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

Equity Bottom-Up

<div class="content-highlight">
The car sales tax holiday has proven to be a critical element that improved car sales during MCO and it has just been extended until June 2021 which means the upward momentum should carry forward to Q1 2021 at least. The postal business, typically a drag to the group, benefited from the MCO through stronger e-commerce activities and online marketplace that contributed positively to the postal business, similar to <a href="https://www.smartkarma.com/entities/singapore-post-ltd" target="_blank" data-smartkarma-citation="entities:150:1" rel="noopener">Singapore Post (SPOST SP)</a> . 
</div>
Compared to <a href="https://www.smartkarma.com/entities/umw-holdings-bhd" target="_blank" data-smartkarma-citation="entities:1700:1" rel="noopener">UMW Holdings (UMWH MK)</a> , DRB is trading at a 36.5% PBR discount, at a slight 8% PER premium, and a 26% EV/EBITDA discount.  DRB is trading at 4% PER discount, 89% PBR discount, and 56% EV/EBITDA discount, suggesting that it is relatively undervalued to the peers. Keep <a href="https://www.smartkarma.com/entities/drb-hicom-bhd" target="_blank" data-smartkarma-citation="entities:19627:1" rel="noopener">DRB-Hicom Bhd (DRB MK)</a> in your portfolio or buy if you have not.


The car sales tax holiday has proven to be a critical element that improved car sales during MCO and it has just been extended until June 2021 which means the upward momentum should carry forward to Q1 2021 at least. The postal business, typically a drag to the group, benefited from the MCO through stronger e-commerce activities and online marketplace that contributed positively to the postal business, similar to Singapore Post (SPOST SP) . 

Compared to UMW Holdings (UMWH MK) , DRB is trading at a 36.5% PBR discount, at a slight 8% PER premium, and a 26% EV/EBITDA discount.  DRB is trading at 4% PER discount, 89% PBR discount, and 56% EV/EBITDA discount, suggesting that it is relatively undervalued to the peers. Keep DRB-Hicom Bhd (DRB MK) in your portfolio or buy if you have not. 

DRB HiCom (DRB): Tax Holiday and E-Commerce Beneficiaries

The SGD 100 Discover Singapore vouchers that were handed out since 1st December 2020 to its citizens have provided the much-needed sparks in Singapore's hospitality industry that also benefits the Singapore transport sector. <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>captures this in two angles; higher revenue in public transport as well as in the taxi segment. The taxi segment has a historically higher gross profit margin compared to public transport although of late, the online ride-hailing app has challenged the former's dominance. 
Although Phase 3 is unlikely to happen today after PM Lee's speech, today's speech will highlight more positives rather than negative news on the COVID-19 development for Singapore and will help to increase higher mobility in Singapore that benefits ComfortDelgro. There will be an increase in group size on phase 3 and capacity limits in public places and events including weddings. Borders will also be slowly reopened that invite more tourists to come to Singapore. 
Although Hong Kong is still juggling with more pandemic cases compared to Singapore, <a href="https://www.smartkarma.com/entities/mtr-corp" target="_blank" data-smartkarma-citation="entities:13289:1" rel="noopener">MTR Corp (66 HK)</a> share price has held up far better compared to <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> . Thus ComfortDelgro's share price should play a catch-up. 
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/178/308/original/image_74960535931607934386271.png?1607934386" class="editor-image img-responsive" data-smartkarma-image-id="178308"></figure>
<div class="content-remarks">
source: Capital IQ
</div>

The SGD 100 Discover Singapore vouchers that were handed out since 1st December 2020 to its citizens have provided the much-needed sparks in Singapore's hospitality industry that also benefits the Singapore transport sector. Comfortdelgro Corp (CD SP)captures this in two angles; higher revenue in public transport as well as in the taxi segment. The taxi segment has a historically higher gross profit margin compared to public transport although of late, the online ride-hailing app has challenged the former's dominance. 
Although Phase 3 is unlikely to happen today after PM Lee's speech, today's speech will highlight more positives rather than negative news on the COVID-19 development for Singapore and will help to increase higher mobility in Singapore that benefits ComfortDelgro. There will be an increase in group size on phase 3 and capacity limits in public places and events including weddings. Borders will also be slowly reopened that invite more tourists to come to Singapore. 
Although Hong Kong is still juggling with more pandemic cases compared to Singapore, MTR Corp (66 HK) share price has held up far better compared to Comfortdelgro Corp (CD SP) . Thus ComfortDelgro's share price should play a catch-up. 


source: Capital IQ


ComfortDelgro (CD): Re-Discover Singapore

Far East Hospitality Trust / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/far-east-hospitality-trust" target="_blank" data-smartkarma-citation="entities:19061:1" rel="noopener">Far East Hospitality Trust (FEHT SP)</a>provides the stability that investors need from the substantial portion of the fixed revenue in the slow recovery in the hospitality industry. The company also benefit from getting the government contract to facilitate the SHN and hosts the Malaysian worker of <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> and <a href="https://www.smartkarma.com/entities/singapore-post-ltd" target="_blank" data-smartkarma-citation="entities:150:1" rel="noopener">Singapore Post (SPOST SP)</a> . 
Among all the hotel assets, 3 of the hotels in the Orchard area will be the first ones to recover their occupancy rate and the room rate which will translate into a higher RevPar. 
Thanks to the skew in high PER from Ascott Residence Trust, FEHT is trading at a 51% discount to the peers while in PBR, FEHT is trading at a 37.5% discount to the peers. Excluding Ascott Residence Trust, FEHT is trading at a 7% premium to the peers and a 41% discount to the peers. FEHT is also trading below its book value currently. BUY.

Far East Hospitality Trust (FEHT SP)provides the stability that investors need from the substantial portion of the fixed revenue in the slow recovery in the hospitality industry. The company also benefit from getting the government contract to facilitate the SHN and hosts the Malaysian worker of Comfortdelgro Corp (CD SP) and Singapore Post (SPOST SP) . 
Among all the hotel assets, 3 of the hotels in the Orchard area will be the first ones to recover their occupancy rate and the room rate which will translate into a higher RevPar. 
Thanks to the skew in high PER from Ascott Residence Trust, FEHT is trading at a 51% discount to the peers while in PBR, FEHT is trading at a 37.5% discount to the peers. Excluding Ascott Residence Trust, FEHT is trading at a 7% premium to the peers and a 41% discount to the peers. FEHT is also trading below its book value currently. BUY. 

Far East Hospitality Trust (FEHT): Stable in Slow Recovery

<a href="https://www.smartkarma.com/entities/singapore-post-ltd" target="_blank" data-smartkarma-citation="entities:150:1" rel="noopener">Singapore Post (SPOST SP)</a> has transitioned from a conventional postal delivery service to an e-commerce delivery service provider and currently, the revenue contribution from e-commerce almost offset the declining legacy business. It should happen either this Christmas holiday season or in Q1 2021. The declining conveyance cost that ate up margin in 1H 2020 will provide an additional income booster that investors can look forward to. 
Singpost trades at the lowest EV/EBITDA multiples to its peers and a 0.98x PBR. Q4 has traditionally been a strong season and now that it has transitioned into an e-commerce delivery platform, the time is NOW to start building a position in Singpost.

Singapore Post (SPOST SP) has transitioned from a conventional postal delivery service to an e-commerce delivery service provider and currently, the revenue contribution from e-commerce almost offset the declining legacy business. It should happen either this Christmas holiday season or in Q1 2021. The declining conveyance cost that ate up margin in 1H 2020 will provide an additional income booster that investors can look forward to. 
Singpost trades at the lowest EV/EBITDA multiples to its peers and a 0.98x PBR. Q4 has traditionally been a strong season and now that it has transitioned into an e-commerce delivery platform, the time is NOW to start building a position in Singpost. 

Singpost (SPOST): Riding the E-Commerce Awakening in ASEAN

The key problem is in the declining revenue from postal at an accelerating rate outpacing the growth rate from e-commerce business. This mismatch has happened for some time and unfortunately, it may not stop anytime soon. Unfortunately, the market for courier services for an e-commerce business is very crowded with Gogovan, <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> Express and <a href="https://www.smartkarma.com/entities/yamato-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:2:1" rel="noopener">Yamato Holdings (9064 JP)</a> -backed TaQbin are scrambling for market share. Does Singpost stand a chance to grab the lion share of the business? It is a possibility but not without sacrificing their profitability.

The key problem is in the declining revenue from postal at an accelerating rate outpacing the growth rate from e-commerce business. This mismatch has happened for some time and unfortunately, it may not stop anytime soon. Unfortunately, the market for courier services for an e-commerce business is very crowded with Gogovan, Grab (0967655D SP) Express and Yamato Holdings (9064 JP) -backed TaQbin are scrambling for market share. Does Singpost stand a chance to grab the lion share of the business? It is a possibility but not without sacrificing their profitability. 

Singapore

Singapore Post (SingPost) is a leading postal and eCommerce logistics provider in Asia Pacific. It offers national and international postal services, warehousing, fulfillment, international freight forwarding, and last-mile delivery, alongside mail delivery, post office services, and financial services. Headquartered in Paya Lebar, Singapore, the company traces its origins to 1858.

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

Singapore Post (SPOST SP)

DRB HiCom (DRB): Tax Holiday and E-Commerce Beneficiaries

The car sales tax holiday improved car sales during MCO and it has just been extended until June 2021 The postal business, benefited from the MCO...

Henry Soediarko

ComfortDelgro (CD): Re-Discover Singapore

Phase 3 is to happen soon and the speech highlighted more positives than negative news on COVID-19 development in SG and help to raise higher...

Henry Soediarko

Far East Hospitality Trust (FEHT): Stable in Slow Recovery

Among all the hotel assets, 3 of the FEHT hotels in the Orchard area will be the first ones to recover their occupancy rate and the room rate which...

Henry Soediarko

Singpost (SPOST): Riding the E-Commerce Awakening in ASEAN

SPOST trades at the lowest EV/EBITDA multiples to its peers and below book value. Q4 has traditionally a strong season and now that it has become...

Henry Soediarko

Singpost (SPOST): Lasting Tough Times

The key problem is in the declining revenue from postal at an accelerating rate outpacing the growth rate from e-commerce business. This mismatch...

Henry Soediarko

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)