In today’s briefing:
- Kino Indonesia (KINO IJ) – Undiscovered Consumer Proxy
- XL Axiata (EXCL IJ) – Beamed to the Next Level of Convergence
- Z Holdings (4689) | The Expanding Opportunity in E-Commerce
Kino Indonesia (KINO IJ) – Undiscovered Consumer Proxy
- Kino Indonesia (KINO IJ) continues to look like a lesser known consumer proxy despite its interesting portfolio of leading brands in beverages, personal care, food, and pharmacy.
- The company is already seeing a strong rebound in the sales of beverages and personal care products, as mobility resumes in Indonesia.
- Higher packaging, distribution, and input costs are putting some pressure on margins but this is being offset through selective price increases. The recent pull-back in share price provides an opportunity.
XL Axiata (EXCL IJ) – Beamed to the Next Level of Convergence
- The completion of the acquisition of a 66% stake in Link Net by Axiata Group and XL Axiata is a significant positive for the latter on its convergence journey.
- The deal will bring significant synergies for both parties but it gives XL Axiata (EXCL IJ) access to a nationwide fibre backbone, which will be invaluable for 5G longer-term.
- XL Axiata (EXCL IJ) will now be able to offer a truly bundled service including the best quality high-speed broadband and pay-TV through First Media. Valuations are attractive.
Z Holdings (4689) | The Expanding Opportunity in E-Commerce
- Z Holdings has the best ecosystem in Japan with 30% top line growth over the past year
- We think that Z HD can out grow the competition in E-Commerce this year by leveraging group synergies
- Z HD has earmarked an aggressive ¥35b to grow its Commerce Business this year
Related tickers: Kino Indonesia (KINO.JK), XL Axiata (EXCL.JK), Z Holdings (4689.T)
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