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/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> booked a solid set of 1H2024 results driven by the availability of affordable handsets, with volumes driving growth despite lower prices. </li>
<li>The company's Erablue consumer electronics JV with <a href="https://www.smartkarma.com/entities/mobile-world-investment-corporation" target="_blank" data-smartkarma-citation="entities:22638:1" rel="noopener">Mobile World Investment (MWG VN)</a> now has 61 outlets and is set to break even in 2024, with 80 stores expected by year-end. </li>
<li>The other growth drivers will come from private-label accessories and its Grand Lucky supermarket expansion. Valuations look attractive will the company trading on a 6x forward PER multiple.</li>
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Erajaya Swasembada (ERAA IJ) booked a solid set of 1H2024 results driven by the availability of affordable handsets, with volumes driving growth despite lower prices. 
The company's Erablue consumer electronics JV with Mobile World Investment (MWG VN) now has 61 outlets and is set to break even in 2024, with 80 stores expected by year-end. 
The other growth drivers will come from private-label accessories and its Grand Lucky supermarket expansion. Valuations look attractive will the company trading on a 6x forward PER multiple.


Erajaya Swasembada (ERAA IJ) - Affordability Rocks

External broker reports(aggregated public sources), MNC Sekuritas

MNC Sekuritas

External broker reports(aggregated public sources)

MNC Sekuritas, the first wholly-owned subsidiary established by the Group back in 1989, provides a complete range of services, from equity, fixed income, investment banking to providing research to optimize clients’ investments. Thus far, the company has more than 140 points of sales with over 100,000 clients. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>ERAA released its 2Q24 results, with revenue reaching IDR16.5 tn, slightly down by -1.1% QoQ but surging by +16.8% YoY (vs IDR14.1 tn in 2Q23).</li><li>This brought its 1H24 revenue to IDR33.1 tn, or rose by +14.6% YoY, which was in-line with our/cons. estimates, reaching 49.2%/51.3% of FY24E targets.</li><li>On an annual basis, the computer and electronic devices segment led growth by +40.7% YoY, followed by accessories and others at +20.0% YoY, and cellular phones and tablets at +16.1% YoY. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ERAA released its 2Q24 results, with revenue reaching IDR16.5 tn, slightly down by -1.1% QoQ but surging by +16.8% YoY (vs IDR14.1 tn in 2Q23).This brought its 1H24 revenue to IDR33.1 tn, or rose by +14.6% YoY, which was in-line with our/cons. estimates, reaching 49.2%/51.3% of FY24E targets.On an annual basis, the computer and electronic devices segment led growth by +40.7% YoY, followed by accessories and others at +20.0% YoY, and cellular phones and tablets at +16.1% YoY. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PT Erajaya Swasembada Tbk (ERAA IJ) - Handset Volume On-Track

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<li>
<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> is back on track with its handset business, with stronger volume growth driven by more affordable models from Infinix and Techno brands.</li>
<li>The company's buildout of its electrical retailer Erablue, a JV with <a href="https://www.smartkarma.com/entities/mobile-world-investment-corporation" target="_blank" data-smartkarma-citation="entities:22638:1" rel="noopener">Mobile World</a>, is gaining momentum and should become a significant growth driver along with Grand Lucky supermarket.</li>
<li>
<a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya</a> will slow its store buildout this year as it focuses on productivity ny it still expected to add 200 new stores over in Indonesia. Valuation is attractive.</li>
</ul>



Erajaya Swasembada (ERAA IJ) is back on track with its handset business, with stronger volume growth driven by more affordable models from Infinix and Techno brands.
The company's buildout of its electrical retailer Erablue, a JV with Mobile World, is gaining momentum and should become a significant growth driver along with Grand Lucky supermarket.

Erajaya will slow its store buildout this year as it focuses on productivity ny it still expected to add 200 new stores over in Indonesia. Valuation is attractive.


Erajaya Swasembada (ERAA IJ) - Less New Stores with Higher Volumes

<ul><li>ERAA started FY24E on a positive note, with 1Q24 revenue rising by +12.6% YoY to IDR16.6 tn (vs IDR14.8 tn in 1Q23).</li><li>1Q24 net profit climbed by +8.4% YoY to IDR255.3 bn (vs IDR235.5 bn in 1Q23), with PAT increasing by +14.8% YoY.</li><li>NPM remained stable at 1.5% (vs 1.6% in 1Q23), despite higher OPEX/revenue of 8.3% (vs 7.8% in 1Q23).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ERAA started FY24E on a positive note, with 1Q24 revenue rising by +12.6% YoY to IDR16.6 tn (vs IDR14.8 tn in 1Q23).1Q24 net profit climbed by +8.4% YoY to IDR255.3 bn (vs IDR235.5 bn in 1Q23), with PAT increasing by +14.8% YoY.NPM remained stable at 1.5% (vs 1.6% in 1Q23), despite higher OPEX/revenue of 8.3% (vs 7.8% in 1Q23).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ERAA IJ - MNC Sekuritas Equity Report May 29, 2024

<ul><li>ERAA started FY24E on a positive note, with 1Q24 revenue rising by +12.6% YoY to IDR16.6 tn (vs IDR14.8 tn in 1Q23).</li><li>This is in-line with our/cons. forecast, implying 24.8% and 25.8% of the FY24E target, respectively.</li><li>Almost all segments contributed to the revenue increase, with the cellular phones and tablet segment growing by +13.4% YoY, while the computer and electronic devices segment rose by +47.8% YoY, and accessories and others advanced by +14.6% YoY.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ERAA started FY24E on a positive note, with 1Q24 revenue rising by +12.6% YoY to IDR16.6 tn (vs IDR14.8 tn in 1Q23).This is in-line with our/cons. forecast, implying 24.8% and 25.8% of the FY24E target, respectively.Almost all segments contributed to the revenue increase, with the cellular phones and tablet segment growing by +13.4% YoY, while the computer and electronic devices segment rose by +47.8% YoY, and accessories and others advanced by +14.6% YoY.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

PT Erajaya Swasembada Tbk (ERAA IJ) - Poised to Enjoy Handset Volume Growth

Indonesia

PT Erajaya Swasembada Tbk distributes and retails cellular telephones.  The Company is licensed to distribute international brands of cell phones, and operates a chain of retail shops in Indonesia.

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Erajaya Swasembada (ERAA IJ)