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

Smartkarma Corporate Webinar | Aneka Gas: Indonesia Gas Industry Leader

Aneka Gas (AGII IJ) - Living and Breathing the Indonesian Economy

Aneka Gas (AGII IJ) - Welding in Production Assets

Aneka Gas - Burning for Infrastructure and Industry - On the Ground in J-Town

Aneka Gas Industri - Welding Its Future - On the Ground in J-Town

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

A catch-up call with <a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas (AGII IJ)</a> to expand on its recent acquisition of assets from its parent Samator Group and update on operations revealed some interesting potential catalysts. 
The acquisition of two industrial gas assets from the parent group we see as positive from both a governance perspective as well as helping to add to future growth, potentially by double digits. 
The transaction was an arms-length one involving the sale of plant and machinery together with ongoing rental agreements which were independently appraised. This provides comfort from a governance perspective given that it was an affiliated transaction.
The strongest growth driver from a segment perspective last year came from the medical gas segment, with stable growth coming from consumer companies and slower growth from manufacturing and infrastructure.
<a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas (AGII IJ)</a> foresees a strong recovery for infrastructure, as the Indonesian government deploys its IDR400tn stimulus, for toll-roads, railways, airports, and ports. 
It should also see a significant recovery in its retail bottles business as the economy continues to open up, which is mainly driven by SMEs and small workshops.
The company is also a beneficiary of the deployment of the COVID-19 vaccine in that it is the largest producer of liquid nitrogen in Indonesia, which is required to keep the vaccine at very low temperatures whilst in transit. 
Management suggests that capex is likely to remain at low levels over the next 2-3 years, as the company sweats its existing assets, especially outside Java. This should enable the company to reduce debt and improve returns.
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<a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas (AGII IJ)</a> trades on 12.8x FY21E EV/EBITDA and 11.1x FY22E EV/EBITDA versus its global peers average of 22.1x forward EV/EBITDA. We would expect earnings upgrades as a result of the recent asset acquisition from its parent but this looks like a re-rating story, which we would buy on weakness. 
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A catch-up call with Aneka Gas (AGII IJ) to expand on its recent acquisition of assets from its parent Samator Group and update on operations revealed some interesting potential catalysts. 
The acquisition of two industrial gas assets from the parent group we see as positive from both a governance perspective as well as helping to add to future growth, potentially by double digits. 
The transaction was an arms-length one involving the sale of plant and machinery together with ongoing rental agreements which were independently appraised. This provides comfort from a governance perspective given that it was an affiliated transaction.
The strongest growth driver from a segment perspective last year came from the medical gas segment, with stable growth coming from consumer companies and slower growth from manufacturing and infrastructure.
Aneka Gas (AGII IJ) foresees a strong recovery for infrastructure, as the Indonesian government deploys its IDR400tn stimulus, for toll-roads, railways, airports, and ports. 
It should also see a significant recovery in its retail bottles business as the economy continues to open up, which is mainly driven by SMEs and small workshops.
The company is also a beneficiary of the deployment of the COVID-19 vaccine in that it is the largest producer of liquid nitrogen in Indonesia, which is required to keep the vaccine at very low temperatures whilst in transit. 
Management suggests that capex is likely to remain at low levels over the next 2-3 years, as the company sweats its existing assets, especially outside Java. This should enable the company to reduce debt and improve returns.

Aneka Gas (AGII IJ) trades on 12.8x FY21E EV/EBITDA and 11.1x FY22E EV/EBITDA versus its global peers average of 22.1x forward EV/EBITDA. We would expect earnings upgrades as a result of the recent asset acquisition from its parent but this looks like a re-rating story, which we would buy on weakness. 


Aneka Gas (AGII IJ) - From Medical Gas to Infrastructure and Retail

Samator Indo Gas

Aneka Gas (AGII IJ) - From Medical Gas to Infrastructure and Retail