Issue 1

Issue 1 1024 576 Wickhams Hill

Issue 1

Fallen Angels: Singapore listed MM2 Asia Ltd (MM2 SP) looks to be the most immediately actionable of the 7 stocks added to our list of fallen angels. The company’s March rights issue marked a bottom in the stock, de-risking the film production and cinema operator’s recovery from COVID disruptions. While an out-of-context audit qualification followed by Singapore’s COVID relapse caused a sell-off last week, the vaccination runway is clear and other key markets for the company have already reopened. Other names in the list include Matahari (LPPF IJ), MacroAsia (MAC PM), and Shell Philippines (SHLPH PM).

Buyback Monitor: Keeping in Singapore, luxury watch retailer Hour Glass (HG SP) has recently commenced repurchases under a 10% buyback mandate. The company has recently had incredible performance with strong demand for luxury watches. With a lot of excess cash on the balance sheet they are also one to watch for a potential privatisation.

IPO Monitor: Across to Indonesia, Bundamedik (BMHS IJ) is the latest hospital to list on the IDX. They’re a premium women’s and children’s hospital with leading IVF clinics. BMHS trades at a wide discount to the other well-owned hospital names like MIKA IJ, HEAL IJ and SILO IJ.

New Coverage: Thai hardware and home improvement company Dohome (DOHOME TB) received some new coverage following a private placement on July 8th of 75.5m new shares. The proceeds will be used for expansion rather than paying down debt, which has become all too common. Growth is pretty hard to come by in Thailand these days, so with estimated 3-year earnings CAGR of 44.8%, this is sure to get the attention of investors that made money with HomePro (HOME TB).

Insider Purchases & Sales: The President Director (CEO) of AKR Corporindo (AKRA IJ) has personally purchased more than US$6.6mm of shares on market since end-May. There seems to be an overhang associated with Freeport, however the main fuels distribution business appears to be performing well. The company is trading at around 10x PER, well below its historical average.

Privitisation Candidate: Indonesia diversified automotive services business (MPMX IJ) looks set for another shake-up, with 2.7x ex-cash PE and serially active investment group Saratoga increasing their stake as major shareholders.