- As Grab-AGC merger draws near, new insights derived from auditors and SEC's increased scrutiny of SPACs drastically changed our bullish thesis established 5 months ago.
- Grab's top line and bottom line improved in 2021Q1 as a result of increased GMV per user. However, decline in monthly users suggests that growth momentum at risk due to competitions.
- Although competitions are rising, Grab stated at the regions' market penetration stands at only 11%, offering Grab and competitions plenty of headroom to grow.
- Material changes of our thesis sterns from Grab's valuations based on the revised figures in accordance to IFRS. This offers investors little investment value proposition compared to UBER and DIDI.
- 13F filings suggest Grab's valuations did not deter institutional investors. Perhaps AGC's $10 NAV offers investors enough of a safety net to maintain positions.
For further details see:
An IFRS-Updated Complete And Comprehensive Fundamental Analysis Of Grab And AGC