Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Was on the buyside for 15 years, most recently at a medium-sized boutique asset management firm. I grew up in Europe, went to university in the US and have been living in Singapore for the last 7 years which has given me a broad scope on the world and investing in general.

Consider myself a generalist investor with a preference for small and mid-cap companies and special situations. However, a large cap that has gone temporarily out of favor might also pique my interest. 

My style of investing could be categorized as more of value investor, rather than growth at any cost. Learning from Charlie Munger on the importance of quality of a company has been of tremendous value over the years.I like businesses with real earnings, cash flows, dividends, book value and insider ownership.

Insight Provider

The Week that Was in ASEAN@Smartkarma - Vietnam's Savings, Double Dragon, and Singapore Gaming

DoubleDragon Properties (DD PM): From Overhyped to Undervalued; Multi-Bagger in the Making?

Philippines: February Inflation Eases Back to BSP’s Inflation Target Range

Philippines: Institutional Reforms that Promote Macro Stability

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

Doubledragon Properties / Equity Bottom-Up

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/085/673/original/Orphan%20Stock%20Banner%20DoubleDragon%20Properties.png?1556077057" class="editor-image img-responsive" data-smartkarma-image-id="85673"></figure><a href="https://www.smartkarma.com/entities/23011" target="_blank" data-smartkarma-citation="entities:23011:1">Doubledragon Properties (DD PM)</a> released its FY18 results and full 94-page annual report on 15/04/2019. The FY18 results confirm our thesis articulated in SmartKarma Originals insight <a href="https://www.smartkarma.com/insights/doubledragon-properties-dd-pm-from-overhyped-to-undervalued-multi-bagger-in-the-making" target="_blank" data-smartkarma-citation="insights:28127">DoubleDragon Properties (DD PM): From Overhyped to Undervalued; Multi-Bagger in the Making?</a> :The highlights are:<ul>
<li>There were 36 Operational CityMalls as of 31/12/18; expect 75 by end of 2H19</li>
<li>Rental income increased +174% to 2.49B PHP vs 909M PHP in FY17</li>
<li>Increasing recurring revenue (+132% vs FY17)</li>
<li>Operating Cash Flow was 3x higher vs FY17</li>
<li>Total Debt/Total Stockholders Equity (Debt/Equity) was down to 1.08x</li>
<li>GPM increased to 78% vs 70% in FY17</li>
<li>NPM increased to 32.1% vs 24.9% in FY17</li>
<li>Debt Maturity of DD's LT debt is 4.93 years, meaning minimal refinancing risk</li>
<li>CEO and Founder, Edgar Sia, was only paid a paltry 58,000 USD base salary, indicating his interests are aligned with minority investors</li>
</ul>Shares are up 21% since the publication of our initial insight on 13/03/19 (vs PSEi +0.28%, 5.7% for <a href="https://www.smartkarma.com/entities/89" target="_blank" data-smartkarma-citation="entities:89:1">Sm Prime Holdings (SMPH PM)</a> and 3.6% for <a href="https://www.smartkarma.com/entities/8831" target="_blank" data-smartkarma-citation="entities:8831:1">Robinsons Land Co (RLC PM)</a> over the same time frame). We expect the re-discovery and re-rating of DD to continue in FY19/FY20. We reiterate that betting against Edgar Sia's ambitions has historically not proven to be a wise bet.In other important sector news, we understand that <a href="https://www.smartkarma.com/entities/131" target="_blank" data-smartkarma-citation="entities:131:1">Ayala Land Inc (ALI PM)</a> will be launching the <a href="https://www.reuters.com/article/ayala-land-offer/philippines-ayala-land-to-raise-500-mln-in-countrys-first-reit-idUSL3N226167" target="_blank">first ever REIT</a> in the Philippines. Earlier in 2019 Edgar Sia publicly said he was "very interested" in pursuing the REIT option to unlock value for DD shareholders. Fair Value (blended P/E and Cap Rate) remains at 41 PHP, or another 58% upside.In May, fellow contributor <a href="https://www.smartkarma.com/profiles/1763" target="_blank" data-smartkarma-citation="accounts:1763">Lloyd Moffatt</a> , expects to publish a DEEP DIVE report into DoubleDragon's financial forecasts for FY19 and FY20.

Doubledragon Properties (DD PM) released its FY18 results and full 94-page annual report on 15/04/2019. The FY18 results confirm our thesis articulated in SmartKarma Originals insight DoubleDragon Properties (DD PM): From Overhyped to Undervalued; Multi-Bagger in the Making? :The highlights are:
There were 36 Operational CityMalls as of 31/12/18; expect 75 by end of 2H19
Rental income increased +174% to 2.49B PHP vs 909M PHP in FY17
Increasing recurring revenue (+132% vs FY17)
Operating Cash Flow was 3x higher vs FY17
Total Debt/Total Stockholders Equity (Debt/Equity) was down to 1.08x
GPM increased to 78% vs 70% in FY17
NPM increased to 32.1% vs 24.9% in FY17
Debt Maturity of DD's LT debt is 4.93 years, meaning minimal refinancing risk
CEO and Founder, Edgar Sia, was only paid a paltry 58,000 USD base salary, indicating his interests are aligned with minority investors
Shares are up 21% since the publication of our initial insight on 13/03/19 (vs PSEi +0.28%, 5.7% for Sm Prime Holdings (SMPH PM) and 3.6% for Robinsons Land Co (RLC PM) over the same time frame). We expect the re-discovery and re-rating of DD to continue in FY19/FY20. We reiterate that betting against Edgar Sia's ambitions has historically not proven to be a wise bet.In other important sector news, we understand that Ayala Land Inc (ALI PM) will be launching the first ever REIT in the Philippines. Earlier in 2019 Edgar Sia publicly said he was "very interested" in pursuing the REIT option to unlock value for DD shareholders. Fair Value (blended P/E and Cap Rate) remains at 41 PHP, or another 58% upside.In May, fellow contributor Lloyd Moffatt , expects to publish a DEEP DIVE report into DoubleDragon's financial forecasts for FY19 and FY20.

DoubleDragon Properties (DD PM): FY18 Results Show Earnings Potential; Re-Rating To Accelerate