Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

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)

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<li>2021's vintage of my 5 High Convictions Ideas did extremely well</li>
<li>
<a href="https://www.smartkarma.com/entities/pc-partner-group-ltd" target="_blank" data-smartkarma-citation="entities:8492:1" rel="noopener">PC Partner (1263 HK)</a> was up 543%, <a href="https://www.smartkarma.com/entities/rex-international-holding" target="_blank" data-smartkarma-citation="entities:17074:1" rel="noopener">Rex International Holding (REXI SP)</a> was up 80%, <a href="https://www.smartkarma.com/entities/straits-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:15745:1" rel="noopener">Straits Trading (STRTR SP)</a> was up almost 74% and Shougang Fushan just under 40%.</li>
<li>The underperformer award goes to HK restaurant operator <a href="https://www.smartkarma.com/entities/taste-gourmet-group-ltd" target="_blank" data-smartkarma-citation="entities:27339:1" rel="noopener">Taste Gourmet Group Ltd (8371 HK)</a> as it declined 25%. Below the fold we'll give our 5 High Conviction Ideas for 2022.</li>
</ul>


2021's vintage of my 5 High Convictions Ideas did extremely well

PC Partner (1263 HK) was up 543%, Rex International Holding (REXI SP) was up 80%, Straits Trading (STRTR SP) was up almost 74% and Shougang Fushan just under 40%.
The underperformer award goes to HK restaurant operator Taste Gourmet Group Ltd (8371 HK) as it declined 25%. Below the fold we'll give our 5 High Conviction Ideas for 2022.


Overview of My Winners and Losers in 2021... And 5 High Conviction Ideas Going Into 2022

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Softbank, Sydney Airports, SPH, SingTel, Oil Search, Japex/Inpex, Nippo

Singtel (Singapore Telecommunications) / Event-Driven

Last Week in Event SPACE: SingTel, Bharti Airtel, Kerry Logistics, Milton, Jardine Matheson

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<p><em><strong>This week in StubWorld ...</strong></em></p>
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<p><a href="https://www.smartkarma.com/entities/singapore-telecommunications" target="_blank" data-smartkarma-citation="entities:20:1" rel="noopener">Singtel (ST SP)</a>'s implied stub, net of all listcos, is currently around the lowest level outside of the GFC. </p>
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<p>Preceding my comments on SingTel are the weekly setup/unwind tables for Asia-Pacific Holdcos.</p>
<p>These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.</p>
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This week in StubWorld ...


Singtel (ST SP)'s implied stub, net of all listcos, is currently around the lowest level outside of the GFC. 


Preceding my comments on SingTel are the weekly setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity threshold of US$1mn on a 90-day moving average, and a % market capitalisation threshold - the $ value of the holding/opco held, over the parent’s market capitalisation, expressed in percent - of at least 20%.





ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Private Capital Markets

<p>With operations across eight countries and more than 400 cities, <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> is one of the region’s most valuable start-ups and was the leader in 2020 by GMV in online food delivery and ride-hailing, and by TPV (total processing value) in the e-wallet segment of financial services.</p>
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<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> hosted its inaugural Q12021 results call recently, which saw the senior management presenting the first quarter company performance for the first time. The company provided a detailed and presentation on the progress this year, and was reassuringly open. </p>
<p>The company also filed its F-4 Prospectus in connection with its proposed merger with the Altimeter Growth SPAC, which provides more detail on the company's underlying business prospects, as well as risks. <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> is making good progress toward listing, which is expected in 4Q2021, even as early as the end of October. </p>
<p>The company exceeded internal expectations for 1Q2021 both for adjusted net sales and adjusted EBITDA. <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> saw its 1Q2021 adjusted net sales rise +39%YoY to a record US$507m, with reduced losses on the back of a strong performance in its deliveries business.</p>
<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> also reported that its spend per user or GMV per monthly transacting user (MTU), increased by +31% YoY, which suggests some synergies between the different verticals across the company's "Super App".</p>
<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> has seen its mobility business suffer from the recent COVID-19 pandemic and the resultant mobility restrictions, which are affecting a number of the company's markets but EBITDA margins remain firm.</p>
<p>The company saw its financial services division experience its highest ever quarterly total payments volume in 1Q2021, with +18% YoY growth.</p>
<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> 's newest division under enterprise and new initiatives saw its GMV increase 3.5x, with a large portion of this division's revenues coming from advertising. </p>
<p>One area where <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> can be sure to win supporters are on its ESG credentials given that it's natural fit in its support for the livelihoods of both its driver-partners and its widespread community of small merchants.</p>
<section class="figure">
<p>We took a deep dive with <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> management to better understand its regional prospects and long-term strategy and came away more positive as a result. </p>
<p>We see the company's increasing collaboration with <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> as a positive development, which will help fill in some of the gaps to its business in Indonesia.</p>
<p>There are still risks to the company's growth projections and we look to identify where those competitive risks lie. </p>
<p>Having seen <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> go through the mill with the SEC and after detailed and open discussions with the company plus the company's comprehensive 1Q2021 results release, we have turned more positive on the company's prospects. This leads us to be more comfortable with the valuations, as long as the company can achieve its targets. The company's collaboration with <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> in Indonesia may also yield further positive developments there. </p>
</section>

With operations across eight countries and more than 400 cities, Grab is one of the region’s most valuable start-ups and was the leader in 2020 by GMV in online food delivery and ride-hailing, and by TPV (total processing value) in the e-wallet segment of financial services.



Grab hosted its inaugural Q12021 results call recently, which saw the senior management presenting the first quarter company performance for the first time. The company provided a detailed and presentation on the progress this year, and was reassuringly open. 
The company also filed its F-4 Prospectus in connection with its proposed merger with the Altimeter Growth SPAC, which provides more detail on the company's underlying business prospects, as well as risks. Grab is making good progress toward listing, which is expected in 4Q2021, even as early as the end of October. 
The company exceeded internal expectations for 1Q2021 both for adjusted net sales and adjusted EBITDA. Grab saw its 1Q2021 adjusted net sales rise +39%YoY to a record US$507m, with reduced losses on the back of a strong performance in its deliveries business.
Grab also reported that its spend per user or GMV per monthly transacting user (MTU), increased by +31% YoY, which suggests some synergies between the different verticals across the company's "Super App".
Grab has seen its mobility business suffer from the recent COVID-19 pandemic and the resultant mobility restrictions, which are affecting a number of the company's markets but EBITDA margins remain firm.
The company saw its financial services division experience its highest ever quarterly total payments volume in 1Q2021, with +18% YoY growth.
Grab 's newest division under enterprise and new initiatives saw its GMV increase 3.5x, with a large portion of this division's revenues coming from advertising. 
One area where Grab can be sure to win supporters are on its ESG credentials given that it's natural fit in its support for the livelihoods of both its driver-partners and its widespread community of small merchants.

We took a deep dive with Grab management to better understand its regional prospects and long-term strategy and came away more positive as a result. 
We see the company's increasing collaboration with Emtek (EMTK IJ) as a positive development, which will help fill in some of the gaps to its business in Indonesia.
There are still risks to the company's growth projections and we look to identify where those competitive risks lie. 
Having seen Grab go through the mill with the SEC and after detailed and open discussions with the company plus the company's comprehensive 1Q2021 results release, we have turned more positive on the company's prospects. This leads us to be more comfortable with the valuations, as long as the company can achieve its targets. The company's collaboration with Emtek (EMTK IJ) in Indonesia may also yield further positive developments there. 


Grab - Deep Dive Reveals the Mist Is Lifting

Singapore

StarHub Ltd. is a fully-integrated info-communication company offering a full range of information, communications, and entertainment services for both consumer and corporate markets in Singapore. The Company provides mobile network and multi-channel cable TV services, including high definition and on-demand services, as well as high-speed residential broadband services.

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StarHub Ltd (STH SP)

Overview of My Winners and Losers in 2021... And 5 High Conviction Ideas Going Into 2022

2021's vintage of 5 High Conviction Ideas did extremely well led by star performer Pc Partner. Our new selection for 2022 will hopefully have some...

Nicolas Van Broekhoven

Last Week in Event SPACE: Softbank, Sydney Airports, SPH, SingTel, Oil Search, Japex/Inpex, Nippo

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Last Week in Event SPACE: SingTel, Bharti Airtel, Kerry Logistics, Milton, Jardine Matheson

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

StubWorld: SingTel Plumbs Multi-Year Low

Singtel (ST SP)'s implied stub, net of all listcos, is currently around the lowest level outside of the global financial crisis.

David Blennerhassett

Grab - Deep Dive Reveals the Mist Is Lifting

Grab recently announced its 1Q2021 and help an inaugural analyst meeting to present the results and provide an update. We also talked separately...

Angus Mackintosh

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