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

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> results continued to reflect its key exposure to both economic recovery in Indonesia and its exposure to rising commodity prices through its chemical distribution.</li>
<li>Volume growth in petroleum distribution may surprise on the upside, whilst chemical prices remain elevated boosting that business.</li>
<li>The pipeline for its JIIPE industrial estate looks promising and management remains confident in targeting 40 ha land sales with potential upside from Freeport Smelter related demand. </li>
</ul>



AKR Corporindo (AKRA IJ) results continued to reflect its key exposure to both economic recovery in Indonesia and its exposure to rising commodity prices through its chemical distribution.
Volume growth in petroleum distribution may surprise on the upside, whilst chemical prices remain elevated boosting that business.
The pipeline for its JIIPE industrial estate looks promising and management remains confident in targeting 40 ha land sales with potential upside from Freeport Smelter related demand. 


AKRA Corporindo (AKRA IJ) - Front and Centre on Economic Recovery and Commodities

<ul>
<li>
<a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> paints an optimistic finish to 2021, with indications of +20-30% QoQ growth for both chemical and fuel distribution in 4Q2021.</li>
<li>The outlook for FY2022 looks equally promising for the distribution business, with a ramp-up of retail fuel distribution plus a strong pipeline of demand for its JIIPE industrial estate.</li>
<li>AKR Corporindo (AKRA IJ) remains an interesting industrial proxy for the recovery of the overall Indonesian economy trading at a significant discount to its historical average.</li>
</ul>



AKR Corporindo (AKRA IJ) paints an optimistic finish to 2021, with indications of +20-30% QoQ growth for both chemical and fuel distribution in 4Q2021.
The outlook for FY2022 looks equally promising for the distribution business, with a ramp-up of retail fuel distribution plus a strong pipeline of demand for its JIIPE industrial estate.
AKR Corporindo (AKRA IJ) remains an interesting industrial proxy for the recovery of the overall Indonesian economy trading at a significant discount to its historical average.


AKR Corporindo (AKRA IJ) - Chemically and Industrially Enhanced

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Earlier this week, <a href="https://www.smartkarma.com/entities/royal-dutch-shell-plc" target="_blank" data-smartkarma-citation="entities:22108:1" rel="noopener">Royal Dutch Shell (RDSA LN)</a> announced a plan for 'Unification' of the A and B lines, to be put to shareholder vote in 3 weeks. </li>
<li>The plan entails moving 10 execs to London, changing corporate and tax jurisdiction to the UK. </li>
<li>The question investors should be asking themselves is... Is There A Trade Here?</li>
</ul>


Earlier this week, Royal Dutch Shell (RDSA LN) announced a plan for 'Unification' of the A and B lines, to be put to shareholder vote in 3 weeks. 
The plan entails moving 10 execs to London, changing corporate and tax jurisdiction to the UK. 
The question investors should be asking themselves is... Is There A Trade Here?


Thinking About the Royal Dutch Shell "Unification"

<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> reported a 9M2021 Net Profit of IDR797bn, up +20% YoY, driven by revenue growth of +24% YoY to IDR17,250bn, and tight control over operating expenses.  Volumes and prices were positive drivers.</p>
<p>The company delivered strong revenue growth in the Trading &amp; Distribution business segment supported by volume growth, and higher chemical prices.</p>
<section class="figure">
<p>Petroleum product volumes saw especially strong volumes reaching one of the highest monthly volume numbers in September on record, mainly driven by demand from mining. </p>
<p>The company's JV with <a href="https://www.smartkarma.com/entities/bp-plc" target="_blank" data-smartkarma-citation="entities:21847:1" rel="noopener">BP PLC (BP/ LN)</a> on filling stations is back to a normalized level. The JV now has 19 gas stations with plans to open another 10 by the end of the year and even more in 2022.</p>
</section>
<section class="figure"></section>
<p><span data-preserver-spaces="true">The Java Integrated Industrial and Port Estate (JIIPE) was one of the key pillars for <a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a>'s performance for 3Q2021, with r</span><span data-preserver-spaces="true">evenue from industrial land during the 3Q2021 recording  a significant increase of +51.7% YoY.</span></p>
<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> continues to focus on improving operational efficiencies with total G&amp;A expenses down  and selling expenses only seeing growth of +1.8% YoY.</p>
<section class="figure">
<div>
<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> also expects a positive impact of a rising commodity price cycle, with higher demand for energy and chemicals from its customers.  </p>
<div class="content-highlight">
<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> is trading on 16.9x FY21E PER and 15.0x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective. The company is an interesting proxy to the recovery in the Indonesian economy through its petroleum and chemical distribution, with the additional kicker of its increasingly productive JIIPE industrial estate in Gresik. Analyst expectations continue to look too low for FY21E, making upgrades to earnings another potential catalyst, especially after the positive JIIPE newsflow.</p>
</div>
</div>
</section>

AKR Corporindo (AKRA IJ) reported a 9M2021 Net Profit of IDR797bn, up +20% YoY, driven by revenue growth of +24% YoY to IDR17,250bn, and tight control over operating expenses.  Volumes and prices were positive drivers.
The company delivered strong revenue growth in the Trading &amp; Distribution business segment supported by volume growth, and higher chemical prices.

Petroleum product volumes saw especially strong volumes reaching one of the highest monthly volume numbers in September on record, mainly driven by demand from mining. 
The company's JV with BP PLC (BP/ LN) on filling stations is back to a normalized level. The JV now has 19 gas stations with plans to open another 10 by the end of the year and even more in 2022.


The Java Integrated Industrial and Port Estate (JIIPE) was one of the key pillars for AKR Corporindo (AKRA IJ)'s performance for 3Q2021, with revenue from industrial land during the 3Q2021 recording  a significant increase of +51.7% YoY.
AKR Corporindo (AKRA IJ) continues to focus on improving operational efficiencies with total G&amp;A expenses down  and selling expenses only seeing growth of +1.8% YoY.


AKR Corporindo (AKRA IJ) also expects a positive impact of a rising commodity price cycle, with higher demand for energy and chemicals from its customers.  

AKR Corporindo (AKRA IJ) is trading on 16.9x FY21E PER and 15.0x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective. The company is an interesting proxy to the recovery in the Indonesian economy through its petroleum and chemical distribution, with the additional kicker of its increasingly productive JIIPE industrial estate in Gresik. Analyst expectations continue to look too low for FY21E, making upgrades to earnings another potential catalyst, especially after the positive JIIPE newsflow.




AKR Corporindo (AKRA IJ) - Chemical and Smelter Driven Growth

<p>American mining giant <a href="https://www.smartkarma.com/entities/freeport-mcmoran-inc" target="_blank" data-smartkarma-citation="entities:12491:1" rel="noopener">Freeport Mcmoran (FCX US)</a> will not proceed with plans to build a new copper smelter with China’s Tsingshan Holding Group in Indonesia, according to PT Freeport Indonesia.</p>
<p>The fact that this deal will not go ahead is a positive for <a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> as <a href="https://www.smartkarma.com/entities/freeport-mcmoran-inc" target="_blank" data-smartkarma-citation="entities:12491:1" rel="noopener">Freeport Mcmoran (FCX US)</a> is scheduled to build a smelter at its JIIPE (Java Integrated Industrial and Port Estate) Industrial estate, and this news cements that deal.</p>
<p><a href="https://www.smartkarma.com/entities/freeport-mcmoran-inc" target="_blank" data-smartkarma-citation="entities:12491:1" rel="noopener">Freeport Mcmoran (FCX US)</a> has confirmed it will go ahead with plans to build a new smelter near its existing copper refining operations at the JIIPE Industrial estate in Gresik and has signed an EPC contract with Japanese engineering company <a href="https://www.smartkarma.com/entities/chiyoda-corp" target="_blank" data-smartkarma-citation="entities:6232:1" rel="noopener">Chiyoda Corp (6366 JP)</a> to build the plant.</p>
<p>This is a significant development for <a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> to have this confirmation of <a href="https://www.smartkarma.com/entities/freeport-mcmoran-inc" target="_blank" data-smartkarma-citation="entities:12491:1" rel="noopener">Freeport Mcmoran (FCX US)</a> as an anchor tenant for JIIPE as it will draw many more investors in industries related to copper like electric vehicle (EV) batteries to the JIIPE Estate.</p>
<div>JIIPE should also see more focus given its recently granted special economic zone status (KEK) status, with healthy land enquiries which should enable the company to increase marketing sales for this year, currently forecast at 35 ha. </div>
<div></div>
<div>
<a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> is due to announce 1H2021 results toward the end of July, with the expectation of a strong set of numbers similar to Q12021 with profit growth of more than +25%.</div>
<div>
<section>
<div id="ember4528">
<div id="ember4529">
<div>
<p>The company<a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener"></a> is trading on 11.1x FY21E PER and 11.0x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective.</p>
</div>
</div>
</div>
</section>
</div>

American mining giant Freeport Mcmoran (FCX US) will not proceed with plans to build a new copper smelter with China’s Tsingshan Holding Group in Indonesia, according to PT Freeport Indonesia.
The fact that this deal will not go ahead is a positive for AKR Corporindo (AKRA IJ) as Freeport Mcmoran (FCX US) is scheduled to build a smelter at its JIIPE (Java Integrated Industrial and Port Estate) Industrial estate, and this news cements that deal.
Freeport Mcmoran (FCX US) has confirmed it will go ahead with plans to build a new smelter near its existing copper refining operations at the JIIPE Industrial estate in Gresik and has signed an EPC contract with Japanese engineering company Chiyoda Corp (6366 JP) to build the plant.
This is a significant development for AKR Corporindo (AKRA IJ) to have this confirmation of Freeport Mcmoran (FCX US) as an anchor tenant for JIIPE as it will draw many more investors in industries related to copper like electric vehicle (EV) batteries to the JIIPE Estate.
JIIPE should also see more focus given its recently granted special economic zone status (KEK) status, with healthy land enquiries which should enable the company to increase marketing sales for this year, currently forecast at 35 ha. 


AKR Corporindo (AKRA IJ) is due to announce 1H2021 results toward the end of July, with the expectation of a strong set of numbers similar to Q12021 with profit growth of more than +25%.





The company is trading on 11.1x FY21E PER and 11.0x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective.






AKR Corporindo (AKRA IJ) - Freeport Smelter a Boon for JIIPE

United Kingdom

BP p.l.c. is a British multinational integrated energy company. It engages in oil and gas exploration, production, refining, distribution, and marketing, as well as renewable energy activities including solar, wind, and hydrogen businesses. The company was founded in 1908 and is headquartered in London, the United Kingdom.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

BP (BP US)

AKRA Corporindo (AKRA IJ) - Front and Centre on Economic Recovery and Commodities

AKR Corporindo results reflected its key exposure to both economic recovery in Indonesia and its exposure to rising commodity prices through its...

Angus Mackintosh

AKR Corporindo (AKRA IJ) - Chemically and Industrially Enhanced

AKR Corporindo (AKRA IJ) remains a clear industrial proxy for the recovery of the overall Indonesian economy trading at a significant discount to...

Angus Mackintosh

Thinking About the Royal Dutch Shell "Unification"

Royal Dutch Shell has announced a planned "Unification" to be decided by shareholder vote on 10 December. The goal is to unify the A and B lines to...

Travis Lundy

AKR Corporindo (AKRA IJ) - Chemical and Smelter Driven Growth

AKRA is an interesting proxy to the recovery in the Indonesian economy through its petroleum & chemical distribution, with the kicker of its...

Angus Mackintosh

AKR Corporindo (AKRA IJ) - Freeport Smelter a Boon for JIIPE

AKR Corporindo (AKRA IJ) remains one of the few good quality industrial plays in Indonesia through its chemical and fuel distribution business plus...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)