Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

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

PC Partner Group Ltd. is principally engaged in the design, development and manufacture of video graphics cards. The Group manufactures various electronics components and products for customers under its electronics manufacturing services division and also manufactures other personal computers related products.

<ul>
<li>PC Partner showed a significant improvement in its 1H24 results YoY.</li>
<li>The company will be relocating HQ to Singapore and move its primary listing from HK to Singapore. If this move is successful, it will improve AI chips allocation from Nvidia.</li>
<li>Why Singapore? PC Partner is preparing itself for a future where China/USA political relationship does not improve.</li>
</ul>


PC Partner showed a significant improvement in its 1H24 results YoY.
The company will be relocating HQ to Singapore and move its primary listing from HK to Singapore. If this move is successful, it will improve AI chips allocation from Nvidia.
Why Singapore? PC Partner is preparing itself for a future where China/USA political relationship does not improve.


PC Partner: Relocating HQ and Listing to Singapore, 81% of Market Cap Is Cash

Entree Resources Ltd. operates as a mining company. The Company develops and discovers gold and copper resources. Entree Resources is currently conducting exploration on its mineral concessions in Mongolia.

<ul>
<li>The acquisition of <a href="https://www.smartkarma.com/entities/filo-corp" target="_blank" data-smartkarma-citation="entities:42545:1" rel="noopener">Filo (FIL CN)</a> by <a href="https://www.smartkarma.com/entities/lundin-mining-corp-92352503-3781-4fcb-a4db-62e6f6343783" target="_blank" data-smartkarma-citation="entities:25356:1" rel="noopener">Lundin Mining (LUN CN)</a> and <a href="https://www.smartkarma.com/entities/bhp-group-ltd-832e22a7-7a1d-49cf-b992-c6347084cbf8" target="_blank" data-smartkarma-citation="entities:21840:1" rel="noopener">BHP Group Ltd (BHP LN) could be the start of a much larger M&amp;A wave.</a>
</li>
<li>Many juniors trade at 0.1x to 0.2x NAV while transactions typically happen at 0.8x-1x NAV. Filo was acquired at 0.81x NAV so right within this range.</li>
<li>We continue to like a basket of junior copper mines to get exposure to M&amp;A copper dynamics</li>
</ul>


The acquisition of Filo (FIL CN) by Lundin Mining (LUN CN) and BHP Group Ltd (BHP LN) could be the start of a much larger M&amp;A wave.

Many juniors trade at 0.1x to 0.2x NAV while transactions typically happen at 0.8x-1x NAV. Filo was acquired at 0.81x NAV so right within this range.
We continue to like a basket of junior copper mines to get exposure to M&amp;A copper dynamics


Rio Tinto: Open to Major Copper M&A; Entree Resources Logical Target

<ul>
<li>
<a href="https://www.smartkarma.com/entities/entree-resources-ltd-3aeeb68c-80d0-4ada-822e-898883fbb28e" target="_blank" data-smartkarma-citation="entities:26727:1" rel="noopener">Entree Resources (ETG CN)</a> has been in an arbitration proceeding against <a href="https://www.smartkarma.com/entities/rio-tinto-plc" target="_blank" data-smartkarma-citation="entities:22114:1" rel="noopener">Rio Tinto PLC (RIO LN)</a> since April 2024.</li>
<li>After initial hearings earlier in 1H24 we expect final arguments next week. The arbitration committee verdict should come by late 3Q24.</li>
<li>At stake is the relationship and ownership arrangement between ETG and RIO's in Oyu Tolgoi, one of the world's largest copper mines. Just concluded Mongolian elections clear the last hurdle.</li>
</ul>



Entree Resources (ETG CN) has been in an arbitration proceeding against Rio Tinto PLC (RIO LN) since April 2024.
After initial hearings earlier in 1H24 we expect final arguments next week. The arbitration committee verdict should come by late 3Q24.
At stake is the relationship and ownership arrangement between ETG and RIO's in Oyu Tolgoi, one of the world's largest copper mines. Just concluded Mongolian elections clear the last hurdle.


Mongolia Elections Behind Us and Rio Versus Entree Arbitration Ruling Expected by Late 3Q24

AEM Holdings Limited designs and manufactures semiconductor manufacturing equipment and related tooling parts and precision machining of components for semiconductor industry.  The Company also manufactures and distributes electronics, engineering, chemical and related products. AEM provides engineering services.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/aem-holdings-ltd" target="_blank" data-smartkarma-citation="entities:11019:1" rel="noopener">AEM (AEM SP)</a> announced a new CEO as of 30th of May 2024. The new CEO officially starts 1st of July 2024.</li>
<li>Amy Leong will take over from Chandran Nair as she leaves her Chief Commercial Officer role at <a href="https://www.smartkarma.com/entities/formfactor-inc" target="_blank" data-smartkarma-citation="entities:20309:1" rel="noopener">Formfactor Inc (FORM US)</a>. </li>
<li>Given the weak business results and inventory management issues it should be expected that Mrs Leong would want to clean the proverbial house before she starts in her new role.</li>
</ul>



AEM (AEM SP) announced a new CEO as of 30th of May 2024. The new CEO officially starts 1st of July 2024.
Amy Leong will take over from Chandran Nair as she leaves her Chief Commercial Officer role at Formfactor Inc (FORM US). 
Given the weak business results and inventory management issues it should be expected that Mrs Leong would want to clean the proverbial house before she starts in her new role.


AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?

Thematic (Sector/Industry)

<ul>
<li>Copper is trading above 5.05 USD/lbs and has rallied over 29% YTD. Jeff Currie was quoted as saying "<strong>Copper is the New Oil"</strong>
</li>
<li>Sprott launches physical Copper Trust, copying the uranium playbook. Removing physical copper from the market.</li>
<li>Uranium in 2023 and Cacao in 1H24 show what commodity prices can do if investors panic. Is copper making a parabolic move next?</li>
</ul>


Copper is trading above 5.05 USD/lbs and has rallied over 29% YTD. Jeff Currie was quoted as saying "Copper is the New Oil"

Sprott launches physical Copper Trust, copying the uranium playbook. Removing physical copper from the market.
Uranium in 2023 and Cacao in 1H24 show what commodity prices can do if investors panic. Is copper making a parabolic move next?


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.

Nicolas Van Broekhoven
Insight Provider
• CrossASEAN Research

PC Partner: Relocating HQ and Listing to Singapore, 81% of Market Cap Is Cash

PC Partner sees strong YoY growth in 1H24 results, plans HQ relocation to Singapore for better AI chip allocation amid uncertain China/USA relations.

Nicolas Van Broekhoven

Rio Tinto: Open to Major Copper M&A; Entree Resources Logical Target

The acquisition of Filo by Lundin Mining and BHP Group could signal the beginning of a significant M&A wave in the mining industry, with potential...

Nicolas Van Broekhoven

Mongolia Elections Behind Us and Rio Versus Entree Arbitration Ruling Expected by Late 3Q24

Entree Resources in arbitration against Rio Tinto over Oyu Tolgoi ownership, final verdict expected in late 3Q24 after Mongolian elections.

Nicolas Van Broekhoven

AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?

AEM Holdings announced new CEO Amy Leong, who will start on July 1, 2024. She is likely to kitchen sink results and the outlook as she takes control.

Nicolas Van Broekhoven

Junior Copper Miners: Time for Lift-Off?

Copper surges as demand increases. Sprott launches physical Copper Trust, potentially impacting market supply. Will copper follow uranium and...

Nicolas Van Broekhoven

PC Partner: Relocating HQ and Listing to Singapore, 81% of Market Cap Is Cash

​PC Partner sees strong YoY growth in 1H24 results, plans HQ relocation to Singapore for better AI chip allocation amid uncertain China/USA relations.

Nicolas Van Broekhoven

Rio Tinto: Open to Major Copper M&A; Entree Resources Logical Target

​The acquisition of Filo by Lundin Mining and BHP Group could signal the beginning of a significant M&A wave in the mining industry, with potential...

Nicolas Van Broekhoven

Mongolia Elections Behind Us and Rio Versus Entree Arbitration Ruling Expected by Late 3Q24

​Entree Resources in arbitration against Rio Tinto over Oyu Tolgoi ownership, final verdict expected in late 3Q24 after Mongolian elections.

Nicolas Van Broekhoven

AEM Holdings: New CEO = One Final Kitchen Sink in 2Q24?

​AEM Holdings announced new CEO Amy Leong, who will start on July 1, 2024. She is likely to kitchen sink results and the outlook as she takes control.

Nicolas Van Broekhoven

Junior Copper Miners: Time for Lift-Off?

​Copper surges as demand increases. Sprott launches physical Copper Trust, potentially impacting market supply. Will copper follow uranium and...

Nicolas Van Broekhoven

PC Partner sees strong YoY growth in 1H24 results, plans HQ relocation to Singapore for better AI chip allocation amid uncertain China/USA relations.

The acquisition of Filo by Lundin Mining and BHP Group could signal the beginning of a significant M&A wave in the mining industry, with potential...

Entree Resources in arbitration against Rio Tinto over Oyu Tolgoi ownership, final verdict expected in late 3Q24 after Mongolian elections.

AEM Holdings announced new CEO Amy Leong, who will start on July 1, 2024. She is likely to kitchen sink results and the outlook as she takes control.

Copper surges as demand increases. Sprott launches physical Copper Trust, potentially impacting market supply. Will copper follow uranium and...