ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN 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

Cross Asset Strategy

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<p>The week that was in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a> is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.</p>
<p>We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  </p>
</div><h3>Equity Bottom Up</h3><p>In <a href="https://www.smartkarma.com/insights/mitra-adiperkasa-mapi-ij-unifying-with-the-digital-world" target="_blank" rel="noopener">Mitra Adiperkasa (MAPI IJ) - Unifying with the Digital World</a>, CrossASEAN insight provider <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener">Angus Mackintosh</a> reports back after a call with <a href="https://www.smartkarma.com/entities/mitra-adiperkasa-tbk-pt" target="_blank" rel="noopener">Mitra Adiperkasa (MAPI IJ)</a> to get a better feel for its digital initiatives.  </p><p>In <a href="https://www.smartkarma.com/insights/tokopedia-pt-1087142d-ij-from-private-to-public-by-hook-or-by-crook" target="_blank" rel="noopener">Tokopedia PT (1087142D IJ) - From Private to Public by Hook or by Crook</a>, <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener">Angus Mackintosh</a> provides an initial view on <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" rel="noopener">Tokopedia PT (1087142D IJ)</a>'s plan to go public, after the company confirmed that it has hired Morgan Stanley and Citigroup as advisers to accelerate its plan. </p><p>In <a href="https://www.smartkarma.com/insights/gojek-1379371d-ij-upping-the-ante-on-financial-services" target="_blank" rel="noopener">Gojek (1379371D IJ) - Upping the Ante on Financial Services</a>, <a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener">Angus Mackintosh</a> circles back to <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> after it announced that it is buying a further 18% stake in Indonesia's <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" rel="noopener">Bank Jago (ARTO IJ)</a> bringing its total state to 22.16% and confirming a further move into financial services. </p><p>In <a href="https://www.smartkarma.com/insights/comfortdelgro-cd-re-discover-singapore" target="_blank" data-smartkarma-citation="insights:46320" rel="noopener">ComfortDelgro (CD): Re-Discover Singapore</a>, CrossASEAN insight provider <a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" rel="noopener">Henry Soediarko</a> returns to look at <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" rel="noopener">Comfortdelgro Corp (CD SP)</a> that is making higher revenues in public transport as well as in the taxi segment due to the SGD100 vouchers that the Singapore government has handed out since 1st December 2020 to its citizens.</p><p>In <a href="https://www.smartkarma.com/insights/snippets-47-pa-daeng-s-trades-battle-for-cat-s-5g-network" target="_blank" rel="noopener">Snippets #47: Pa Daeng's Trades, Battle for CAT's 5G Network</a>, our Thai guru <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" rel="noopener">Athaporn Arayasantiparb, CFA</a> reports back the five interesting pieces of news or developments in Thailand that may impact the equity market.</p><p>In <a href="https://www.smartkarma.com/insights/small-cap-diary-taokaenoi-and-sabina" target="_blank" rel="noopener">Small-Cap Diary: Taokaenoi and Sabina</a>, <a href="https://www.smartkarma.com/profiles/athaporn-arayasantiparb-cfa" target="_blank" rel="noopener">Athaporn Arayasantiparb, CFA</a> reports back after visiting two small-cap companies including 1) <a href="https://www.smartkarma.com/entities/taokaenoi-food-marketing-p" target="_blank" data-smartkarma-citation="entities:24015:1" rel="noopener">Taokaenoi Food &amp; Marketing (TKN TB)</a>: a former high-flyer founded by a young business legend selling seaweed snacks in almost 30 different markets. 2) <a href="https://www.smartkarma.com/entities/sabina-pcl" target="_blank" data-smartkarma-citation="entities:8799:1" rel="noopener">Sabina PCL (SABINA TB)</a>: a leading local bra maker in Thailand, which has switched to producing face masks during COVID-19. </p><p>In <a href="https://www.smartkarma.com/insights/bank-negara-indonesia-only-big-bank-with-losses-for-now" target="_blank" rel="noopener">Bank Negara Indonesia – Only Big Bank With Losses, For Now</a>, <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" rel="noopener">Daniel Tabbush</a> revisits <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> which stands out amongst the large Indonesian banks as it is still reporting a loss in 3Q2020, which he views as temporary. </p><p>In <a href="https://www.smartkarma.com/insights/ammb-will-valuation-gap-narrow" target="_blank" data-smartkarma-citation="insights:46417" rel="noopener">AMMB – Will Valuation Gap Narrow?</a> bankjing specialist <a href="https://www.smartkarma.com/profiles/daniel-hellberg" target="_blank" data-smartkarma-citation="accounts:605" rel="noopener">Daniel Hellberg</a> circles back to <a href="https://www.smartkarma.com/entities/ammb-holdings-bhd" target="_blank" data-smartkarma-citation="entities:137:1" rel="noopener">AMMB Holdings (AMM MK),</a> which he sees as one of the least expensive banks in Emerging Asean at 0.5x PB and certainly larger than most all of the 10 least expensive banks, at US$2.5bn in market cap.  The bank’s credit cost delta can prove substantial to support ROA back to more normal levels, although this may not transpire in the current quarter. </p><p>in <a href="https://www.smartkarma.com/insights/jardine-matheson-buybacks-ahead-of-schedule" target="_blank" data-smartkarma-citation="insights:46337" rel="noopener">Jardine Matheson: Buybacks Ahead Of Schedule</a>, <a href="https://www.smartkarma.com/profiles/david-blennerhassett" target="_blank" data-smartkarma-citation="accounts:840" rel="noopener">David Blennerhassett</a> revists <a href="https://www.smartkarma.com/entities/jardine-matheson-holdings-ltd" target="_blank" data-smartkarma-citation="entities:19718:1" rel="noopener">Jardine Matheson Holdings (JM SP)</a> as it proceeds with its buy back program at speed but there may be more to come.</p><p>In <a href="https://www.smartkarma.com/insights/sea-ltd-draining-the-cash-cow-in-search-of-e-commerce-and-fintech-growth-part-ii" target="_blank" data-smartkarma-citation="insights:46525" rel="noopener">Sea Ltd: Draining the Cash-Cow in Search of E-Commerce and Fintech Growth - Part II,</a><a href="https://www.smartkarma.com/profiles/oshadhi-kumarasiri" target="_blank" data-smartkarma-citation="accounts:3584" rel="noopener">Oshadhi Kumarasiri</a> revists <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> after its recent placement. </p><h3>Credit Insights</h3><p>In <a href="https://www.smartkarma.com/insights/lippo-karawaci-tear-sheet-lucror-analytics-5dcd68c5-123c-43d0-8cb3-143f9f54b940" target="_blank" rel="noopener">Lippo Karawaci - Tear Sheet - Lucror Analytics</a>, Credit Specialist <a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" rel="noopener">Trung Nguyen</a> provides a bird's eye view on Indonesian property company <a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" rel="noopener">Lippo Karawaci (LPKR IJ).</a> It is rated as "High Risk" on the LARA scale, mainly due to the cyclical nature of its earnings together with the COVID-19 pandemic.</p>


The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.  
Equity Bottom UpIn Mitra Adiperkasa (MAPI IJ) - Unifying with the Digital World, CrossASEAN insight provider Angus Mackintosh reports back after a call with Mitra Adiperkasa (MAPI IJ) to get a better feel for its digital initiatives.  In Tokopedia PT (1087142D IJ) - From Private to Public by Hook or by Crook, Angus Mackintosh provides an initial view on Tokopedia PT (1087142D IJ)'s plan to go public, after the company confirmed that it has hired Morgan Stanley and Citigroup as advisers to accelerate its plan. In Gojek (1379371D IJ) - Upping the Ante on Financial Services, Angus Mackintosh circles back to Gojek (1379371D IJ) after it announced that it is buying a further 18% stake in Indonesia's Bank Jago (ARTO IJ) bringing its total state to 22.16% and confirming a further move into financial services. In ComfortDelgro (CD): Re-Discover Singapore, CrossASEAN insight provider Henry Soediarko returns to look at Comfortdelgro Corp (CD SP) that is making higher revenues in public transport as well as in the taxi segment due to the SGD100 vouchers that the Singapore government has handed out since 1st December 2020 to its citizens.In Snippets #47: Pa Daeng's Trades, Battle for CAT's 5G Network, our Thai guru Athaporn Arayasantiparb, CFA reports back the five interesting pieces of news or developments in Thailand that may impact the equity market.In Small-Cap Diary: Taokaenoi and Sabina, Athaporn Arayasantiparb, CFA reports back after visiting two small-cap companies including 1) Taokaenoi Food &amp; Marketing (TKN TB): a former high-flyer founded by a young business legend selling seaweed snacks in almost 30 different markets. 2) Sabina PCL (SABINA TB): a leading local bra maker in Thailand, which has switched to producing face masks during COVID-19. In Bank Negara Indonesia – Only Big Bank With Losses, For Now, Daniel Tabbush revisits Bank Negara Indonesia Persero (BBNI IJ) which stands out amongst the large Indonesian banks as it is still reporting a loss in 3Q2020, which he views as temporary. In AMMB – Will Valuation Gap Narrow? bankjing specialist Daniel Hellberg circles back to AMMB Holdings (AMM MK), which he sees as one of the least expensive banks in Emerging Asean at 0.5x PB and certainly larger than most all of the 10 least expensive banks, at US$2.5bn in market cap.  The bank’s credit cost delta can prove substantial to support ROA back to more normal levels, although this may not transpire in the current quarter. in Jardine Matheson: Buybacks Ahead Of Schedule, David Blennerhassett revists Jardine Matheson Holdings (JM SP) as it proceeds with its buy back program at speed but there may be more to come.In Sea Ltd: Draining the Cash-Cow in Search of E-Commerce and Fintech Growth - Part II,Oshadhi Kumarasiri revists Sea Ltd (SE US) after its recent placement. Credit InsightsIn Lippo Karawaci - Tear Sheet - Lucror Analytics, Credit Specialist Trung Nguyen provides a bird's eye view on Indonesian property company Lippo Karawaci (LPKR IJ). It is rated as "High Risk" on the LARA scale, mainly due to the cyclical nature of its earnings together with the COVID-19 pandemic.

The Week that Was in ASEAN@Smartkarma - Digital Enhancements, Cheap Banks, and Buybacks

Private Capital Markets

GoTo Gojek Tokopedia Tbk PT / Private Capital Markets

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<p><a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> has bought a further 18% stake in Indonesia's <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago (ARTO IJ)</a> bringing its total state to 22.16%. The transaction was executed at 1.14x PBV and a significant discount to the last traded price.</p>
<p><a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago (ARTO IJ)</a> has a market capitalization of IDR42.3tn (US$2.9bn), which values Gojek's stake in the bank at IDR9.3tn (US$641m).</p>
<p>Gojek's Indonesia users will in the future be able to open a bank account with <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago (ARTO IJ)</a> and manage their finances through the <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> App. </p>
<p>The <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago (ARTO IJ)</a> deal marks an opportunity for <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> to capitalize on its vast user base, especially through GoPay, to offer customers digital banking products and other financial services.</p>
<p><a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago (ARTO IJ)</a> has already moved its focus to digital banking, targeting SMEs and retail customers. GoPay also recently received investment from <a href="https://www.smartkarma.com/entities/facebook-inc-a" target="_blank" data-smartkarma-citation="entities:665:1" rel="noopener">Facebook Inc A (FB US)</a> and <a href="https://www.smartkarma.com/entities/paypal-holdings-inc" target="_blank" data-smartkarma-citation="entities:4747:1" rel="noopener">Paypal Holdings (PYPL US)</a>, which also provides a strong backing and the potential for collaboration from two heavyweight foreign investors</p>
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<div>For <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ</a>, this will help it develop a process through which it can work with other banks, as well as providing customers with an increasing array of digital financial solutions.</div>
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<div>The deal also demonstrates that management is focused on building its competitive advantage in Indonesia rather than being sidelined any merger considerations with <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP),</a> which seems increasingly unlikely. </div>
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<p>Gojek is also seen to be on the path to profitability, with all its services generating positive margins on a product basis. <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> also recently received US$150m in new money from <a href="https://www.smartkarma.com/entities/telekomunikasi-indonesia" target="_blank" data-smartkarma-citation="entities:1051:1" rel="noopener">Telekomunikasi Indonesia (TLKM IJ),</a> which represented another heavyweight local shareholder on top of <a href="https://www.smartkarma.com/entities/astra-international-tbk-pt" target="_blank" data-smartkarma-citation="entities:46:1" rel="noopener">Astra International (ASII IJ)</a> and Djarum Group. </p>
<p>We look at the background of the <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago (ARTO IJ)</a> management team below the fold, which seems well-suited to building this future collaboration.</p>
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Gojek (1379371D IJ) has bought a further 18% stake in Indonesia's Bank Jago (ARTO IJ) bringing its total state to 22.16%. The transaction was executed at 1.14x PBV and a significant discount to the last traded price.
Bank Jago (ARTO IJ) has a market capitalization of IDR42.3tn (US$2.9bn), which values Gojek's stake in the bank at IDR9.3tn (US$641m).
Gojek's Indonesia users will in the future be able to open a bank account with Bank Jago (ARTO IJ) and manage their finances through the Gojek (1379371D IJ) App. 
The Bank Jago (ARTO IJ) deal marks an opportunity for Gojek (1379371D IJ) to capitalize on its vast user base, especially through GoPay, to offer customers digital banking products and other financial services.
Bank Jago (ARTO IJ) has already moved its focus to digital banking, targeting SMEs and retail customers. GoPay also recently received investment from Facebook Inc A (FB US) and Paypal Holdings (PYPL US), which also provides a strong backing and the potential for collaboration from two heavyweight foreign investors

For Gojek (1379371D IJ, this will help it develop a process through which it can work with other banks, as well as providing customers with an increasing array of digital financial solutions.

The deal also demonstrates that management is focused on building its competitive advantage in Indonesia rather than being sidelined any merger considerations with Grab (0967655D SP), which seems increasingly unlikely. 



Gojek is also seen to be on the path to profitability, with all its services generating positive margins on a product basis. Gojek (1379371D IJ) also recently received US$150m in new money from Telekomunikasi Indonesia (TLKM IJ), which represented another heavyweight local shareholder on top of Astra International (ASII IJ) and Djarum Group. 
We look at the background of the Bank Jago (ARTO IJ) management team below the fold, which seems well-suited to building this future collaboration.











































Gojek (1379371D IJ) - Upping the Ante on Financial Services

Indonesia

PT Bank Jago Tbk operates as a commercial bank. The Bank offers savings account, loans, insurance, currentcy exchange, money transfer, and credit services. Bank Jago serves consumer in Indonesia.

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Bank Jago Tbk PT (ARTO IJ)

The Week that Was in ASEAN@Smartkarma - Digital Enhancements, Cheap Banks, and Buybacks

The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South...

Angus Mackintosh

Gojek (1379371D IJ) - Upping the Ante on Financial Services

Gojek's recent move to increase its stake in Bank Jago to 22% signals it intends to move into providing a broader range of financial services.

Angus Mackintosh

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