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

Private Capital Markets

<p>Looking at the reports in the press on the news that <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> will seek a listing through an Altimeter Capital SPAC, there seems to be nothing but euphoria, without very much commentary on the potential risks ahead to the company's bullish forecasts and relatively high valuations. </p>
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<p>In terms of profitability, <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> maintains that ride-hailing was EBITDA positive in 4Q2019 but the company still lost US$800m in 2020.</p>
<p><a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>'s projections are quite long-dated in the face of increasing and very unpredictable competitive pressures from the other major digital players, more especially the newly merged <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> and <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia</a> under "GoTo Group" and from 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>). </p>
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<p>The delivery and mobility take-rate assumptions also look quite high given the potential for heavy promotional activity from major competitors.</p>
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<p>In the company's presentation, there are three pages of detailed "Risk Factors Relating to Grab" in a small font covering a lot of bases, and leaving plenty of room for disappointment.</p>
<p>Our main concern would be the strong competition from Shopee on digital payments plus its move into food delivery in Indonesia under ShopeeFood.  It is also possible OVO stands to lose a good deal of business to GoPay with the merger moving ahead. </p>
<p>We also see the combined force of <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> and <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia</a> under GoTo Group will also be a formidable competitor, given it will also have an e-commerce arm. Please see <a href="https://www.smartkarma.com/insights/goto-enter-the-green-dragon" target="_blank" data-smartkarma-citation="insights:51664" rel="noopener">GoTo - Enter the Green Dragon</a> for more background</p>
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<p>The valuations look quite aggressive given that on the stated EV of US$30.36bn, it will be valued at 13.2x FY21E EV/Sales and 9.2x FY22E EV/Sales, which is pretty much in line with <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 .</p>
<p>We await more details on the planned floatation of GoTo Group, which is expected to be valued at more than US$40bn but probably deserves a higher multiple, given it has an e-commerce arm and a more established digital finance business, even though still at an early stage.</p>
<p>It is interesting to note that the share price of the Altimeter SPAC is approaching US$11, which suggests there is not much of a premium being built into the float, given that PIPE investors get shares at US$10.</p>
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Looking at the reports in the press on the news that Grab will seek a listing through an Altimeter Capital SPAC, there seems to be nothing but euphoria, without very much commentary on the potential risks ahead to the company's bullish forecasts and relatively high valuations. 

In terms of profitability, Grab maintains that ride-hailing was EBITDA positive in 4Q2019 but the company still lost US$800m in 2020.
Grab's projections are quite long-dated in the face of increasing and very unpredictable competitive pressures from the other major digital players, more especially the newly merged Gojek and Tokopedia under "GoTo Group" and from Shopee (Sea Ltd (SE US)). 


The delivery and mobility take-rate assumptions also look quite high given the potential for heavy promotional activity from major competitors.


In the company's presentation, there are three pages of detailed "Risk Factors Relating to Grab" in a small font covering a lot of bases, and leaving plenty of room for disappointment.
Our main concern would be the strong competition from Shopee on digital payments plus its move into food delivery in Indonesia under ShopeeFood.  It is also possible OVO stands to lose a good deal of business to GoPay with the merger moving ahead. 
We also see the combined force of Gojek and Tokopedia under GoTo Group will also be a formidable competitor, given it will also have an e-commerce arm. Please see GoTo - Enter the Green Dragon for more background



The valuations look quite aggressive given that on the stated EV of US$30.36bn, it will be valued at 13.2x FY21E EV/Sales and 9.2x FY22E EV/Sales, which is pretty much in line with Sea Ltd (SE US), which currently trades on .
We await more details on the planned floatation of GoTo Group, which is expected to be valued at more than US$40bn but probably deserves a higher multiple, given it has an e-commerce arm and a more established digital finance business, even though still at an early stage.
It is interesting to note that the share price of the Altimeter SPAC is approaching US$11, which suggests there is not much of a premium being built into the float, given that PIPE investors get shares at US$10.








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> announced its 1Q2021 results which look like a blowout set of numbers with +147% growth in total GAAP revenues with +117% growth in digital bookings for digital entertainment and +250% YoY growth in e-commerce GAAP revenues.</p>
<p>Gross Profit increased a staggering +212% YoY to US$645.4m in 1Q2021 and the company booked a positive EBITDA of US$88.1m versus a (US$69.9m) loss in 1Q2020.</p>
<p>The gross profit margin increased from 28% in 1Q2020 to 36% in 1Q2021, which is a testament to the fact that the company is moving along the path to profitability. Digital entertainment saw higher margins, while-commerce saw falling EBITDA loss per order.</p>
<p>In Digital Entertainment (DE) division continues to see strong growth in its user base with +61% YoY growth in quarterly active users (QAU) to 648.6m but more importantly quarterly paying users saw growth of +12.3% YoY to 79.8m signifying a higher level of monetization on its self-developed game <em>Free Fire.</em></p>
<p>The company continues to successfully expand its gaming business to new geographies, with India being the latest growth engine and players are spending more time on Free Fire and spending more. It continues to add new content and characters to increase the appeal and stickiness of <em>Free Fire</em>. It is also seeing huge response in the eSports arena for <em>Free Fire.</em></p>
<p>Shopee ranked number one in the shopping category by monthly active users and time spent in app in 1Q2021 for both South East Asia and Taiwan, according to App Annie. E-commerce continues to show supercharged growth and especially in the core market of Indonesia.</p>
<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>'s move into digital payments in South -East Asia under SeaMoney and ShopeePay in Indonesia continues to see strong momentum.  The mobile wallet total payment volume saw total payment volume triple in 1Q2021 to US$3.4bn. </p>
<p>The company is also expanding the offline use-cases for ShopeePay most recently extending use to Indomaret in Indonesia, the largest mini-market operator in the country.</p>
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<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>'s move into food delivery through ShopeeFood and evidence suggests that it has already had a strong reception to its launch in Jakarta, with growth similar to that in other categories.</p>
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<p>This latest set of results provides further proof of the success of the <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> growth model which generates huge EBITDA from gaming and reinvests that money into growing the company's e-commerce and digital finance businesses, whilst maintaining the investment momentum into the gaming cash cow, buy pushing out into new geographies such as India.</p>
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<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 standout as the best way to play the explosive growth in e-commerce in South East Asia, funded by the popularity of its self developed game <em>Free Fire </em>and its gaming business, together with its move into digital payments a third leg to future growth.</p>
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<section class="figure"><a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> valuations are higher than its listed peers on 13x and 9x EV/Sales for FY21E and FY22E respectively but it is growing at more than twice the pace in terms of sales to justify this. The market is also paying a premium for its unique financing plus its market leadership and strong track record on execution, with 11 consecutive quarters of triple-digit growth.</section>
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Sea Ltd (SE US) announced its 1Q2021 results which look like a blowout set of numbers with +147% growth in total GAAP revenues with +117% growth in digital bookings for digital entertainment and +250% YoY growth in e-commerce GAAP revenues.
Gross Profit increased a staggering +212% YoY to US$645.4m in 1Q2021 and the company booked a positive EBITDA of US$88.1m versus a (US$69.9m) loss in 1Q2020.
The gross profit margin increased from 28% in 1Q2020 to 36% in 1Q2021, which is a testament to the fact that the company is moving along the path to profitability. Digital entertainment saw higher margins, while-commerce saw falling EBITDA loss per order.
In Digital Entertainment (DE) division continues to see strong growth in its user base with +61% YoY growth in quarterly active users (QAU) to 648.6m but more importantly quarterly paying users saw growth of +12.3% YoY to 79.8m signifying a higher level of monetization on its self-developed game Free Fire.
The company continues to successfully expand its gaming business to new geographies, with India being the latest growth engine and players are spending more time on Free Fire and spending more. It continues to add new content and characters to increase the appeal and stickiness of Free Fire. It is also seeing huge response in the eSports arena for Free Fire.
Shopee ranked number one in the shopping category by monthly active users and time spent in app in 1Q2021 for both South East Asia and Taiwan, according to App Annie. E-commerce continues to show supercharged growth and especially in the core market of Indonesia.
Sea Ltd (SE US)'s move into digital payments in South -East Asia under SeaMoney and ShopeePay in Indonesia continues to see strong momentum.  The mobile wallet total payment volume saw total payment volume triple in 1Q2021 to US$3.4bn. 
The company is also expanding the offline use-cases for ShopeePay most recently extending use to Indomaret in Indonesia, the largest mini-market operator in the country.

Sea Ltd (SE US)'s move into food delivery through ShopeeFood and evidence suggests that it has already had a strong reception to its launch in Jakarta, with growth similar to that in other categories.

This latest set of results provides further proof of the success of the Sea Ltd (SE US) growth model which generates huge EBITDA from gaming and reinvests that money into growing the company's e-commerce and digital finance businesses, whilst maintaining the investment momentum into the gaming cash cow, buy pushing out into new geographies such as India.



Sea Ltd (SE US) continues to standout as the best way to play the explosive growth in e-commerce in South East Asia, funded by the popularity of its self developed game Free Fire and its gaming business, together with its move into digital payments a third leg to future growth.

Sea Ltd (SE US) valuations are higher than its listed peers on 13x and 9x EV/Sales for FY21E and FY22E respectively but it is growing at more than twice the pace in terms of sales to justify this. The market is also paying a premium for its unique financing plus its market leadership and strong track record on execution, with 11 consecutive quarters of triple-digit growth.

















Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<p>Indonesian ride-hailing start-up <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and e-commerce player <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia PT (1087142D IJ)</a>  announced today that the two entities are merging their businesses and the combined business will be called the <strong>“GoTo Group”</strong>. The two companies have not disclosed the value of the deal, however, they mentioned that the deal would mark the largest business deal in the country. GoTo Group will offer services from ride-hailing and financial services to e-commerce and take on competition from large rivals <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> and <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> .</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/206/776/original/image_10362768921621248055755.png?1621248056" class="editor-image img-responsive" data-smartkarma-image-id="206776"></figure><p>News regarding a potential deal between Gojek and Tokopedia was first surfaced in January this year and Bloomberg highlighted that the merger between the two companies would be carried out prior to a planned IPO of the combined entity, which is to list in the US and Indonesia.</p>

Indonesian ride-hailing start-up Gojek (1379371D IJ) and e-commerce player Tokopedia PT (1087142D IJ)  announced today that the two entities are merging their businesses and the combined business will be called the “GoTo Group”. The two companies have not disclosed the value of the deal, however, they mentioned that the deal would mark the largest business deal in the country. GoTo Group will offer services from ride-hailing and financial services to e-commerce and take on competition from large rivals Sea Ltd (SE US) and Grab (0967655D SP) .News regarding a potential deal between Gojek and Tokopedia was first surfaced in January this year and Bloomberg highlighted that the merger between the two companies would be carried out prior to a planned IPO of the combined entity, which is to list in the US and Indonesia.

Gojek-Tokopedia Combine Their Businesses to Form GoTo Group; Is an IPO on the Cards?

<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> has historically tended to lag its peers within the top four banks in Indonesia, both in terms of returns and risk management plus their digital initiatives have not yet caught the attention of investors. With a new senior management team in place from <a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri (BMRI IJ)</a> in place, we think this is about to change. </p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a>is making good progress on its COVID-19 loan restructuring with a reduction in loans under restructuring of IDR18tn in 1Q20201 versus 4Q2020, with further progress in April.</p>
<p>Credit costs fell significantly in 1Q2021, as did provisions versus 4Q2021. Overall NPLs also improved slightly in 1Q2021 falling to 4.1% of total loans. </p>
<p>One key highlight in 1Q2021 was the decline in <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a>'s cost of funds, which hit the lowest level ever at 1.7% in 1Q2021.</p>
<p>This has helped overall net interest margins (NIMs) hold up in 1Q2021, which are now above the bank's FY2021 guidance range.</p>
<p>The key driver for CASA has been the increased number of mobile banking users which have increased significantly.</p>
<p>Loan growth in 1Q2021 was slow at only +2.2% but this was against a slightly negative picture for the overall banking industry, with small business and consumer loans starting to rebound at <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a>. </p>
<p>A key focus for <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> is on the digitalization of both its retail and wholesale banking businesses, which we see as a significant growth driver.</p>
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<p>The bank now trades on 0.9x FY21E PBV, 11.6x FY21E PER, and 7.2x FY22E PER, with forecast EPS growth of +186% and +60% for FY21E and FY22E respectively. We continue to expect positive momentum over the coming quarters for the <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> both as the economy recovers and its new strategies continue to gain traction.</p>
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Bank Negara Indonesia Persero (BBNI IJ) has historically tended to lag its peers within the top four banks in Indonesia, both in terms of returns and risk management plus their digital initiatives have not yet caught the attention of investors. With a new senior management team in place from Bank Mandiri (BMRI IJ) in place, we think this is about to change. 
Bank Negara Indonesia Persero (BBNI IJ)is making good progress on its COVID-19 loan restructuring with a reduction in loans under restructuring of IDR18tn in 1Q20201 versus 4Q2020, with further progress in April.
Credit costs fell significantly in 1Q2021, as did provisions versus 4Q2021. Overall NPLs also improved slightly in 1Q2021 falling to 4.1% of total loans. 
One key highlight in 1Q2021 was the decline in Bank Negara Indonesia (BBNI IJ)'s cost of funds, which hit the lowest level ever at 1.7% in 1Q2021.
This has helped overall net interest margins (NIMs) hold up in 1Q2021, which are now above the bank's FY2021 guidance range.
The key driver for CASA has been the increased number of mobile banking users which have increased significantly.
Loan growth in 1Q2021 was slow at only +2.2% but this was against a slightly negative picture for the overall banking industry, with small business and consumer loans starting to rebound at Bank Negara Indonesia Persero (BBNI IJ). 
A key focus for Bank Negara Indonesia Persero (BBNI IJ) is on the digitalization of both its retail and wholesale banking businesses, which we see as a significant growth driver.

The bank now trades on 0.9x FY21E PBV, 11.6x FY21E PER, and 7.2x FY22E PER, with forecast EPS growth of +186% and +60% for FY21E and FY22E respectively. We continue to expect positive momentum over the coming quarters for the Bank Negara Indonesia Persero (BBNI IJ) both as the economy recovers and its new strategies continue to gain traction.


Bank Negara Indonesia (BBNI IJ) - The Happening

Elang Mahkota Teknologi / Equity Bottom-Up

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<p>After the failed attempt to merge with <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> and the decision to take the SPAC route to market in the US, <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> has now reportedly taken a 4% stake in local digital and media powerhouse, <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a>. It seems unlikely that this is purely a strategic stake and points the way toward future collaboration potentially in a number of areas.</p>
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<p><a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> remains a very interesting locally listed alternative to play digital media, e-commerce, and digital payments under one roof, with aspirations to emulate the success of  <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/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener"></a></p>
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<p>In another related and interesting turn, Bukalapak, which is Indonesia's 3rd largest e-commerce firm 35% owned by <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> has raised an undisclosed sum from BRI Ventures, the venture capital arm of <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia (BBRI IJ)</a>. </p>
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<p>Bukalapak claims that it now has around 13.5m MSMEs on its platform and over 100m users on its online to offline (O20) platform. </p>
<p>The merged <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia PT (1087142D IJ)</a> entity to be named "GoTo" will be a formidable competitor for <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>, a risk not highlighted enough in the seeming euphoria around the <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> SPAC listing.</p>
<p>Another significant risk to Grab comes from recently launched ShopeeFood in Indonesia, which will directly impact Grab's (and Gojek's) food delivery business in Indonesia.</p>
<p>From a SotP point of view for <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a>, it is difficult to get much beyond a US$4bn valuation but there are those arguing that it should be valued along the same lines 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>, which would suggest potential significant upside from here.</p>
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After the failed attempt to merge with Gojek and the decision to take the SPAC route to market in the US, Grab (0967655D SP) has now reportedly taken a 4% stake in local digital and media powerhouse, Emtek (EMTK IJ). It seems unlikely that this is purely a strategic stake and points the way toward future collaboration potentially in a number of areas.

Emtek (EMTK IJ) remains a very interesting locally listed alternative to play digital media, e-commerce, and digital payments under one roof, with aspirations to emulate the success of  Sea Ltd (SE US).

In another related and interesting turn, Bukalapak, which is Indonesia's 3rd largest e-commerce firm 35% owned by Emtek (EMTK IJ) has raised an undisclosed sum from BRI Ventures, the venture capital arm of Bank Rakyat Indonesia (BBRI IJ). 

Bukalapak claims that it now has around 13.5m MSMEs on its platform and over 100m users on its online to offline (O20) platform. 
The merged Gojek (1379371D IJ) and Tokopedia PT (1087142D IJ) entity to be named "GoTo" will be a formidable competitor for Grab, a risk not highlighted enough in the seeming euphoria around the Grab SPAC listing.
Another significant risk to Grab comes from recently launched ShopeeFood in Indonesia, which will directly impact Grab's (and Gojek's) food delivery business in Indonesia.
From a SotP point of view for Emtek (EMTK IJ), it is difficult to get much beyond a US$4bn valuation but there are those arguing that it should be valued along the same lines as Sea Ltd (SE US), which would suggest potential significant upside from here.









Emtek (EMTK IJ) - The Indonesian Digital Game of Thrones

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.

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Tokopedia PT (1087142D IJ)

Grab - Too Much Euphoria?

Grab is close to listing through the Altimeter SPAC in New York, which has brought with it much euphoria amongst commentators. We look to some of...

Angus Mackintosh

Sea Ltd - Supercharged

Sea Ltd (SE US) is the best way to proxy for the explosive growth in e-commerce in South East Asia, funded by its gaming revenue, with its move...

Angus Mackintosh

Gojek-Tokopedia Combine Their Businesses to Form GoTo Group; Is an IPO on the Cards?

Indonesian ride-hailing start-up Gojek and e-commerce player Tokopedia announced today that the two entities are merging their businesses and the...

Shifara Samsudeen, FCMA, CGMA

Bank Negara Indonesia (BBNI IJ) - The Happening

BNI has been the laggard amongst its top four peers in Indonesia but we expect this to change as a new senior management team pushes through new...

Angus Mackintosh

Emtek (EMTK IJ) - The Indonesian Digital Game of Thrones

EMTEK remains the largest locally listed proxy to play digital media, e-commerce, and digital payments in Indonesia. The news that Grab has taken a...

Angus Mackintosh

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