Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

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

Thematic (Sector/Industry)

<div>The vaccine announcement by <a href="https://www.smartkarma.com/entities/pfizer-inc" target="_blank" data-smartkarma-citation="entities:1131:1" rel="noopener">Pfizer Inc (PFE US)</a> and <a href="https://www.smartkarma.com/entities/moderna-inc" target="_blank" data-smartkarma-citation="entities:28744:1" rel="noopener">Moderna Inc (MRNA US), </a>
</div>
<div>the laggard Singapore equities market all of a sudden leaped to joy and pushed travel-related names up, playing catch up with the rest of the world.</div>
<div></div>
<div>
<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> and <a href="https://www.smartkarma.com/entities/sats-ltd" target="_blank" data-smartkarma-citation="entities:19962:1" rel="noopener">SATS Ltd (SATS SP)</a> are the go-to stock for Singapore’s reopening air travel that started with the travel bubble with Hong Kong and other low-risk countries to follow. <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP)</a>  is the key beneficiary to the reopening of the Singapore economy, through the switching of work-from-home to work-in-office (higher ridership in the MRTs and buses that contributes to 60% of the company’s revenues), and also from the reopening of the restaurants and malls that increases mobility in the country. The low or non-existent community COVID-19 cases also help to boost the confidence in Comfort Delgro.</div>
<div></div>
<div>
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/174/615/original/image_5285658631606463283499.png?1606463282" class="editor-image img-responsive" data-smartkarma-image-id="174615"></figure>
<div class="content-remarks">
<p>source: Capital IQ</p>
</div>
<p>The trade is to buy ComfortDelgro as it has less risk to the increase in pandemic and less exposure to the cross border travel unlike Singapore Airlines and SATS (whose valuations have run ahead despite the ongoing concern of the industry) that has most of their revenues exposed to the risk of the cross border travel.</p>
</div>

The vaccine announcement by Pfizer Inc (PFE US) and Moderna Inc (MRNA US), 

the laggard Singapore equities market all of a sudden leaped to joy and pushed travel-related names up, playing catch up with the rest of the world.


Singapore Airlines (SIA SP) and SATS Ltd (SATS SP) are the go-to stock for Singapore’s reopening air travel that started with the travel bubble with Hong Kong and other low-risk countries to follow. Comfortdelgro Corp (CD SP)  is the key beneficiary to the reopening of the Singapore economy, through the switching of work-from-home to work-in-office (higher ridership in the MRTs and buses that contributes to 60% of the company’s revenues), and also from the reopening of the restaurants and malls that increases mobility in the country. The low or non-existent community COVID-19 cases also help to boost the confidence in Comfort Delgro.




source: Capital IQ

The trade is to buy ComfortDelgro as it has less risk to the increase in pandemic and less exposure to the cross border travel unlike Singapore Airlines and SATS (whose valuations have run ahead despite the ongoing concern of the industry) that has most of their revenues exposed to the risk of the cross border travel.


2021 High Conviction: Singapore Travel Names in Bumpy Recovery

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Macroeconomics

<ul><li>The Regional Comprehensive Economic Partnership (RCEP) agreement between 15 countries is the world's biggest free trade deal and a major step toward economic integration in the Asia-Pacific region.</li><li>The RCEP is expected to serve as a vital tool for post-COVID-19 economic recovery and growth.</li><li>We expect the partnership to be positive to the electronics sector and the industrial estate sector in the long term.</li></ul>

The Regional Comprehensive Economic Partnership (RCEP) agreement between 15 countries is the world's biggest free trade deal and a major step toward economic integration in the Asia-Pacific region.The RCEP is expected to serve as a vital tool for post-COVID-19 economic recovery and growth.We expect the partnership to be positive to the electronics sector and the industrial estate sector in the long term.

RCEP: Free Trade Pact to Boost Regional Economy

<ul><li>We have a positive view on the 2020E Thai economy after the 3Q20 GDP growth came out significantly better than expected.</li><li>The Office of the National Economic and Social Development Council (NESDC) reported that Thailand's 3Q20 GDP contracted by 6.4% YoY (vs. the Bloomberg consensus forecast at -9.1% YoY), improving from the 12.1% decline in the previous quarter.</li><li>The NESDC revised up its 2020E GDP growth projection to -6% vs. -7.5% projected in August, while it forecasts 2021E GDP growth at +3.55% to 4.5%.</li></ul>

We have a positive view on the 2020E Thai economy after the 3Q20 GDP growth came out significantly better than expected.The Office of the National Economic and Social Development Council (NESDC) reported that Thailand's 3Q20 GDP contracted by 6.4% YoY (vs. the Bloomberg consensus forecast at -9.1% YoY), improving from the 12.1% decline in the previous quarter.The NESDC revised up its 2020E GDP growth projection to -6% vs. -7.5% projected in August, while it forecasts 2021E GDP growth at +3.55% to 4.5%.

Upbeat 3Q20 GDP; Positive View on Thai Economy

<ul><li>Thailand's international trade is likely to expand during the remainder of the year, while the Ministry of Commerce suggests that Thai exports will not mark much of a contraction in the rest of 2020E.</li><li>International trade growth this year is projected at -6% to -7%, as businesses have reopened and resumed normal operations after the easing of COVID-19 containment measures.</li><li>Regarding the overall international trade situation in September 2020, trading activities continued to pick up for the third consecutive month in line with the gradual recovery of global economies.</li></ul>

Thailand's international trade is likely to expand during the remainder of the year, while the Ministry of Commerce suggests that Thai exports will not mark much of a contraction in the rest of 2020E.International trade growth this year is projected at -6% to -7%, as businesses have reopened and resumed normal operations after the easing of COVID-19 containment measures.Regarding the overall international trade situation in September 2020, trading activities continued to pick up for the third consecutive month in line with the gradual recovery of global economies.

International Trade to Improve in the Remainder of the Year

<ul><li>Thai international trade may improve during the rest of the year, as the business sector has fully resumed normal operations after the easing of COVID-19 containment measures globally.</li><li>The Trade Policy and Strategy Office (TPSO), Ministry of Commerce, reported that Thai exports marked at USD20,212.3 mn in August 2020, contracting by 7.94% YoY (vs. the market expectation of -13%) but improving from the figure in July at -11.37%.</li><li>Krungthai Compass projects 2020 E export growth at -12.2% (vs.-14.8% expected previously), reflecting the country's ability to contain the COVID-19 outbreak, the easing of the lockdown and potential economic stimulus measures.</li></ul>

Thai international trade may improve during the rest of the year, as the business sector has fully resumed normal operations after the easing of COVID-19 containment measures globally.The Trade Policy and Strategy Office (TPSO), Ministry of Commerce, reported that Thai exports marked at USD20,212.3 mn in August 2020, contracting by 7.94% YoY (vs. the market expectation of -13%) but improving from the figure in July at -11.37%.Krungthai Compass projects 2020 E export growth at -12.2% (vs.-14.8% expected previously), reflecting the country's ability to contain the COVID-19 outbreak, the easing of the lockdown and potential economic stimulus measures.

More Positive Outlook for Exports This Year

Singapore

SATS is a leading provider of gateway services and food solutions for the aviation industry and beyond. It offers air cargo handling, baggage and ramp handling, passenger services, aviation security, and in-flight catering, as well as food distribution and logistics. Headquartered in Singapore, the company was founded in 1972.

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

SATS (SATS SP)

2021 High Conviction: Singapore Travel Names in Bumpy Recovery

Long ComfortDelgro as it has less risk to the increase in pandemic unlike Singapore Airlines and SATS (whose valuations have run ahead despite the...

Henry Soediarko

RCEP: Free Trade Pact to Boost Regional Economy

The Regional Comprehensive Economic Partnership (RCEP) agreement between 15 countries is the world's biggest free trade deal and a major step...

Krungthai XSpring

Upbeat 3Q20 GDP; Positive View on Thai Economy

We have a positive view on the 2020E Thai economy after the 3Q20 GDP growth came out significantly better than expected. The Office of the...

Krungthai XSpring

International Trade to Improve in the Remainder of the Year

Thailand's international trade is likely to expand during the remainder of the year, while the Ministry of Commerce suggests that Thai exports...

Krungthai XSpring

More Positive Outlook for Exports This Year

Thai international trade may improve during the rest of the year, as the business sector has fully resumed normal operations after the easing of...

Krungthai XSpring

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)