ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

AKR Corporindo (AKRA IJ) - Chemically and Industrially Enhanced

The Week That Was in ASEAN@Smartkarma - Sea Ltd & FreeFire, Arwana Citramulia, and CPO's Poor Show

AKRA Corporindo (AKRA IJ) - Front and Centre on Economic Recovery and Commodities

AKR Corporindo (AKRA IJ) - Diesel and Chemical Powered Distributor

AKR Corporindo (AKRA IJ) - Well-Rounded Industrial Recovery Play

AKR Corporindo (AKRA IJ) - Freeport Smelter a Boon for JIIPE

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> reported a 9M2021 Net Profit of IDR797bn, up +20% YoY, driven by revenue growth of +24% YoY to IDR17,250bn, and tight control over operating expenses.  Volumes and prices were positive drivers.</p>
<p>The company delivered strong revenue growth in the Trading &amp; Distribution business segment supported by volume growth, and higher chemical prices.</p>
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<p>Petroleum product volumes saw especially strong volumes reaching one of the highest monthly volume numbers in September on record, mainly driven by demand from mining. </p>
<p>The company's JV with <a href="https://www.smartkarma.com/entities/bp-plc" target="_blank" data-smartkarma-citation="entities:21847:1" rel="noopener">BP PLC (BP/ LN)</a> on filling stations is back to a normalized level. The JV now has 19 gas stations with plans to open another 10 by the end of the year and even more in 2022.</p>
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<p><span data-preserver-spaces="true">The Java Integrated Industrial and Port Estate (JIIPE) was one of the key pillars for <a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a>'s performance for 3Q2021, with r</span><span data-preserver-spaces="true">evenue from industrial land during the 3Q2021 recording  a significant increase of +51.7% YoY.</span></p>
<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> continues to focus on improving operational efficiencies with total G&amp;A expenses down  and selling expenses only seeing growth of +1.8% YoY.</p>
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<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> also expects a positive impact of a rising commodity price cycle, with higher demand for energy and chemicals from its customers.  </p>
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<p><a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" data-smartkarma-citation="entities:13338:1" rel="noopener">AKR Corporindo (AKRA IJ)</a> is trading on 16.9x FY21E PER and 15.0x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective. The company is an interesting proxy to the recovery in the Indonesian economy through its petroleum and chemical distribution, with the additional kicker of its increasingly productive JIIPE industrial estate in Gresik. Analyst expectations continue to look too low for FY21E, making upgrades to earnings another potential catalyst, especially after the positive JIIPE newsflow.</p>
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AKR Corporindo (AKRA IJ) reported a 9M2021 Net Profit of IDR797bn, up +20% YoY, driven by revenue growth of +24% YoY to IDR17,250bn, and tight control over operating expenses.  Volumes and prices were positive drivers.
The company delivered strong revenue growth in the Trading &amp; Distribution business segment supported by volume growth, and higher chemical prices.

Petroleum product volumes saw especially strong volumes reaching one of the highest monthly volume numbers in September on record, mainly driven by demand from mining. 
The company's JV with BP PLC (BP/ LN) on filling stations is back to a normalized level. The JV now has 19 gas stations with plans to open another 10 by the end of the year and even more in 2022.


The Java Integrated Industrial and Port Estate (JIIPE) was one of the key pillars for AKR Corporindo (AKRA IJ)'s performance for 3Q2021, with revenue from industrial land during the 3Q2021 recording  a significant increase of +51.7% YoY.
AKR Corporindo (AKRA IJ) continues to focus on improving operational efficiencies with total G&amp;A expenses down  and selling expenses only seeing growth of +1.8% YoY.


AKR Corporindo (AKRA IJ) also expects a positive impact of a rising commodity price cycle, with higher demand for energy and chemicals from its customers.  

AKR Corporindo (AKRA IJ) is trading on 16.9x FY21E PER and 15.0x FY22E PER versus its 5-year average forward PER of 17.2x, which makes it look attractive from a valuation perspective. The company is an interesting proxy to the recovery in the Indonesian economy through its petroleum and chemical distribution, with the additional kicker of its increasingly productive JIIPE industrial estate in Gresik. Analyst expectations continue to look too low for FY21E, making upgrades to earnings another potential catalyst, especially after the positive JIIPE newsflow.




AKR Corporindo (AKRA IJ) - Chemical and Smelter Driven Growth