Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

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

LG Energy Solution produces and sells batteries. The Company manufactures and sells automobile batteries, small batteries, energy storage system batteries, and other products. LG Energy Solution markets its products worldwide.

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<li>
<a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> recent result is fantastic and made the share price bounce up. </li>
<li>EV makers in the US are renegotiating for a claim in the AMPC that would reduce <a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution</a>'s (373220 KS) margin. Bear in mind the AMPC has almost 100% margin. </li>
<li>Compared against <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> , which is less reliant on AMPC and a more profitable company, LGES pales in comparison. </li>
</ul>



LG Energy Solution (373220 KS) recent result is fantastic and made the share price bounce up. 
EV makers in the US are renegotiating for a claim in the AMPC that would reduce LG Energy Solution's (373220 KS) margin. Bear in mind the AMPC has almost 100% margin. 
Compared against Samsung SDI (006400 KS) , which is less reliant on AMPC and a more profitable company, LGES pales in comparison. 


EEKA Fashion is a China-based company specializing in the design, promotion, marketing, retail, and wholesale of self-owned branded ladies' wear products. Its product offerings include dresses, skirts, trousers, shirts, knitwear, vests, jackets, overcoats, scarves, and accessories across eight brands such as Koradior and NEXY.CO. The company was founded in 2007 and is headquartered in Shenzhen, China.

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<li>
<a href="https://www.smartkarma.com/entities/eeka-fashion-holdings-limited" target="_blank" data-smartkarma-citation="entities:17725:1" rel="noopener">EEKA Fashion (3709 HK)</a> has diversified away from only golf apparel and has successful on building apparel brands for other sports. </li>
<li>Their online sales only make up to 20% of the total sales, while the peers reached 30-40%; thus, the unit of profitability is lagging behind. </li>
<li>Currently, it lacks a catalyst for a buy while it is too risky to short sell Eeka after a period of underperformance to the peers. </li>
</ul>



EEKA Fashion (3709 HK) has diversified away from only golf apparel and has successful on building apparel brands for other sports. 
Their online sales only make up to 20% of the total sales, while the peers reached 30-40%; thus, the unit of profitability is lagging behind. 
Currently, it lacks a catalyst for a buy while it is too risky to short sell Eeka after a period of underperformance to the peers. 


Guzman Y Gomez Limited operates as a restaurant. The Company specializes in retail sale of burritos, sandwiches, egg bowls, tacos, coffee and soft drinks, and other mexican foods for on-premises consumption. Guzman Y Gomez serves customers across Australia.

<ul>
<li>After the decision to close down the US business, <a href="https://www.smartkarma.com/entities/guzman-y-gomez-limited" target="_blank" data-smartkarma-citation="entities:43656:1" rel="noopener">Guzman Y Gomez (GYG AU)</a> share price rallied as investors felt the relief. </li>
<li>Sales and EBITDA added double digits YoY, and the share price reflected the growth. </li>
<li>After the big rally, GYG is trading at 45x PER and 1.7x PEG which is a little steep. No need to buy right now, best to observe the next result.</li>
</ul>


After the decision to close down the US business, Guzman Y Gomez (GYG AU) share price rallied as investors felt the relief. 
Sales and EBITDA added double digits YoY, and the share price reflected the growth. 
After the big rally, GYG is trading at 45x PER and 1.7x PEG which is a little steep. No need to buy right now, best to observe the next result.


Sharp Corporation manufactures consumer and industrial electronics. The Company's products include audio-visual and communication equipment such as LCD TVs and mobile phones, home appliances, and electronic components including solar cells and integrated circuits.  Sharp operates its business worldwide.

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<li>
<a href="https://www.smartkarma.com/entities/sharp-corp" target="_blank" data-smartkarma-citation="entities:391:1" rel="noopener">Sharp Corp (6753 JP)</a> has a valuation disconnect: Free Cash Flow, Reported Earnings and Share Price. </li>
<li>Sharp's heavy capex business model shrank its Free cash flow over time, leading to an underperformance while <a href="https://www.smartkarma.com/entities/panasonic-corp" target="_blank" data-smartkarma-citation="entities:222:1" rel="noopener">Panasonic Corp (6752 JP)</a> has pivoted to new industries. </li>
<li>The management of Sharp will need to pivot to AI or any asset light business but it may not come any time soon. </li>
</ul>



Sharp Corp (6753 JP) has a valuation disconnect: Free Cash Flow, Reported Earnings and Share Price. 
Sharp's heavy capex business model shrank its Free cash flow over time, leading to an underperformance while Panasonic Corp (6752 JP) has pivoted to new industries. 
The management of Sharp will need to pivot to AI or any asset light business but it may not come any time soon. 


Sharp (6753) Vs. Panasonic (6752): Gap Will Not Narrow Soon

Coway Co Ltd develops, manufactures, maintains, and markets environment-related products, such as water purifiers, air cleaners, and water softeners.The Company also provides water testing service.

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<a href="https://www.smartkarma.com/entities/coway-co-ltd" target="_blank" data-smartkarma-citation="entities:3022:1" rel="noopener">Coway Co Ltd (021240 KS)</a> counts around 35% of its revenue from Southeast Asia particularly Malaysia and Thailand, where it recorded high growth, offsetting the mature domestic Korean market. </li>
<li>Due to the current haze season that may last until November, Coway's revenues are supposed to be carried up and its share price may see multiple expansion as well. </li>
<li>At &lt;2x PBV, 11x PER and 8x EV/EBITDA, a defensive stock that is committed to Value Up program, including cancellations of treasury and maintaining dividends, it sounds like a bargin. </li>
</ul>



Coway Co Ltd (021240 KS) counts around 35% of its revenue from Southeast Asia particularly Malaysia and Thailand, where it recorded high growth, offsetting the mature domestic Korean market. 
Due to the current haze season that may last until November, Coway's revenues are supposed to be carried up and its share price may see multiple expansion as well. 
At &lt;2x PBV, 11x PER and 8x EV/EBITDA, a defensive stock that is committed to Value Up program, including cancellations of treasury and maintaining dividends, it sounds like a bargin. 


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

Henry Soediarko
Asian Insight Provider - Actionable ideas
• CrossASEAN Research

LGES (373220): Good Result, But...

Less attractive compared to Samsung SDI, LG ES is also more heavily reliant to US AMPC. However, the recent earnings rebound makes the case to...

Henry Soediarko

Eeka Fashion (3709): Ladies Fashion

Good product, high gross profit margin but net margin is low due to the high cost compared to the peers. Unless they can increase their online...

Henry Soediarko

Guzman Y Gomez: A Bit Tired

Great improvement in the operating performance and share price increased accordingly but now Guzman Y Gomez are trading at premium. Let's wait for...

Henry Soediarko

Sharp (6753) Vs. Panasonic (6752): Gap Will Not Narrow Soon

Sharp Co is still suffering from the legacy business that is asset heavy and eroding free cash flow while Panasonic has moved on to growth...

Henry Soediarko

Coway (021240): Haze Beneficiary

Coway is the company in South Korea that sells and rents out air purifier, with a large market in Southeast Asia. With the current haze, it should...

Henry Soediarko