Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> has trended lower over the last couple of years and the stock is trading very close to its lows.</li>
<li>There has been a contraction in multiples and <a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> trades cheaper than a lot of its Asia listed peers.</li>
<li>A potential index inclusion could bring in significant passive inflows and result in a rerating of the stock.</li>
</ul>



Thai Beverage (THBEV SP) has trended lower over the last couple of years and the stock is trading very close to its lows.
There has been a contraction in multiples and Thai Beverage (THBEV SP) trades cheaper than a lot of its Asia listed peers.
A potential index inclusion could bring in significant passive inflows and result in a rerating of the stock.


Thai Beverage (THBEV SP): Cheaper than Peers with an Upcoming Catalyst

Asia Consumer Research, Investory

Devi Subhakesan

Asia Consumer Research

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 Bottom-Up

<a href="https://www.smartkarma.com/entities/thai-beverage-pcl" target="_blank" data-smartkarma-citation="entities:3656:1" rel="noopener">Thai Beverage (THBEV SP)</a> had reported a strong improvement in its Thailand operations for 9MFY2021 suggesting that a recovery is underway and we expect this could look up further as the country opens to tourists from November 1st (ending quarantine for visitors to tourist destinations). The stock, at current levels, does not seem to factor in an earnings recovery given it is trading at conservative valuations even on current earnings.  In the insight below, we share SOTP based valuation to assess the stock's upside potential and discuss possible catalysts and timelines.

Thai Beverage (THBEV SP) had reported a strong improvement in its Thailand operations for 9MFY2021 suggesting that a recovery is underway and we expect this could look up further as the country opens to tourists from November 1st (ending quarantine for visitors to tourist destinations). The stock, at current levels, does not seem to factor in an earnings recovery given it is trading at conservative valuations even on current earnings.  In the insight below, we share SOTP based valuation to assess the stock's upside potential and discuss possible catalysts and timelines.

Thai Bev (THBEV SP): Neither Recovery nor BeerCo IPO Is Priced In. SOTP Suggests Upside.

Alpha-Centric ESG Research

Kyle Rudden

On 23 July, <a href="https://www.smartkarma.com/profiles/jason-yap-cfa" target="_blank" data-smartkarma-citation="accounts:24996" rel="noopener">Jason Yap</a> publised an excellent Insight titled <a href="https://www.smartkarma.com/insights/bnpl-industry-through-an-esg-lens" target="_blank" data-smartkarma-citation="insights:54887" rel="noopener">BNPL Industry Through an ESG Lens</a>. His knowledge of the "Buy Now, Pay Later" (BNPL) industry per se is well beyond mine, so I defer to his report for fundamentals on the industry and its companies.I do, however, have a few thoughts to add regarding ESG. Whilst Jason is spot-on for ESG issues he covered, I want to: 1) point out a potential ESG positive related to inclusive finance and sustainable development, and 2) expand on a major ESG negative associated with advertising and marketing.This is a deep dive into a few specific ESG issues, and hopefully complementary to Jason's work.

On 23 July, Jason Yap publised an excellent Insight titled BNPL Industry Through an ESG Lens. His knowledge of the "Buy Now, Pay Later" (BNPL) industry per se is well beyond mine, so I defer to his report for fundamentals on the industry and its companies.I do, however, have a few thoughts to add regarding ESG. Whilst Jason is spot-on for ESG issues he covered, I want to: 1) point out a potential ESG positive related to inclusive finance and sustainable development, and 2) expand on a major ESG negative associated with advertising and marketing.This is a deep dive into a few specific ESG issues, and hopefully complementary to Jason's work.

ESG and BNPL: Whether It's "Buy Now, Pay Later" Or "Buy, Not Pay Later" Makes All the Difference

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Macroeconomics

<ul>
<li>Thai equities lack growth and innovation. Big corporations continue to have unfair advantages in terms of access to bank financing and business opportunities.</li>
<li>Thailand is an aging society with rising income disparity and a stalling education system. Hence, we have questioned how Thailand will escape the middle income trap in the near term.</li>
<li>We expect more disruptions and policy blunders which could impair Thai stock performance. We do not believe Thailand can correct its cause in the near term.</li>
</ul>


Thai equities lack growth and innovation. Big corporations continue to have unfair advantages in terms of access to bank financing and business opportunities.
Thailand is an aging society with rising income disparity and a stalling education system. Hence, we have questioned how Thailand will escape the middle income trap in the near term.
We expect more disruptions and policy blunders which could impair Thai stock performance. We do not believe Thailand can correct its cause in the near term.


<ul>
<li>Thailand has finally had Mr. Sretha Thavisin as the 30th Prime Minister (PM) of Thailand on 22-August.</li>
<li>The PTP decided to betray its voters to cross  the aisle to join the conservative side.</li>
<li>We believe the potential surge in the Thai stock performance should be the time to de-risk.</li>
</ul>


Thailand has finally had Mr. Sretha Thavisin as the 30th Prime Minister (PM) of Thailand on 22-August.
The PTP decided to betray its voters to cross  the aisle to join the conservative side.
We believe the potential surge in the Thai stock performance should be the time to de-risk.


Singapore

Thai Beverage Public Company Limited produces a wide range of branded beer and spirits in Thailand.

Thai Beverage (THBEV SP)