Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Via 49.9%-held MPIC, <a href="https://www.smartkarma.com/entities/first-pacific-co-ltd" target="_blank" data-smartkarma-citation="entities:173:1" rel="noopener">First Pacific Co (142 HK)</a> is spinning off Maynilad, a provider of water and wastewater services in the Greater Manila Area, on the Philippine Stock Exchange</li>
<li>Maynilad will tentatively have a market cap of US$2.7bn. Other key investors include <a href="https://www.smartkarma.com/entities/dmci-holdings-inc" target="_blank" data-smartkarma-citation="entities:8026:1" rel="noopener">DMCI Holdings (DMC PM)</a> and <a href="https://www.smartkarma.com/entities/marubeni-corp" target="_blank" data-smartkarma-citation="entities:7463:1" rel="noopener">Marubeni Corp (8002 JP)</a>. Listing is expected in July.</li>
<li>I see First Pac's discount to NAV at ~30%, around its narrowest level in a decade. </li>
</ul>


Via 49.9%-held MPIC, First Pacific Co (142 HK) is spinning off Maynilad, a provider of water and wastewater services in the Greater Manila Area, on the Philippine Stock Exchange
Maynilad will tentatively have a market cap of US$2.7bn. Other key investors include DMCI Holdings (DMC PM) and Marubeni Corp (8002 JP). Listing is expected in July.
I see First Pac's discount to NAV at ~30%, around its narrowest level in a decade. 


StubWorld: First Pacific (142 HK) Looking Stretched

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

Maynilad Water Services / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/maynilad-water-services-inc" target="_blank" data-smartkarma-citation="entities:44852:1" rel="noopener">Maynilad Water Services (MYNLD PH)</a> (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.</li>
<li>MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.</li>
<li>In this note, we talk about the positive aspects of the deal.</li>
</ul>



Maynilad Water Services (MYNLD PH) (MWS) is looking to raise at least US$633m in its upcoming Philippines IPO.
MWS is a leading global water utility player operating the largest concession by population served within a single concession area in the Philippines and Southeast Asia (SEA), as per GlobalData.
In this note, we talk about the positive aspects of the deal.


Maynilad Water Services Pre-IPO - The Positives - Key Infrastructure Provider

Asia Long-Short PM/Analyst

Curtis Lehnert

The history of <a href="https://www.smartkarma.com/entities/173" target="_blank" data-smartkarma-citation="entities:173:1">First Pacific Co (142 HK)</a> is a fascinating saga wrought with cronyism, deception and political turmoil. From its founding in 1981 by Manuel Pangalinan, the "most valuable executive" of Indonesia's Salim Group has been the vehicle through which the Salim family has exercised control over its Southeast Asian business empire. In 1998, the same year that the erstwhile autocratic leader, President Suharto resigned, <a href="https://www.smartkarma.com/entities/173" target="_blank" data-smartkarma-citation="entities:173:1">First Pacific Co (142 HK)</a> acquired its crown jewel assets, <a href="https://www.smartkarma.com/entities/4215" target="_blank" data-smartkarma-citation="entities:4215:1">PLDT (TEL PM)</a> and <a href="https://www.smartkarma.com/entities/1053" target="_blank" data-smartkarma-citation="entities:1053:1">Indofood Sukses Makmur Tbk P (INDF IJ)</a>. Due to the obscure holding company structure and the distance of First Pacific from the underlying assets, the holding company has traded at a wider discount to NAV than the holdco universe has on average. The three-year historical discount to NAV for <a href="https://www.smartkarma.com/entities/173" target="_blank" data-smartkarma-citation="entities:173:1">First Pacific Co (142 HK)</a> has been around  35%. The company sites only 2 sell-side analysts that cover the stock despite the holding company controlling over USD 30 billion of assets throughout Southeast Asia. Recent events which I will detail in the body of this insight have brought the holding company discount to a historically low level now in excess of 50%. I believe there is a trade here. In this insight I will cover:I. The TradeII. Group OverviewIII. The Stub BusinessesIV. My Track Record with Stub Trade Ideas

The history of First Pacific Co (142 HK) is a fascinating saga wrought with cronyism, deception and political turmoil. From its founding in 1981 by Manuel Pangalinan, the "most valuable executive" of Indonesia's Salim Group has been the vehicle through which the Salim family has exercised control over its Southeast Asian business empire. In 1998, the same year that the erstwhile autocratic leader, President Suharto resigned, First Pacific Co (142 HK) acquired its crown jewel assets, PLDT (TEL PM) and Indofood Sukses Makmur Tbk P (INDF IJ). Due to the obscure holding company structure and the distance of First Pacific from the underlying assets, the holding company has traded at a wider discount to NAV than the holdco universe has on average. The three-year historical discount to NAV for First Pacific Co (142 HK) has been around  35%. The company sites only 2 sell-side analysts that cover the stock despite the holding company controlling over USD 30 billion of assets throughout Southeast Asia. Recent events which I will detail in the body of this insight have brought the holding company discount to a historically low level now in excess of 50%. I believe there is a trade here. In this insight I will cover:I. The TradeII. Group OverviewIII. The Stub BusinessesIV. My Track Record with Stub Trade Ideas

TRADE IDEA - First Pacific Stub (142 HK): Taming the Beast

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.

Thematic (Sector/Industry)

<ul>
<li>SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.</li>
<li>
Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…</li>
</ul>


SGX lists four stocks mining industrial minerals including tantalite, phosphate, limestone and marble, four coal mining stocks and three gold mining stocks. These 11 stocks are at different stages in the exploration, development, production cycle and have averaged a 19.0% gain in 2017 YTD.

Of the three segments, mining industrial minerals has been the strongest performer in the 2017 YTD with an average 30.4% gain, led Alliance Minerals Assets. Coal was the next best performer with the four stocks…


Average 19% YTD Gain in Key Mining Stocks

Philippines

Philex Mining Corporation produces copper concentrates, containing copper, gold, and silver. The Company was incorporated in 1955.

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