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

PT Surya Citra Media Tbk (SCMA IJ) - Playing Catch Up WIth a Digital Twist

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PT Surya Citra Media Tbk (SCMA IJ) - Let the Games Begin

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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

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<a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> has announced that it intends to seek approval for A stock split at its AGM on 14th December, the normal reason for which is to improve liquidity in the shares by making a company more accessible for retail investors. We see this as a potential precursor to further corporate actions along the line, involving some form of group restructuring, and this gives the company a more liquid currency to do this.
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This may involve some form of reorganization within the group, which holds its media assets under <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-stringify-link="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" data-sk="tooltip_parent" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ)</a> but a number of other digital economy assets under <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-stringify-link="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" data-sk="tooltip_parent" rel="noopener">Emtek (EMTK IJ)</a> including a stake in e-commerce player Bukalapak and leading digital payments company Dana (a 50/50 JV with Ant Financial (<a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>).
<a href="https://www.smartkarma.com/entities/microsoft-corp" target="_blank" data-stringify-link="https://www.smartkarma.com/entities/microsoft-corp" data-sk="tooltip_parent" rel="noopener">Microsoft Corp (MSFT US)</a> has recently announced it will invest US$100m into Bukalapak, which is now valued at US$3bn.
Looking at the valuation of <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-stringify-link="https://www.smartkarma.com/entities/sea-ltd" data-sk="tooltip_parent" rel="noopener">Sea Ltd (SE US),</a> which is trading on 13x EV/Sales, it is highly likely the <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-stringify-link="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" data-sk="tooltip_parent" rel="noopener">Emtek (EMTK IJ)</a> can command a higher valuation if it becomes more accessible, given there are no other ways to get listed exposure to Indonesia's booming e-commerce.
<a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a> currently trades on 4.6x FY20E EV/Sales.  Investors are likely to pay a premium for access to a liquid <a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener">Emtek (EMTK IJ)</a>, with a strong mix of cash-generating media assets and high growth digital assets.  
We also continue to like <a href="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" target="_blank" data-stringify-link="https://www.smartkarma.com/entities/surya-citra-media-pt-tbk" data-sk="tooltip_parent" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ),</a> as Indonesia's top media player with an increasingly digital twist through <a href="http://vidio.com/" target="_blank" data-stringify-link="http://Vidio.com" data-sk="tooltip_parent" rel="noopener">Vidio.com</a>. Please see <a href="https://www.smartkarma.com/insights/pt-surya-citra-media-tbk-scma-ij-let-the-games-begin" target="_blank" data-stringify-link="https://www.smartkarma.com/insights/pt-surya-citra-media-tbk-scma-ij-let-the-games-begin" data-sk="tooltip_parent" rel="noopener">PT Surya Citra Media Tbk (SCMA IJ) - Let the Games Begin</a> for more details.


Emtek (EMTK IJ) has announced that it intends to seek approval for A stock split at its AGM on 14th December, the normal reason for which is to improve liquidity in the shares by making a company more accessible for retail investors. We see this as a potential precursor to further corporate actions along the line, involving some form of group restructuring, and this gives the company a more liquid currency to do this.

This may involve some form of reorganization within the group, which holds its media assets under PT Surya Citra Media Tbk (SCMA IJ) but a number of other digital economy assets under Emtek (EMTK IJ) including a stake in e-commerce player Bukalapak and leading digital payments company Dana (a 50/50 JV with Ant Financial (Alibaba Group (BABA US)).
Microsoft Corp (MSFT US) has recently announced it will invest US$100m into Bukalapak, which is now valued at US$3bn.
Looking at the valuation of Sea Ltd (SE US), which is trading on 13x EV/Sales, it is highly likely the Emtek (EMTK IJ) can command a higher valuation if it becomes more accessible, given there are no other ways to get listed exposure to Indonesia's booming e-commerce.
Emtek (EMTK IJ) currently trades on 4.6x FY20E EV/Sales.  Investors are likely to pay a premium for access to a liquid Emtek (EMTK IJ), with a strong mix of cash-generating media assets and high growth digital assets.  
We also continue to like PT Surya Citra Media Tbk (SCMA IJ), as Indonesia's top media player with an increasingly digital twist through Vidio.com. Please see PT Surya Citra Media Tbk (SCMA IJ) - Let the Games Begin for more details.

Emtek (EMTK IJ) - Arise a New Champion of Indonesia Tech?