ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN 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

Equity Bottom-Up

Philippine Stock Exchange / Equity Bottom-Up

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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> reported a strong set of 1H2021 numbers with net income up by +63.1% YoY on the back of a +30.9% increase in operating revenues.</p>
<p>The bottom-line performance was driven by the increase in operating revenues together with positive investment income. </p>
<p>The company saw particularly strong growth in listing fees due to a number of large size IPOs, whilst transaction fees and SCCP clearing fees increased due to higher market volumes, driven by particularly strong retail activity.</p>
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<p>The real growth driver for revenues and profits in 1H2021 came from a significant increase in capital raisings.</p>
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<p>Even after the flush of offerings in 1H2021, the listing pipeline is robust for 2H2021 and going into 2022, with a number of already approved issues plus upcoming planned listings as well as a number of planned REITs in the pipeline, which have already been featured in the news.</p>
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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> has also laid out a number of key initiatives set to launch this year which will provide a potential boost to activity on the exchange including new rules on short selling.</p>
<p><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> will launch a new marketing campaign to encourage more companies to list and especially SMEs. </p>
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<p>This latest set of results underline the positive story with <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> which continues to look promising with a strong IPO and placement pipeline for 2H2021 and going into 2022. </p>
<p>If we factor in the company's cash per share into the <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> valuation then the company is trading on an ex-cash FY21E PER of 16.0x and FY22E PER of 14.5x making it look significantly more attractive versus its peers together with stronger growth prospects. </p>
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The Philippine Stock Exchange (PSE PM) reported a strong set of 1H2021 numbers with net income up by +63.1% YoY on the back of a +30.9% increase in operating revenues.
The bottom-line performance was driven by the increase in operating revenues together with positive investment income. 
The company saw particularly strong growth in listing fees due to a number of large size IPOs, whilst transaction fees and SCCP clearing fees increased due to higher market volumes, driven by particularly strong retail activity.





The real growth driver for revenues and profits in 1H2021 came from a significant increase in capital raisings.

Even after the flush of offerings in 1H2021, the listing pipeline is robust for 2H2021 and going into 2022, with a number of already approved issues plus upcoming planned listings as well as a number of planned REITs in the pipeline, which have already been featured in the news.



The Philippine Stock Exchange (PSE PM) has also laid out a number of key initiatives set to launch this year which will provide a potential boost to activity on the exchange including new rules on short selling.
Philippine Stock Exchange (PSE PM) will launch a new marketing campaign to encourage more companies to list and especially SMEs. 





This latest set of results underline the positive story with Philippine Stock Exchange (PSE PM) which continues to look promising with a strong IPO and placement pipeline for 2H2021 and going into 2022. 
If we factor in the company's cash per share into the Philippine Stock Exchange (PSE PM) valuation then the company is trading on an ex-cash FY21E PER of 16.0x and FY22E PER of 14.5x making it look significantly more attractive versus its peers together with stronger growth prospects. 


Philippine Stock Exchange (PSE PM) - Thriving on Retailers and IPOs

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<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> just released a strong set of 1Q2021 results, with revenue growth of +31.7% and pre-tax profit growth of +121.1%. The exchange saw its net income rise by +199% YoY and EPS by +195% YoY. The better numbers were driven by higher market volumes and particularly from retail investors and a pick-up in IPO activity and placements.</p>
<p>We expect continued momentum behind volumes driven by retail together with more IPO activity in 2Q2021, with the completion of the US$1bn <a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" data-smartkarma-citation="entities:32188:1" rel="noopener">Monde Nissin Corp (0191881D PM)</a> IPO to come together with <a href="https://www.smartkarma.com/entities/del-monte-philippines-inc" target="_blank" data-smartkarma-citation="entities:26988:1" rel="noopener">Del Monte Philippines (1575316D PM)</a>, National Grid Corporation (NCGP), and REITs from <a href="https://www.smartkarma.com/entities/megaworld-corp" target="_blank" data-smartkarma-citation="entities:8746:1" rel="noopener">Megaworld Corp (MEG PM)</a>, <a href="https://www.smartkarma.com/entities/robinsons-land-corp" target="_blank" data-smartkarma-citation="entities:8831:1" rel="noopener">Robinsons Land Co (RLC PM),</a> and <a href="https://www.smartkarma.com/entities/vista-land-lifescapes-inc" target="_blank" data-smartkarma-citation="entities:18262:1" rel="noopener">Vista Land &amp; Lifescapes (VLL PM)</a>. </p>
<p><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> is trading at a discount to regional exchanges on 18.6x FY21E PER, which trades on an average forward PER of 27.7x. There are also a number of potential catalysts ahead, the most obvious being higher volumes, driven by increasing retail participation plus significantly higher profile IPOs in FY2021. </p>
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The Philippine Stock Exchange (PSE PM) just released a strong set of 1Q2021 results, with revenue growth of +31.7% and pre-tax profit growth of +121.1%. The exchange saw its net income rise by +199% YoY and EPS by +195% YoY. The better numbers were driven by higher market volumes and particularly from retail investors and a pick-up in IPO activity and placements.
We expect continued momentum behind volumes driven by retail together with more IPO activity in 2Q2021, with the completion of the US$1bn Monde Nissin Corp (0191881D PM) IPO to come together with Del Monte Philippines (1575316D PM), National Grid Corporation (NCGP), and REITs from Megaworld Corp (MEG PM), Robinsons Land Co (RLC PM), and Vista Land &amp; Lifescapes (VLL PM). 
Philippine Stock Exchange (PSE PM) is trading at a discount to regional exchanges on 18.6x FY21E PER, which trades on an average forward PER of 27.7x. There are also a number of potential catalysts ahead, the most obvious being higher volumes, driven by increasing retail participation plus significantly higher profile IPOs in FY2021. 


Philippine Stock Exchange (PSE PM) - Solid Foundations for Future Growth

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<p>Despite pressures on the Philippines from strict lockdowns and continuing issues with rising cases of COVID-19, <strong><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange Inc (PSE PM)</a> looks increasingly attractive with a powerful combination of rising volumes and a significant pipeline of IPOs in 2021. </strong></p>
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<p>The exchange has also been a direct beneficiary of COVID-19 as it has encouraged the influx of greater numbers of retail investors, which has boosted market volumes significantly. </p>
<p>The <a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange Inc (PSE PM)</a> currently only has 272 listed companies, which looks quite a low number but is in the process of encouraging more smaller companies to list. </p>
<p>The rapid increase in IPOs should be positive for margins given the high listing fees that the listing of new shares attracts. We have just seen the approval pass for the US$1bn <a href="https://www.smartkarma.com/entities/monde-nissin-corp" target="_blank" data-smartkarma-citation="entities:32188:1" rel="noopener">Monde Nissin Corp (0191881D PM)</a> IPO, which will focus attention on the overall market.</p>
<p><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> has outlined a number of new initiatives to increase liquidity and the number of new listings.</p>
<p>The company is also looking to increasingly digitize its business by upgrading its clearing and settlement system and shortening settlement to T+2. </p>
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<p><a href="https://www.smartkarma.com/entities/philippine-stock-exchange-inc" target="_blank" data-smartkarma-citation="entities:23182:1" rel="noopener">Philippine Stock Exchange (PSE PM)</a> is trading at a discount to regional exchanges on 17.1x FY21E PER, which trades on an average forward PER of 29x. There are also a number of potential catalysts ahead, the most obvious being higher volumes, driven by increasing retail participation plus more IPOs in FY2021.</p>
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Despite pressures on the Philippines from strict lockdowns and continuing issues with rising cases of COVID-19, Philippine Stock Exchange Inc (PSE PM) looks increasingly attractive with a powerful combination of rising volumes and a significant pipeline of IPOs in 2021. 

The exchange has also been a direct beneficiary of COVID-19 as it has encouraged the influx of greater numbers of retail investors, which has boosted market volumes significantly. 
The Philippine Stock Exchange Inc (PSE PM) currently only has 272 listed companies, which looks quite a low number but is in the process of encouraging more smaller companies to list. 
The rapid increase in IPOs should be positive for margins given the high listing fees that the listing of new shares attracts. We have just seen the approval pass for the US$1bn Monde Nissin Corp (0191881D PM) IPO, which will focus attention on the overall market.
Philippine Stock Exchange (PSE PM) has outlined a number of new initiatives to increase liquidity and the number of new listings.
The company is also looking to increasingly digitize its business by upgrading its clearing and settlement system and shortening settlement to T+2. 

Philippine Stock Exchange (PSE PM) is trading at a discount to regional exchanges on 17.1x FY21E PER, which trades on an average forward PER of 29x. There are also a number of potential catalysts ahead, the most obvious being higher volumes, driven by increasing retail participation plus more IPOs in FY2021.


Philippine Stock Exchange Inc (PSE PM) - Overlooked and On the Up

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/allhome-corp" target="_blank" data-smartkarma-citation="entities:28227:1" rel="noopener">AllHome (AHM PM)</a> claims to have pioneered the “one-stop-shop” home improvement retailer in the Philippines. AllHome plans to raise up to $404 million in the Philippines’ largest IPO this year. AllHome intends to sell as many as 1.29 billion shares (750 million primary shares) at a maximum price of 16 pesos a share.</p><div class="content-highlight"><p>With enviable exposure to a fast-growing segment of the retail sector in the Philippines, AllHome seems to have a long runway to maintain its high growth, improving margin equity story. However, our enthusiasm is tempered by the significant cash burn. Overall, we believe that AllHome’s fundamentals offers more positives than negatives and could prove to be attractive at the right valuation.</p></div>

AllHome (AHM PM) claims to have pioneered the “one-stop-shop” home improvement retailer in the Philippines. AllHome plans to raise up to $404 million in the Philippines’ largest IPO this year. AllHome intends to sell as many as 1.29 billion shares (750 million primary shares) at a maximum price of 16 pesos a share.With enviable exposure to a fast-growing segment of the retail sector in the Philippines, AllHome seems to have a long runway to maintain its high growth, improving margin equity story. However, our enthusiasm is tempered by the significant cash burn. Overall, we believe that AllHome’s fundamentals offers more positives than negatives and could prove to be attractive at the right valuation.

AllHome IPO Initiation: Cash-Guzzling Growth

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<p><a href="https://www.smartkarma.com/entities/allhome-corp" target="_blank" data-smartkarma-citation="entities:28227:1" rel="noopener">AllHome (AHM PM)</a> is looking to raise about US$400m in its upcoming IPO in the Philippines.</p>
<p>AHM is a fast-growing home improvement retailer in the Philippines. Revenue grew 2x between FY2016 to FY2018. Margins expanded owing to operating leverage.</p>
<p>The company has an aggressive expansion plan. It is planning to open 19 stores in 2H 2019 on top of the 2 stores already opened in the first half, and another 19 in 2020.</p>

AllHome (AHM PM) is looking to raise about US$400m in its upcoming IPO in the Philippines.
AHM is a fast-growing home improvement retailer in the Philippines. Revenue grew 2x between FY2016 to FY2018. Margins expanded owing to operating leverage.
The company has an aggressive expansion plan. It is planning to open 19 stores in 2H 2019 on top of the 2 stores already opened in the first half, and another 19 in 2020.

AllHome IPO Early Thoughts - About to Grow Even Faster

Philippines

Vista Land & Lifescapes, Inc. is an integrated property developer and homebuilder in the Philippines. It specializes in developing horizontal properties, master-planned communities, and vertical residences, and also operates shopping malls, commercial centers, and BPO offices. The company was incorporated in 2007 and is headquartered in Las Pinas City, Philippines.

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Vista Land (VLL PM)

Philippine Stock Exchange (PSE PM) - Thriving on Retailers and IPOs

The Philippine Stock Exchange (PSE PM) continues to look undervalued relative to other listed regional exchanges with a strong IPO and placement...

Angus Mackintosh

Philippine Stock Exchange (PSE PM) - Solid Foundations for Future Growth

The Philippine Stock Exchange released a strong set of results for 1Q2021 but we see more to come with higher volumes and more IPO activity...

Angus Mackintosh

Philippine Stock Exchange Inc (PSE PM) - Overlooked and On the Up

The Philippine Stock Exchange (PSE PM) is probably the most overlooked listed stock exchange in Asia, with the catalyst of higher volumes driven by...

Angus Mackintosh

AllHome IPO Initiation: Cash-Guzzling Growth

AllHome (AHM PM) claims to have pioneered the “one-stop-shop” home improvement retailer in the Philippines. AllHome plans to raise up to $404...

Arun George

AllHome IPO Early Thoughts - About to Grow Even Faster

AllHome (AHM PM) is looking to raise about US$400m in its upcoming IPO in the Philippines. AHM is a fast-growing home improvement retailer in the...

Zhen Zhou, Toh

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