Grab

[winston]

Accelerating towards profitability
Acquisition of Trans-Cab to increase fleet size

On 20 Jul 2023, Grab said it acquired Singapore's third-largest taxi operator, Trans-cab Holdings with a fleet of over 2,200 taxis and 300 private-hire vehicles (including its own maintenance workshop and fuel pumps).

This brings GrabRental’s fleet size in Singapore to over 8,000 cars.

The acquisition cost is c.SGD100m and will be accretive on a net income basis to Grab’s business.

The transaction has been approved by the board of directors of both Grab and Trans-cab and is expected to be completed in 4Q23, subject to regulatory approvals.

TP: US$4.00

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/329648.pdf

[winston]

not vested

DBS downgrades Grab to ‘fully valued’ on ‘structural challenges’

by Felicia Tan

Cutting incentives to its drivers and delivery people may mean hurting their supply of providers, which may lead to higher prices for its consumers. That may eventually lead to a slowdown in gross merchandise value (GMV) growth for Grab.

Grab’s third segment, fintech, is also expected to continue making losses, says Mittal, noting that the company expects this particular segment to experience peak losses in FY2023 due to the launch of digibanks in Malaysia and Indonesia.

Source: DBS

https://www.theedgesingapore.com/capita ... challenges

[winston]

not vested

Why Grab CEO Anthony Tan Isn’t Focusing on the Super-App Label

We started as a double bottom line company [meaning success is measured by social outcomes, as well as profit.

Today, we are aiming to be a triple bottom line company [adding environmental outcomes too].

For everything we did, we said, “what's the real social problem we're solving in real society?” That's the social values.

This year, we'll break even.

We are building—still growing—but in a profitable way.

Source: Time

https://time.com/6306331/grab-ceo-antho ... interview/

[winston]

not vested

Grab advances break-even timeline on boost from cost cuts, strong demand

by Yuvraj Malik

It expects $80 million in annualized cost savings from the recent changes, including layoffs.

It now sees adjusted loss before interest, taxes, depreciation and amortization between $30 million and $40 million, compared to its earlier forecast of $195 million to $235 million.

In the quarter ended June 30, the company's revenue increased 77%, to $567 million, surpassing analysts' estimate of $546.1 million.

Source: Reuters

https://finance.yahoo.com/news/1-singap ... 30183.html

[winston]

not vested

Revenue came in at US$567mn, a YoY increase of 77%, buoyed by growth across all segments even as total GMV growth remained fairly slack.

Net losses continued to narrow, improving by 74% YoY to -US$148mn as incentives and corporate costs declined.

The company now sees FY23 Adj. LBITDA of US$30mn-US$40mn, compared to its earlier forecast of US$195mn-US$235mn.

Comments: With its continued focus on optimising spending and improving margins, along with healthy monetisation, there now seems to be a much clearer path to bottom line profitability for Grab, which we believe could happen either towards to later part of 2024 or early part of 2025.

Its recent acquisition of Transcab should also help to further reduce cost to serve and increase its driver supply in Singapore, hopefully improving affordability for customers.

Source: Phillips

[winston]

not vested

Poised to break-even earlier
1H23 beat expectations; adj.EBITDA narrowed

2Q23 revenue of USD567m (+77% YoY) and net loss of USD140m (74% improvement) beat MIBG/street expectations at 57%/55%, respectively, on a narrower adj.EBITDA loss of USD20m (92% YoY improvement) and reduction in share-based compensation expenses.

We lift our FY23-25E adj.EBITDA forecasts as we factor in cost savings from Grab’s recent layoff
exercise and management guidance on a better adj.EBITDA level for FY23E.

We see easing competition with Grab’s dominance of SEA’s ride-hailing market given its logistical edge over rivals, helping it gain share as social restrictions ease further.

Market leadership in online food delivery and continued push to improve unit economics should put Grab on track to adj.EBITDA breakeven by 3QFY23E.

Reiterate BUY with an increased SOTP-based TP of USD4.20 from USD4.0.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/336414.pdf

[winston]

not vested

Sustainable growth is key

We hosted Grab Holdings at our Consumer Virtual Conference yesterday.

Grab is committed to sustainable and profitable growth beyond its adj.

EBITDA breakeven (targeted 3Q23F) amid a healthy competitive landscape.

Beyond continued GMV growth in its two on-demand segments, we see Grab’s ad business shaping up to be its next growth driver. Reiterate Add.

TP: US$4.50

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 42027FDB91

[winston]

not vested

Citi increasingly positive on Grab following sustainable improvement in operations

by Khairani Afifi Noordin

Highlights Grab’s commitment in lowering cost to broaden the affordability of more consumers, driving higher income for the driver-partners and merchant-partners.

More importantly, Grab continues to optimise its operations and invest in product innovation, she adds.

Near-term drivers include return of tourism, especially from Chinese tourists while ongoing efforts include growth into tier-2 and tier-3 cities, rebuild of 4-wheel vehicle products by investing in drivers and vehicles as well as introduction of new products and making mobility affordable to a large majority of consumers.

Citi maintains “buy” on Grab with a target price of US$5.20.

Source: The Edge Singapore

https://www.theedgesingapore.com/capita ... operations

[winston]

not vested

Estimating The Fair Value Of Grab Holdings Limited (NASDAQ:GRAB)

The projected fair value for Grab Holdings is US$3.66 based on 2 Stage Free Cash Flow to Equity

Current share price of US$3.59 suggests Grab Holdings is potentially trading close to its fair value

The US$4.27 analyst price target for GRAB is 17% more than our estimate of fair value

SWOT Analysis for Grab Holdings

Strength
Debt is well covered by earnings.

Weakness
No major weaknesses identified for GRAB.

Opportunity
Forecast to reduce losses next year.
Has sufficient cash runway for more than 3 years based on current free cash flows.
Current share price is below our estimate of fair value.

Threat
Debt is not well covered by operating cash flow.
Not expected to become profitable over the next 3 years.

Source: Simply Wall St

https://finance.yahoo.com/news/estimati ... 39872.html

[winston]

vested

Grab Holdings peels off 8% after Singapore regulator increases focus on ride-hailing services

Grab Holdings Limited (NASDAQ:GRAB) fell in early trading on Wednesday following an announcement that Singapore's Land Transport Authority will investigate the supply of taxi and ride-hailing services as part of a review of the point-to-point industry structure and regulatory framework.

The Land Transport Agency said it wants to improve the stability of point-to-point supply over the course of the day, such as during late-night hours where there are some shortages in the supply of rides.

"As point-to-point services become more important in the daily lives of Singaporeans, operators must be able to provide these services with minimal disruptions and downtime," noted the regulator.

With its second quarter earnings report, Grab Holdings (GRAB) reported revenue rose 77% to $567M. The company's net loss narrowed to $135M from $547M a year ago.

Shares of Grab Holdings (GRAB) were down 8.20% at 9:53 a.m. to erase gains built up over the last three weeks. The ride-haling and food delivery stock is still slightly up for the year. Short interest on GRAB is at 5.12% of the total float.

Source: Seeking Alpha

https://seekingalpha.com/news/4011355-g ... g-services