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

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a> held its AGM this week, which effectively repeated the messages from its 1Q2022 results including guidance for FY2022 but there is more excitement beneath the headline numbers.</li>
<li>One key metric tracked by management is the contribution margin, which is moving towards positive territory put take rates will improve for both Mitra and through its specialty store strategy. </li>
<li>AlloFresh has launched and is testing the offline line efficiencies before being applied to Mitra partners and AlloBank has also started its digital journey. <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak</a> looks cheap. </li>
</ul>



Bukalapak (BUKA IJ) held its AGM this week, which effectively repeated the messages from its 1Q2022 results including guidance for FY2022 but there is more excitement beneath the headline numbers.
One key metric tracked by management is the contribution margin, which is moving towards positive territory put take rates will improve for both Mitra and through its specialty store strategy. 
AlloFresh has launched and is testing the offline line efficiencies before being applied to Mitra partners and AlloBank has also started its digital journey. Bukalapak looks cheap. 


Bukalapak (BUKA IJ) - Track the Execution Not the Headlines

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<li>
<a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri (BMRI IJ)</a> is executing well on its move to shift its focus toward higher-yielding assets in commercial, Micro, and SME segments and also high-quality corporate loans.</li>
<li>The company has seen the cost of funds continue to decline as it picks up new savings accounts through its Livin' app, helping to improve NIMs and returns.</li>
<li>
<a href="https://www.smartkarma.com/entities/bank-mandiri-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:441:1" rel="noopener">Bank Mandiri (BMRI IJ)</a>'s cost of credit continues to fall, with declining provisions also helping to improve profitability, and with ROEs hitting multi-year highs while valuations remain attractive.</li>
</ul>



Bank Mandiri (BMRI IJ) is executing well on its move to shift its focus toward higher-yielding assets in commercial, Micro, and SME segments and also high-quality corporate loans.
The company has seen the cost of funds continue to decline as it picks up new savings accounts through its Livin' app, helping to improve NIMs and returns.

Bank Mandiri (BMRI IJ)'s cost of credit continues to fall, with declining provisions also helping to improve profitability, and with ROEs hitting multi-year highs while valuations remain attractive.


Bank Mandiri (BMRI IJ) - Upping the Ante on Returns

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

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<li>The six Indonesian banks have strong capital adequacy ratios, healthy credit quality and good NPL coverage; also, GDP recovery supports positive cost of risk trends and the bank earnings outlook</li>
<li>We believe that Bank Mandiri screens best, with its attractive pre-provision profitability and steadily improving cost of risk, whilst trading on undemanding multiples versus peers; we also like Bank Rakyat</li>
<li>We see Bank Permata as a potential “turn around” stock, especially if management can improve credit quality, and keep lowering its cost of risk to boost returns</li>
</ul>


The six Indonesian banks have strong capital adequacy ratios, healthy credit quality and good NPL coverage; also, GDP recovery supports positive cost of risk trends and the bank earnings outlook
We believe that Bank Mandiri screens best, with its attractive pre-provision profitability and steadily improving cost of risk, whilst trading on undemanding multiples versus peers; we also like Bank Rakyat
We see Bank Permata as a potential “turn around” stock, especially if management can improve credit quality, and keep lowering its cost of risk to boost returns


Indonesian Banks Screener; Bank Mandiri Is Our Top Pick

Bank Negara Indonesia Persero / Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> released a solid set of 1Q2022 results, with new loan bookings improving to pre-pandemic levels, strong non-interest income, and improving credit costs.</li>
<li>The bank continues to pursue a multi-pronged digital strategy, with strong growth in mobile banking which now surpasses ATMs on transactions plus the launch of Bank Mayora digital bank.</li>
<li>
<a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> has already seen some upward re-rating since the last results but this can continue as its digital strategy bites and loan growth and NIMs improve.</li>
</ul>



Bank Negara Indonesia (BBNI IJ) released a solid set of 1Q2022 results, with new loan bookings improving to pre-pandemic levels, strong non-interest income, and improving credit costs.
The bank continues to pursue a multi-pronged digital strategy, with strong growth in mobile banking which now surpasses ATMs on transactions plus the launch of Bank Mayora digital bank.

Bank Negara Indonesia (BBNI IJ) has already seen some upward re-rating since the last results but this can continue as its digital strategy bites and loan growth and NIMs improve.


Bank Negara Indonesia (BBNI IJ) - Let the Re-Rating Continue

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<li>
<a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> released its 1Q2022 this week, reflecting an ongoing recovery and the bank's strong positioning to take advantage, with new lending picking up strongly.</li>
<li>The bank is seeing strong growth in CASA driven by its lead in transactional banking and digital initiatives, with its CASA ratio hitting 80% by the end of 2022. </li>
<li>Credit costs are also forecast to fall further this year, which will provide an additional boost to profitability. It trades at a premium to peers but generates consistent returns.</li>
</ul>



Bank Central Asia (BBCA IJ) released its 1Q2022 this week, reflecting an ongoing recovery and the bank's strong positioning to take advantage, with new lending picking up strongly.
The bank is seeing strong growth in CASA driven by its lead in transactional banking and digital initiatives, with its CASA ratio hitting 80% by the end of 2022. 
Credit costs are also forecast to fall further this year, which will provide an additional boost to profitability. It trades at a premium to peers but generates consistent returns.


Bank Central Asia (BBCA IJ) - Leading in Transactional Banking and Returns

Indonesia

PT Bank Rakyat Indonesia (Persero) Tbk provides commercial banking activities and its related services. The Bank also provides banking activities based on shariah principles.

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Bank Rakyat Indonesia (BBRI IJ)

Bukalapak (BUKA IJ) - Track the Execution Not the Headlines

Bukalapak held its AGM this week, which effectively repeated the messages from its 1Q2022 results including guidance for FY2022 but there is a lot...

Angus Mackintosh

Bank Mandiri (BMRI IJ) - Upping the Ante on Returns

Bank Mandiri (BMRI IJ) continues to improve profitability as its increases exposure to higher-yielding assets, with ROEs hitting multi-year highs,...

Angus Mackintosh

Indonesian Banks Screener; Bank Mandiri Is Our Top Pick

We pick Bank Mandiri for its attractive value to growth metrics and, within its bank peer group, its attractive pre-provision profitability and...

Victor Galliano

Bank Negara Indonesia (BBNI IJ) - Let the Re-Rating Continue

Bank Negara Indonesia (BBNI IJ) has already seen some upward re-rating since the last results but this can continue as its digital strategy bites...

Angus Mackintosh

Bank Central Asia (BBCA IJ) - Leading in Transactional Banking and Returns

Bank Central Asia remains the best quality bank in Indonesia, with consistently high returns and strong risk management culture, with a convincing...

Angus Mackintosh

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