In today’s briefing:
- Bukalapak (BUKA IJ) – Increasing Clarity with a Focus on Category Leadership
- Ace Hardware Indonesia (ACES IJ) – Back on an Expansion Tack
Bukalapak (BUKA IJ) – Increasing Clarity with a Focus on Category Leadership
- Bukalapak’s (BUKA IJ) results saw very strong growth from its Mitra Business, with a much slower marketplace but we see the latter picking up as its specialty strategy is developed.
- The launch of both Allo Bank Indonesia and Allo Fresh over the next two quarters should provide some excitement, whilst its gaming marketplace Itemku is already profitable.
- Take rates should improve in 2022 as Bukalapak (BUKA IJ) offers a broadening array of services across its Mitra and marketplace verticals. Valuations look attractive versus peers.
Ace Hardware Indonesia (ACES IJ) – Back on an Expansion Tack
- Ace Hardware Indonesia (ACES IJ) recently released its FY2021 results which reflected the intermittent lockdowns on the top line but cost controls meant the bottom line finish almost flat.
- The company benefitted from its regional diversity during the pandemic as not all cities were affected in the same way but its exposure to malls is quite high.
- Ace Hardware will resume its expansion plans in 2022 with plans for 15 new stores plus it will be a big beneficiary of easing mobility, given low online sales.
Before it’s here, it’s on Smartkarma
