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

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<a href="https://www.smartkarma.com/entities/mitra-adiperkasa-tbk-pt" target="_blank" data-smartkarma-citation="entities:18684:1" rel="noopener">Mitra Adiperkasa (MAPI IJ)</a>'s 3Q2021 results were hard hit by Emergency PPKM measure in July and August but the company's unified retailing strategy has cushioned the impact.</li>
<li>A strong rebound in sales has already been taking place despite vaccinations being required to enter malls but online sales also remain robust</li>
<li>We see a sharp recovery taking place in the 4Q2021 peak season and would expect strong momentum next year, with valuations remaining attractive.</li>
</ul>



Mitra Adiperkasa (MAPI IJ)'s 3Q2021 results were hard hit by Emergency PPKM measure in July and August but the company's unified retailing strategy has cushioned the impact.
A strong rebound in sales has already been taking place despite vaccinations being required to enter malls but online sales also remain robust
We see a sharp recovery taking place in the 4Q2021 peak season and would expect strong momentum next year, with valuations remaining attractive.


Mitra Adiperkasa (MAPI IJ) - Unified Retailing Proves Its Worth

Private Capital Markets

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<a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>'s recent results reflected a resilient performance as growth in deliveries more than offset the slower performance in mobility due to lockdowns across South-East Asia in 3Q2021.</li>
<li>The recovery is ongoing in mobility October and <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> customers are spending more measured by GMV per monthly transacting user MTU plus margins are improving.</li>
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<a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>'s merger with <a href="https://www.smartkarma.com/entities/altimeter-growth-corp" target="_blank" data-smartkarma-citation="entities:33007:1" rel="noopener">Altimeter Growth Corp (AGC US)</a> is on track for a December listing which will also raise US$4.5bn in new funds adding fuel for future expansion</li>
</ul>



Grab's recent results reflected a resilient performance as growth in deliveries more than offset the slower performance in mobility due to lockdowns across South-East Asia in 3Q2021.
The recovery is ongoing in mobility October and Grab customers are spending more measured by GMV per monthly transacting user MTU plus margins are improving.

Grab's merger with Altimeter Growth Corp (AGC US) is on track for a December listing which will also raise US$4.5bn in new funds adding fuel for future expansion


Cross Asset Strategy

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<li>The week that was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights from across South East Asia plus value added commentary</li>
<li>This week includes insights on <a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a>, <a href="https://www.smartkarma.com/entities/xl-axiata-tbk-pt" target="_blank" data-smartkarma-citation="entities:15028:1" rel="noopener">XL Axiata (EXCL IJ)</a>, <a href="https://www.smartkarma.com/entities/comfortdelgro-corp-ltd" target="_blank" data-smartkarma-citation="entities:497:1" rel="noopener">Comfortdelgro Corp (CD SP),</a><a href="https://www.smartkarma.com/entities/synergy-grid-development-philippines" target="_blank" data-smartkarma-citation="entities:23221:1" rel="noopener">Synergy Grid &amp; Development Philippines (SGP PM)</a> IPO, and Philippine Banks</li>
<li>There are also insights on Sea's Internet Economy, <a href="https://www.smartkarma.com/entities/singapore-press-holdings-limited" target="_blank" data-smartkarma-citation="entities:9952:1" rel="noopener">Singapore Press (SPH SP)</a>, <a href="https://www.smartkarma.com/entities/singapore-telecommunications" target="_blank" data-smartkarma-citation="entities:20:1" rel="noopener">Singtel (ST SP)</a>, <a href="https://www.smartkarma.com/entities/cisarua-mountain-dairy-pt-tbk" target="_blank" data-smartkarma-citation="entities:34999:1" rel="noopener">Cisarua Mountain Dairy</a> IPO, <a href="https://www.smartkarma.com/entities/tiki-corp" target="_blank" data-smartkarma-citation="entities:35014:1" rel="noopener">Tiki</a> IPO, <a href="https://www.smartkarma.com/entities/siam-makro-public-co-ltd" target="_blank" data-smartkarma-citation="entities:5577:1" rel="noopener">Siam Makro,</a> and <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> </li>
</ul>


The week that was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights from across South East Asia plus value added commentary
This week includes insights on Matahari Department Store (LPPF IJ), XL Axiata (EXCL IJ), Comfortdelgro Corp (CD SP),Synergy Grid &amp; Development Philippines (SGP PM) IPO, and Philippine Banks
There are also insights on Sea's Internet Economy, Singapore Press (SPH SP), Singtel (ST SP), Cisarua Mountain Dairy IPO, Tiki IPO, Siam Makro, and Bank Negara Indonesia (BBNI IJ) 


The Week That Was in ASEAN@Smartkarma - Matahari Dept Store, Cimory IPO, and Philippine Banks

Matahari Department Store / Equity Bottom-Up

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<p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> announced a pretty robust set of 9M2021 results considering the backdrop of Emergency PPKM in Indonesia.  In our view, <a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> has become investable again after a series of disappointments and misteps on strategy made it a minefield for long-term investors. Over the past two years the company has made numerous strategic moves under the guidance of new management, which have reversed a number of strategies that were clearly not working.</p>
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<p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> continues to use non-store channels during Emergency PPKM during 3Q2021 to partially mitigate the impact and a full opening of stores in September also has some positive impact.</p>
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<section class="figure">The company saw all of its 137 stores reopned by 8th September with a gradual improvement in terms of access over the month and kids allowed back into the malls again in October, which helped to further improve traffic. </section>
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<section class="figure"><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> has had  a new Chief Merchandising Officer in place called Rachel Stack for over a year now, who has a rich history in the retail business in the UK and Europe. She has already made significant changes to its merchandising mix. </section>
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<section class="figure">Overall the company is focused on what it terms "aspirational yet affordable" products and a rejuvenated omnichannle approach. The intention is to use its stores as assets in the future to aid fulfilment, with customer curated ranges to prevent any undue discount cycles.</section>
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<section class="figure"><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> has resumed issuing guidance in November this year, which is also reassuring, with the resumption of a dividend payout a further positive for long-term investors.</section>
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<section class="figure">Valuations look reasonable, with the company trading on 12.6x FY22E PER and 9.7x FY23E PER, with forecast EPS growth of +58.7% and +29.4% for FY22E and FY23E respectively. It also continues to trade at a discount to its peers, which seems unjustified given the transformation taking place.</section>
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Matahari Department Store (LPPF IJ) announced a pretty robust set of 9M2021 results considering the backdrop of Emergency PPKM in Indonesia.  In our view, Matahari Department Store (LPPF IJ) has become investable again after a series of disappointments and misteps on strategy made it a minefield for long-term investors. Over the past two years the company has made numerous strategic moves under the guidance of new management, which have reversed a number of strategies that were clearly not working.

Matahari Department Store (LPPF IJ) continues to use non-store channels during Emergency PPKM during 3Q2021 to partially mitigate the impact and a full opening of stores in September also has some positive impact.

The company saw all of its 137 stores reopned by 8th September with a gradual improvement in terms of access over the month and kids allowed back into the malls again in October, which helped to further improve traffic. 






Matahari Department Store (LPPF IJ) has had  a new Chief Merchandising Officer in place called Rachel Stack for over a year now, who has a rich history in the retail business in the UK and Europe. She has already made significant changes to its merchandising mix. 




Overall the company is focused on what it terms "aspirational yet affordable" products and a rejuvenated omnichannle approach. The intention is to use its stores as assets in the future to aid fulfilment, with customer curated ranges to prevent any undue discount cycles.




Matahari Department Store (LPPF IJ) has resumed issuing guidance in November this year, which is also reassuring, with the resumption of a dividend payout a further positive for long-term investors.


Valuations look reasonable, with the company trading on 12.6x FY22E PER and 9.7x FY23E PER, with forecast EPS growth of +58.7% and +29.4% for FY22E and FY23E respectively. It also continues to trade at a discount to its peers, which seems unjustified given the transformation taking place.














Matahari Department Store (LPPF IJ) - Revamped, Refreshed, and Investable

Global Digital Niaga Tbk PT / Private Capital Markets

<p>Founded in 2010, Blibli was one of the pioneers of online shopping malls in Indonesia operating under a B2C model rather unlike its competitors, which have adopted a mixed approach with more focus on the C2C marketplace and adding B2C later. It has branched out to B2B, B2B2C, and B2G (government) and its target market is a more affluent consumer versus <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia</a> and Shopee. Given the private nature of the company, we view BliBli as the Dark Knight of Indonesian e-commerce. </p>
<p>The company is owned by GDP Ventures which is part of Djarum Group, which owns one of the major tobacco companies in Indonesia as well as a controlling stake in<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" rel="noopener"> Bank Central Asia (BBCA IJ),</a> Indonesia's largest private bank and leader in transactional banking.</p>
<p>BliBli has around 100,000 merchants selling 30,000 local and international brands on the platform covering a total of 16 product different categories.</p>
<p>It has around 18m monthly active users on the platform ranking number five in terms of visitors in 2Q2021, ahead of JD.id and behind <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> and <a href="https://www.smartkarma.com/entities/lazada-group" target="_blank" data-smartkarma-citation="entities:26148:1" rel="noopener">Lazada Group (LAZADA SP)</a>.</p>
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<p>BliBli uses a wide range of payment options including GoPay, which is not surprising since it is a shareholder in<a href="https://www.smartkarma.com/entities/gojek" target="_blank" rel="noopener"> Gojek.</a> It has also invested in medical internet provider HaloDoc and took over travel platform Tiket.com in mid-2017.</p>
<p>The company has been bringing more MSMEs onto the platform that produce goods themselves rather than resell items from elsewhere. </p>
<p>BliBli also offers free deliveries plus a multitude of payment options, with its own in-house wallet called BliPay but also uses a multitude of payment and financing options outlined below.</p>
<p>BliBli presents stiff competition with the other major players, with a strong backer in Djarum, which has deep pockets. It is increasingly diversified in its product offering and has its interests well-aligned with the government, especially with its push to bring MSMEs onto the platform.</p>
<p>The company recently announced that it would buy a 51% stake in <a href="https://www.smartkarma.com/entities/supra-boga-lestari-tbk-pt" target="_blank" data-smartkarma-citation="entities:16780:1" rel="noopener">Supra Boga Lestari (RANC IJ)</a>, which operates upscale supermarket chains including Ranch Market, The Gourmet, and Farmers Market. This potentially increases the company's exposure to online groceries. </p>
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<p>BliBli is already said to have achieved unicorn status with a valuation of over US$1bn and has appointed advisors Credit Suisse and Morgan Stanley ahead of a potential listing in early 2022 said to be in Jakarta. A valuation above US$1bn should be easily achievable on the first inspection and this IPO will attract the attention of both local and foreign investors.</p>
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Founded in 2010, Blibli was one of the pioneers of online shopping malls in Indonesia operating under a B2C model rather unlike its competitors, which have adopted a mixed approach with more focus on the C2C marketplace and adding B2C later. It has branched out to B2B, B2B2C, and B2G (government) and its target market is a more affluent consumer versus Tokopedia and Shopee. Given the private nature of the company, we view BliBli as the Dark Knight of Indonesian e-commerce. 
The company is owned by GDP Ventures which is part of Djarum Group, which owns one of the major tobacco companies in Indonesia as well as a controlling stake in Bank Central Asia (BBCA IJ), Indonesia's largest private bank and leader in transactional banking.
BliBli has around 100,000 merchants selling 30,000 local and international brands on the platform covering a total of 16 product different categories.
It has around 18m monthly active users on the platform ranking number five in terms of visitors in 2Q2021, ahead of JD.id and behind Bukalapak (BUKA IJ) and Lazada Group (LAZADA SP).



BliBli uses a wide range of payment options including GoPay, which is not surprising since it is a shareholder in Gojek. It has also invested in medical internet provider HaloDoc and took over travel platform Tiket.com in mid-2017.
The company has been bringing more MSMEs onto the platform that produce goods themselves rather than resell items from elsewhere. 
BliBli also offers free deliveries plus a multitude of payment options, with its own in-house wallet called BliPay but also uses a multitude of payment and financing options outlined below.
BliBli presents stiff competition with the other major players, with a strong backer in Djarum, which has deep pockets. It is increasingly diversified in its product offering and has its interests well-aligned with the government, especially with its push to bring MSMEs onto the platform.
The company recently announced that it would buy a 51% stake in Supra Boga Lestari (RANC IJ), which operates upscale supermarket chains including Ranch Market, The Gourmet, and Farmers Market. This potentially increases the company's exposure to online groceries. 

BliBli is already said to have achieved unicorn status with a valuation of over US$1bn and has appointed advisors Credit Suisse and Morgan Stanley ahead of a potential listing in early 2022 said to be in Jakarta. A valuation above US$1bn should be easily achievable on the first inspection and this IPO will attract the attention of both local and foreign investors.


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)

Mitra Adiperkasa (MAPI IJ) - Unified Retailing Proves Its Worth

Mitra Adiperkasa (MAPI IJ) 's 3Q2021 results were hard hit by mobility measures in July and August but the company's unified retailing strategy has...

Angus Mackintosh

Grab - Resilience in Motion

Grab's recent results reflected a resilient performance as growth in deliveries more than offset the slower performance in mobility due to...

Angus Mackintosh

The Week That Was in ASEAN@Smartkarma - Matahari Dept Store, Cimory IPO, and Philippine Banks

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

Angus Mackintosh

Matahari Department Store (LPPF IJ) - Revamped, Refreshed, and Investable

Matahari Department Store (LPPF IJ) has become investable again with an omnichannel approach and a revamped and refreshed brand portfolio.

Angus Mackintosh

BliBli - Enter The Dark Knight

BliBli is the "Dark Knight" of Indonesian e-commerce, given its private nature, strong market presence, and unicorn status. It has plans to IPO in...

Angus Mackintosh

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