A firm Singapore dollar and comparatively attractive dividend yields have further supported investor interest in these stocks.


55 SGX Stocks Up >15% in a Month – EQDP Attracting Investor Attention

Mid-market focused investment bank within SE Asia, Evolve Capital Advisory Pte Ltd

Evolve Capital Research

Mid-market focused investment bank within SE Asia

Evolve Capital Advisory Pte Ltd

SPDR Straits Times Index ETF / Equity Bottom-Up

<ul>
<li>The Evolve Capital team is excited to begin its foray into equity research, with the ability to offer a more diverse set of offerings alongside our corporate finance solutions.</li>
<li>As we initiate coverage on companies within the SGX space, Evolve Capital is committed to building a repository of insights, showcasing a diverse range of companies that embody growth potential. </li>
<li>We focus on identifying compelling investment stories that can attract local and international investors, aimed at uncovering promising investment opportunities in the Catalist market and offering value through our insights.</li>
</ul>


The Evolve Capital team is excited to begin its foray into equity research, with the ability to offer a more diverse set of offerings alongside our corporate finance solutions.
As we initiate coverage on companies within the SGX space, Evolve Capital is committed to building a repository of insights, showcasing a diverse range of companies that embody growth potential. 
We focus on identifying compelling investment stories that can attract local and international investors, aimed at uncovering promising investment opportunities in the Catalist market and offering value through our insights.


Unveiling Potential Gems Within the Catalist

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

<figure class="editor-figure mceNonEditable"><img src="https://api2.sgx.com/sites/default/files/2022-06/Oiltek-CEO.jpg" class="editor-image img-responsive"></figure>
<div class="content-caption">Oiltek International Ltd</div>

Even after spending more than two decades of his career in the agri-commodities sector, Henry Yong Khai Weng continues to be fascinated by vegetable oils and their wide-ranging impact on daily life.
After graduating with a first-class honours degree in Chemical Engineering from the University of Malaya in 1997, Yong serendipitously decided to enter the vegetable oil industry.
“Many university graduates believe whatever they learn at university or college will&nbsp;have limited application in their subsequent careers. My experience, however, was very different,” recalled the Executive Director and Chief Executive Officer of SGX-listed Oiltek International Ltd.
“I was lucky enough to choose the right industry - the vegetable oil agri-commodities segment is really interesting because it forms an integral part of human life.”
&nbsp;Yong pointed to palm oil, the world’s largest vegetable oil type and a key contributor to the Malaysian and Indonesian economies, as a prime example.&nbsp;
“Palm oil has a broad market and comprehensive supply chain,” he added. “It covers not only agriculture and basic necessities, such as edible oils and cooking fats, but also numerous downstream consumer food products and derivatives, including high-value edible niche products, healthcare and nutraceuticals, as well as renewable energy.”
Listed on SGX Catalist in March this year, Oiltek International, a subsidiary of SGX-listed Koh Brothers Eco Engineering, is an integrated process technology and renewable energy solutions provider in the vegetable oils industry.&nbsp;
Established in 1980, the Group offers an innovative and diversified range of process and engineering solutions across the global industry value chain. Oiltek caters to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil, serving some of the world’s largest agricultural commodities markets with its technological know-how. Its key business segments include Edible &amp; Non-Edible Oil Refinery, Renewable Energy as well as Product Sales and Trading.
Expanding Indonesian Footprint
In April, the Group announced that its wholly owned subsidiary - Oiltek Sdn Bhd - had been awarded a new contract by a leading and reputable palm oil processor and exporter in Indonesia. The contract involves designing, fabricating, supplying and commissioning a crude palm kernel oil refinery plant and a lauric refinery plant.
Including this award, Oiltek has secured new contracts amounting to RM49.2 million in the current financial year ending 31 December 2022. The Group’s order book has also reached a new record of approximately RM198.1 million, and these orders are expected to be fulfilled over the next 18 to 24 months, barring unforeseen circumstances.&nbsp;
“This is part of our continued efforts to secure more projects from existing and new customers, with our expanding range of process engineering solutions that leverage on our capabilities, technological know-how, and proven track record,” Yong noted.
“Indonesia, as the world’s leading producer of palm oil, is an important market for us, and we intend to grow our footprint in the country further.”
Oiltek also aims to build recurring income streams from its Product Sales and Trading segment - which supplies engineering components and equipment to customers - through its proprietary expertise.&nbsp;
“We’re targeting to boost the contribution from recurring income streams to between 25% and 35% of the Group’s total income, from current levels of approximately 10% to 15%,” Yong added.
Looking ahead, Yong remains confident of the long-term prospects of the Group’s Edible &amp; Non-Edible Oil Refinery segment, as global consumption of oils and fats gains in tandem with expansion in world population numbers. The latter, in particular, underpins buoyant growth in the food and beverage, oleochemical and biodiesel sectors.&nbsp;
“The rising demand for food also creates a corresponding demand for edible and non-edible oils and fats, specifically, vegetable oils. The Group’s processing solutions cater to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil, which are some of the major agricultural commodities in the world,” he pointed out.
In addition, palm oil is consumed globally in the form of edibles, such as cooking oil, confectioneries, margarine, and chocolates. At the same time, it is used as a raw material for ingredients found in a host of non-edible household and industrial products, including soaps, detergents, cosmetics and pharmaceuticals, he added.
Global inventories of several types of vegetable oils are already at some of their&nbsp;tightest levels&nbsp;in years, which has pushed&nbsp;prices steadily upward, according to an analysis by climate and agriculture technology firm Gro Intelligence. The Russia-Ukraine war has also driven further price gains in some commodities, such as sunflower oil and seeds, which are facing shortages, it added.
Increasingly, vegetable oils are used as a replacement for fossil fuels, a usage that is forecast to grow rapidly as companies expand biofuel production capacity, especially in the US, Gro Intelligence pointed out. In the past decade,&nbsp;biofuel production&nbsp;accounted for nearly 30% of the average annual increase in global vegetable oil consumption.
Accelerated Sustainability Shift
As a result, the outlook for Oiltek’s Renewable Energy segment remains bright, as the accelerated shift towards environmental sustainability gains ground globally. The Group will increase its focus on renewable energy projects, and offer more solutions to boost the sustainability efforts of existing customers and markets.
“With stronger environmental regulations, government initiatives and policies, as well as growing awareness of the importance of Environmental, Social and Governance considerations, we’re optimistic about the continued expansion of the renewable energy sector,” Yong noted.
“Both edible oils, as well as renewable energy, continue to move in a very positive direction, and these have opened up many promising opportunities for us going forward.”
Despite strong growth prospects, trade barriers and a number of geopolitical issues remain as challenges to the palm oil industries in Malaysia and Indonesia.
These include the environmental impact of deforestation, new food safety standards in the European Union limiting 3-MCPD (3-Monochloropropane Diol) and GE (Glycidyl Fatty Acid Esters), as well as the phase-out of palm oil-based biofuels in the EU by 2030.
"Following these new market developments, we’ve developed numerous new processes to address and mitigate these challenges, including our proprietary refining process that can effectively eliminate 3MCPD and GE in refined oil, as well as our proprietary methylation process that can produce high quality biofuels from waste oil instead of edible-based vegetable oil,” Yong noted.
The 49-year-old is usually unfazed by such speed bumps. “I’ve always held the view that challenges will sow the seeds of new opportunities,” he said.
This principle forms the backbone of his management philosophy. “Being a good leader requires you to grow together with the market, by continually learning and adapting to a constantly changing environment,” he pointed out.
Hence, it’s not surprising that Yong’s biggest sources of inspiration stem from the pursuit of excellence and regular interactions with his colleagues.&nbsp;
“My passion is to continue to create and deliver value to all stakeholders,” he said. “At the same time, I always emphasise to my staff the multiplying effect of teamwork, as well as the importance of unity in the face of challenges.”
And when Yong is out of the office, he can be found with his four teenaged children. “I put a lot of priority on the values of honesty, integrity, sincerity and responsibility. I want my kids not only to build a strong foundation, but also develop balanced skillsets to include academic achievements as well as personal growth,” he noted.
“In all aspects of our lives, balance is key. At the end of the day, one should strive to live a life that is well-balanced.”
&nbsp;
Oiltek International Ltd
Oiltek is an established integrated process technology and renewable energy solutions provider that specialises in providing a reliable, innovative and comprehensive range of refinery processes and engineering solutions for use across different sectors of the vegetable oils industry value chain globally. The history of the Group can be traced back to its principal operating subsidiary, Oiltek Sdn Bhd, which was incorporated in Malaysia on 1 Dec 1980. With over 40 years of track record, Oiltek has successfully designed, built and commercialised plants in more than 30 countries across five continents. The Group operates three key business segments - Edible &amp; Non-Edible Oil Refinery, Renewable Energy, and Product Sales and Trading.
The company website is: <a href="http://www.oiltek.com.my" target="_blank" rel="noopener">www.oiltek.com.my</a> Click&nbsp;<a href="https://www.sgx.com/securities/equities/HQU" target="_blank" rel="noopener">here&nbsp;</a>for the company's StockFacts page. For the half year ended 31 December 2021 business update, click&nbsp;<a href="https://links.sgx.com/1.0.0/corporate-announcements/9PCYDVE84645QACP/711119_OIL%20-%20News%20Release.pdf" target="_blank" rel="noopener">here</a>.
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;<a href="https://www.sgx.com/research-education/market-dialogues" target="_blank" rel="noopener">here</a>. &nbsp; For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;<a href="//www.smartkarma.com/C:/Users/tanje/Desktop/Working%20Files/kopi-C/jennifer.t@sgx.com" target="_blank" rel="noopener">jennifer.t@sgx.com</a>.


Oiltek International Ltd

Even after spending more than two decades of his career in the agri-commodities sector, Henry Yong Khai Weng continues to be fascinated by vegetable oils and their wide-ranging impact on daily life.
After graduating with a first-class honours degree in Chemical Engineering from the University of Malaya in 1997, Yong serendipitously decided to enter the vegetable oil industry.
“Many university graduates believe whatever they learn at university or college will&nbsp;have limited application in their subsequent careers. My experience, however, was very different,” recalled the Executive Director and Chief Executive Officer of SGX-listed Oiltek International Ltd.
“I was lucky enough to choose the right industry - the vegetable oil agri-commodities segment is really interesting because it forms an integral part of human life.”
&nbsp;Yong pointed to palm oil, the world’s largest vegetable oil type and a key contributor to the Malaysian and Indonesian economies, as a prime example.&nbsp;
“Palm oil has a broad market and comprehensive supply chain,” he added. “It covers not only agriculture and basic necessities, such as edible oils and cooking fats, but also numerous downstream consumer food products and derivatives, including high-value edible niche products, healthcare and nutraceuticals, as well as renewable energy.”
Listed on SGX Catalist in March this year, Oiltek International, a subsidiary of SGX-listed Koh Brothers Eco Engineering, is an integrated process technology and renewable energy solutions provider in the vegetable oils industry.&nbsp;
Established in 1980, the Group offers an innovative and diversified range of process and engineering solutions across the global industry value chain. Oiltek caters to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil, serving some of the world’s largest agricultural commodities markets with its technological know-how. Its key business segments include Edible &amp; Non-Edible Oil Refinery, Renewable Energy as well as Product Sales and Trading.
Expanding Indonesian Footprint
In April, the Group announced that its wholly owned subsidiary - Oiltek Sdn Bhd - had been awarded a new contract by a leading and reputable palm oil processor and exporter in Indonesia. The contract involves designing, fabricating, supplying and commissioning a crude palm kernel oil refinery plant and a lauric refinery plant.
Including this award, Oiltek has secured new contracts amounting to RM49.2 million in the current financial year ending 31 December 2022. The Group’s order book has also reached a new record of approximately RM198.1 million, and these orders are expected to be fulfilled over the next 18 to 24 months, barring unforeseen circumstances.&nbsp;
“This is part of our continued efforts to secure more projects from existing and new customers, with our expanding range of process engineering solutions that leverage on our capabilities, technological know-how, and proven track record,” Yong noted.
“Indonesia, as the world’s leading producer of palm oil, is an important market for us, and we intend to grow our footprint in the country further.”
Oiltek also aims to build recurring income streams from its Product Sales and Trading segment - which supplies engineering components and equipment to customers - through its proprietary expertise.&nbsp;
“We’re targeting to boost the contribution from recurring income streams to between 25% and 35% of the Group’s total income, from current levels of approximately 10% to 15%,” Yong added.
Looking ahead, Yong remains confident of the long-term prospects of the Group’s Edible &amp; Non-Edible Oil Refinery segment, as global consumption of oils and fats gains in tandem with expansion in world population numbers. The latter, in particular, underpins buoyant growth in the food and beverage, oleochemical and biodiesel sectors.&nbsp;
“The rising demand for food also creates a corresponding demand for edible and non-edible oils and fats, specifically, vegetable oils. The Group’s processing solutions cater to all types of vegetable oils, including palm oil, soybean oil and rapeseed oil, which are some of the major agricultural commodities in the world,” he pointed out.
In addition, palm oil is consumed globally in the form of edibles, such as cooking oil, confectioneries, margarine, and chocolates. At the same time, it is used as a raw material for ingredients found in a host of non-edible household and industrial products, including soaps, detergents, cosmetics and pharmaceuticals, he added.
Global inventories of several types of vegetable oils are already at some of their&nbsp;tightest levels&nbsp;in years, which has pushed&nbsp;prices steadily upward, according to an analysis by climate and agriculture technology firm Gro Intelligence. The Russia-Ukraine war has also driven further price gains in some commodities, such as sunflower oil and seeds, which are facing shortages, it added.
Increasingly, vegetable oils are used as a replacement for fossil fuels, a usage that is forecast to grow rapidly as companies expand biofuel production capacity, especially in the US, Gro Intelligence pointed out. In the past decade,&nbsp;biofuel production&nbsp;accounted for nearly 30% of the average annual increase in global vegetable oil consumption.
Accelerated Sustainability Shift
As a result, the outlook for Oiltek’s Renewable Energy segment remains bright, as the accelerated shift towards environmental sustainability gains ground globally. The Group will increase its focus on renewable energy projects, and offer more solutions to boost the sustainability efforts of existing customers and markets.
“With stronger environmental regulations, government initiatives and policies, as well as growing awareness of the importance of Environmental, Social and Governance considerations, we’re optimistic about the continued expansion of the renewable energy sector,” Yong noted.
“Both edible oils, as well as renewable energy, continue to move in a very positive direction, and these have opened up many promising opportunities for us going forward.”
Despite strong growth prospects, trade barriers and a number of geopolitical issues remain as challenges to the palm oil industries in Malaysia and Indonesia.
These include the environmental impact of deforestation, new food safety standards in the European Union limiting 3-MCPD (3-Monochloropropane Diol) and GE (Glycidyl Fatty Acid Esters), as well as the phase-out of palm oil-based biofuels in the EU by 2030.
"Following these new market developments, we’ve developed numerous new processes to address and mitigate these challenges, including our proprietary refining process that can effectively eliminate 3MCPD and GE in refined oil, as well as our proprietary methylation process that can produce high quality biofuels from waste oil instead of edible-based vegetable oil,” Yong noted.
The 49-year-old is usually unfazed by such speed bumps. “I’ve always held the view that challenges will sow the seeds of new opportunities,” he said.
This principle forms the backbone of his management philosophy. “Being a good leader requires you to grow together with the market, by continually learning and adapting to a constantly changing environment,” he pointed out.
Hence, it’s not surprising that Yong’s biggest sources of inspiration stem from the pursuit of excellence and regular interactions with his colleagues.&nbsp;
“My passion is to continue to create and deliver value to all stakeholders,” he said. “At the same time, I always emphasise to my staff the multiplying effect of teamwork, as well as the importance of unity in the face of challenges.”
And when Yong is out of the office, he can be found with his four teenaged children. “I put a lot of priority on the values of honesty, integrity, sincerity and responsibility. I want my kids not only to build a strong foundation, but also develop balanced skillsets to include academic achievements as well as personal growth,” he noted.
“In all aspects of our lives, balance is key. At the end of the day, one should strive to live a life that is well-balanced.”
&nbsp;
Oiltek International Ltd
Oiltek is an established integrated process technology and renewable energy solutions provider that specialises in providing a reliable, innovative and comprehensive range of refinery processes and engineering solutions for use across different sectors of the vegetable oils industry value chain globally. The history of the Group can be traced back to its principal operating subsidiary, Oiltek Sdn Bhd, which was incorporated in Malaysia on 1 Dec 1980. With over 40 years of track record, Oiltek has successfully designed, built and commercialised plants in more than 30 countries across five continents. The Group operates three key business segments - Edible &amp; Non-Edible Oil Refinery, Renewable Energy, and Product Sales and Trading.
The company website is: www.oiltek.com.my  Click&nbsp;here&nbsp;for the company's StockFacts page.  For the half year ended 31 December 2021 business update, click&nbsp;here.
About&nbsp;kopi-C: the Company brew
Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C&nbsp;is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  For previous editions of&nbsp;kopi-C: the Company brew,&nbsp;please click&nbsp;here. &nbsp;  For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to&nbsp;jennifer.t@sgx.com.

Oiltek International Rides Agri-Commodities Boom

Malaysia

Oiltek International is an integrated process technology and renewable energy solutions provider for the vegetable oils industry. The company offers engineering, procurement, design, construction, and commissioning services for edible and non-edible oil refining plants, renewable energy plants (like biodiesel and biogas recovery), and trades specialty chemical products and engineering components. Founded in 1980, its principal place of business is in Shah Alam, Malaysia.

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

Oiltek International (OTEK SP)

55 SGX Stocks Up >15% in a Month – EQDP Attracting Investor Attention

List of 55 SGX stocks (> USD 100 mn Mkt cap) that appreciated more than 15% in the past month - likely driven by anticipated impact of fund inflows...

Devi Subhakesan

Unveiling Potential Gems Within the Catalist

The Evolve Capital team is excited to begin its foray into equity research, with the ability to offer a more diverse set of offerings alongside our...

Evolve Capital Advisory Pte Ltd

Oiltek International Rides Agri-Commodities Boom

Even after spending more than two decades of his career in the agri-commodities sector, Henry Yong Khai Weng continues to be fascinated by...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)