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">
source: Capital IQ
</div>
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.
</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

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.

Equity Bottom-Up

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<ul>
<li>
Global rotation from momentum to value stocks, mostly driven by vaccine developments, has seen Singapore’s 10 most traded transport-related stocks gain 11% in the November MTD, in-line with the gains of the top quartile of global transportation stocks by market value. 
	 </li>
	<li>
SATS has been the strongest gainer of the 10 Singapore stocks, gaining 34% over the past 11 sessions, with S$68 million of net institutional inflow. While the stock has declined 21% in the 2020 YTD, its long-term annualised total return since listing in May 2000 is 8%. 
	 </li>
	<li>The most defensive of the 10 stocks in the 2020 YTD was Catalist-listed GKE Corporation, an integrated warehousing and logistics solutions provider which gained 14% in 2020 YTD while reporting a turnaround net profit in FY20 (ended 31 May) of S$4.7 million, following a net loss of S$2.1 million in FY19.  </li>
</ul>
 

The mixed performances of Tranportation and Logistics Stocks in the 2020 year can be characterised through a small airline business with 10 aircraft, nine aircraft serving passengers with one providing cargo services. The passenger side of the business has been severly impacted through social lockdowns to contain the Coronavirus, which has extended to engineering, catering, hospitality and tourism businesses. Meanwhile, cargo operations have continued to function, providing continued demand for the supporting logisitics and warehousing businesses. However global  passenger operations dwarf cargo operations. In 2017, Oliver Wyman estimated that of 25,000 commercial aircraft in service, just 2000 aircraft provided cargo services. Hence, robust global cargo and logisitics demand has only partially offset the impact of the large decline in passenger services. As flagged six weeks ago, the biggest driver of markets in 4Q20 will continue to be the social and economic impacts of containing COVID-19 in addition to vaccine developments (click <a href="https://www.sgx.com/research-education/market-updates/20201007-potential-drivers-straits-times-index-4q20">here</a> for more). The past week’s coronavirus vaccine developments are consistent with WHO projections in early October, and have further fueled sector rotations which tentatively began last month and gathered pace following the US Election (click <a href="https://ebm.cheetahmail.com/c/tag/hBfskMXB86%24MfB93WotAAApi2UU/doc.html?t_params=8kL3M00cZCAWrYwSTK2l7Wm-PhRxXaUt%24Oz6Wm32AxWboKAeI7aLxvOHq2znGZd7dcJa2zAiTUMYEfpiIGJh-LT">here</a> for more). This has seen Singapore’s most traded transportation stocks rally 11% over the past 11 sessions, in line with the 10% gains of the top quartile of global transportation stocks by market value. 
 

Most Defensive Stocks of Industry Drawed Net Institutional Inflows in 2020 YTD 
Combined, Singapore’s 10 most traded stocks with exposure to transportation and logisitcs services have seen a combined daily turnover of close to S$110 million a day in the 2020 year through to 16 November. More than 90% of that turnover was contributed by four constituents of the Straits Times Index (“STI”) – Singapore Airlines , ComfortDelgGo Corp, Singapore Tech Engineering And SATS.  
Together the 10 stocks have averaged an 18% decline in total return over the period. 
The two most defensive stocks in the year to date were Catalist-listed GKE Corporation, and STI constituent Singapore Tech Engineering with respective total returns of 13.9% and 0.4%. Both these stock were also reciepient of net instituional inflows in the year to date. 
While Singapore Tech Engineering is typcially associated with manufacturing, Aersopace was its biggest revenue generator in FY19. In its FY20 (ended 31 May), GKE Corporation continued to focus efforts in its profit-generating divisions and was rewarded with a S$4.7 million net profit attributable to shareholders, a reversal from a net loss attributable to shareholders of S$2.1 million in FY19 (for the FY20 Annual Report, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/TVDOGIU9ATDNCQ6Q/b3a18765f99f3bac887d0ed6e1f86a71db3ef62626f99d740dd5ab3dd2fbe532">here</a>). Founded in 1995, by Mr Neo Kok Ching, GKE Corporation’s vision is to become one of the largest integrated warehousing and logistics solutions providers in Singapore. Recent Rotations to Key Industry Stocks   
With subtle signs of rotation into SATS in October (click <a href="http://edm.sgx.com/a/hBfn9imB86%24MfB93PcuAAApi27w/link1?t_params=Fvd%24lLz93nmzWJsZg0kagaz2ESmfGAqhy12vGh7uFrh8Yf8YQO3PJe7laKchuVCUKYEzR1uAj9%24cLkTQ7JQZau4IF">here</a> for more), the rotational flows accelerated in early November, with the stock rallying 33.9% so far this month on S$68 million of net institional inflow. Singapore Airlines and ComfortDelGro Corp also saw net institutional inflows of S$25 million and S$11 million respectively in the November month-to-date, while averaging 15.6% gains. The trio had previosuly seen a combined net institutional outflow of S$1.2 billion over the first 10 months of 2020. 
As discussed above, Singapore Tech Engineering has seen net instituional inflows in the year-to-date, and coinciding with the rotation, has seen net institutional outflows in the month-to-date. 
The perfomances of the 10 most traded Singapore stocks with exposure to the transportation and logisitics industry are tabled below and sort by highest trading turnover in the 2020 year to date.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			MTD Net Insti Flow S$M
			</td>
			<td>
			MTD Price Change

			%
			</td>
			<td>
			YTD Net Insti Flow S$M
			</td>
			<td>
			YTD Total Return %
			</td>
		</tr>
<tr>
<td>
			SINGAPORE AIRLINES
			</td>
			<td>
			C6L
			</td>
			<td>
			11,474
			</td>
			<td>
			25.0
			</td>
			<td>
			14.2
			</td>
			<td>
			-642.4
			</td>
			<td>
			-39.2
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			3,423
			</td>
			<td>
			10.7
			</td>
			<td>
			17.0
			</td>
			<td>
			-348.6
			</td>
			<td>
			-31.2
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TECH ENGINEERING
			</td>
			<td>
			S63
			</td>
			<td>
			11,776
			</td>
			<td>
			-17.0
			</td>
			<td>
			8.3
			</td>
			<td>
			68.1
			</td>
			<td>
			0.4
			</td>
		</tr>
<tr>
<td>
			SATS
			</td>
			<td>
			S58
			</td>
			<td>
			4,468
			</td>
			<td>
			68.0
			</td>
			<td>
			33.9
			</td>
			<td>
			-152.1
			</td>
			<td>
			-21.1
			</td>
		</tr>
<tr>
<td>
			SINGAPORE POST
			</td>
			<td>
			S08
			</td>
			<td>
			1,586
			</td>
			<td>
			-2.9
			</td>
			<td>
			6.0
			</td>
			<td>
			-15.8
			</td>
			<td>
			-22.9
			</td>
		</tr>
<tr>
<td>
			HUTCHISON PORT HOLDINGS TR-U
			</td>
			<td>
			NS8U
			</td>
			<td>
			1,781
			</td>
			<td>
			0.2
			</td>
			<td>
			3.2
			</td>
			<td>
			-10.2
			</td>
			<td>
			-3.0
			</td>
		</tr>
<tr>
<td>
			SIA ENGINEERING CO
			</td>
			<td>
			S59
			</td>
			<td>
			2,063
			</td>
			<td>
			-1.8
			</td>
			<td>
			12.9
			</td>
			<td>
			-17.8
			</td>
			<td>
			-33.1
			</td>
		</tr>
<tr>
<td>
			SBS TRANSIT
			</td>
			<td>
			S61
			</td>
			<td>
			935
			</td>
			<td>
			-0.9
			</td>
			<td>
			5.3
			</td>
			<td>
			-20.3
			</td>
			<td>
			-20.0
			</td>
		</tr>
<tr>
<td>
			GKE CORP
			</td>
			<td>
			595
			</td>
			<td>
			64
			</td>
			<td>
			-0.8
			</td>
			<td>
			2.5
			</td>
			<td>
			0.8
			</td>
			<td>
			13.9
			</td>
		</tr>
<tr>
<td>
			CHASEN HOLDINGS
			</td>
			<td>
			5NV
			</td>
			<td>
			22
			</td>
			<td>
			0.0
			</td>
			<td>
			5.7
			</td>
			<td>
			-1.1
			</td>
			<td>
			-28.2
			</td>
		</tr>
<tr>
<td>
			Total 
			</td>
			<td>
			 
			</td>
			<td>
			37,593
			</td>
			<td>
			80.5
			</td>
			<td>
			 
			</td>
			<td>
			-1,140
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			10.9
			</td>
			<td>
			 
			</td>
			<td>
			-18.4
			</td>
		</tr>
</tbody></table>
 Source: Bloomberg, Refinitiv, SGX StockFacts (Data as of 16 November 2020)
</body></html>





Global rotation from momentum to value stocks, mostly driven by vaccine developments, has seen Singapore’s 10 most traded transport-related stocks gain 11% in the November MTD, in-line with the gains of the top quartile of global transportation stocks by market value.  
	 
	
SATS has been the strongest gainer of the 10 Singapore stocks, gaining 34% over the past 11 sessions, with S$68 million of net institutional inflow. While the stock has declined 21% in the 2020 YTD, its long-term annualised total return since listing in May 2000 is 8%.  
	 
	The most defensive of the 10 stocks in the 2020 YTD was Catalist-listed GKE Corporation, an integrated warehousing and logistics solutions provider which gained 14% in 2020 YTD while reporting a turnaround net profit in FY20 (ended 31 May) of S$4.7 million, following a net loss of S$2.1 million in FY19.  

 

The mixed performances of Tranportation and Logistics Stocks in the 2020 year can be characterised through a small airline business with 10 aircraft, nine aircraft serving passengers with one providing cargo services. The passenger side of the business has been severly impacted through social lockdowns to contain the Coronavirus, which has extended to engineering, catering, hospitality and tourism businesses. Meanwhile, cargo operations have continued to function, providing continued demand for the supporting logisitics and warehousing businesses. However global  passenger operations dwarf cargo operations. In 2017, Oliver Wyman estimated that of 25,000 commercial aircraft in service, just 2000 aircraft provided cargo services. Hence, robust global cargo and logisitics demand has only partially offset the impact of the large decline in passenger services.  As flagged six weeks ago, the biggest driver of markets in 4Q20 will continue to be the social and economic impacts of containing COVID-19 in addition to vaccine developments (click here for more). The past week’s coronavirus vaccine developments are consistent with WHO projections in early October, and have further fueled sector rotations which tentatively began last month and gathered pace following the US Election (click here for more).  This has seen Singapore’s most traded transportation stocks rally 11% over the past 11 sessions, in line with the 10% gains of the top quartile of global transportation stocks by market value. 
 

Most Defensive Stocks of Industry Drawed Net Institutional Inflows in 2020 YTD   
Combined, Singapore’s 10 most traded stocks with exposure to transportation and logisitcs services have seen a combined daily turnover of close to S$110 million a day in the 2020 year through to 16 November. More than 90% of that turnover was contributed by four constituents of the Straits Times Index (“STI”) – Singapore Airlines , ComfortDelgGo Corp, Singapore Tech Engineering And SATS.   
Together the 10 stocks have averaged an 18% decline in total return over the period.  
The two most defensive stocks in the year to date were Catalist-listed GKE Corporation, and STI constituent Singapore Tech Engineering with respective total returns of 13.9% and 0.4%. Both these stock were also reciepient of net instituional inflows in the year to date.  
While Singapore Tech Engineering is typcially associated with manufacturing, Aersopace was its biggest revenue generator in FY19. In its FY20 (ended 31 May), GKE Corporation continued to focus efforts in its profit-generating divisions and was rewarded with a S$4.7 million net profit attributable to shareholders, a reversal from a net loss attributable to shareholders of S$2.1 million in FY19 (for the FY20 Annual Report, click here). Founded in 1995, by Mr Neo Kok Ching, GKE Corporation’s vision is to become one of the largest integrated warehousing and logistics solutions providers in Singapore.  Recent Rotations to Key Industry Stocks     
With subtle signs of rotation into SATS in October (click here for more), the rotational flows accelerated in early November, with the stock rallying 33.9% so far this month on S$68 million of net institional inflow. Singapore Airlines and ComfortDelGro Corp also saw net institutional inflows of S$25 million and S$11 million respectively in the November month-to-date, while averaging 15.6% gains. The trio had previosuly seen a combined net institutional outflow of S$1.2 billion over the first 10 months of 2020.  
As discussed above, Singapore Tech Engineering has seen net instituional inflows in the year-to-date, and coinciding with the rotation, has seen net institutional outflows in the month-to-date.  
The perfomances of the 10 most traded Singapore stocks with exposure to the transportation and logisitics industry are tabled below and sort by highest trading turnover in the 2020 year to date.




			Stock
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			MTD Net Insti Flow S$M
			
			
			MTD Price Change

			%
			
			
			YTD Net Insti Flow S$M
			
			
			YTD Total Return %
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			11,474
			
			
			25.0
			
			
			14.2
			
			
			-642.4
			
			
			-39.2
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			3,423
			
			
			10.7
			
			
			17.0
			
			
			-348.6
			
			
			-31.2
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			11,776
			
			
			-17.0
			
			
			8.3
			
			
			68.1
			
			
			0.4
			
		


			SATS
			
			
			S58
			
			
			4,468
			
			
			68.0
			
			
			33.9
			
			
			-152.1
			
			
			-21.1
			
		


			SINGAPORE POST
			
			
			S08
			
			
			1,586
			
			
			-2.9
			
			
			6.0
			
			
			-15.8
			
			
			-22.9
			
		


			HUTCHISON PORT HOLDINGS TR-U
			
			
			NS8U
			
			
			1,781
			
			
			0.2
			
			
			3.2
			
			
			-10.2
			
			
			-3.0
			
		


			SIA ENGINEERING CO
			
			
			S59
			
			
			2,063
			
			
			-1.8
			
			
			12.9
			
			
			-17.8
			
			
			-33.1
			
		


			SBS TRANSIT
			
			
			S61
			
			
			935
			
			
			-0.9
			
			
			5.3
			
			
			-20.3
			
			
			-20.0
			
		


			GKE CORP
			
			
			595
			
			
			64
			
			
			-0.8
			
			
			2.5
			
			
			0.8
			
			
			13.9
			
		


			CHASEN HOLDINGS
			
			
			5NV
			
			
			22
			
			
			0.0
			
			
			5.7
			
			
			-1.1
			
			
			-28.2
			
		


			Total 
			
			
			 
			
			
			37,593
			
			
			80.5
			
			
			 
			
			
			-1,140
			
			
			 
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			10.9
			
			
			 
			
			
			-18.4
			
		

 Source: Bloomberg, Refinitiv, SGX StockFacts (Data as of 16 November 2020)



Transport Stocks On the Move with 11% Gains in early November 

The Thai government is in talks with China to exempt Chinese tourists from the required 14-day quarantine by 2021. The exemption may push through if the limited reopening of Thailand for international tourism will be a success. The current14-day quarantine will be replaced by coronavirus testing and mobile tracking app.
Chinese tourists accounted for more than 25% of Thailand’s international tourists and maybe the first low-risk country that will sign up for quarantine-free travel. Most Chinese visitors come to Thailand for a week, so being quarantined would not be worth the trip for many. 
The protest in Thailand has not subsided therefore the high pent-up demand from Chinese tourists may have to be reallocated somewhere else. Historically, however, any protests in Thailand did not last long and mostly peaceful thus it may create some opportunity to accumulate <a href="https://www.smartkarma.com/entities/airports-of-thailand-pcl" target="_blank" data-smartkarma-citation="entities:239:1" rel="noopener">Airports of Thailand (AOT TB)</a> stock.

The Thai government is in talks with China to exempt Chinese tourists from the required 14-day quarantine by 2021. The exemption may push through if the limited reopening of Thailand for international tourism will be a success. The current14-day quarantine will be replaced by coronavirus testing and mobile tracking app.
Chinese tourists accounted for more than 25% of Thailand’s international tourists and maybe the first low-risk country that will sign up for quarantine-free travel. Most Chinese visitors come to Thailand for a week, so being quarantined would not be worth the trip for many. 
The protest in Thailand has not subsided therefore the high pent-up demand from Chinese tourists may have to be reallocated somewhere else. Historically, however, any protests in Thailand did not last long and mostly peaceful thus it may create some opportunity to accumulate Airports of Thailand (AOT TB) stock. 

Airport of Thailand (AOT): Soon or Later?

DFI Retail Group Holdings / Equity Bottom-Up

Potential Drivers of the Straits Times Index in 4Q20

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Cross Asset Strategy

<div class="content-highlight">
The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a>
</div><h3>Macro Insights</h3>In <a href="https://www.smartkarma.com/insights/thai-macro-watch-august-the-new-tech-wars-chinese-flood" target="_blank" data-smartkarma-citation="insights:42012" rel="noopener">Thai Macro Watch (August): The New Tech Wars, Chinese Flood</a>, our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" data-smartkarma-citation="accounts:766" rel="noopener">Athaporn Arayasantiparb, CFA</a> five global events and their impact on Thai equities.<h3>Equity Bottom-Up Insights</h3>In <a href="https://www.smartkarma.com/insights/ace-hardware-indonesia-aces-ij-building-a-road-to-recovery" target="_blank" data-smartkarma-citation="insights:42520" rel="noopener">Ace Hardware Indonesia (ACES IJ) - Building A Road to Recovery,</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits one of Indonesia's leading retailers after a call with management.In <a href="https://www.smartkarma.com/insights/akr-corporindo-akra-ij-the-landed-logistics-player" target="_blank" data-smartkarma-citation="insights:42569" rel="noopener">AKR Corporindo (AKRA IJ) - The Landed Logistics Player,</a><a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" data-smartkarma-citation="accounts:937" rel="noopener">Angus Mackintosh</a> revisits this Indonesian chemical and fuel distributor with an increasing contribution coming from its JIIPE industrial estate. In <a href="https://www.smartkarma.com/insights/sats-from-serving-22-5m-pax-in-1q20-to-serving-200k-pax-in-1q21-houston-we-have-a-problem" target="_blank" data-smartkarma-citation="insights:42488" rel="noopener">SATS: From Serving 22.5M Pax in 1Q20 -&gt; To Serving 200K Pax in 1Q21. Houston We Have a Problem.</a> CrossASEAN Insight Provider <a href="https://www.smartkarma.com/profiles/nicolas-van-broekhoven-24a66c2d-bca4-4f5b-adda-c4e2bcc509f4" target="_blank" data-smartkarma-citation="accounts:1208" rel="noopener">Nicolas Van Broekhoven</a> revisits Singapore airport maintenance leader post its recent numbers. In <a href="https://www.smartkarma.com/insights/permata-bank-mandatory-takeover-launched-finally" target="_blank" data-smartkarma-citation="insights:42577" rel="noopener">Permata Bank Mandatory Takeover Launched. Finally.</a><a href="https://www.smartkarma.com/profiles/travis-lundy" target="_blank" data-smartkarma-citation="accounts:25" rel="noopener">Travis Lundy</a> revisits the <a href="https://www.smartkarma.com/entities/bank-permata-tbk-pt" target="_blank" data-smartkarma-citation="entities:728:1" rel="noopener">Bank Permata (BNLI IJ)</a> deal as it enters its final stage.In <a href="https://www.smartkarma.com/insights/sprime-good-point-of-entry-singha-connection-could-add-further-upside" target="_blank" data-smartkarma-citation="insights:42589" rel="noopener">SPRIME: Good Point of Entry, Singha Connection Could Add Further Upside,</a><a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr Andrew Stotz, CFA</a> initiates coverage on SPRIME with a BUY recommendation based on a target price of Bt11.20, implying an upside of 21% from the current share price. In <a href="https://www.smartkarma.com/insights/aimirt-good-growth-outlook-but-already-priced-in" target="_blank" data-smartkarma-citation="insights:42639" rel="noopener">AIMIRT: Good Growth Outlook, but Already Priced In</a> initiates coverage on <a href="https://www.smartkarma.com/entities/aim-industrial-growth-freehold-and-leasehold-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:29180:1" rel="noopener">AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust (AIMIRT TB)</a> with a HOLD recommendation based on a target price of Bt14.30, implying an upside of 6% from the current share price. In <a href="https://www.smartkarma.com/insights/teamg-cost-savings-and-government-stimulus-to-drive-profit" target="_blank" data-smartkarma-citation="insights:42628" rel="noopener">TEAMG: Cost-Savings and Government Stimulus to Drive Profit,</a><a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr Andrew Stotz, CFA</a> revisits <a href="https://www.smartkarma.com/entities/team-consulting-engineering-and-management-public-company-limited" target="_blank" data-smartkarma-citation="entities:29175:1" rel="noopener">TEAM Consulting Engineering and Management (TEAMG TB)</a> and maintains a BUY recommendation on the company as he increases the target price to Bt2.81 from Bt2.42, implying an upside of 17% from the current share price. In <a href="https://www.smartkarma.com/insights/sisb-good-entry-point-for-investment-in-private-schools" target="_blank" data-smartkarma-citation="insights:42632" rel="noopener">SISB: Good Entry Point for Investment in Private Schools,</a><a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr Andrew Stotz, CFA</a> initiates coverage on SPRIME with a BUY recommendation based on a target price of Bt11.20, implying an upside of 21% from the current share price.In <a href="https://www.smartkarma.com/insights/sflex-staying-behind-key-players-in-the-market" target="_blank" data-smartkarma-citation="insights:42679" rel="noopener">SFLEX: Staying Behind Key Players in the Market,</a><a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr Andrew Stotz, CFA</a> initiates coverage on <a href="https://www.smartkarma.com/entities/starflex-pcl" target="_blank" data-smartkarma-citation="entities:29172:1" rel="noopener">Starflex PCL (SFLEX TB)</a> with a SELL recommendation based on a target price of Bt8.90, implying a downside of 28% from the current price. In <a href="https://www.smartkarma.com/insights/boffice-asset-expansion-motivates-the-upside" target="_blank" data-smartkarma-citation="insights:42678" rel="noopener">BOFFICE: Asset Expansion Motivates the Upside,</a><a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr Andrew Stotz, CFA</a> initiates coverage on <a href="https://www.smartkarma.com/entities/bhiraj-office-leasehold-reit" target="_blank" data-smartkarma-citation="entities:29173:1" rel="noopener">Bhiraj Office Leasehold REIT (BOFFICE TB)</a> with a BUY recommendation based on a target price of Bt14.10, implying an upside of 18% from the current share price. In <a href="https://www.smartkarma.com/insights/all-valuation-remains-undemanding-expect-further-upside" target="_blank" data-smartkarma-citation="insights:42635" rel="noopener">ALL: Valuation Remains Undemanding, Expect Further Upside</a>, <a href="https://www.smartkarma.com/profiles/dr-andrew-stotz-cfa" target="_blank" data-smartkarma-citation="accounts:756" rel="noopener">Dr Andrew Stotz, CFA</a> revisits <a href="https://www.smartkarma.com/entities/all-inspire-development-pcl" target="_blank" data-smartkarma-citation="entities:29177:1" rel="noopener">All Inspire Development PCL (ALL TB),</a> where he has a Buy recommendation based on a target price of Bt4.39, implying an upside of 31% from the current price. In <a href="https://www.smartkarma.com/insights/m-rapid-sssg-recovery-with-potential-growth-from-seafood-restaurant" target="_blank" data-smartkarma-citation="insights:42578" rel="noopener">M: Rapid SSSG Recovery with Potential Growth from Seafood Restaurant,</a> our friends at <a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> circle back to <a href="https://www.smartkarma.com/entities/mk-restaurants-group-pcl" target="_blank" data-smartkarma-citation="entities:17689:1" rel="noopener">MK Restaurants Group (M TB)</a> after attending the recent analyst briefing, where they came away more positive with signs of an SSSG recovery post lockdown easing.In <a href="https://www.smartkarma.com/insights/egco-positive-2h20-earnings-outlook-from-better-overseas-performance" target="_blank" data-smartkarma-citation="insights:42634" rel="noopener">EGCO: Positive 2H20 Earnings Outlook from Better Overseas Performance,</a><a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisit <a href="https://www.smartkarma.com/entities/electricity-generating-pcl" target="_blank" data-smartkarma-citation="entities:6149:1" rel="noopener">Electricity Generating (EGCO TB)</a> after the company's positive analyst briefing. In <a href="https://www.smartkarma.com/insights/wice-expect-earnings-to-continue-growing-yoy-in-2h20" target="_blank" data-smartkarma-citation="insights:42537" rel="noopener">WICE: Expect Earnings to Continue Growing YoY in 2H20,</a><a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> circle back to <a href="https://www.smartkarma.com/entities/wice-logistics-pcl" target="_blank" data-smartkarma-citation="entities:26172:1" rel="noopener">Wice Logistics (WICE TB)</a> after going to the company's analyst briefing. In <a href="https://www.smartkarma.com/insights/hana-covid-19-impact-has-passed" target="_blank" data-smartkarma-citation="insights:42575" rel="noopener">HANA: Covid-19 Impact Has Passed,</a><a href="https://www.smartkarma.com/companies/country-group" target="_blank" data-smartkarma-citation="companies:965" rel="noopener">Country Group</a> revisits one of Thailand's leading electronics manufacturing services companies. <h3>Sector and Thematic Insights</h3>In <a href="https://www.smartkarma.com/insights/indonesia-banks-most-to-recover" target="_blank" data-smartkarma-citation="insights:42493" rel="noopener">Indonesia Banks – Most To Recover?,</a> banking specialist <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> zooms in on the potential recovery to come for Indonesian Banks. <div><div><div id="ember9100"><div><section><div id="ember9112"><div>In <a href="https://www.smartkarma.com/insights/asia-banks-oversized-dividends" target="_blank" data-smartkarma-citation="insights:42535" rel="noopener">Asia Banks – Oversized Dividends,</a><a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> zeros in on dividend payments for Asian banks during the pandemic period. </div></div></section></div></div></div></div><h3>Credit Insights</h3>In <a href="https://www.smartkarma.com/insights/bank-rakyat-indonesia-pondering-pricing-on-a-promised-new-issue" target="_blank" data-smartkarma-citation="insights:42524" rel="noopener">Bank Rakyat Indonesia: Pondering Pricing on a Promised New Issue</a><a href="https://www.smartkarma.com/profiles/hank-calenti-cfa" target="_blank" data-smartkarma-citation="accounts:5194" rel="noopener">Hank Calenti, CFA</a> takes a look at the proposed US$1bn bond issue from <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a> and finds it appealing. <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia Persero (BBRI IJ)</a> could price a potential five-year senior unsecured


The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
Please find a brief summary below, with a fuller write up in the detailed section. We also include in the detailed section the past week's relevant discussions in ASEAN@Smartkarma
Macro InsightsIn Thai Macro Watch (August): The New Tech Wars, Chinese Flood, our Thai guru Athaporn Arayasantiparb, CFA five global events and their impact on Thai equities.Equity Bottom-Up InsightsIn Ace Hardware Indonesia (ACES IJ) - Building A Road to Recovery, CrossASEAN Insight Provider Angus Mackintosh revisits one of Indonesia's leading retailers after a call with management.In AKR Corporindo (AKRA IJ) - The Landed Logistics Player,Angus Mackintosh revisits this Indonesian chemical and fuel distributor with an increasing contribution coming from its JIIPE industrial estate. In SATS: From Serving 22.5M Pax in 1Q20 -&gt; To Serving 200K Pax in 1Q21. Houston We Have a Problem. CrossASEAN Insight Provider Nicolas Van Broekhoven revisits Singapore airport maintenance leader post its recent numbers. In Permata Bank Mandatory Takeover Launched. Finally.Travis Lundy revisits the Bank Permata (BNLI IJ) deal as it enters its final stage.In SPRIME: Good Point of Entry, Singha Connection Could Add Further Upside,Dr Andrew Stotz, CFA initiates coverage on SPRIME with a BUY recommendation based on a target price of Bt11.20, implying an upside of 21% from the current share price. In AIMIRT: Good Growth Outlook, but Already Priced In initiates coverage on AIM Industrial Growth Freehold and Leasehold Real Estate Investment Trust (AIMIRT TB) with a HOLD recommendation based on a target price of Bt14.30, implying an upside of 6% from the current share price. In TEAMG: Cost-Savings and Government Stimulus to Drive Profit,Dr Andrew Stotz, CFA revisits TEAM Consulting Engineering and Management (TEAMG TB) and maintains a BUY recommendation on the company as he increases the target price to Bt2.81 from Bt2.42, implying an upside of 17% from the current share price. In SISB: Good Entry Point for Investment in Private Schools,Dr Andrew Stotz, CFA initiates coverage on SPRIME with a BUY recommendation based on a target price of Bt11.20, implying an upside of 21% from the current share price.In SFLEX: Staying Behind Key Players in the Market,Dr Andrew Stotz, CFA initiates coverage on Starflex PCL (SFLEX TB) with a SELL recommendation based on a target price of Bt8.90, implying a downside of 28% from the current price. In BOFFICE: Asset Expansion Motivates the Upside,Dr Andrew Stotz, CFA initiates coverage on Bhiraj Office Leasehold REIT (BOFFICE TB) with a BUY recommendation based on a target price of Bt14.10, implying an upside of 18% from the current share price. In ALL: Valuation Remains Undemanding, Expect Further Upside, Dr Andrew Stotz, CFA revisits All Inspire Development PCL (ALL TB), where he has a Buy recommendation based on a target price of Bt4.39, implying an upside of 31% from the current price. In M: Rapid SSSG Recovery with Potential Growth from Seafood Restaurant, our friends at Country Group circle back to MK Restaurants Group (M TB) after attending the recent analyst briefing, where they came away more positive with signs of an SSSG recovery post lockdown easing.In EGCO: Positive 2H20 Earnings Outlook from Better Overseas Performance,Country Group revisit Electricity Generating (EGCO TB) after the company's positive analyst briefing. In WICE: Expect Earnings to Continue Growing YoY in 2H20,Country Group circle back to Wice Logistics (WICE TB) after going to the company's analyst briefing. In HANA: Covid-19 Impact Has Passed,Country Group revisits one of Thailand's leading electronics manufacturing services companies. Sector and Thematic InsightsIn Indonesia Banks – Most To Recover?, banking specialist Daniel Tabbush zooms in on the potential recovery to come for Indonesian Banks. In Asia Banks – Oversized Dividends,Daniel Tabbush zeros in on dividend payments for Asian banks during the pandemic period. Credit InsightsIn Bank Rakyat Indonesia: Pondering Pricing on a Promised New IssueHank Calenti, CFA takes a look at the proposed US$1bn bond issue from Bank Rakyat Indonesia Persero (BBRI IJ) and finds it appealing. Bank Rakyat Indonesia Persero (BBRI IJ) could price a potential five-year senior unsecured 

The Week that Was in ASEAN@Smartkarma - Ace Hardwear, Thai Macro, and Indonesian Banks

Singapore

SATS Limited provides integrated ground handling and in-flight catering services at Singapore Changi Airport.  The Company also provides aviation security, airline laundry, and airport cargo delivery management services.

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SATS (SATS SP)

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Singapore Exchange Ltd (SGX)

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Potential Drivers of the Straits Times Index in 4Q20

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Singapore Exchange Ltd (SGX)

The Week that Was in ASEAN@Smartkarma - Ace Hardwear, Thai Macro, and Indonesian Banks

This past week's offering of Insights across ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive and actionable...

Angus Mackintosh

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