Grab

[winston]

not vested

Strengthening foundation for future growth

Grab’s 4Q23 revenue and adj. EBITDA came in line; but GMV growth was softer vs. Bloomberg consensus on weaker Deliveries GMV growth.

Positives:
1) growth of advertising business,
2) higher Deliveries mid-term margin guidance,
3) launch of US$500m share repurchase programme.

Negative: FY24F guidance appears conservative, in our view.

Reiterate Add on Grab’s strong execution and healthy competitive landscape in ASEAN.

TP: US$4.30

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... F6EF78AD28

[winston]

not vested

Riding the tourism wave

Grab’s 1Q24 GMV (+3% qoq, 19% yoy) and adj. EBITDA (+77% qoq) beat estimates, showing sequential growth despite the weaker seasonality.

Grab looks to capitalise on the regional tourism recovery given tourists’ high propensity to spend across its offerings (ride-hailing, food and delivery).

Grab lifted its FY24F adj. EBITDA guidance to US$250m-270m and expects 240bp upside to its Deliveries margin in the medium term. Stay Add.

TP: US$4.30

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... e001e3cacf

[winston]

not vested

Explosive growth prospects over the next 2-years

1Q24 group adj. EBITDA of USD62mn was up 77% q/q, beating consensus’ USD39mn, on cost controls and mobility segment’s performance

Raises FY24F group adj. EBITDA guidance to USD250-270mn (prev USD180-200mn), 24% above consensus.

Our revised FY24F projection is 12% ahead of guidance assuming seasonal strength in 2H24F

Maintain BUY with a higher TP of USD4.50 (prev USD4.08) on upward revision in adj. EBITDA

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=19643

[winston]

not vested

Monetization hurdles;
Downgrade to HOLD
Downgrade to non-consensus HOLD; Trim TP to USD4

We downgrade Grab to a non-consensus HOLD and lower our TP by 11% to USD4.0.

While the structural growth drivers are in place and Grab has a scale advantage, we see mild growth headwinds and monetization pausing.

This is owing to:
1) take-rates are already in line-high vs global peers;
2) rising cost/inflation pressures weighing on consumers’ discretionary spending and driver-partners’ take-home earnings are noncompetitive.

We also see risk of a slight flare-up in competitive intensity with a better capitalized Gojek and XanhSM’s entry into multiple markets.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/387330.pdf

[winston]

not vested

Grab Reports Second Quarter 2024 Results

Revenue grew 17% year-over-year, or 23% on a constant currency basis to $664 million

On-Demand GMV grew 13% year-over-year, or 18% on a constant currency basis to $4.4 billion

Operating Loss improved by $121 million year-over-year to $(56) million

Adjusted EBITDA improved by $81 million year-over-year to $64 million

Source: Globe Newswire

https://finance.yahoo.com/news/grab-rep ... 00265.html

[winston]

vested

Grab on Thursday (Aug 15) posted a loss of US$53 million for the second quarter ended Jun 30, trimmed from a US$135 million loss in the corresponding year-ago period.

Revenue for the three months was US$664 million, rising 17 per cent on-year from US$567 million, driven by growth across all segments.

The group’s adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) reversed into the black at US$64 million, from a loss before interest, taxes, depreciation, and amortisation of US$17 million.

This comes as the technology group continues to grow on-demand gross merchandise value (GMV) and revenue, while improving profitability on a segment-adjusted Ebitda basis and lowering regional corporate costs.

Source: Phillips

[winston]

The bad and the good; maintain HOLD

Trim TP to USD3.50 (from USD3.70), Maintain HOLD

We trim our Grab TP to USD3.50 (from USD3.70) on a lower on-demand EV/GMV multiple of 0.40x (from 0.43x previously) – 20% discount to the global peer average.

In 2Q24, Grab posted on-demand GMV/revenue growth of 13%/17% YoY which came -2% to -5% below street expectations.

Grab’s new initiatives, particularly to grow the affordable segments resulted in a dip in on-demand adj.

EBITDA margins while incentives expand.

Following 2Q delivery, we tweak our estimates and maintain our non-consensus HOLD.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/400236.pdf

[winston]

Analysts Rate This $4 Stock a ‘Strong Buy’ with 29% Upside Potential

Analyst Consensus: As per TipRanks Analytics, based on 13 Wall Street analysts offering 12-month price targets for GRAB in the last 3 months, the stock has an average price target of $4.89, which is nearly 29% upside from current levels.

Source: Trades of the Day

https://dailytradealert.com/2024/09/26/ ... potential/

[winston]

not vested

Singapore's Grab Holdings raised its forecast for fiscal 2024 revenue on Monday, as it anticipates robust growth in its food delivery and ride-hailing businesses.

The company expects revenue in the range of $2.76 billion to $2.78 billion, compared with its prior projection of between $2.70 billion and $2.75 billion.

Its mainstay food delivery business has been recovering from a post-pandemic slump in demand as consumers increase their discretionary spending budgets in a sign of economic easing.

It reported third-quarter revenue of $716 million, exceeding Visible Alpha estimates of $700.8 million.

Source: Phillips

[winston]

not vested

Grab boosts forecast after quarterly earnings top estimates

By Olivia Poh

Third-quarter revenue rose 17% to US$716 million.

Source: Bloomberg

https://theedgemalaysia.com/node/733578