ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

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

Private Capital Markets

GoTo Gojek Tokopedia Tbk PT / Private Capital Markets

<a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> just had a vote of confidence in its digital financial strategy, with GIC (Singapore's Sovereign Wealth Fund) revealing that it will invest in <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a>, where Gojek recently increased its own stake to 22.16%. 
GIC will invest around US$225m to acquire circa 9% stake in <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a> through a rights issue to take place in March.
The Indonesian bank is already in the process of transforming itself into a digital bank but bringing in GIC as a shareholder will bring comfort in terms of governance of the bank, as well as obviously bringing new funds.
<a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a> will secure IDR7tn or US$497.3m through the issuance of new shares, increasing its total capital to IDR8tn or US$564.4m.
The potential customer base for <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a> will be even larger assuming the Gojek-Tokopedia merger goes through, opening up Tokopedia's customers and sellers as potential customers. 
<a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> is not standing still on digital finance in Indonesia and has recently acquired a local bank Bank BKE, which has been renamed SeaBank, which we also discuss below. <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a> probably represents the most serious potential competitive threat for <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a>.
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Valuations for the merged <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia PT (1087142D IJ)</a> have crept up to US$35bn-US$40bn and no doubt an early success with <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a> will help it command a higher multiple on the listing of the combined entity. 
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Gojek (1379371D IJ) just had a vote of confidence in its digital financial strategy, with GIC (Singapore's Sovereign Wealth Fund) revealing that it will invest in Bank Jago Tbk PT (ARTO IJ), where Gojek recently increased its own stake to 22.16%. 
GIC will invest around US$225m to acquire circa 9% stake in Bank Jago Tbk PT (ARTO IJ) through a rights issue to take place in March.
The Indonesian bank is already in the process of transforming itself into a digital bank but bringing in GIC as a shareholder will bring comfort in terms of governance of the bank, as well as obviously bringing new funds.
Bank Jago Tbk PT (ARTO IJ) will secure IDR7tn or US$497.3m through the issuance of new shares, increasing its total capital to IDR8tn or US$564.4m.
The potential customer base for Bank Jago Tbk PT (ARTO IJ) will be even larger assuming the Gojek-Tokopedia merger goes through, opening up Tokopedia's customers and sellers as potential customers. 
Sea Ltd (SE US) is not standing still on digital finance in Indonesia and has recently acquired a local bank Bank BKE, which has been renamed SeaBank, which we also discuss below. Sea Ltd (SE US) probably represents the most serious potential competitive threat for Bank Jago Tbk PT (ARTO IJ).

Valuations for the merged Gojek (1379371D IJ) and Tokopedia PT (1087142D IJ) have crept up to US$35bn-US$40bn and no doubt an early success with Bank Jago Tbk PT (ARTO IJ) will help it command a higher multiple on the listing of the combined entity. 


Gojek (1379371D IJ) - A Leg Up for Digital Finance?

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

DoorDash is one of our highest conviction shorts for 2021. It has a massively unprofitable business model with unstable market share that must be protected through unlimited spending. We think this is a $60-70 stock eventually.

DoorDash is one of our highest conviction shorts for 2021. It has a massively unprofitable business model with unstable market share that must be protected through unlimited spending. We think this is a $60-70 stock eventually.

Telco/Internet specialist

Kirk Boodry

Redex Research

Softbank Group shares fell 5% which seems like an outsize move relative to the overall markets (TOPIX -2%, NASDAQ -0.5%) but that does come off a record low discount (-16%). And whilst that has expanded to 20% it remains far better than the 27% discount when the company reported Q3 results on 8 Feb. One big difference is the Coupang IPO filing which implies at least $10bn in upside for Vision Fund based on aspirational pricing. If tech sentiment decidedly turns, the lost potential is probably as relevant for Softbank shares as today’s absolute downside for Vision Fund (-$1bn) and Alibaba (-2%, ~$2bn).

Softbank Group shares fell 5% which seems like an outsize move relative to the overall markets (TOPIX -2%, NASDAQ -0.5%) but that does come off a record low discount (-16%). And whilst that has expanded to 20% it remains far better than the 27% discount when the company reported Q3 results on 8 Feb. One big difference is the Coupang IPO filing which implies at least $10bn in upside for Vision Fund based on aspirational pricing. If tech sentiment decidedly turns, the lost potential is probably as relevant for Softbank shares as today’s absolute downside for Vision Fund (-$1bn) and Alibaba (-2%, ~$2bn).

Softbank Group: Jitters in a Frothy Market

Technology augmented investing

Lazarus Goh

Augmenting fundamental investing with technology

Open Diligence

We aim to a) increase the efficacy of investment processes with technology and b) utilize alternative data to gain an additional perspective on equity names

Thematic (Sector/Industry)

We programmatically scanned through all company filings in the US to find companies that have exposure to the autonomous driving thematic play. The output is 45 companies that have varying relevance across the autonomous driving value chain.

We programmatically scanned through all company filings in the US to find companies that have exposure to the autonomous driving thematic play. The output is 45 companies that have varying relevance across the autonomous driving value chain.

"Autonomous Driving" Thematic Exposure and Where to Find Them (Autos)

As expected, the IPO of DoorDash and a recovery in sentiment for Uber drove huge gains for Vision Fund in Q3 as that investment segment came roaring back. The asset management business, which handles proceeds from asset sales, posted less impressive results however with another quarter of close to $3bn (¥285bn) in losses from derivative trading. Softbank reiterated today that it is an investment company and bright talk on Vision Fund 2 probably means that has more to with new ideas and less with its own shares or a “slow-burn” MBO. Investors bidding up shares to a new 21-year high before the report after the market close were probably looking for more.

As expected, the IPO of DoorDash and a recovery in sentiment for Uber drove huge gains for Vision Fund in Q3 as that investment segment came roaring back. The asset management business, which handles proceeds from asset sales, posted less impressive results however with another quarter of close to $3bn (¥285bn) in losses from derivative trading. Softbank reiterated today that it is an investment company and bright talk on Vision Fund 2 probably means that has more to with new ideas and less with its own shares or a “slow-burn” MBO. Investors bidding up shares to a new 21-year high before the report after the market close were probably looking for more.    

Softbank Group Q3 20 Results: Well-Flagged VF Gains but Derivative Losses Remain a Drag

United States

Uber Technologies Inc provides ride hailing services. The Company develops applications for road transportation, navigation, ride sharing, and payment processing solutions. Uber Technologies serves customers worldwide.

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Uber Technologies (UBER US)

Gojek (1379371D IJ) - A Leg Up for Digital Finance?

The move by GIC to invest in Bank Jago represents a vote of confidence in Gojek's digital financial strategy and places it ahead of its competitors...

Angus Mackintosh

DoorDash: Run for the Exits

DoorDash is one of our top short picks for 2021. We think the earnings implosion is just the start as it fails to comp its outrageously fortunate...

Aaron Gabin

Softbank Group: Jitters in a Frothy Market

Tech jitters hit Softbank shares which dropped 5% v -1% for NASDAQ. We think the gap is partially explained by the Coupang IPO and low visibility...

Kirk Boodry

"Autonomous Driving" Thematic Exposure and Where to Find Them (Autos)

Which companies have exposure to the autonomous driving value chain? We programmatically scanned through US annual reports and found 45 US...

Lazarus Goh

Softbank Group Q3 20 Results: Well-Flagged VF Gains but Derivative Losses Remain a Drag

Softbank posted robust profits thanks to Vision Fund gains from DoorDash and Uber but public market investments lost money again after another...

Kirk Boodry

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