Grab

[winston]

Delivery and mobility market share gains

GRAB is gaining market share in
(i) Mobility from Gojek in Singapore & Indonesia
(ii) Deliveries from Foodpanda who might even exit few markets in due course

Our revised FY24F/25F adj EBITDA is 8%/5% above consensus mainly due to Deliveries & ad-revenue; not factoring any potential acquisition

Upgrade to BUY with a revised TP of US$4.29 as we see opportunity in its recent share price pull back.

Key catalyst could be potential exit of its competitors

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=16230

[winston]

Delivery and mobility market share gains

GRAB is gaining market share in
(i) Mobility from Gojek in Singapore & Indonesia
(ii) Deliveries from Foodpanda who might even exit few markets in due course

Our revised FY24F/25F adj EBITDA is 8%/5% above consensus mainly due to Deliveries & ad-revenue; not factoring any potential acquisition

Upgrade to BUY with a revised TP of US$4.29 as we see opportunity in its recent share price pull back.

Key catalyst could be potential exit of its competitors

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=16230

[winston]

vested

DBS upgrades Grab to ‘buy’ with higher TP of US$4.29

by Felicia Tan

In the mobility segment, Grab looks poised to gain more market share due to GoTo’s weakness in Singapore and Indonesia.

The new target price is based on 20x enterprise value (EV) to Grab’s FY2024 adjusted ebitda of US$572 million excluding its fintech losses.

Source: The Edge

https://www.theedgesingapore.com/capita ... paign=FREE

[winston]

Grab Holdings
foodpanda up for sale?

Delivery Hero confirmed it is in preliminary talks for a partial sale of its Southeast Asia food delivery business. Grab flagged as a potential suitor.

We think antitrust approval will be the biggest hurdle for Grab, while sale to a deep-pocketed buyer could disrupt the current competitive landscape.

Reiterate Add as we think Grab’s unique system synergies provide it a strong cost advantage against pure-play food delivery players in the region.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 53252E03A1

[winston]

vested

Foodpanda up for grabs
DeliveryHero in talks for partial sale of Foodpanda

Delivery Hero (DHER GR, NR, CP: EUR31.19) confirmed it’s in talks to sell part of Foodpanda in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand.

The discussions are still preliminary and we do not know whether the sale will go ahead.

Sources cited Grab as one of the interested parties and that it could pay more than EUR1b (~SGD1.5b) for the stake.

Foodpanda ranked No.2 by market share in Singapore, Malaysia and the Philippines, and No.3 in Thailand in 2022 with an estimated Southeast Asia GMV of USD3.1b.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/341748.pdf

[winston]

vested

Grab’s 70% tumble shows limits of Singapore’s tech dream

Grab had raised US$12 billion in venture financing before the SPAC deal.

Grab spent US$480 to win a customer, who’d then spend an average of US$29 a year.

In other words, it would take Grab more than 16 years to recoup its money.

Tan controls 63% of Grab’s voting rights while holding only about 3% of its common stock.

Grab remains a substantial business with about 35 million monthly users.

Operating in eight countries and more than 500 cities, it posted revenue of US$1.4 billion last year, and its market value is more than US$13 billion.

Source: Bloomberg

https://www.freemalaysiatoday.com/categ ... -366156373

[winston]

vested

Grab’s search for inorganic growth may be curtailed by anti-competition concerns: Opinion

by Claudia Chong

Grab's potential acquisition of Trans-cab and foodpanda has sparked concerns about regulatory action.

The Straits Times, citing sources, has put the Trans-cab deal at around S$100 million.

Business magazine Wirtschaftswoche said Grab could pay over one billion euros (S$1.46 billion) for the Food Panda acquisition.

Source: Business Times

https://www.singaporelawwatch.sg/Headli ... ns-Opinion

[winston]

vested

Introduces variable commission rate in SG

Grab introduced a dynamic commission structure for its SG drivers to ensure fair compensation, address driver shortage and boost driver acceptance rate.

New fees vary from -10% to 25% of total fare, replacing fixed rate of 20% and long distance pickup bonus of S$3. We see limited impact on its margins.

Grab sees this as a continuation of its strategy of driving profitable growth, and reaffirmed its mobility segment steady-state margin guidance. Add.

TP: US$4.50

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... CA6A0023EB

[winston]

vested

Grab Reports Third Quarter 2023 Results

Revenue grew 61% year-over-year to $615 million

Loss for the period improved by 71% year-over-year to $99 million

Group Adjusted EBITDA grew to $29 million, delivering Grab’s first Adjusted EBITDA profitable quarter

2023 Revenue and Group Adjusted EBITDA outlook raised to $2.31 billion to $2.33 billion and $(20) million to $(25) million, respectively

Source: Yahoo Finance

https://finance.yahoo.com/news/grab-rep ... 00851.html

[winston]

not vested

Singapore's Grab logs first adjusted profit, decade after founding

Superapp operator targets positive free cash flow next year

by TSUBASA SURUGA

Grab Holdings logged its first quarterly profit on an adjusted basis since its founding more than a decade ago, helped by cuts in earnings-draining incentives and stronger demand in ride-hailing and meal deliveries.

Posted a $29 million profit on an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) basis in the July-September quarter, a turnaround from a $161 million loss the same period a year ago.

Achieving positive free cash flow as one of the company's next financial targets, which it expects to reach "somewhere towards the end of next year.

Series of cost-cutting measures including reductions in user incentives and a suspension of most hiring. The company also said in June it was cutting over 1,000 jobs, or 11% of the workforce, the biggest round of layoffs since the COVID-19 pandemic.

Grab has slowed incentive payouts to users and drivers, instead focusing more on loyal customers with higher transactions.

Source: Nikkei

https://asia.nikkei.com/Business/Compan ... r-founding