IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo (1379371D IJ)</a> is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding ends on 21 March.</li>
<li>In <a href="https://www.smartkarma.com/insights/goto-gojek-tokopedia-ipo-initiation-island-shopping" target="_blank" data-smartkarma-citation="insights:67047" rel="noopener">GoTo Gojek Tokopedia IPO Initiation: Island Shopping</a>, we noted that the fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. </li>
<li>Our valuation analysis suggests that the price range is aggressive and unattractive. We would give the IPO a pass. </li>
</ul>



GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding ends on 21 March.
In GoTo Gojek Tokopedia IPO Initiation: Island Shopping, we noted that the fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. 
Our valuation analysis suggests that the price range is aggressive and unattractive. We would give the IPO a pass. 


GoTo Gojek Tokopedia IPO: Valuation Insights

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>The headlines for <a href="https://www.smartkarma.com/entities/grab-holdings-inc" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>'s recent results looked encouraging but the higher driver and consumer incentives hit revenues and profitability towards the end of the year but this is temporary.</li>
<li>
<a href="https://www.smartkarma.com/entities/grab-holdings-inc" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (GRAB US)</a> is facing stiffer competition in the region, especially from <a href="https://www.smartkarma.com/entities/gojek-goto" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">GoTo</a> and Shopee Food but is defending its lead and preparing for higher growth in mobility requiring investment.</li>
<li>Increasing exposure in digital financial services plus more focus on verticals such as online groceries bodes well for future growth. A market cap of US$12.5bn with US$6.8bn in net cash.</li>
</ul>


The headlines for Grab's recent results looked encouraging but the higher driver and consumer incentives hit revenues and profitability towards the end of the year but this is temporary.

Grab (GRAB US) is facing stiffer competition in the region, especially from GoTo and Shopee Food but is defending its lead and preparing for higher growth in mobility requiring investment.
Increasing exposure in digital financial services plus more focus on verticals such as online groceries bodes well for future growth. A market cap of US$12.5bn with US$6.8bn in net cash.


Grab (GRAB US) - A Rough Ride for Now but Smoother Terrain Ahead

Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

<ul>
<li>Q4 net revenues: $2.1 bln (60.5% YoY and 73.9% YoY on an FX neutral basis). Growth was led by the Fintech division (+70% YoY).</li>
<li>Gross profit came in at $853.2 mln (40.0% gross margin from 36.8% in Q4 2020) and Income from operations reached $23.3 mln (a loss of $25.1 mln in Q4 2020).</li>
<li>FX losses were $56.9 mln mainly due to the buyback of shares in Argentina. The Net loss was $46.1 mln equal to a negative EPS of $0.92.</li>
</ul>


Q4 net revenues: $2.1 bln (60.5% YoY and 73.9% YoY on an FX neutral basis). Growth was led by the Fintech division (+70% YoY).
Gross profit came in at $853.2 mln (40.0% gross margin from 36.8% in Q4 2020) and Income from operations reached $23.3 mln (a loss of $25.1 mln in Q4 2020).
FX losses were $56.9 mln mainly due to the buyback of shares in Argentina. The Net loss was $46.1 mln equal to a negative EPS of $0.92.


MercadoLibre Q4: Sustainable Alpha For The Long Term

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> results were in line but given a slow down in gaming and bearish guidance partly with India ban on FreeFire, the stock was sold off aggressively.</li>
<li>Strong performance from e-commerce and digital financial services was ignored, with improving take rates in core markets and comments on impending profitability overlooked, with hardly a mention in press commentary. </li>
<li>The risk for <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> is squarely on the upside with valuations now looking attractive, trading at a discount to <a href="https://www.smartkarma.com/entities/mercadolibre-inc" target="_blank" data-smartkarma-citation="entities:27954:1" rel="noopener">MercadoLibre (MELI US)</a> despite its broader footprint.</li>
</ul>



Sea Ltd (SE US) results were in line but given a slow down in gaming and bearish guidance partly with India ban on FreeFire, the stock was sold off aggressively.
Strong performance from e-commerce and digital financial services was ignored, with improving take rates in core markets and comments on impending profitability overlooked, with hardly a mention in press commentary. 
The risk for Sea Ltd (SE US) is squarely on the upside with valuations now looking attractive, trading at a discount to MercadoLibre (MELI US) despite its broader footprint.


Sea Ltd (SE US) - Leaning Towards Profitability and Sustainability

<ul>
<li>The spotlight is back on <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 game <em>FreeFire </em>was named as one of 54 apps of Chinese origin to be banned in India.</li>
<li>The ban on <em>FreeFire</em> comes despite <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd</a>'s recent move to reduce the influence from <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent</a> by scaling back its ownership of voting shares </li>
<li>We see the recent price weakness as an opportunity to accumulate <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd</a> given the growth story remains intact although investors may not pay the same multiple premium over peers.</li>
</ul>


The spotlight is back on Sea Ltd (SE US) after its game FreeFire was named as one of 54 apps of Chinese origin to be banned in India.
The ban on FreeFire comes despite Sea Ltd's recent move to reduce the influence from Tencent by scaling back its ownership of voting shares 
We see the recent price weakness as an opportunity to accumulate Sea Ltd given the growth story remains intact although investors may not pay the same multiple premium over peers.


Brazil

MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company's website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services.

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

MercadoLibre (MELI US)

GoTo Gojek Tokopedia IPO: Valuation Insights

Our valuation analysis suggests that the price range is aggressive and unattractive. We would give the IPO a pass. Books will close on 21 March....

Arun George

Grab (GRAB US) - A Rough Ride for Now but Smoother Terrain Ahead

Grab's recent results looked encouraging in terms of headline GMV but the higher driver and consumer incentives hit revenues and profitability...

Angus Mackintosh

MercadoLibre Q4: Sustainable Alpha For The Long Term

Q4 net revenues: $2.1 bln (60.5% YoY and 73.9% YoY on an FX neutral basis). Growth was led by the Fintech division (+70% YoY). Gross profit came...

Moat Investing

Sea Ltd (SE US) - Leaning Towards Profitability and Sustainability

The risk for Sea Ltd looks to be squarely on the upside with valuations now looking attractive, trading at a discount to MercadoLibre (MELI US)...

Angus Mackintosh

Sea Ltd (SE US) - A Himalayan Saga

We see the recent Sea Ltd price weakness as an opportunity to accumulate the stock, given the growth story remains intact although investors may...

Angus Mackintosh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)