GRABW - Grab: Its Profitability Could Reveal Undervaluation
2024-03-12 16:25:46 ET
Summary
- Southeast Asia offers a compelling investment opportunity often overshadowed by China and India.
- Grab is the dominant "super-app" in Southeast Asia. Its diverse services, market leadership, and strong network effects make it a central player in the region's digital transformation.
- The company managed to grow their financial services and advertising business by more than 100%, and launched the first digital bank in Malaysia.
- Significant cash reserves and a $500 million share buyback program, along with great growth prospects, present a strategic opportunity for investors.
Southeast Asia is a lot of times overlooked by investors, while I think risks are lower compared to China and GDP growth is rivaling that of India. Large manufacturers are diversifying their production locations towards Southeast Asia, like Vietnam or Malaysia, and this should bring better living standards, advanced technology and higher wages to those countries. That is why I am taking a deeper dive into one of the main beneficiaries: Grab Holdings Limited ( GRAB )....
Grab: Its Profitability Could Reveal Undervaluation