KONTAN.CO.ID – PT Adi Sarana Armada Tbk (ASSA), a publicly listed company operating in the mobility, logistics, and supporting services sectors, successfully recorded a 159% quarter-on-quarter (QoQ) increase in net profit to IDR 38.5 billion. This achievement was supported by a significant improvement in the performance of its transportation services business, Anteraja, which posted a sharp 62% QoQ increase in operating profit, compared to an operating loss of IDR 91.7 billion in Q4 2022.

Anteraja’s operating expenses declined by 7.5% QoQ to IDR 82.9 billion, while its cost of revenue was significantly reduced by 28% QoQ to IDR 374.9 billion in Q1 2023.

On the other hand, ASSA has prepared a strong cash and cash equivalents position amounting to IDR 811.9 billion to anticipate business conditions in 2023 and to ensure sustainable business growth.

Overall, the majority of ASSA’s business segments continued to record growth. The vehicle rental segment posted an 11% year-on-year (YoY) revenue increase to IDR 445.9 billion in Q1 2023. The auction business recorded a 20% YoY increase to IDR 38.6 billion. Meanwhile, the logistics segment reported a 38% YoY increase in total revenue to IDR 57.7 billion from external customer sales in Q1 2023.

ASSA also recorded a 29% YoY decline in cost of revenue in Q1 2023 to IDR 848.7 billion. General and administrative expenses decreased by 1% YoY to IDR 186.7 billion, while selling expenses increased by 16% YoY to IDR 4.6 billion.

“Our efficiency strategy implemented in 2022 has begun to prove effective in improving operational efficiency and performance in Q1 2023. We now have a much stronger operational structure. With the support of synergies within the ASSA Group, we have designed each of our business portfolios to be more focused on achieving significant profit growth across each of our business pillars,” said ASSA President Director, Prodjo Sunarjanto.

The Company operates through three main business pillars: transportation services (vehicle rental, driver services, and individual car sharing), vehicle trading (JBA auction services and Online-to-Offline used car dealers under Caroline), and end-to-end logistics (logistics and express courier services through Anteraja).

In 2023, ASSA will focus on further developing each business line. In particular, for the logistics business, ASSA will continue to expand the B2B market through various initiatives aimed at attracting corporate customers.

The Company is also focusing on developing mid-mile logistics through newly developed services such as Cargo Share. In addition, ASSA is expanding its cold chain logistics services under the brand name Coldspace.

With the strength of its ecosystem, Coldspace is positioned to become an integrated end-to-end cold chain solution provider in Indonesia, serving both B2B and B2C segments. ASSA will continue to develop its logistics business to become a comprehensive end-to-end logistics solution provider, covering first-mile, mid-mile, and last-mile services for its customers.

About PT Adi Sarana Armada Tbk (ASSA)

PT Adi Sarana Armada Tbk (ASSA: IJ) began as a B2B vehicle rental service in 2003 and later expanded into Share Car, a B2C platform that rents replacement vehicles to individuals.

After approximately four years of vehicle rental operations, ASSA sells its vehicles through its second business pillar, PT Autopedia Sukses Lestari Tbk (ASLC: IJ), an omnichannel automotive marketplace with two main business pillars: 1) Wholesale used vehicle auction services under JBA Indonesia, and 2) Online-to-Offline (O2O) retail used car sales under Caroline.id.

To complement its mobility business, ASSA entered the logistics sector in 2006, starting with first- and mid-mile logistics services for B2B customers, followed by the launch of its last-mile courier business, Anteraja, in 2019.

In addition, ASSA has expanded into other businesses such as warehouse fulfillment services (Titipaja, Bisnisaja, Fixaja in 2021), Cargo Share (2022), and cold chain logistics services (2023). Going forward, ASSA aims to provide comprehensive and integrated logistics solutions for its customers.

KONTAN.CO.ID – JAKARTA. Coldspace, an integrated cold chain solutions provider in Indonesia, has announced the completion of its initial funding round amounting to US$3.8 million. The round was led by Intudo Ventures, PT Adi Sarana Armada Tbk (ASSA), and the Triputra Group, with participation from MKA and ITS.

ASSA’s investment in the Coldspace startup through its subsidiary, PT Adi Sarana Investindo (ASI), further strengthens the Company’s logistics business prospects.

“As a group, Coldspace will synergize with other subsidiaries within the ASSA Group, including ASSA Logistics, Anteraja, and Titipaja, enabling us to provide continuous cold chain services from first mile to last mile, all the way to end customers or businesses. We are interested in investing in Coldspace to further integrate ASSA’s cold chain solutions, because although they are a startup, they have already demonstrated healthy performance,” said ASSA CEO Prodjo Sunarjanto, as quoted from an official statement received by Kontan.co.id on Wednesday (2/5).

To further complement and strengthen ASSA’s end-to-end logistics services business, which began in 2006, the Company injected IDR 10 billion into ASI for investment in Coldspace. Established in December 2022, Coldspace is an integrated end-to-end cold chain solutions provider in Indonesia.

With this first external funding round, Coldspace plans to expand its service capacity, including increasing cold storage capacity, reefer trucks, fulfillment capabilities, and geographic expansion. The company also plans to launch a suite of management solutions to help customers manage and track their products, including a Warehouse Management System (WMS) and Transportation Management System (TMS). These solutions will be offered as free value-added services to help analyze operations, provide training, and improve service quality.

“We are pleased to participate in Coldspace’s funding round. As a venture capital firm focused on investing in Indonesian startups, we see the business ideas and concepts developed by this company as highly promising and believe they will become a reliable pioneer in providing integrated end-to-end cold chain solutions,” said Patrick Yip, Founding Partner of Intudo Ventures.

“Coldspace aims to become the first end-to-end cold chain solution in Indonesia serving both B2B and B2C customers, enabling businesses to scale quickly and operate agilely at their distribution points. We plan to scale rapidly by leveraging the logistics ecosystem of our strategic investors to deliver best-in-class operational excellence and competitive pricing,” said Arnold Giovanni, Co-Founder and CEO of Coldspace.

Cold chain solutions are in high demand in Indonesia. With its tropical climate and archipelagic geography, the country experiences significant food loss and waste, as well as spoilage of temperature-controlled cargo such as food, beverages, and pharmaceuticals.

At the same time, Indonesia’s continuously growing GDP and the emergence of a new middle class have driven rapid demand growth for packaged food and beverages, which must be handled and stored in temperature-controlled facilities to maintain freshness and protect businesses from inventory losses.

As a result, the outlook for the cold chain business continues to improve, especially given the limited number of integrated players in the market.

“We are always enthusiastic about exploring new opportunities while carefully considering current market needs and conditions. Given Indonesia’s economic and geographic landscape, the potential for cold chain solutions is highly promising. Therefore, through this first external funding round, we aim to ensure the smooth operation of Coldspace’s business,” said Erida Djuhandi, CFO of the Triputra Group.

In line with the development of integrated cold chain solutions, in 2021 ASSA, through PT Adi Sarana Logistik, established a shared warehousing or “e-fulfillment” business called Titipaja. Titipaja currently operates six warehouses across five cities (Medan, Palembang, Jakarta, Bandung, and Surabaya), some of which provide frozen food storage facilities operated by Coldspace.

Meanwhile, for delivery services, Anteraja introduced specialized couriers last year dedicated to cold and frozen food deliveries.

As a result, ASSA, through its various subsidiaries, now possesses the assets required to support an integrated cold chain solution—from reefer trucks and cold storage facilities to cold delivery services powered by Anteraja.

ASSA is currently undergoing a healthy consolidation after reaching our upside targets at 1,120 and 1,255 (as discussed in our previous review: ASSA Successfully Breaks the Double Bottom Neckline, Rally to Continue?). At this stage, ASSA has also formed a potential new support level around 1,075 (black arrow), an area that is close to the double bottom neckline.

As long as ASSA remains above this support level, the stock still has the potential to continue its upward trend toward 1,580. The solid blue trend optimizer indicates that the stock is still in an uptrend phase.

Trading Plan:
For those who are already holding the stock, it can be held as long as the price stays above the support level. For those looking to enter for the first time, it is advisable to wait for the stock to consolidate further and form a new resistance level, as the current price still carries a high entry risk.