Indonesia

• Superapp GoTo has filed for an IPO to list its shares on the Indonesian Stock Exchange to raise US$1.2bn at a market capitalisation of US$25.0bn.
• The company plans to use most of the proceeds on developing its businesses including Gojek, Tokopedia and fintech services.
• Our analysis on the company’s financials suggests the company has been burning cash to grow its business and may not be able to generate any profits in the near future.

• Matahari Department Store’s results marked a turning point in terms of profitability, and this year will see the company back in expansion mode, with a new strategy in place.
• Management is pushing hard to entrench its position in existing categories as well as pushing into new ones, with an omnichannel approach and new partnerships in place. 
• Matahari Department Store has the potential for a re-rating as it regains its place on the winning podium amongst Indonesian retailers in very reasonable valuations.

• Superapp GoTo (1379371D IJ) has filed for an IPO to list its shares on the Indonesian Stock Exchange to raise US$1.1-1.25bn at a valuation of about US$24-26bn.
• The company plans to use the proceeds to develop its business including for customer acquisition, product development and sales and marketing.
• Our SOTP valuation implies that GoTo’s shares are overvalued at the indicative IPO price range.

• GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding ends on 21 March.
• In GoTo Gojek Tokopedia IPO Initiation: Island Shopping, we noted that the fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. 
• Our valuation analysis suggests that the price range is aggressive and unattractive. We would give the IPO a pass. 

• Astra International (ASII IJ) held an informative post-results analyst briefing that provided a glimpse into its future plans, with capex set to double in 2022 with a war chest ready.
• Other than investing in expanding existing businesses and in areas such as EVs, Astra also has a pipeline of deals related to the growing digital ecosystem in Indonesia. 
• Astra International (ASII IJ) is a proxy for the recovery in Indonesia’s economy through cars, motorbikes, and commodities but has an emerging digital and sustainability edge plus reasonable valuations.

• GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. 
• GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
• In this note, we will talk about the company’s valuation.

• GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. 
• GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
• In this note, we talk about the company’s past performance.

• GoTo (1379371D IJ) is offering 52bn shares in its IPO (plus a greenshoe of 7.8bn shares). The issue is being targeted at domestic investors and should list on 4 April.
• GoTo (1379371D IJ) will also look to list on an international exchange within the next two years by selling just over 8% of the company to those investors.
• Inclusion in domestic indices could take place in July, while inclusion in the MSCI and FTSE indices is expected in 2023 at the earliest.

• Indonesia’s leading mass-market bread producer PT Nippon Indosari Corpindo (ROTI IJ) booked a strong set of FY2021, with general trade driving growth, and greater efficiencies enhancing margins and FY2021 growth.
• The company continues to improve its product mix and distribution to cater for more home consumption and also continues to push out into East and West Indonesia geographically.
• Higher wheat prices are a risk but the company has bought forward and will increase prices if needs to be offset higher cost. Valuations are attractive versus history. 

• GoTo (1379371D IJ) is the leading digital ecosystem in Southeast Asia. It seeking to raise up to $1.3 billion. Bookbuilding runs from 15 to 21 March. 
• The fundamentals are mixed as the high growth is accompanied by ongoing losses and cash burn. A credible path to profitability is yet to be established.    
• In an environment where growth-at-all costs tech firms and peers have materially sold-off and are out of favour, GoTo is not for the faint-hearted.   

• GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. The company has filed its prospectus today.
• GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
• In this note, we will take a quick look at the company’s financial performance.

• The Indonesian rupiah has outperformed most EM currencies, particularly other Asian currencies, and has done so with low volatility in contrast with the rising volatility of the EM FX index.
• Looking ahead, headwinds may be appearing with the interest-rate differential working against the currency as the Fed starts raising rates and higher inflation leading to lower real rates.
• While the rise in commodity prices is generating trade surpluses for now, the current account may turn negative from positive with a rise in imports accompanying the economy’s reopening.

• We see 20 potential inclusions to the FTSE All-World and All-Cap indices that will be implemented at the close of trading on 17 June. Most are high probability inclusions.
• LG Energy Solution (373220 KS), Kakao Pay (377300 KS) and Mitratel (MTEL IJ) are the top 3 stocks with the most passive inflows.
• There are a few stocks that will have passive inflows from other index trackers while there are others that have lock-up expiries from now to implementation of the changes.

• The Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and SSE STAR50 (STAR50 INDEX) rebalances were implemented during the week. NIO Inc (9866 HK) started trading in Hong Kong.
• Busy week coming up with the implementation of the KOSDAQ 150 Index, S&P/ASX 200 and the FTSE indices including All-World/All-Cap, China 50, XIN9I INDEX, Taiwan50 and EPRA Nareit.
• The changes to the MVIS Global Junior Gold Miners Index and the MVIS Vietnam Index were announced post market close on 11 March and will be implemented on 18 March.

Japfa Comfeed’s FY 2021 results were better than we had expected, with a strong rebound in Q4 (after COVID-19 lockdowns). The financial risk profile remains stable. That said, cash flows, which can be volatile, were weak. Liquidity has deteriorated, due to a surge in short-term debt to plug the substantial negative FCF.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Logan Property Holdings
2. Shimao Property Holdings
3. Ronshine China Holdings
4. Lenovo
5. Seazen (Formerly Future Land)

and more…

Awaiting for stronger Lebaran in 2Q22F

Solid earnings due to sweet coal prices