What You Need to Know Ahead of Grab Q2 Earnings?
$Grab Holdings (GRAB.US)$, a leading Southeast Asian tech conglomerate, continues to redefine the everyday super app landscape. The platform's diverse offerings span from facilitating transportation through ride-hailing to satisfying cravings with food delivery, alongside ventures into e-commerce and a suite of fintech solutions. The company is expected to release Q2 2024 earnings report on 2024/8/15 ET before bell.
As the company's core business, deliveries accounted for over 50% of the revenue in Q1, with mobility close to 40%. The profit growth and contributions of these segments have attracted widespread market attention. According to Moomoo, market expectations for the Q2 2024 financial performance of the company are as follows:
● The company is projected to achieve a revenue of $676.16 million, representing a year-over-year increase of 19.25%.
● Consensus EPS is expected to be-$0.01, a 68.23% decrease in losses.
● The average price target for Grab is $4.67, suggesting a potential increase of 43.25%.
Southeast Asian Tourism Recovery Spurs Grab Business Growth
The tourism industry in Southeast Asia has seen an uptick this year, thanks to a series of convenient measures aimed at stimulating the market. These measures, including expanding visa-free travel, streamlining visa procedures, and enhancing the quality of tourism services, are catalyzing the sector's development and becoming a pivotal element in the region's economic recovery.
Grab is strategically positioned to capitalize on this resurgence, particularly through its investments such as the alliance with online travel agency $Trip.com (TCOM.US)$. This partnership is expected tobe benefit for Grab by tapping into the travel market, especially among Chinese tourists taking advantage of visa-free opportunities.
Robert Sebastian, an analyst at Bahana Sekuritas, notes that Grab currently commands a ride-hailing market share in Southeast Asia that is 3.8 times larger than its nearest competitor. Despite Grab shelving plans to acquire Singapore taxi operator Trans-Cab, the company, along with its Indonesian competitor GoTo, has rekindled talks this year about merging their core businesses. As they vie for dominance in a market teeming with hundreds of millions of consumers, a successful negotiation could potentially ease competitive pressures and fortify Grab's market position.
Strengthening Food Delivery Competitive Edge
In a strategic move to consolidate its market position, Grab made a significant acquisition in July, bringing the restaurant reservation platform Chope under its wing. The details of the transaction remain undisclosed, but the acquisition is set to enhance Grab's operations across Singapore, Indonesia, and Thailand. With Chope's network of 10,000 merchants joining forces with GrabFood's extensive ecosystem, which includes over 200,000 service providers, there is a clear path to amplifying outdoor dining advertising sales.
Furthermore, Grab's expansion in the digital banking sector within Malaysia has led to an increase in loan volumes, providing a boost to its fintech sales. This is anticipated to help Grab normalize the sales in its food delivery arm, while also driving revenue growth across the group.
Analysts Express Optimism About the Company's Outlook
$Barclays (BCS.US)$ has increased its price target for Grab Holdings from $4.30 to $4.70, maintaining an Overweight stance. The firm acknowledges Grab's robust first-quarter results, highlighted by substantial revenue and profits surpassing expectations. Despite Grab's upgraded forecast, Barclays suggests it remains understated.
$Mizuho Financial (MFG.US)$ initiated coverage on Grab Holdings, assigning an Outperform rating and a $5 price target. The analyst sees a promising future for on-demand services in Southeast Asia, citing a vast market potential and underexplored opportunities. Mizuho finds Grab's current valuation appealing.
$Jefferies Financial (JEF.US)$ analyst Thomas Chong has revised the firm's price target for Grab to $4.70 from $5, while continuing to recommend a Buy. Anticipating a steady deliveries margin in Q2 similar to Q1 and a mobility margin at 8.5%—a slight decrease due to strategic reinvestments—Jefferies estimates an adjusted EBITDA of around $63M.
Source: The Fly, Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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CJ8128 : Grab app is widely use in Asia , and it has a digital bank GX Bank, Q2 results will be Good!
Investarr CJ8128 : used
CJ8128 : yes widely used