Maybank Investment Bank Berhad
April 10, 2025
Grab Holdings: GrabX Inaugural Event – Key Takeaways and Future Prospects
Grab, a leading Southeast Asian superapp, recently hosted its first-ever annual product launch event, Grab X, on April 8, 2025. The event showcased the company’s AI initiatives aimed at generating scalability and operating efficiency while improving consumer experience.
Grab’s AI-Powered Innovations
Grab’s management team presented at the event, highlighting key features such as enhanced ordering capabilities for large orders, specialized safety protocols for GrabFamily for Teens, and AI-driven enhancements to airport pickups and cross-border transactions. The company launched AI initiatives for merchant operations, driver efficiency, and elevating user experiences, enabled by deepening partnerships with OpenAI and a new collaboration with Anthropic.
Financial Performance and Guidance
Grab maintains its FY25 revenue growth guidance at 19-22% YoY and aims to pass some cost savings down to consumers and partners. The company reiterated its goal of achieving organic growth by improving customer retention.
Features for Every Kind of User
The GrabX event introduced several features designed to improve user experience across different segments:
Family Users: Enhanced ordering capabilities for large orders using GenAI to detect and allocate multiple delivery partners for synchronized arrival at no additional cost.
GrabFamily for Teens: Specialized safety protocols, including Ride Pin verification and AI-distress monitoring.
Solo Users: GrabFood for One with eliminated small order fees and reduced delivery charges.
Travelers: Advanced Airport Pickups with dynamic real-time flight status adjustments and Grab Travel Passes for seamless cross-border transactions.
AI Tools for Grab’s Partners
Merchants will benefit from Merchant Assistant AI, providing real-time analytics, automated campaign management, and AI-driven recommendations. Driver partners will be introduced to the AI Driver Companion, which aims to maximize earnings and road safety.
Value Proposition
Grab has a strong structural growth position in an underpenetrated ASEAN market with leadership in all its core verticals. The company enjoys a structural scale advantage but faces mild growth headwinds and potential competitive intensity.
Financial Metrics
Adjusted EBITDA Breakeven: Projected in FY24
Net Income Breakeven: Expected in FY25E
On-Demand GMV CAGR: 14% (2023-26E)
Adjusted Net Revenue CAGR: 16% (2023-26E)
Share Price Performance
Period Share Price (USD) Rating
Apr-22 $4.3 Buy
May-22 $4.3 Buy
Jul-22 $2.3 Sell
Aug-22 $2.8 Sell
Nov-22 $3.4 Hold
Feb-23 $3.8 Buy
May-23 $4.0 Buy
Aug-23 $4.2 Buy
Oct-23 $4.5 Buy
Jan-24 $4.0 Hold
Feb-24 $3.7 Hold
Aug-24 $3.5 Hold
Oct- as $4.0 Oct-24 Hold
ESG Considerations
Grab has established sustainability policies with various time-based targets set for the period. Its quantitative disclosures on ‘E’ parameters on emissions, resource usage, and ‘S’ parameters on workforce and management diversity are robust.
Risk Rating and Score
Grab Holding has an overall ESG score of 46, indicating above-average performance in our view.
Key Metrics and Financials
FYE 31 Dec FY23A FY24A FY25E FY26E FY27E
Revenue (USD m) 2,359.7 2,797.0 3,381.5 3,979.4 4,562.8
EBITDA (USD m) (22.0) 313.0 480.5 792.2 1,033.9
Analyst Coverage
Suhaimi Ilias, Chief Economist
Chua Hak Bin, Regional Thematic Macroeconomist
Erica Tay, China | Thailand
Brian Lee Shun Rong, Indonesia | Singapore | Vietnam
Research Team Contacts
Hussaini Saifee (65) 6231 5837
Anand Pathmakanthan, Head of Regional Equity Research
Wong Chew Hann, CA, Head of ASEAN Equity Research
Disclosures
This report is prepared for general circulation and for information purposes only. Investors should note that values of securities may fluctuate, and each security’s price or value may rise or fall. Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings.
Rating System
Buy: Return is expected to be above 10% in the next 12 months (including dividends)
Hold: Return is expected to be between 0% to 10% in the next 12 months (including dividends)
Sell: Return is expected to be below 0% in the next 12 months (including dividends)
Grab’s Historical Recommendations and Target Price
Date Share Price (USD) Rating
Apr 11 Buy: $4.3
May 23 Buy: $4.3
Jul 26 Sell: $2.3
Aug 17 Sell: $2.8
Nov 24 Hold: $3.4
Feb 19 Buy: $3.8
May 24 Buy: $4.0
Aug 10 Buy: $4.2
Nov 20 Buy: $4.5
Jun 30 Hold: $4.0
Jul 20 Hold: $3.7
Aug 24 Hold: $3.5
Oct 12 Hold: $4.0
