Grab

[winston]

vested

Grab dives after concerns mount over slowing growth

Shares fell more than 8% as it shifted strategies from expansion to profitability.

Source: Bloomberg

Evercore ISI analyst Mark Mahaney wrote that Grab’s focus on profitability indicates a “meaningful” deceleration in segment gross merchandise value growth from 20%-plus to single digits.

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

[winston]

vested

Accelerating towards profitability
A confluence of drivers in FY23E; upgrade to BUY

U/G to BUY from HOLD with a higher TP of USD3.80 (from USD3.40) as Grab could potentially to return to profit sooner than expected as competition has eased and there’s a confluence of drivers.

FY22 net loss of USD1.74b (51% improvement) was narrower than MIBG and street estimates at
98%/92% respectively, mainly due to narrower adj.EBITDA loss (USD 793m, +6% YoY) and elimination of the non-cash interest expense of Grab’s convertible redeemable preference shares.

We raise our FY23-FY25 revenue forecast by 5-15%, as its GMV is showing resiliency (+11% YoY)
despite scaling back on subsidies offered to driver-partners and consumers.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/305227.pdf

[winston]

vested

Grab’s profitability push enthralls analysts but befuddled investors aren’t biting

by Benjamin Cher

Losses narrowed by more than half, and the target date for adjusted earnings before interest, depreciation and amortisation (Ebitda) breakeven was brought forward by six months to Q4 FY2023.

19 out of 26 analysts surveyed have “buy” recommendations on Grab.

Grab’s adjusted Ebitda metric does not take into account certain costs, including stock-based compensation expenses.

Source: Business Times

https://www.businesstimes.com.sg/opinio ... ent-biting

[winston]

vested

Grab Holdings Retires $600 Million in 2026 Debt With Extra Cash

Completed the transaction last week, bringing its debt under an outstanding term loan to $517 million. Grab also has about $200 million in other bank debt.

Would bring forward its goal to break even to the fourth quarter of 2023, from the second half of 2024.

Targeting losses for adjusted earnings before interest, tax, depreciation and amortization of between $275 million and $325 million for 2023, compared with an adjusted ebitda loss of $793 million in 2022.

It reported a loss for the year of $1.74 billion, down from $3.55 billion at the end of 2021.

The company’s net cash holdings is at $5.1 billion at the end of December.

Source: Bloomberg

https://finance.yahoo.com/news/grab-hol ... 30526.html

[winston]

vested

Grab finance chief reduces stake through US$1.1m share sale

by Yoolim Lee

Oey and affiliated person Eve Oey sold 341,202 shares at an average price of US$3.17 on Feb 28

Source: Bloomberg

https://www.theedgemarkets.com/node/658515

[winston]

vested

GRAB on track to profitability ?

Grab Holdings Ltd (GRAB) announced its Q4FY22 earnings result with better-than-expected revenue and profitability.

Grab reported revenue of US$502 million, which jumped +310% in the fourth quarter of 2022. Full-year revenue was US$1.43 billion, up +112% from the previous year.

The company’s Q4 loss narrowed 64%, reach to US$391 million from US$1.1 billion a year earlier.

Grab has shifted its business strategies to focus on achieving profitability rather than investing in growth. Grab plans to reduce subsidies, this coincides with the acceleration of its breakeven schedule, which should reflect the next step to increase long-term EBITDA margins further.

Analysts view its increasing profitability as an important driver of long term sustainable growth. Thus, analysts believe the pullback provides an attractive opportunity, given that Grab is already at its long-term EBITDA margin targets and should surpass them beyond 2023.

Grab has provided guidance for FY23 group revenue of US$2.2-2.3 billion. The EBITDA loss of US$326 million. Grab would benefit from reopening could materialize for other mobility platforms. Analysts also retain a favourable view of Grab’s leading super-app platform and its longer-term prospects.

Our Rakuten Trade Ideas also recommended Grab during this period. The latest recommendation share price for Grab on that day was US$3.09 (current price US$3.21 means +3.88% gains).

The share price of Grab has fallen -41.85% year-to-date (1-year), and the last traded price was US$3.21.

Bloomberg consensus rating has 19 Buys, 4 Holds, and 3 Sells with a 12-month target price of US$4.24

Sources: Rakuten, Morningstar, Bloomberg, Grab, J.P.Morgan

[winston]

not vested

Grab Holdings
Driving quality growth

We think Grab could report another EBITDA beat vs. consensus in 1Q23F, as an easing competitive landscape enables further reduction in incentive levels.

Read-through from peers suggests margin upside for the deliveries segment; mobility segment GMV continues to recover well, aided by tourism recovery.

We see room for Grab to lower its FY23F EBITDA loss guidance on the back of its solid execution in 1Q. Reiterate Add and SOP-based TP of US$4.50.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... CBF5848B6F

[winston]

Grab's soft delivery sales overshadow improving bottomline

Total platform sales at Grab's delivery business - its biggest - fell 9% in the March quarter due to the early start of the Ramadan fasting period and the first Chinese New Year without mobility restrictions since the pandemic.

Revenue at the rideshare business - Grab's second-largest - rose 72% to $194 million in the March quarter but it missed the $195.2 million consensus estimate, according to Visible Alpha.

Grab posted a smaller adjusted operating loss of $66 million in the period, compared with a year-ago loss of $287 million.

Source: Reuters

https://finance.yahoo.com/news/grab-bea ... 43358.html

[winston]

not vested

Grab Reports First Quarter 2023 Results

Q1 2023 Revenue grew 130% year-over-year to $525 million1

Q1 2023 Loss for the period improved by 43% year-over-year to $250 million

Q1 2023 Adjusted EBITDA improved by 77% year-over-year to $(66) million, with Deliveries Segment Adjusted EBITDA margins at an all time high

Our net cash liquidity6 was $5.0 billion at the end of the first quarter, compared to $5.1 billion at the end of the prior quarter.

Source: Business Wire

https://finance.yahoo.com/news/grab-rep ... 00412.html

[winston]

vested

Singapore's Grab cuts losses in Q1 as tourism demand returns

Reported a $250 million net loss for the January-March quarter, narrowing 43% from a $435 million loss for the year-ago period.

Group revenue totaled $525 million, up 130% on the year.

Grab's core ride-hailing business rose 72% to $194 million.

Airport rides rose 133% on the year and 7% quarter-on-quarter, with "ample room to recover further," as the company said it is still at only 69% of the pre-pandemic level.

Grab maintained its outlook to break even on a group level in the final quarter this year on an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) basis.

Grab's revenue for deliveries totaled $275 million, up 203%. But this was mainly due to the purchase of Malaysian high-end supermarket chain Jaya Grocer.

GrabUnlimited, its monthly subscription program. During the January-March quarter, Grab said, these users accounted for over one-quarter of deliveries and spent 270% more than non-subscribers.

Source: Nikkei Asia

https://asia.nikkei.com/Business/Techno ... nd-returns