China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

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China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>● Grab reported C4Q22 top line 24% higher than our est. and cons., mainly thanks to higher-than-expected net revenue from Deliveries segment. Grab raised its FY23 revenue forecast by ~5%. </li>
<li>Deliveries GMV in C4Q22 missed guidance midpoint by (4%) and slowing GMV growth raises market’s concern. We, however, are positive on Grab’s strategy of improving profitability especially amid macro challenges. </li>
<li>We cut our forecast on FY23 Deliveries GMV by (4%) and raise FY23 total revenue est. by 8%. Maintain BUY and cut TP to US$3.5.</li>
</ul>


● Grab reported C4Q22 top line 24% higher than our est. and cons., mainly thanks to higher-than-expected net revenue from Deliveries segment. Grab raised its FY23 revenue forecast by ~5%. 
Deliveries GMV in C4Q22 missed guidance midpoint by (4%) and slowing GMV growth raises market’s concern. We, however, are positive on Grab’s strategy of improving profitability especially amid macro challenges. 
We cut our forecast on FY23 Deliveries GMV by (4%) and raise FY23 total revenue est. by 8%. Maintain BUY and cut TP to US$3.5.


[Grab Holdings (GRAB US) Target Price Change]: Positive on Profit Growth, Cut TP for Slower GMV