Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Equity Bottom-Up

<p>Covid-19 has proven to be a bane to MCAS’s margins even as 1H21 revenue met c.50% of FY21E expectations of IDR12,620bn. 1H21 core NPAT formed ~28% of our FY forecasts on lower-than-expected operating margin of 0.9% (FY21E: 1.6%). We forecast ops margin to recover to 2-4% from FY22E onwards and we remain bullish on MCAS’s continued network expansion and integration with partners’ ecosystems. We rollover our valuation to 1.1x FY22E EV/Sales, raising our TP to IDR17,820/share. Reiterate BUY.</p>

Covid-19 has proven to be a bane to MCAS’s margins even as 1H21 revenue met c.50% of FY21E expectations of IDR12,620bn. 1H21 core NPAT formed ~28% of our FY forecasts on lower-than-expected operating margin of 0.9% (FY21E: 1.6%). We forecast ops margin to recover to 2-4% from FY22E onwards and we remain bullish on MCAS’s continued network expansion and integration with partners’ ecosystems. We rollover our valuation to 1.1x FY22E EV/Sales, raising our TP to IDR17,820/share. Reiterate BUY.

M Cash Integrasi PT

SCCM | PT M Cash Integrasi Tbk (MCAS IJ)