In today’s briefing:
- Bukalapak (BUKA IJ) – A Virtuous Circle to Profitability
- Adi Sarana Armada (ASSA IJ) – A Circular Route to Success
Bukalapak (BUKA IJ) – A Virtuous Circle to Profitability
- Bukalapak continues to demonstrate the effectiveness of circular nature of its business model in 2Q2023, with demand from its O2O business fueling growth in its marketplace, creating a flywheel effect.
- Although TPV growth slowed slightly in 2Q2023, revenues saw much stronger growth, especially its marketplace business, which booked much higher take-rates driven by its specialty verticals, including gaming and gadgets.
- Bukalapak will continue to benefit from expanding take rates as specialty, such as AlloFresh feed in more SKUs and new verticals gain traction. Valuations remain attractive on 0.85x FY2023E EV/Sales.
Adi Sarana Armada (ASSA IJ) – A Circular Route to Success
- Adi Sarana Armada remains an interesting way to play the used car theme in Indonesia with its leading car leasing business fuelling used car sales.
- The company continues developing its logistics capabilities, thrusting towards B2B and value-added cold chain logistics. Anteraja has slowed along with e-commerce but is more focused on profitability.
- Adi Sarana Armada continues to benefit from synergies across its vehicle ecosystem through leasing, auction and used cars. Valuations are attractive with the company trading on 11x forward PER.
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