Daily BriefsMacro

Macro: The Easter Week That Was in [email protected] – ShopeeFood and more

In today’s briefing:

  • The Easter Week That Was in [email protected] – ShopeeFood, Indonesia’s 1st US SPAC, and Indocement
  • Alpha Bites: Monthly Trade Ideas Recap (April 2021)

The Easter Week That Was in [email protected] – ShopeeFood, Indonesia’s 1st US SPAC, and Indocement

By Angus Mackintosh

The week that was in [email protected] is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.

We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets. 

Macro Insights

In Indonesia: More Rate Cuts to Spur Recovery After Recent Structural Reform, CrossASEAN Cheif Economist Prasenjit K. Basu discusses Indonesia’s economic outlook. With the current account in surplus in 2H 2020, and inflation below BI’s 2-4% target for 9 months, we expect the policy rate to decline by 50bp over the next half-year, spurring a strong above-consensus rebound to 6.7% real GDP growth. Structural reforms that have made the labor market more flexible and created an equity-funded vehicle to expedite infrastructure investment, will contribute to the economic acceleration, as will the spill-over from 2020’s unspent fiscal stimulus, and this year’s continued fiscal accommodation. 

Equity Bottom Up

In Sea Ltd (SE US) – The Stickiness of Shopee Food, CrossASEAN Insight Provider Angus Mackintosh revisits the company after it launched its food delivery service ShopeeFood in Indonesia.

In Indocement Tunggal Prakarsa (INTP IJ) – Bunkering Down for a Better Year, CrossASEAN insight provider Angus Mackintosh reports back on Indocement Tunggal Prakarsa (INTP IJ) after its FY2020 results and a call with management.

In MNC Vision Networks (IPTV IJ) – SPAC Listing to Realize Value, CrossASEAN Insight Provider Angus Mackintosh takes a look at MNC Vision Networks (IPTV IJ)‘s subsidiary, PT Asia Vision Network (AVN), after it announced that it will merge with Malacca Straits Acquisition Company Limited (NASDAQ: MLAC), a NASDAQ listed SPAC. 

In Adi Sarana Armada (ASSA IJ) – To the Last Mile and Beyond, Angus Mackintosh hosted a webinar with senior management of Adi Sarana Armada (ASSA IJ) that revealed a positive outlook for the business, with expectations of real growth momentum with its last-mile delivery, Anteraja. 

In Airport of Thailand (AOT): Tourists, Come Back., Henry Soediarko revisits Airports of Thailand (AOT TB) after the Thai government announced that quarantine requirements will be waived for vaccinated foreign visitors arriving on the resort island of Phuket from July 1st. 

In RS: Go Big with New Products, Country Group circles back to  RS PCL (RS TB) after the company launched collagen products and laid out its plans for cannabis products.

Credit Insights

In Morning Views Asia: Gajah Tunggal, credit analyst Leonard Law, CFA returns to look at Gajah Tunggal (GJTL IJ) after the company announced that it will issue up to USD270m in notes, following the approval at an EGM held on March 25th, after an earlier failed attempt.

In Jababeka – Earnings Flash – FY 2020 Results provides commentary on Kawasan Industri Jababeka (KIJA IJ) after it released its FY 2020 results. 

Alpha Bites: Monthly Trade Ideas Recap (April 2021)

By Gautam Jain, PhD, CFA

This is the second edition of our monthly trade ideas recap note in which we list our current trade recommendations and discuss whether any need to be closed. We have made a total of 9 trade recommendations so far, of which 6 are in the money.

Before it’s here, it’s on Smartkarma