Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

A Long & Short Investment Ideas generator for Asian Equities with 10 years experience in a Hedge fund focused on bottom-up ideas, searching out mispriced ideas and misunderstood investment thesis. Provides on-the-ground insights in various Asian markets with a sway towards ASEAN. Experienced and survived the Asian Financial Crisis in a family business, as well as the Global Financial Crisis in financial markets where lessons learned. It's all about understanding business drivers and navigating business cycles, which has high applicability in generating investment ideas. 

Investment horizon: Mid to Long term

Asian Insight Provider - Actionable ideas

TKP (3479): Slow Recovery yet Share Price Has More than Doubled?

Benesse Holding: Low Margin Business with Declining Customer

TKP Placement: The We-Work Competitor with Rapid Growth

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

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/111/668/original/image_43774002421577073129098.png?1577073126" class="editor-image img-responsive" data-smartkarma-image-id="111668"></figure>
<div class="content-caption">Source; Capital IQ</div>
<p>In the past, the share price is almost always following analyst recommendation but the most troubling thing about TKP is its high valuation. TKP is not exactly without a competitor in Japan, albeit TKP has the biggest market share. TKP business model is a flexible conference room rental provider in which the management source idle assets in Japan and resell them through the internet started with entrepreneurs and of late to listed corporates as well.</p>
<p>The company's profitability is short of that mind-blowing numbers and it has a massive debt in its balance sheet as well. <strong>Does paying 3x more than its peers justify for a conference room rental business with low profitability? </strong></p>
<p>While investors are happy to pay a premium for its dominant market share in Japan, they should be cautioned if they were to pay the same valuation level for TKP's overseas venture. The flexible working space outside of Japan has been filled with innovative competitors. With a limited success potential for its overseas venture, investors should start to sell/short-sell <a href="https://www.smartkarma.com/entities/tkp-corporation" target="_blank" data-smartkarma-citation="entities:28305:1" rel="noopener"> TKP Corporation (3479 JP)</a> .</p>


Source; Capital IQ
In the past, the share price is almost always following analyst recommendation but the most troubling thing about TKP is its high valuation. TKP is not exactly without a competitor in Japan, albeit TKP has the biggest market share. TKP business model is a flexible conference room rental provider in which the management source idle assets in Japan and resell them through the internet started with entrepreneurs and of late to listed corporates as well.
The company's profitability is short of that mind-blowing numbers and it has a massive debt in its balance sheet as well. Does paying 3x more than its peers justify for a conference room rental business with low profitability? 
While investors are happy to pay a premium for its dominant market share in Japan, they should be cautioned if they were to pay the same valuation level for TKP's overseas venture. The flexible working space outside of Japan has been filled with innovative competitors. With a limited success potential for its overseas venture, investors should start to sell/short-sell  TKP Corporation (3479 JP) .

TKP Corporation

TKP (3479) - A Working Wework?