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 - Digital Festive Cheer, Sea Ltd Going Financial, and KEX

Erajaya (ERAA): Lack of Short Term Catalyst but March on Long Term

Erajaya Swasembada (ERAA IJ) - The Empire Strikes Back

Erajaya Swasembada (ERAA IJ) - A Badly Timed Recovery

Erajaya Swasembada (ERAA IJ) - Goodbye Blackmarket

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

A conversation with <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ),</a> Indonesia's leading handset retailer and distributor after it released its recent results, revealed a positive picture, with sales from July onwards above pre-COVID-19 levels. 
The company has employed new initiatives to get handsets to customers including online sales but also catalog sales, which have proved very successful given the delivery and set up by front-line staff.
<a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> has continued to expand its outlets throughout the pandemic, albeit at a slower pace, opening a total of 103 outlets but mainly for principals in mono-brand formats.
Volumes have fallen but ASPs have risen this year, with consumers continuing to switch from feature phones to smartphones, as well as through the strong performance of premium products. 
The company has also seen strong performance of its tablets and laptops as well as IoT devices, which are all linked to the need to work and school from home, and a healthier lifestyle. 
New model launches have only seen slight delays due to the pandemic and the iPhone 12 will launch on 18th December, with pre-orders already open and providing a welcome finish to 2020. 
The company has reduced its gearing and improved its working capital over the pandemic period, providing a stable base for recovery. 
<a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> trades on 12.5x FY21E PER and 9.5x FY22E PER, with forecast EPS growth of +35% and +27% for FY21E and FY22E respectively, making it look like an attractive consumer proxy.

A conversation with Erajaya Swasembada (ERAA IJ), Indonesia's leading handset retailer and distributor after it released its recent results, revealed a positive picture, with sales from July onwards above pre-COVID-19 levels. 
The company has employed new initiatives to get handsets to customers including online sales but also catalog sales, which have proved very successful given the delivery and set up by front-line staff.
Erajaya Swasembada (ERAA IJ) has continued to expand its outlets throughout the pandemic, albeit at a slower pace, opening a total of 103 outlets but mainly for principals in mono-brand formats.
Volumes have fallen but ASPs have risen this year, with consumers continuing to switch from feature phones to smartphones, as well as through the strong performance of premium products. 
The company has also seen strong performance of its tablets and laptops as well as IoT devices, which are all linked to the need to work and school from home, and a healthier lifestyle. 
New model launches have only seen slight delays due to the pandemic and the iPhone 12 will launch on 18th December, with pre-orders already open and providing a welcome finish to 2020. 
The company has reduced its gearing and improved its working capital over the pandemic period, providing a stable base for recovery. 
Erajaya Swasembada (ERAA IJ) trades on 12.5x FY21E PER and 9.5x FY22E PER, with forecast EPS growth of +35% and +27% for FY21E and FY22E respectively, making it look like an attractive consumer proxy.

Erajaya Swasembada (ERAA IJ) - Feeding the Digital Economy