Stock Journeys in Emerging Asia Jonathan Asante Joint Deputy Head, Global Emerging Markets Equity Ja

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Stock Journeys in Emerging AsiaJonathan Asante
- Joint Deputy Head, Global Emerging Markets
EquityJanuary 2007
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(No Transcript)
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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• Li Fung (Hong Kong)
• Leading sourcing company
• Market cap 10.1 billion
• PE 34x 06
• PBV 10x 06
• Dividend yield 2

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• SMIC (China)
• Chinese chip maker
• Market cap 2.3 billion
• PE (loss)
• PBV 0.8x 06
• Dividend yield 0

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• NTPC (India)
• Indias largest power company
• Market cap 24.6 billion
• PE 17x Mar 07
• PBV 2.4x Mar 07
• Dividend yield 2

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• Nong Shim (Korea)
• Leading noodle maker
• Market cap 443 million
• PE 7x 06
• PBV 1.1x 06
• Dividend yield 2.5

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• Uni-President (Taiwan)
• Food manufacturer
• Market cap 3.2 billion
• PE 27x 06
• PBV 2.3x 06
• Dividend yield 2

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• Kazkommertsbank
• Kazakhstans leading bank
• Market cap 6.5 billion
• PE 21x 06
• PBV 3.6x 06
• Dividend yield 0

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• Vinamilk (Vietnam)
• Milk producer
• Market cap 1.3 billion
• PE 27x 06
• PBV 5.7x 06
• Dividend yield 1

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Asian Stock Journeys

• Li Fung
• SMIC
• NTPC
• Nong Shim Holdings
• Uni-President
• Kazkommertsbank
• Vinamilk
• Kasikorn Bank

• Kasikorn (Thailand)
• Leading financial services provider
• Market cap 4.2 billion
• PE 11.3x 06
• PBV 1.7x 06
• Dividend yield 2

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Li Fung a global health check
This decade
The 1970s
US services inflation
Total US inflation
US goods inflation
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SMIC semiconductor pioneer
Sales m

Profits m
Source Lusight
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National Thermal Power Corporation
or
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Nong Shim
or
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Uni-President
or
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Kazkommertsbank
or
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Vinamilk
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Kasikorn Bank
Thailand in December
Thai long bond yields
Thai equity index
Kasikorn Bank
Source Prices rebased to 1 December Bloomberg,
ABN Amro
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Conclusions

• Inflation the biggest risk of all Asia (ex
  Australia) still wins if it hits
• Great opportunities in China but beware the
  central planner
• Prefer private sector over the State sector in
  India
• Great restructuring potential in Korea and Taiwan
• Kazakhstan - a surprising frontier market
• Vietnam - perhaps the best potential of all
• Thailand equities good value after policy error

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Excessive Money Supply?

Jackson Pollock No.5, 1948 sold for 140 m
November 2006
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