In today’s briefing:
- Erajaya Swasembada (ERAA IJ) – Smartphones and Retail in One
- PT Surya Citra Media Tbk (SCMA IJ) – A Vote of Confidence in Vidio
Erajaya Swasembada (ERAA IJ) – Smartphones and Retail in One
- Erajaya‘s 1Q2022 results do not reflect the company’s prospects for FY2022, given the impact of Omicron, the chip shortage, and significant IT upgrades taking place, all of which depressed performance.
- The company is stepping up its outlet expansion this year, with plans to add 400-500 new outlets in an effort to gain market share post-pandemic by expanding its network.
- Erajaya is adding new retail JVs outside its handset and IoT businesses including JD Sports, Wellings Pharmacy, Grand Lucky, and Paris Baguette, jointly managing these JVs.
PT Surya Citra Media Tbk (SCMA IJ) – A Vote of Confidence in Vidio
- The news that PT Surya Citra Media’s digital platform Vidio has raised an additional US$45m from Sinarmas, Grab (GRAB US), and Bali United should be seen as a positive.
- Vidio is Indonesia’s leading OTT platform with 61m subs and 2.5m paying subs forecast to grow to 4m by year-end with Champions League, World Cup, and Original Drama driving demand.
- PT Surya Citra Media looks cheap relative to its holding in Vidio, which is worth 71% of its market cap, and trading at a discount to 5-year average forward PER.
Before it’s here, it’s on Smartkarma
