ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

I traveled to the <a href="https://www.smartkarma.com/entities/19482" target="_blank" data-smartkarma-citation="entities:19482:1">Blue Bird Tbk Pt (BIRD IJ)</a> office on a GO-JEK (motorcycle taxi)  to avoid the morning traffic but had a longer and more colorful journey than I bargained for but that is another story. The meeting with management revealed an air of newfound confidence, as the company has started its "transformation program", following a spell at the company by Boston Consulting. It left the company with no less than a 60 point program to execute on. The company intends to focus on better utilization of its fleet across not just taxis but also buses and leased vehicles. It has tied up with GO-JEK (on GO-CAR) to further plug into the App based market. It does have its own very well established Blue Bird App.It is expanding its shared on-demand bus service, providing more shuttle buses from the suburbs to central Jakarta for office workers and this will be embedded within the App. This will lead to better utilization of its bus fleet. Buses yield higher margins than regular taxis.It will also extend the use of its mini-bus fleet, which is mostly used to bus kids to International Schools to weekends under the Jalan Jalan service to take people to local tourist attractions such as Jungleland. It will also stretch this to a three-day trip to Jogjakarta at a cost of &lt;Rp1m for a package,  including accommodation.  New regulations coming into force from 1st April this year, in the form of a decree from the Department of Transport, will introduce a new set of rules to govern on-line taxis. The new rules will strike a blow at the segment and work to the advantage of Blue Bird.There is no doubt about the quality of the Blue Bird brand but issues such as competition from the On-line players and difficulties hiring drivers have clouded the picture. The company has grasped the nettle and dealt with these issues, with a focus on improving utilization of the fleet, through its tie-up with GO-JEK on GO-CAR. It will also be a beneficiary of the new regulations governing On-line taxis. According to Bloomberg consensus, the company is trading on 14.8x PER for FY17E and 13.1x for FY18E, with forecast EPS growth of +12% for FY17E and +9.5% for FY18E. The company has net gearing of around 30% but this is likely to fall to mid teens over the next two years.

I traveled to the Blue Bird Tbk Pt (BIRD IJ) office on a GO-JEK (motorcycle taxi)  to avoid the morning traffic but had a longer and more colorful journey than I bargained for but that is another story. The meeting with management revealed an air of newfound confidence, as the company has started its "transformation program", following a spell at the company by Boston Consulting. It left the company with no less than a 60 point program to execute on. The company intends to focus on better utilization of its fleet across not just taxis but also buses and leased vehicles. It has tied up with GO-JEK (on GO-CAR) to further plug into the App based market. It does have its own very well established Blue Bird App.It is expanding its shared on-demand bus service, providing more shuttle buses from the suburbs to central Jakarta for office workers and this will be embedded within the App. This will lead to better utilization of its bus fleet. Buses yield higher margins than regular taxis.It will also extend the use of its mini-bus fleet, which is mostly used to bus kids to International Schools to weekends under the Jalan Jalan service to take people to local tourist attractions such as Jungleland. It will also stretch this to a three-day trip to Jogjakarta at a cost of &lt;Rp1m for a package,  including accommodation.  New regulations coming into force from 1st April this year, in the form of a decree from the Department of Transport, will introduce a new set of rules to govern on-line taxis. The new rules will strike a blow at the segment and work to the advantage of Blue Bird.There is no doubt about the quality of the Blue Bird brand but issues such as competition from the On-line players and difficulties hiring drivers have clouded the picture. The company has grasped the nettle and dealt with these issues, with a focus on improving utilization of the fleet, through its tie-up with GO-JEK on GO-CAR. It will also be a beneficiary of the new regulations governing On-line taxis. According to Bloomberg consensus, the company is trading on 14.8x PER for FY17E and 13.1x for FY18E, with forecast EPS growth of +12% for FY17E and +9.5% for FY18E. The company has net gearing of around 30% but this is likely to fall to mid teens over the next two years. 

Blue Bird - Floating Higher on Transformation - On the Ground on J-Town

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

The recent rate cut by Bank Indonesia at its policy meeting on 16th June is expected to provide some support to domestic demand in the months ahead. The benchmark rate now stands at 6.50%. With inflation expected to stay within Bank Indonesia’s target range of 3% to 5% in the near term, having edged lower to 3.3% y-o-y in May, growth concerns were clearly the dominant driver for the recent move.Credit growth in Indonesia has continued to slow, with lending by commercial banks having risen 8.0%…

The recent rate cut by Bank Indonesia at its policy meeting on 16th June is expected to provide some support to domestic demand in the months ahead. The benchmark rate now stands at 6.50%. With inflation expected to stay within Bank Indonesia’s target range of 3% to 5% in the near term, having edged lower to 3.3% y-o-y in May, growth concerns were clearly the dominant driver for the recent move.Credit growth in Indonesia has continued to slow, with lending by commercial banks having risen 8.0%…

Indonesia: Bank Indonesia May Have Room to Cut Rates Further

Bespoke Research on China and neighbouring regions, Bixmoor

Bixmoor

Bespoke Research on China and neighbouring regions

Bixmoor specialises in providing bespoke research to business, governments and the financial community on China and neighbouring regions. We seek to build long-term relationships with our clients, based on our expertise, our reliability and our determination to find the right solution.

Thematic (Sector/Industry)

Foreign direct investment into Indonesia continues to arrive, but there are issues in relation to radical Islam, labor constraints and corruption. If the new government of President Widodo can resolve some of these, even larger capital inflows can be expected.

Foreign direct investment into Indonesia continues to arrive, but there are issues in relation to radical Islam, labor constraints and corruption. If the new government of President Widodo can resolve some of these, even larger capital inflows can be expected.

FDI into Indonesia on a Roll, but Reforms Needed

Indonesia

PT Express Transindo Utama Tbk is a taxi operator in Indonesia.

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Express Transindo Utama Tbk (TAXI IJ)

Blue Bird - Floating Higher on Transformation - On the Ground on J-Town

I traveled to the Blue Bird Tbk Pt (BIRD IJ) office on a GO-JEK (motorcycle taxi) to avoid the morning traffic but had a longer and more colorful...

Angus Mackintosh

Indonesia: Bank Indonesia May Have Room to Cut Rates Further

The recent rate cut by Bank Indonesia at its policy meeting on 16th June is expected to provide some support to domestic demand in the months...

Rajan Govil

FDI into Indonesia on a Roll, but Reforms Needed

Foreign direct investment into Indonesia continues to arrive, but there are issues in relation to radical Islam, labor constraints and corruption....

Bixmoor

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