Investment Rating - The report maintains a positive outlook on Grab, highlighting its strong execution, market leadership, and product differentiation driving transaction growth [2]. Core Insights - Grab is expected to achieve a compound annual growth rate (CAGR) of high double digits in total transaction value over the next three years, supported by its grocery delivery cross-selling initiatives and expansion into lower-tier cities [2][3]. - The financial services segment is projected to double its loan portfolio by the end of the year, contributing to profitability [5]. - The report emphasizes the potential for advertising revenue growth, with penetration expected to rise from 1.7% in FY2026 to over 2% [3]. Delivery Business Growth - Grab's delivery segment is anticipated to achieve a high double-digit CAGR over the next three years, leveraging its grocery delivery cross-selling strategy and weekly scheduled delivery services [3]. - The exit of competitors like Deliveroo presents opportunities for Grab to acquire enterprise clients and exclusive merchants, aiding in scale expansion [3]. - The target is to increase delivery profit margins from 2% to 3% by 2028 [3]. Ride-Hailing Growth - The ride-hailing segment is projected to grow at a mid-double-digit CAGR over the next three years, with profit margins stabilizing around 9% [4]. - Grab plans to deepen its presence in second and third-tier cities in Indonesia, which currently contribute 20% of its total transaction value [4]. - The focus on affordable ride options in Thailand and Vietnam, particularly in suburban areas, is expected to support growth [4]. Financial Services Profitability - Grab is witnessing a shift in borrowers from drivers/riders to application users within its ecosystem, indicating diversification [5]. - The competitive environment in the ride-hailing and delivery sectors remains healthy, with a clear growth roadmap and strong execution expected to triple adjusted EBITDA by 2028 [5]. Catalysts - Key catalysts include exceeding expectations in total transaction value for food delivery and ride-hailing, higher-than-expected commission rates, and potential accretive merger and acquisition transactions [6].