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

<p><a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>, South-East Asia's largest market cap company, has announced that it aims to raise US$6.3bn in the largest equity offering of 2021. The deal will allow the company to accelerate its global expansion and give the company the financial firepower for potential acquisitions.</p>
<p>The company will offer 11m shares or a stake worth about US$3.8bn at the close on 8th September plus it intends to issue US$2.5bn in equity-linked debt to bring the total funds raised to circa US$6.8bn. </p>
<p>Apart from continuing to grow its business in South-East Asia, the company is now expanding its e-commerce presence in South America, with a focus on Brazil, Mexico, Chile, and Colombia. </p>
<div data-position="outstream-video" data-ad-placeholder="Advertisement" data-ad-status="rendered">
<div data-google-query-id="CIy19f7l8PICFRbxaAodBhELiA">
<div>According to local press reports, Shopee may also look to enter Eastern Europe, with Poland as its first target market.  Shopee has also launched a recruitment campaign for vendors to sell on what it called "Shopee India" and is ramping up hiring in the country. It has also been looking for office space in the country.</div>
</div>
</div>
<h3></h3>
<p><a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> continues to grow its ShopeeFood business both in Indonesia and Vietnam and has seen a very strong performance and positive reception from users as well as driver communities in both markets. There has also been some talk of the company expanding food delivery into Malaysia, as it has already been advertising for drivers.</p>
<div data-position="outstream-video" data-ad-placeholder="Advertisement" data-ad-status="rendered">
<div data-google-query-id="CIy19f7l8PICFRbxaAodBhELiA">
<p>Assuming the completion of this fundraising goes smoothly <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> will have a war chest of around US$13bn at its disposal to finance its ongoing expansion, though it is not yet clear what it needs this money for.</p>
<p>This may be seen as opportunistic fundraising in some camps but given its aspiration to expand globally into other emerging markets plus growing its digital finance and food delivery arms quite aggressively, this will certainly give the company the financial firepower to do so. </p>
</div>
<div data-google-query-id="CIy19f7l8PICFRbxaAodBhELiA">
<p>We continue to take a positive view 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> which currently trades on 16x FY21E EV/Sales, 10.4x FY22E EV/Sales, and 7.8x FY23E EV/Sales, justified by sales growth of +105% YoY in FY2021, +47% YoY in FY22E, and +32.8% YoY growth in FY2023. </p>
</div>
</div>

Sea Ltd (SE US), South-East Asia's largest market cap company, has announced that it aims to raise US$6.3bn in the largest equity offering of 2021. The deal will allow the company to accelerate its global expansion and give the company the financial firepower for potential acquisitions.
The company will offer 11m shares or a stake worth about US$3.8bn at the close on 8th September plus it intends to issue US$2.5bn in equity-linked debt to bring the total funds raised to circa US$6.8bn. 
Apart from continuing to grow its business in South-East Asia, the company is now expanding its e-commerce presence in South America, with a focus on Brazil, Mexico, Chile, and Colombia. 


According to local press reports, Shopee may also look to enter Eastern Europe, with Poland as its first target market.  Shopee has also launched a recruitment campaign for vendors to sell on what it called "Shopee India" and is ramping up hiring in the country. It has also been looking for office space in the country.



Sea Ltd (SE US) continues to grow its ShopeeFood business both in Indonesia and Vietnam and has seen a very strong performance and positive reception from users as well as driver communities in both markets. There has also been some talk of the company expanding food delivery into Malaysia, as it has already been advertising for drivers.


Assuming the completion of this fundraising goes smoothly Sea Ltd (SE US) will have a war chest of around US$13bn at its disposal to finance its ongoing expansion, though it is not yet clear what it needs this money for.
This may be seen as opportunistic fundraising in some camps but given its aspiration to expand globally into other emerging markets plus growing its digital finance and food delivery arms quite aggressively, this will certainly give the company the financial firepower to do so. 


We continue to take a positive view on Sea Ltd (SE US) which currently trades on 16x FY21E EV/Sales, 10.4x FY22E EV/Sales, and 7.8x FY23E EV/Sales, justified by sales growth of +105% YoY in FY2021, +47% YoY in FY22E, and +32.8% YoY growth in FY2023. 



Sea Ltd (SE US) - The Runway Just Got Longer

<section class="figure">
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> released a strong set of 1H2021 results with overall revenues up by +23% YoY to IDR4,863,1bn, driven by advertising revenue growth of +27% YoY. Free-to-Air Television advertising revenues grew by +16% YoY to IDR4,595.1bn, whilst digital advertising revenues grew by +117% YoY to IDR889.2bn.</p>
</section>
<p>There was also a strong performance from e-commerce players such as <a href="https://www.smartkarma.com/entities/lazada-group" target="_blank" data-smartkarma-citation="entities:26148:1" rel="noopener">Lazada Group</a>, Shopee (<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>, <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> &amp; <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia</a>, and BliBli.com, which block-booked primetime slots for entertainment variety shows and promotional events. <a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener"></a>Content is King</p>
<section class="figure">
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> continues to see strong performance from its prime-time blocking programs, which are predominantly for e-commerce companies but also players such as Telkomsel. </p>
<p><a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> continues to see explosive growth from its digital adverting efforts, which saw revenues rise +117% in 1H2021.</p>
<p>Management is also very excited about the prospects for the company's RCTI+ super app, which had 39.8m MAUs at the end of 1H2021 versus 9.5m a year ago, and already hit 50m MAUs in August, with expectations of 60-70m by year-end.</p>
<section class="figure">
<figure class="editor-figure mceNonEditable"></figure>
</section>
<div class="content-remarks"></div>
<p>Management is optimistic that 2H2021 can see even stronger growth and the lack of European Cup costs should see better margins at the same time. <a href="https://www.smartkarma.com/entities/media-nusantara-citra-tbk-pt" target="_blank" data-smartkarma-citation="entities:6881:1" rel="noopener">Media Nusantara Citra (MNCN IJ)</a> looks very attractive from a valuation perspective trading on 5.3x FY21E PER and 4.4x FY22E PER versus a 5-year average of 9.3x forward PER.</p>
<div></div>
<div>
<div>
<div class="content-remarks">
<p></p>
</div>
</div>
</div>
</section>


Media Nusantara Citra (MNCN IJ) released a strong set of 1H2021 results with overall revenues up by +23% YoY to IDR4,863,1bn, driven by advertising revenue growth of +27% YoY. Free-to-Air Television advertising revenues grew by +16% YoY to IDR4,595.1bn, whilst digital advertising revenues grew by +117% YoY to IDR889.2bn.

There was also a strong performance from e-commerce players such as Lazada Group, Shopee (Sea Ltd (SE US), Gojek &amp; Tokopedia, and BliBli.com, which block-booked primetime slots for entertainment variety shows and promotional events. Content is King

Media Nusantara Citra (MNCN IJ) continues to see strong performance from its prime-time blocking programs, which are predominantly for e-commerce companies but also players such as Telkomsel. 
Media Nusantara Citra (MNCN IJ) continues to see explosive growth from its digital adverting efforts, which saw revenues rise +117% in 1H2021.
Management is also very excited about the prospects for the company's RCTI+ super app, which had 39.8m MAUs at the end of 1H2021 versus 9.5m a year ago, and already hit 50m MAUs in August, with expectations of 60-70m by year-end.




Management is optimistic that 2H2021 can see even stronger growth and the lack of European Cup costs should see better margins at the same time. Media Nusantara Citra (MNCN IJ) looks very attractive from a valuation perspective trading on 5.3x FY21E PER and 4.4x FY22E PER versus a 5-year average of 9.3x forward PER.










Media Nusantara Citra (MNCN IJ) - Increasingly Digital with Gaming to Boot

<section class="figure"><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> released a strong set of 2Q2021 results with +55.7% growth in TPV bringing 1H2021 TPV (Total Processing Value) growth to +54%. It reported a +37% YoY growth in revenue for 2Q2021.</section>
<section class="figure"></section>
<section class="figure"></section>
<section class="figure"></section>
<section class="figure"> The company's Mitra business continued to be the key driver, accounting for 48% of TPV in 2Q2021 versus 22% a year ago, with a growth rate of +292% YoY in 2Q2021.</section>
<section class="figure"></section>
<section class="figure"></section>
<section class="figure">There was some reduction in the take-rate in 2Q2021, which some analysts may focus on but this was explained as due to a change in product mix and temporary. We address concerns regarding the take rate later but they seem overdone.</section>
<section class="figure"></section>
<section class="figure"></section>
<section class="figure">
<section class="figure">
<section class="figure">Mitra Bukalapak continues to be the main growth engine for the company, with 2Q2021 Mitra TPV increasing by +237% YoY, to IDR14.2tn.</section>
<section class="figure"></section>
<section class="figure"></section>
</section>
<p>Mitra Bukalapak’s contribution margin after S&amp;M cost improved from -1.0% of TPV in FY2020 to -0.5% of TPV in Mitra’s operating loss as a ratio to TPV improved from 1.2% in FY20 to 0.6% in 1H2021.</p>
<section class="figure">
<figure class="editor-figure mceNonEditable"></figure>
</section>
</section>
<section class="figure"></section>
<section class="figure"><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> management re-iterated its strategy to continue to help enhance the performance of its Mitra's and sellers on the platform following a more of a Shopify model than one like <a href="https://www.smartkarma.com/entities/amazon-com-inc" target="_blank" data-smartkarma-citation="entities:409:1" rel="noopener">Amazon.com Inc (AMZN US)</a>.</section>
<section class="figure"></section>
<p></p>
<p><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> maintains that around 90% of its Mitra customers use only <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> given that it addresses many uses and allows them to make more money. </p>
<p><a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia</a> and Shopee are much more reliant on aggressive capital to expand, which is not an effective long-term strategy for Mitra customers. It is also difficult to discount FMCG products for any length of time given that principles keep a handle on price levels.</p>
<p>Management also revealed that its first collaboration with <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> will focus on GrabMart, providing fresh food products for GrabMart's restaurant customers but more collaboration is expected on an incremental basis going forward. <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener"></a></p>
<p><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> management is expecting annual growth in TPV of +50%-75% per annum, with 2022 seen as a potentially even stronger year, with better purchasing power coming through post-pandemic and greater vaccination levels.</p>
<p>The company expects to break even at the EBITDA level by 2023 under current expectations. This accounts for rising revenues, growing take-rates, and lower S&amp;M costs. We continue to take a positive view on the outlook on <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> and do not see the short-term contraction in the take-rate as an issue.  Valuations look quite high relative to peers but the company is much closer to breakeven versus peers and given its predominantly 1P model, revenue is not far off the gross profit. </p>
<div></div>
<div>
<div>
<div class="content-remarks">
<p></p>
</div>
</div>
</div>

Bukalapak (BUKA IJ) released a strong set of 2Q2021 results with +55.7% growth in TPV bringing 1H2021 TPV (Total Processing Value) growth to +54%. It reported a +37% YoY growth in revenue for 2Q2021.



 The company's Mitra business continued to be the key driver, accounting for 48% of TPV in 2Q2021 versus 22% a year ago, with a growth rate of +292% YoY in 2Q2021.


There was some reduction in the take-rate in 2Q2021, which some analysts may focus on but this was explained as due to a change in product mix and temporary. We address concerns regarding the take rate later but they seem overdone.




Mitra Bukalapak continues to be the main growth engine for the company, with 2Q2021 Mitra TPV increasing by +237% YoY, to IDR14.2tn.



Mitra Bukalapak’s contribution margin after S&amp;M cost improved from -1.0% of TPV in FY2020 to -0.5% of TPV in Mitra’s operating loss as a ratio to TPV improved from 1.2% in FY20 to 0.6% in 1H2021.





Bukalapak (BUKA IJ) management re-iterated its strategy to continue to help enhance the performance of its Mitra's and sellers on the platform following a more of a Shopify model than one like Amazon.com Inc (AMZN US).


Bukalapak (BUKA IJ) maintains that around 90% of its Mitra customers use only Bukalapak (BUKA IJ) given that it addresses many uses and allows them to make more money. 
Tokopedia and Shopee are much more reliant on aggressive capital to expand, which is not an effective long-term strategy for Mitra customers. It is also difficult to discount FMCG products for any length of time given that principles keep a handle on price levels.
Management also revealed that its first collaboration with Grab will focus on GrabMart, providing fresh food products for GrabMart's restaurant customers but more collaboration is expected on an incremental basis going forward. 
Bukalapak (BUKA IJ) management is expecting annual growth in TPV of +50%-75% per annum, with 2022 seen as a potentially even stronger year, with better purchasing power coming through post-pandemic and greater vaccination levels.
The company expects to break even at the EBITDA level by 2023 under current expectations. This accounts for rising revenues, growing take-rates, and lower S&amp;M costs. We continue to take a positive view on the outlook on Bukalapak (BUKA IJ) and do not see the short-term contraction in the take-rate as an issue.  Valuations look quite high relative to peers but the company is much closer to breakeven versus peers and given its predominantly 1P model, revenue is not far off the gross profit. 









Aspirasi Hidup Indonesia / Equity Bottom-Up

<section class="figure">
<p><a href="https://www.smartkarma.com/entities/ace-hardware-indonesia" target="_blank" data-smartkarma-citation="entities:12808:1" rel="noopener">Ace Hardware Indonesia (ACES IJ)</a> released 1H2021 last week with sales down by -7.0% YoY and operating profits by -27.6% YoY, while net profit fell by -21.3% YoY. Obviously, 1Q2020 represented partial a high-base given that the pandemic had not yet impacted Indonesia in a big way.</p>
<p>The company saw sales in Jakarta affected most by the pandemic, with Java ex-Jakarta increased its share of sales and stores outside Java also increasing share of the total.</p>
</section>
<section class="figure"><a href="https://www.smartkarma.com/entities/ace-hardware-indonesia" target="_blank" data-smartkarma-citation="entities:12808:1" rel="noopener">Ace Hardware Indonesia (ACES IJ)</a> continued to expand its stores in 1H2021 despite the pandemic.  The fact that  a large portion of stores are in malls has meant that it has been heavily impacted by the recent Emergency PPKM measures, which is not yet reflected in these numbers. </section>
<section class="figure"></section>
<section class="figure"></section>
<section class="figure"></section>
<section class="figure">
<section class="figure">The most recent round of Emergency PPKM measures has seen 155 stores closed in July, which remain closed in August. The company has managed to shift some of its sales online but this is still small.</section>
<section class="figure"></section>
</section>
<p><a href="https://www.smartkarma.com/entities/ace-hardware-indonesia" target="_blank" data-smartkarma-citation="entities:12808:1" rel="noopener">Ace Hardware Indonesia (ACES IJ)</a> continued to grow its members under its Ace Reward scheme, with member sales now accounting for 73.1% of total sales in 1H2021. Members spend significantly more than the average ticket size.</p>
<section class="figure">
<p><a href="https://www.smartkarma.com/entities/ace-hardware-indonesia" target="_blank" data-smartkarma-citation="entities:12808:1" rel="noopener">Ace Hardware Indonesia (ACES IJ)</a> recently released predictably weak SSSG numbers for July, which saw a -50.7% decline YoY reflecting the imposition of Emergency PPKM mobility restrictions versus a more open environment last year. We would expect a gradual recovery in September, as PPKM measures are relaxed further. </p>
<p>The company trades on 30.1x FY21E PER and 23.0x FY22E PER, with forecast EPS growth of +13.7% and +30.7% for FY21E and FY22E respectively, making it look attractive versus its 5-year average forward PER of 25.0x </p>
</section>


Ace Hardware Indonesia (ACES IJ) released 1H2021 last week with sales down by -7.0% YoY and operating profits by -27.6% YoY, while net profit fell by -21.3% YoY. Obviously, 1Q2020 represented partial a high-base given that the pandemic had not yet impacted Indonesia in a big way.
The company saw sales in Jakarta affected most by the pandemic, with Java ex-Jakarta increased its share of sales and stores outside Java also increasing share of the total.

Ace Hardware Indonesia (ACES IJ) continued to expand its stores in 1H2021 despite the pandemic.  The fact that  a large portion of stores are in malls has meant that it has been heavily impacted by the recent Emergency PPKM measures, which is not yet reflected in these numbers. 




The most recent round of Emergency PPKM measures has seen 155 stores closed in July, which remain closed in August. The company has managed to shift some of its sales online but this is still small.


Ace Hardware Indonesia (ACES IJ) continued to grow its members under its Ace Reward scheme, with member sales now accounting for 73.1% of total sales in 1H2021. Members spend significantly more than the average ticket size.

Ace Hardware Indonesia (ACES IJ) recently released predictably weak SSSG numbers for July, which saw a -50.7% decline YoY reflecting the imposition of Emergency PPKM mobility restrictions versus a more open environment last year. We would expect a gradual recovery in September, as PPKM measures are relaxed further. 
The company trades on 30.1x FY21E PER and 23.0x FY22E PER, with forecast EPS growth of +13.7% and +30.7% for FY21E and FY22E respectively, making it look attractive versus its 5-year average forward PER of 25.0x 


Ace Hardware Indonesia (ACES IJ) - Summer Lull

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

<p><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a>, which means 'opening a kiosk' in Indonesian, is a leading e-commerce player in non-Tier 1 cities in Indonesia, with a market share of 35% in 2020 based on GMV (gross merchandise value), according to Frost &amp; Sullivan. Bukalapak carries out its main business activities through the mobile platform <em>Bukalapak</em> and <em>Bukalapak Partners</em>. Bukalapak has increased its IPO size by about a third to $1.5 billion due to strong demand, according to press reports. Bookbuilding will close on 19 July and the shares are set to list on 6 August. </p><p>The COVID-19 pandemic has accelerated the rate of e-commerce adoption in Indonesia as more consumers are reluctant to travel and started changing their shopping habits to online shopping, due to personal preferences or lockdown restrictions. The share of e-commerce of total retail spending in Indonesia has grown from 5.6% in 2017 to around 22% in 2020 and will reach 35.9% in 2025, according to Frost &amp; Sullivan. </p><div class="content-highlight"><p>Like its peers, Bukalapak is benefiting from this market tailwind. Bukalapak’s strategy of focusing on consumers in the non-Tier 1 area and the mass market in the Tier 1 area results in a relatively small overlap (less than 20%) between its customers and customers of other online marketplaces such as <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>'s Shopee, <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia PT (1087142D IJ)</a> and <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>'s Lazada. Competitors generally target the affluent segment of the market. Overall, Bukalapak's fundamentals tick all the right boxes of rising monetisation, lower losses and declining cash burn, in our view. We will discuss valuation in our next note. </p></div>

Bukalapak (BUKA IJ), which means 'opening a kiosk' in Indonesian, is a leading e-commerce player in non-Tier 1 cities in Indonesia, with a market share of 35% in 2020 based on GMV (gross merchandise value), according to Frost &amp; Sullivan. Bukalapak carries out its main business activities through the mobile platform Bukalapak and Bukalapak Partners. Bukalapak has increased its IPO size by about a third to $1.5 billion due to strong demand, according to press reports. Bookbuilding will close on 19 July and the shares are set to list on 6 August. The COVID-19 pandemic has accelerated the rate of e-commerce adoption in Indonesia as more consumers are reluctant to travel and started changing their shopping habits to online shopping, due to personal preferences or lockdown restrictions. The share of e-commerce of total retail spending in Indonesia has grown from 5.6% in 2017 to around 22% in 2020 and will reach 35.9% in 2025, according to Frost &amp; Sullivan. Like its peers, Bukalapak is benefiting from this market tailwind. Bukalapak’s strategy of focusing on consumers in the non-Tier 1 area and the mass market in the Tier 1 area results in a relatively small overlap (less than 20%) between its customers and customers of other online marketplaces such as Sea Ltd (SE US)'s Shopee, Tokopedia PT (1087142D IJ) and Alibaba Group (BABA US)'s Lazada. Competitors generally target the affluent segment of the market. Overall, Bukalapak's fundamentals tick all the right boxes of rising monetisation, lower losses and declining cash burn, in our view. We will discuss valuation in our next note. 

Bukalapak IPO Initiation: Island Shopping

Indonesia

Tokopedia PT provides e-commerce services. The Company owns and operates an online e-commerce platform that allows individuals and small-to-mid-sized business owners to start their online stores.

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

Tokopedia PT (1087142D IJ)

Sea Ltd (SE US) - The Runway Just Got Longer

Sea Ltd just announced a US$6.8bn fundraise which gives the company a war chest of US$13bn to expand both geographically and into new areas such as...

Angus Mackintosh

Media Nusantara Citra (MNCN IJ) - Increasingly Digital with Gaming to Boot

MNCN continues to dominate audience share in FTA TV in Indonesia, which is yielding positive advertising returns but it is also growing its digital...

Angus Mackintosh

Bukalapak (BUKA IJ) - The Magic of Mitra

Bukalapak released an impressive set of 2Q2021 results, with the MSME Mitra business now close to half its TPV and showing triple-digit YoY growth....

Angus Mackintosh

Ace Hardware Indonesia (ACES IJ) - Summer Lull

Ace Hardware has seen sales hard hit by recent mobility measures and mall closures in Indonesia but we expect a strong recovery from September and...

Angus Mackintosh

Bukalapak IPO Initiation: Island Shopping

Bukalapak has increased its IPO size by about a third to $1.5 billion due to strong demand. Its fundamentals tick all the right boxes of rising...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)