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

CrossASEAN Indonesia Strategy - The Stars Are Aligned

Ciputra Development (CTRA IJ) - Primed for the Recovery

The Week That Was in ASEAN@Smartkarma - Indonesia's Rich Media, Mitratel, and Malaysian Banks

Matahari Department Store (LPPF IJ) - Too Early to Be Early

Matahari Department Store (LPPF IJ) - Slow Transition to Newness

Matahari Department Store (LPPF IJ) - Uncertain Waters Ahead of Lebaran

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

Matahari Department Store / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> released its 2Q2021 results after market yesterday, which revealed a significant turnaround in the business, with the company returning to profitability both on EBITDA and net profit.</p><p>Management managed to navigate a tricky Lebaran holiday season successfully despite mudik bans and reduced operating hours,  flushing out most of its discontinued brands with only a little leftover in inventory, leading to healthier gross margins. </p><p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> continued to make good progress in key operational areas with its store enhancement work in progress, along with a re-organization of operating regions, more focused use of capex and continuing rationalization of underperforming stores.</p><p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener"></a>The company has a new merchandising team in place with a focus on modernizing the mix of products with a focus on in-house brands such as Coles, Nevada, and Connexion.</p><section class="figure"></section><p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> continues to collaborate with <a href="https://www.smartkarma.com/entities/bank-nationalnobu-tbk-pt" target="_blank" data-smartkarma-citation="entities:17016:1" rel="noopener">Bank Nationalnobu (NOBU IJ)</a> and has seen a +59%  increase in the value of its investment since November 2020. We see this as a potentially positive collaboration but would not want to see any more significant capital commitments to the bank. </p><p>The company has seen a significant strengthening of its balance sheet for 1H2021, with <a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> now debt-free and in a net cash position.</p><p> No doubt there will be some disruption from Emergency PPKM measures in July and August but the performance in 2Q2021 has put the company on course for a strong recovery toward the end of the year, with a much healthier stores portfolio, with new stores added trading well with strong profitability.</p><section class="figure"></section><section class="figure"></section><section class="figure"></section><section class="figure"></section><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"></figure></section><div>
<p><a href="https://www.smartkarma.com/entities/pt-matahari-department-store" target="_blank" data-smartkarma-citation="entities:5230:1" rel="noopener">Matahari Department Store (LPPF IJ)</a> looks like it has finally turned the corner after a strong performance over the Lebaran quarter and this turnaround has come slightly earlier than expected. </p>
<p>Valuations look attractive versus history with the company trading on 9.7x FY22E PER and 6.5x FY22E PER versus its 5-year average forward PER of 12x, making the company an attractive prospect in light of its turnaround.</p>
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Matahari Department Store (LPPF IJ) released its 2Q2021 results after market yesterday, which revealed a significant turnaround in the business, with the company returning to profitability both on EBITDA and net profit.Management managed to navigate a tricky Lebaran holiday season successfully despite mudik bans and reduced operating hours,  flushing out most of its discontinued brands with only a little leftover in inventory, leading to healthier gross margins. Matahari Department Store (LPPF IJ) continued to make good progress in key operational areas with its store enhancement work in progress, along with a re-organization of operating regions, more focused use of capex and continuing rationalization of underperforming stores.The company has a new merchandising team in place with a focus on modernizing the mix of products with a focus on in-house brands such as Coles, Nevada, and Connexion.Matahari Department Store (LPPF IJ) continues to collaborate with Bank Nationalnobu (NOBU IJ) and has seen a +59%  increase in the value of its investment since November 2020. We see this as a potentially positive collaboration but would not want to see any more significant capital commitments to the bank. The company has seen a significant strengthening of its balance sheet for 1H2021, with Matahari Department Store (LPPF IJ) now debt-free and in a net cash position. No doubt there will be some disruption from Emergency PPKM measures in July and August but the performance in 2Q2021 has put the company on course for a strong recovery toward the end of the year, with a much healthier stores portfolio, with new stores added trading well with strong profitability.
Matahari Department Store (LPPF IJ) looks like it has finally turned the corner after a strong performance over the Lebaran quarter and this turnaround has come slightly earlier than expected. 
Valuations look attractive versus history with the company trading on 9.7x FY22E PER and 6.5x FY22E PER versus its 5-year average forward PER of 12x, making the company an attractive prospect in light of its turnaround.




Matahari Department Store (LPPF IJ) - Turning Corners