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

Erajaya (ERAA): In-Store Experience to Your Home

Erajaya (ERAA): Beneficiary of WhatsApp and Google Update

Erajaya Swasembada (ERAA IJ) - Better Reception Ahead

Erajaya Swasembada (ERAA IJ) - A Badly Timed Recovery

Erajaya Swasembada (ERAA IJ) - Goodbye Blackmarket

Erajaya Swasembada (ERAA IJ) - Feeding the Digital Economy

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

Indonesia's leading mobile phone retailer <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> recently released a strong set of 1Q2021 results, with sales growth of +39% YoY to IDR10.85tn and net profit growth of +170.9% YoY to IDR278.2bn, with sales driven by cellular phones and tablets, the backbone of <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" rel="noopener">Erajaya Swasembada (ERAA IJ)</a>'s business.
The only area seeing a decrease was the voucher segment, which decreased -28.3% YoY to IDR869.7bn.  This is not surprising given that most of the e-commerce players are now selling mobile phone credit as virtual products, making this space highly competitive.
The new iPhone 12 released at the end of 2020 had a positive impact on the company's 1Q2021 results. In addition, the positive performance was also driven by the new IMEI regulations, which blocks illegal cell phones, strengthening <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" rel="noopener">Erajaya Swasembada (ERAA IJ)</a>'s top line.
<a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> also reported strong sales results during this year's Lebaran holiday period, without any impact from the mudik ban (going back to hometowns).
The company continues to open new sales outlets, opening 36 new outlets in 1Q2021. Apart from opening conventional outlets, <a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> has started to open outlets called Erafone Cloud Retail Partner based on the concept of a partnership with local investors but are still managed and operated by the Erafone team.
<a href="https://www.smartkarma.com/entities/erajaya-swasembada-tbk-pt" target="_blank" data-smartkarma-citation="entities:18869:1" rel="noopener">Erajaya Swasembada (ERAA IJ)</a> remains a very interesting proxy and enabler for the digital economy, as the provider of equipment to fuel the growth and increased activity. The company trades on 11x FY21E PER and 9.4x FY22E PER, versus its 5-year average forward PER of 9.8x but we expect continuing positive growth, which could fuel a re-rating.

Indonesia's leading mobile phone retailer Erajaya Swasembada (ERAA IJ) recently released a strong set of 1Q2021 results, with sales growth of +39% YoY to IDR10.85tn and net profit growth of +170.9% YoY to IDR278.2bn, with sales driven by cellular phones and tablets, the backbone of Erajaya Swasembada (ERAA IJ)'s business.
The only area seeing a decrease was the voucher segment, which decreased -28.3% YoY to IDR869.7bn.  This is not surprising given that most of the e-commerce players are now selling mobile phone credit as virtual products, making this space highly competitive.
The new iPhone 12 released at the end of 2020 had a positive impact on the company's 1Q2021 results. In addition, the positive performance was also driven by the new IMEI regulations, which blocks illegal cell phones, strengthening Erajaya Swasembada (ERAA IJ)'s top line.
Erajaya Swasembada (ERAA IJ) also reported strong sales results during this year's Lebaran holiday period, without any impact from the mudik ban (going back to hometowns).
The company continues to open new sales outlets, opening 36 new outlets in 1Q2021. Apart from opening conventional outlets, Erajaya Swasembada (ERAA IJ) has started to open outlets called Erafone Cloud Retail Partner based on the concept of a partnership with local investors but are still managed and operated by the Erafone team.
Erajaya Swasembada (ERAA IJ) remains a very interesting proxy and enabler for the digital economy, as the provider of equipment to fuel the growth and increased activity. The company trades on 11x FY21E PER and 9.4x FY22E PER, versus its 5-year average forward PER of 9.8x but we expect continuing positive growth, which could fuel a re-rating.
  

Erajaya Swasembada (ERAA IJ) - The Empire Strikes Back