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 Capital Markets

<a href="https://www.smartkarma.com/entities/28065" target="_blank" data-smartkarma-citation="entities:28065:1">Beyond Meat Inc (BYND US</a>), a fast-growing US-based plant-based meat (substitute) maker, tripled its billion-dollar valuations on listing, last week - the best IPO debut pop for any US listing since 2008 financial crisis (for companies that raised at least USD 200 mn, says <a href="https://www.bloomberg.com/news/articles/2019-05-02/beyond-meat-makes-history-with-biggest-ipo-pop-since-08-crisis" target="_blank">Bloomberg</a>). The loss-making company, now valued at USD3.5bn, raised US$240 mn from IPO at the issue price of USD25/share (post upward revision), to fund its expansion plans.
The 10-years-old Los Angeles-based company has been in the limelight for pioneering the concept of research-backed high-quality plant-based meat (substitute). But the brand's loyal fan base is built on something bigger - its broader philosophy of providing healthy, earth-friendly and animal-friendly food solutions to those who care. This value proposition has also attracted a line up of loyal celebrity backers/investors including Bill Gates and Leonardo DiCaprio. However financial investors need to note that competition is heating up and it may not be all smooth sailing unless Beyond Meat can commercially scale up faster.
Climate change: activism &amp; awareness go beyond street protests, and have been influencing consumer choices. Beyond Meat has positioned itself as a food solution to the problem of rising greenhouse gas from livestock rearing; mainstream customers, not just vegans, are buying it. It is a case study worth looking at in terms of shifting consumer preferences and opportunities, hitherto overlooked by established bigger food companies. Our earlier report <a href="https://www.smartkarma.com/insights/climate-action-school-strikes-hit-a-spot-carbon-emitters-face-heat-investors-take-note" target="_blank" data-smartkarma-citation="insights:28291">Climate Action - School Strikes Hit a Spot, Carbon Emitters Face Heat. Investors Take Note</a> had highlighted how rising climate awareness/activism was impacting various sectors and the opportunities offered by changing consumer preferences including the Vegan movement.
In the report below we look at the likely factors driving investor euphoria over Beyond Meat - its products, the wider market opportunity and the positioning/philosophy. We also highlight the various risks involved in this early stage/new product company apart from rising competition.

Beyond Meat Inc (BYND US), a fast-growing US-based plant-based meat (substitute) maker, tripled its billion-dollar valuations on listing, last week - the best IPO debut pop for any US listing since 2008 financial crisis (for companies that raised at least USD 200 mn, says Bloomberg). The loss-making company, now valued at USD3.5bn, raised US$240 mn from IPO at the issue price of USD25/share (post upward revision), to fund its expansion plans.
The 10-years-old Los Angeles-based company has been in the limelight for pioneering the concept of research-backed high-quality plant-based meat (substitute). But the brand's loyal fan base is built on something bigger - its broader philosophy of providing healthy, earth-friendly and animal-friendly food solutions to those who care. This value proposition has also attracted a line up of loyal celebrity backers/investors including Bill Gates and Leonardo DiCaprio. However financial investors need to note that competition is heating up and it may not be all smooth sailing unless Beyond Meat can commercially scale up faster.
Climate change: activism &amp; awareness go beyond street protests, and have been influencing consumer choices. Beyond Meat has positioned itself as a food solution to the problem of rising greenhouse gas from livestock rearing; mainstream customers, not just vegans, are buying it. It is a case study worth looking at in terms of shifting consumer preferences and opportunities, hitherto overlooked by established bigger food companies. Our earlier report Climate Action - School Strikes Hit a Spot, Carbon Emitters Face Heat. Investors Take Note had highlighted how rising climate awareness/activism was impacting various sectors and the opportunities offered by changing consumer preferences including the Vegan movement.
In the report below we look at the likely factors driving investor euphoria over Beyond Meat - its products, the wider market opportunity and the positioning/philosophy. We also highlight the various risks involved in this early stage/new product company apart from rising competition. 

Beyond Meat (Post IPO) Goes Beyond Valuations - More than Just a Vegan Burger

Making sense of the Global Market, Euromonitor International Ltd.

Yu Mitsuhashi

Making sense of the Global Market

Euromonitor International Ltd.

We are a global market research company focused on industries, countries, economies and consumers worldwide. Our cross-country comparable research helps your organisation identify opportunities and develop growth strategies in countries and regions across the globe. With offices around the world, 1,200 analysts in 100 countries and market research on every key trend and driver, we give you powerful access to the real story behind consumer change.

Thematic (Sector/Industry)

<ul class=""><li>Fast food grew by 4% in current value terms to reach USD247.1 billion in 2017, whilst transaction volumes are up 1%, with outlet numbers rising at a similar rate to reach 273,325.</li><li>Mobile ordering and delivery helped reach customers more conveniently, whilst price pressures increase competition.</li><li>Chained Latin American fast food sees the strongest current value growth of 7% in 2017.</li><li>Few changes are seen in the rankings, as McDonald’s remained the leader in fast food with a 15% value share in 2017.</li><li>Fast food is expected to see a value CAGR of 2% at constant 2017 prices in the forecast period, whilst transaction volumes and outlet numbers are set to see CAGRs of 1%.</li></ul>

Fast food grew by 4% in current value terms to reach USD247.1 billion in 2017, whilst transaction volumes are up 1%, with outlet numbers rising at a similar rate to reach 273,325.Mobile ordering and delivery helped reach customers more conveniently, whilst price pressures increase competition.Chained Latin American fast food sees the strongest current value growth of 7% in 2017.Few changes are seen in the rankings, as McDonald’s remained the leader in fast food with a 15% value share in 2017.Fast food is expected to see a value CAGR of 2% at constant 2017 prices in the forecast period, whilst transaction volumes and outlet numbers are set to see CAGRs of 1%.

Canada

Restaurant Brands International Inc. operates as a fast food restaurant. The Company offers delicious food restaurant brands products such as coffee, fried chicken, subs, and burgers, as well as provides delivery services. Restaurant Brands International serves customers in Canada and United States.

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Restaurant Brands Internationa (QSR US)

Beyond Meat (Post IPO) Goes Beyond Valuations - More than Just a Vegan Burger

Beyond Meat Inc (BYND US), a fast-growing US-based plant-based meat (substitute) maker, tripled its billion-dollar valuations on listing, last...

Devi Subhakesan

Sector Capsule: Fast Food in the US

Fast food grew by 4% in current value terms to reach USD247.1 billion in 2017, whilst transaction volumes are up 1%, with outlet numbers rising at...

Euromonitor International Ltd.

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