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

Matahari Department Store (LPPF IJ) - Slow Transition to Newness

Matahari Department Store (LPPF IJ) - Uncertain Waters Ahead of Lebaran

Matahari Department Store (LPPF IJ) - Turning Corners

Matahari Department Store (LPPF IJ) - About Turn and Back to the Core

Matahari Department Store (LPPF IJ) - Opportunity Knocks?

Matahari Department Store (LPPF IJ) - New Dawn

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

Matahari Department Store / Equity Bottom-Up

<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> released its 3Q2020 results, which saw some improvement in 3Q2020, with a -41.0% decline in gross sales versus a -57.6% decline for 9M2020.
The 9M2020 results were impacted by the fact that most of the company's stores were closed for a six week period during 2Q2020, with 3Q2020 only seeing minimal closures from the second round of PSBB measures, which have now been relaxed.
SSSG fell by a similar -40.9% during 3Q2020 versus a -57.7% decline for 9M2020, again reflecting the pandemic situation.
<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> booked a negative EBITDA of (IDR37bn) for 3Q2020 and (IDR99bn) for 9M2020, with a net income loss of IDR259bn, with a negative net income margin -13.4% versus +0.8%  for 3Q19.
We do expect a gradual improvement going into 4Q2020, with the company putting a number of positive initiatives in place to help underpin the recovery, including collaboration with a number of market places. 
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<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> valuations look attractive on the face of it, with the company trading on 5.4x and 3.5x PER for FY21E and FY22E respectively, with the company's earnings forecast to recover sharply over the next two years. We would however wait to see a significant pick up in SSSG before becoming more bullish on the outlook. 
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Matahari Department Store (LPPF IJ) released its 3Q2020 results, which saw some improvement in 3Q2020, with a -41.0% decline in gross sales versus a -57.6% decline for 9M2020.
The 9M2020 results were impacted by the fact that most of the company's stores were closed for a six week period during 2Q2020, with 3Q2020 only seeing minimal closures from the second round of PSBB measures, which have now been relaxed.
SSSG fell by a similar -40.9% during 3Q2020 versus a -57.7% decline for 9M2020, again reflecting the pandemic situation.
Matahari Department Store (LPPF IJ) booked a negative EBITDA of (IDR37bn) for 3Q2020 and (IDR99bn) for 9M2020, with a net income loss of IDR259bn, with a negative net income margin -13.4% versus +0.8%  for 3Q19.
We do expect a gradual improvement going into 4Q2020, with the company putting a number of positive initiatives in place to help underpin the recovery, including collaboration with a number of market places. 

Matahari Department Store (LPPF IJ) valuations look attractive on the face of it, with the company trading on 5.4x and 3.5x PER for FY21E and FY22E respectively, with the company's earnings forecast to recover sharply over the next two years. We would however wait to see a significant pick up in SSSG before becoming more bullish on the outlook. 


Matahari Department Store (LPPF IJ) - Too Early to Be Early