Grab

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Grab Holdings (GRAB)

The company services a user base in Southeast Asia, including Singapore, Malaysia, Indonesia, the Philippines, and Thailand, among others.

The PIPE in the transaction, at $4 billion, made this one of the largest-ever SPAC transactions.

There are firm grounds for the size of this business combination. Grab recorded $11.5 billion in gross merchandise value for the first 9 months of 2021, with three record quarters in a row.

In the first half of the year, the company’s app completed 1 billion transactions – and more importantly, it is installed on 40% of all active smartphones in Southeast Asia, the world’s most populous region.

Morgan Stanley analyst Mark Goodridge is bullish on Grab, and explain why in clear terms, writing: “Mobility is profitable today at the EBITDA line for Grab, and we forecast Deliveries to reach profitability in 2023. We see these two business lines funding Grab's expansion into Fintech and Digital banking which, in our view, will be long-term growth drivers. This sustained and profitable cash flow is a very strong competitive advantage against other Super App players in the space…”

Looking at the valuation metric, Goodridge adds, "On our estimates Grab is trading on 2023 EV/ MS-adjusted Net Sales multiple adjusted for growth of 11.3x... We view this as attractive particularly with the long-term opportunity around Grab's Fintech business."

To this end, Goodridge puts an Overweight (i.e. Buy) rating on GRAB shares, along with an $8.40 price target that indicates potential for 51% upside in the next 12 months.

While Goodridge is bullish on the stock, Wall Street’s consensus is somewhat more so. The 6 recent reviews are all positive, for a unanimous Strong Buy consensus, while the $10.23 average price target implies a one-year upside of ~84%.

Source: TipRanks

https://finance.yahoo.com/news/analysts ... 04812.html

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Grab loss swells as pandemic hampers ride-hailing demand

by Yoolim Lee & Olivia Poh

Net loss almost doubled to US$1.1 billion for the quarter ended Dec 31. Analysts estimated a loss of 645 million on average.

Revenue declined 44% to US$122 million as Grab spent on driver incentives.

In all of 2021, its loss widened to US$3.4 billion, from US$2.6 billion the previous year.

Gross merchandise value, the sum of transactions across its platforms, totalled US$16.1 billion, compared with its projection of US$15 billion to US$15.5 billion.

Average spend per user — GMV per monthly transaction user — on Grab platform grew 23% in the fourth quarter from a year earlier.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... ing-demand

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Grab Reports Fourth Quarter and Full Year 2021 Results

2021 GMV grew 29% year-over-year ("YoY") to $16.1 billion, and Q4 GMV grew 26% YoY to $4.5 billion

Deliveries continues to outperform with GMV growing 56% YoY in 2021, and 52% YoY in Q4

Mobility on the road to recovery with 45% quarter-over-quarter ("QoQ") GMV growth in Q4

56% of our users are now using two or more Grab services and the average user spend on our platform in 2021 grew 31% year over year.

To launch our digibank in Singapore

Revenue increased by 44% YoY to $675 million off the back of strong growth in deliveries and financial services.

Loss for 2021 was $3.6 billion

Adjusted EBITDA of $(842) million

Cash liquidity1 totalled $9.0 billion at the end of the fourth quarter, while our net Cash liquidity2 was $6.8 billion.

Source: Yahoo Finance

https://finance.yahoo.com/news/grab-rep ... 00664.html

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Grab bungle exposes Malaysia’s folly

By: Kamarul Azhar

Source: Daily Express

http://www.dailyexpress.com.my/read/471 ... a-s-folly/

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Leading Southeast Asia superapp; initiate BUY

Initiate BUY with SOTP TP of USD4.32, offering 30% potential upside.

As a regional superapp with category leadership in ride-hailing, online food delivery and e-wallets, we see Grab as a beneficiary of economic digitisation and rising affluence in Southeast Asia.

We forecast gross merchandise value (GMV)/adj. net revenue CAGR of 27%/31% over 2021-25E, respectively.

We are projecting Grab to deliver adj. EBITDA/PATMI break-even by 2024/25E, respectively.

As regional economies reopen, stronger than expected mobility segment recovery may be a catalyst.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/256839.pdf

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Grab’s digital bank venture to enable local micro-SMEs, gig economy workers

by Ahmad Naqib Idris

GXS Bank Pte Ltd — its digital bank joint venture with Singapore Telecommunications Ltd (Singtel) and Malaysian investors including Kuok Brothers Sdn Bhd.

SMEs are expected to be key beneficiaries of digital banking, pointing out that this segment forms the backbone of the Malaysian economy — representing over 97% of overall business establishments, contributing approximately 38% of national gross domestic product, and employing nearly half of the working population.

GXS Bank will hold a 55.45% stake in the proposed digital bank, which will be led by Lai Pei Si as its chief executive officer. She previously served as managing director and country head of the consumer, private and business banking segments for Standard Chartered in Malaysia.

Source: theedgemarkets.com

https://www.theedgemarkets.com/article/ ... my-workers

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Grab said to be eyeing stake in Malaysia's sixth largest banking group AmBank - report

ANZ has a 21.68 percent stake in AmBank while, Azman, who retired as the banking group’s chairman March-end, owns 11.83 percent stake.

In January, Grab and Singtel have each bought a 16.3 percent stake in PT Bank Fama International from Indonesian conglomerate Elang Mahkota Teknologi Tbk (Emtek). Singtel and Grab were each paying 500 billion rupiah ($35 million) for their individual stakes.

Source: Tech Node

https://technode.global/2022/05/09/grab ... nk-report/

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Grab Holdings Reports Q1 Revenue of $228M, Loss of $435M

Grab expects full-year 2022 YoY growth in Group GMV to be between 30% and 35% and full-year 2022 revenue to be between $1.2 billion and $1.3 billion.

As of March 31, 2022, Grab had cash liquidity of $8.2 billion, a decrease from $9.0 billion as of December 31, 2021 primarily due to net cash outflow from operating activities and the acquisition of Jaya Grocer.

Source: investing.com

https://www.investing.com/news/grab-hol ... SI-2828015

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Superapp Grab has reported a loss of US$435 million ($601 million) in 1QFY2022 ended March, 35% lower than the loss recorded in the previous corresponding quarter at US$666 million ($902 million).

This was attributed to the elimination of non-cash interest expense of Grab’s convertible redeemable preference shares that converted to ordinary shares in December 2021.

This will no longer be incurred going forward, the company said in its results statement.

Revenue in 1QFY2022 stood at US$228 million, a 6% growth y-o-y and 87% growth q-o-q as total incentives in the deliveries segment moderated.

This is also the first quarter that included Jaya Grocer financial results since Grab completed its acquisition of the Malaysian supermarket chain at the end of January this year.

Source: Phillips

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Singapore's Grab to 'taper' incentives in drive for profitability

Superapp firm narrows loss to $435m in Q1 as Southeast Asian economies reopen

Delivery sales rose 70% to $91 million, but mobility revenue dipped 22% to $112 million.

The decline for its mobility business shows that Grab spent heavily on incentives, partly to attract drivers returning from lockdown. Consumer incentives rose 85% to $344 million, while partner incentives climbed 55% to $216 million.

Last year, the company spent over $1 billion on incentives. These heavy investments resulted in the annual loss ballooning to $3.5 billion, from $2.7 billion a year before.

Source: Nikkei Asia

https://asia.nikkei.com/Business/Startu ... fitability