ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Indofood (ICBP): Undervalued and Will Attract New Types of Investors

The Week that Was in ASEAN@Smartkarma - Thailand's COVID, a Global Indofood, and a +ve for DBS

Indofood CBP Sukses (ICBP IJ) - US$3bn Acquisition Creates the Emerging Market Noodle King

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

<p>One of Indonesia's leading staple companies, <a href="https://www.smartkarma.com/entities/indofood-cbp-sukses-makmur-tbk" target="_blank" data-smartkarma-citation="entities:17651:1" rel="noopener">Indofood CBP Sukses (ICBP IJ),</a> held an EGM this week in Jakarta at which shareholders approved the US$3bn acquisition of Pinehill, an affiliated company which sells instant noodles in the Middle East, Africa, and Southern Europe. </p>
<p>This means that the previously announced deal can now move forward in earnest. This approval had been an overhang for the company, which has now been lifted. We now await further details on how the deal will be financed but the expectation is that it will be done through bank debt.</p>
<p>The company also released its 1H2020 results, which reflected the strength of its core business even with the backdrop of the pandemic. Sales grew by +4% for 1H2020 to IDR23.05tn, whilst income from operations increased by +22% to IDR4.68tn, and core profits increased by +21% to IDR3.16tn. </p>
<div class="content-highlight">
<p>The stock moved up +7.8% yesterday on the approval of the Pinehill acquisition. We would expect investors to refocus on fundamentals for <a href="https://www.smartkarma.com/entities/indofood-cbp-sukses-makmur-tbk" target="_blank" data-smartkarma-citation="entities:17651:1" rel="noopener">Indofood CBP Sukses (ICBP IJ),</a> which is still trading well below its pre-COVID-19 valuations, despite a strong 1H2020 performance. It should also see more attention from Emerging markets funds given its increased geographical exposure outside Indonesia. It now trades on 18.8x FY21E PER versus its 5-year average of 24x, which leaves a decent upside from these levels. </p>
</div>

One of Indonesia's leading staple companies, Indofood CBP Sukses (ICBP IJ), held an EGM this week in Jakarta at which shareholders approved the US$3bn acquisition of Pinehill, an affiliated company which sells instant noodles in the Middle East, Africa, and Southern Europe. 
This means that the previously announced deal can now move forward in earnest. This approval had been an overhang for the company, which has now been lifted. We now await further details on how the deal will be financed but the expectation is that it will be done through bank debt.
The company also released its 1H2020 results, which reflected the strength of its core business even with the backdrop of the pandemic. Sales grew by +4% for 1H2020 to IDR23.05tn, whilst income from operations increased by +22% to IDR4.68tn, and core profits increased by +21% to IDR3.16tn. 

The stock moved up +7.8% yesterday on the approval of the Pinehill acquisition. We would expect investors to refocus on fundamentals for Indofood CBP Sukses (ICBP IJ), which is still trading well below its pre-COVID-19 valuations, despite a strong 1H2020 performance. It should also see more attention from Emerging markets funds given its increased geographical exposure outside Indonesia. It now trades on 18.8x FY21E PER versus its 5-year average of 24x, which leaves a decent upside from these levels. 


インドフード CBP Sukses (ICBP IJ) - インスタント ヌードルで世界へ

Indofood CBP Sukses

インドフード CBP Sukses (ICBP IJ) - インスタント ヌードルで世界へ

インドフード CBP Sukses (ICBP IJ) - インスタントヌードルで世界へ