Issue 5

Spin-offs: Comfort Delgro (CD SP) announced that they would be pursuing an ASX listing for their Australian subsidiary later this year. While the structure and terms of offering the offering are yet to be announced, we expect that the Australian business is worth $1.66-2.94bn which implies a valuation for the remaining business of 1.1-3.1x EV/EBITDA. At 5.0x EV/EBITDA that corresponds to a share price $2.19 – 2.79, versus $1.61 today.

Fallen Angels: We uncover the real reason underlying BAT Malaysia’s (ROTH MK) 60% fall since the beginning of last year and why it could double from here. The company pays a 6.2% dividend and is priced as if the impairment to earnings is permanent.

Buybacks: Recent IPO and Singapore’s newest market darling Nanofilm Technologies (NANO SP) fell almost 40% after paring their inaugural earnings miss with the COOs resignation. They have claimed during subsequent market briefings that the supply chain issues and affecting their growth are temporary and have repurchased almost USD20m of stock. It’s not clear whether the sell-off was unjustified or whether this is a structurally broken story. Either way, it’s unlikely that this ‘somewhere in the middle’ outcome is the right one.

Upcoming IPOs: PT GTS Internasional (largest LNG shipping and FSRU operator in Indonesia) and PT Kedoya Adyaraya (operator of the Grha Kedoya Hospitals Group) will list on the IDX in the coming week at implied market caps north of USD 100mn.

Insider Buying: And lastly, there has been big insider buying at Thai property developer Supalai (SPALI TB) which coincides with improving revenue expectations for the company.