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

The Week That Was in ASEAN@Smartkarma - Indonesia's COVID Gamble, Industrial Gas, and Bukalapak

Bukalapak - Leading the Unicorn Charge - Buy Emtek

The Week That Was in ASEAN@Smartkarma - SEA Digital IPOs, Bukalapak, and Bangkok Bank

Emtek (EMTK IJ) - Bukalapak Eyeing a SPAC Listing But Jakarta May Be First?

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

Sea Ltd (SE US) - The Stickiness of Shopee Food

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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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<p>After the failed attempt to merge with <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek</a> and the decision to take the SPAC route to market in the US, <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab (0967655D SP)</a> has now reportedly taken a 4% stake in local digital and media powerhouse, <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>. It seems unlikely that this is purely a strategic stake and points the way toward future collaboration potentially in a number of areas.</p>
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<p><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> remains a very interesting locally listed alternative to play digital media, e-commerce, and digital payments under one roof, with aspirations to emulate the success of  <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>.<a href="https://www.smartkarma.com/entities/elang-mahkota-teknologi-tbk" target="_blank" data-smartkarma-citation="entities:7752:1" rel="noopener"></a></p>
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<p>In another related and interesting turn, Bukalapak, which is Indonesia's 3rd largest e-commerce firm 35% owned by <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 raised an undisclosed sum from BRI Ventures, the venture capital arm of <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia (BBRI IJ)</a>. </p>
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<p>Bukalapak claims that it now has around 13.5m MSMEs on its platform and over 100m users on its online to offline (O20) platform. </p>
<p>The merged <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ)</a> and <a href="https://www.smartkarma.com/entities/tokopedia-pt" target="_blank" data-smartkarma-citation="entities:24239:1" rel="noopener">Tokopedia PT (1087142D IJ)</a> entity to be named "GoTo" will be a formidable competitor for <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a>, a risk not highlighted enough in the seeming euphoria around the <a href="https://www.smartkarma.com/entities/grabtaxi-holdings-pte-ltd" target="_blank" data-smartkarma-citation="entities:26950:1" rel="noopener">Grab</a> SPAC listing.</p>
<p>Another significant risk to Grab comes from recently launched ShopeeFood in Indonesia, which will directly impact Grab's (and Gojek's) food delivery business in Indonesia.</p>
<p>From a SotP point of view for <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>, it is difficult to get much beyond a US$4bn valuation but there are those arguing that it should be valued along the same lines as <a href="https://www.smartkarma.com/entities/sea-ltd" target="_blank" data-smartkarma-citation="entities:8509:1" rel="noopener">Sea Ltd (SE US)</a>, which would suggest potential significant upside from here.</p>
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After the failed attempt to merge with Gojek and the decision to take the SPAC route to market in the US, Grab (0967655D SP) has now reportedly taken a 4% stake in local digital and media powerhouse, Emtek (EMTK IJ). It seems unlikely that this is purely a strategic stake and points the way toward future collaboration potentially in a number of areas.

Emtek (EMTK IJ) remains a very interesting locally listed alternative to play digital media, e-commerce, and digital payments under one roof, with aspirations to emulate the success of  Sea Ltd (SE US).

In another related and interesting turn, Bukalapak, which is Indonesia's 3rd largest e-commerce firm 35% owned by Emtek (EMTK IJ) has raised an undisclosed sum from BRI Ventures, the venture capital arm of Bank Rakyat Indonesia (BBRI IJ). 

Bukalapak claims that it now has around 13.5m MSMEs on its platform and over 100m users on its online to offline (O20) platform. 
The merged Gojek (1379371D IJ) and Tokopedia PT (1087142D IJ) entity to be named "GoTo" will be a formidable competitor for Grab, a risk not highlighted enough in the seeming euphoria around the Grab SPAC listing.
Another significant risk to Grab comes from recently launched ShopeeFood in Indonesia, which will directly impact Grab's (and Gojek's) food delivery business in Indonesia.
From a SotP point of view for Emtek (EMTK IJ), it is difficult to get much beyond a US$4bn valuation but there are those arguing that it should be valued along the same lines as Sea Ltd (SE US), which would suggest potential significant upside from here.









Emtek (EMTK IJ) - The Indonesian Digital Game of Thrones