Tokopedia Services Trigger Positive Sentiment, BRI Danareksa Recommends BUY to GOTO

“Merchant incentives are intuitive and attractive that can place goods in Tokopedia warehouses with fast delivery (D + 1) in Jabodetabek, and D + 2 outside Jakarta. Moreover, goods can be closer to consumers because Tokopedia implements its hyperlocal strategy,” Niko continued.

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Tokopedia (via Swift) now operates a total of 70,000 meters square and the capacity in Bekasi has a utilization rate of 70%. In the future, GOTO plans to build more Gudang Pintar Dilayani Tokopedia and will equip it with automation and robot technology so that orders can be delivered quickly.

With these various potentials, coupled with other GOTO business segments, Niko in his research believes that GOTO is on an accelerated path to profitability by achieving a positive contribution margin in 2024.

Various positive indicators include low threat of competitors amid GOTO's position as a market leader and synergies built to align interests among major players who prioritize profitability. This is marked by the end of the era of “burn money” from digital players towards an increasingly healthy industry.

“We also reiterate our expectation that digital trade penetration in Indonesia's resilient retail market will continue to increase and thus we keep GTV expectations relatively intact,” Niko added.

The BUY recommendation from BRI Danareksa Sekuritas adds to the same list of recommendations from at least other 11 securities company’s researches. These include foreign securities such as Macquarie Securities and Deutsche Bank.