ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

The Week That Was in ASEAN@Smartkarma - Thai Consumers, Indonesian Multifinance, and Digital Moves

AKR Corporindo (AKRA IJ) - Freeport Smelter a Boon for JIIPE

The Week That Was in ASEAN@Smartkarma - Grab on the Go, Monde Nissin, and Online Groceries

AKR Corporindo (AKRA IJ) - Great Omnibus Expectations

AKR Corporindo (AKRA IJ) - Diesel and Chemical Powered Distributor

AKR Corporindo (AKRA IJ) - The Landed Logistics Player

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/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> has just reported very strong financial performance in 2020, despite the backdrop of COVID,  with Net Profit up +30% YoY despite revenues declining as the company reduced costs significantly.    </p>
<p>The company's revenues continued to be driven by petroleum distribution and chemical distribution, with the former seeing better performance in 2020.</p>
<p>Mining volumes have been impacted in 1Q2021 by heaving rains and flooding but 2Q2021 should see a recovery with the tailwind of the higher coal price with double-digit growth expected in 2021.</p>
<p>The chemicals business should also see a strong recovery in 2021, with management expecting a recovery back to 2019 levels.</p>
<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a>'s retail JV with <a href="https://www.smartkarma.com/entities/bp-plc" target="_blank" data-smartkarma-citation="entities:21847:1" rel="noopener">BP PLC (BP/ LN)</a> is about to pick up momentum, with plans to sharply increase the number of outlets in 2021.</p>
<p>The company's Java Integrated Industrial and Port Estate (JIIPE) performed well last year and management is guiding for a further increase in industrial plot sales in 2021, with demand coming from a variety of different sectors.</p>
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<p>The company remains one of the few good quality industrial plays in Indonesia with exposure to a wide array of industries from mining to textiles to FMCG. </p>
<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> is trading on 13.7x FY21E PER and 12.6x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective. We see the potential for analyst upgrades to provide a further catalyst. </p>
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AKR Corporindo (AKRA IJ) has just reported very strong financial performance in 2020, despite the backdrop of COVID,  with Net Profit up +30% YoY despite revenues declining as the company reduced costs significantly.    
The company's revenues continued to be driven by petroleum distribution and chemical distribution, with the former seeing better performance in 2020.
Mining volumes have been impacted in 1Q2021 by heaving rains and flooding but 2Q2021 should see a recovery with the tailwind of the higher coal price with double-digit growth expected in 2021.
The chemicals business should also see a strong recovery in 2021, with management expecting a recovery back to 2019 levels.
AKR Corporindo (AKRA IJ)'s retail JV with BP PLC (BP/ LN) is about to pick up momentum, with plans to sharply increase the number of outlets in 2021.
The company's Java Integrated Industrial and Port Estate (JIIPE) performed well last year and management is guiding for a further increase in industrial plot sales in 2021, with demand coming from a variety of different sectors.


The company remains one of the few good quality industrial plays in Indonesia with exposure to a wide array of industries from mining to textiles to FMCG. 
AKR Corporindo (AKRA IJ) is trading on 13.7x FY21E PER and 12.6x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective. We see the potential for analyst upgrades to provide a further catalyst. 



AKR Corporindo (AKRA IJ) - Well-Rounded Industrial Recovery Play