Thursday, February 28, 2013

Market News Jakarta 28 Feb 2013

Entrepreneurs welcomed CIF agreements for exports initiative

Bisnis Indonesia daily reported that the government’s notion to change the current FOB export agreement to CIF is welcomed by entrepreneurs. Expected to be implemented in 2H13, the Minister of Trade Gita Wirjawan said that CIF method will increase exports by 8-9% while at the same time stimulate the growth of Indonesian transportation, banking, and insurance services.
Meanwhile, the Chairman of Indonesian Entrepreneur Association (Apindo) Sofjan Wanandi and Indonesia Chamber of Commerce Suryo Bambang Sulistyo consider it as the correct initiative to reduce current account deficit pressure (Bisnis Indonesia)

The New Shares of INDF subsidiary will trade immediatelly

INDF buy China stocks Minzhong Food Corporation Limited on the Singapore stock exchange valued at Rp717.4 miliar. the number of shares purchased as many as 98 million shares or equivalent to 14.95% of the total capital of CMFC.
Based on Information in the Indonesia Stock Exchange (BEI), the number of new shares issued as many as 98 million shares. The new shares free of any imposition, and have the same rights as the shares that have been issued by CMFC. The new shares will be listed and traded on the Singapore Exchange Securities Trading Limited on March 1, 2013 starting at 9:00 pm Singapore time. (Kontan)

Wednesday, February 27, 2013

Market News Jakarta Feb 27 2013

Stock passionate, JCI rise up to 4700

Jakarta Composite Index (JCI / IHSG) fly not only reached a new record, but also managed to bypass the psychological 4700 level. JCI bolted 1.14%, at 4716.42. The transaction value today reached Rp7.45 trillion with a total volume of shares changing hands a number of Rp7.14 billion.
The majority of stocks advanced, which is as much as 199 shares, while only 60 shares down and 95 shares stall. (Kontan)

Mandiri booked Net Profit of Rp15.5 Trillion

PT Bank Mandiri Tbk earned a net profit of Rp15.5 trillion, up 26.6% of net profit in 2011, Rp 12.2 trillion. from those performance, the total cost funds (giro and savings) that was compiled by the Bank until the fourth quarter of 2012 reached Rp 316.1 trillion. (Investor Daily)

LONDON SUMATRA: Net Profit Down 34.44% to Rp1.12 trillion

One of Salim Group business', PT PP London Sumatra Indonesia Tbk, posted a decline in net income 34.44% during 2012 to Rp1.12 trillion from the previous year Rp1.7 trillion. Along with that, the earning per share also declined to Rp164 from the previous year Rp249. (Bisnis Indonesia)

Tuesday, February 26, 2013

Market News Jakarta Feb 26 2013

SMGR January 2013 sales grew 24.24%

Rising cement demand early in the year has driven SMGR sales volume to grow 24.24% yoy to 2.05mt which was mostly supported by domestic sales which was 2.04mt. Sales growth was backed by increasing demand from the infrastructure and property sectors in the beginning of the year. The three top contributor to sales came from Semen Gresik (1.07mt), Semen Padang (609.250ton), and Semen Tonasa (362.990ton). (Kontan)

Indofood soon to complete China Minzhong acquisition

INDF will soon complete the 14.95% acquisition of China Minzhong Food Corporation Ltd. (CMFC) after the Singapore Exchange agreed in the new stock issuance terms. The SGX agreed in the issuance of 98mn new stocks with a price of SGD0.915/sh. Based on the price, the acquisition value will be around SGD89.67mn. (Investor Daily)

BUMA book lower Strip Ratio in Jan’13 than in Jan’12

BUMA, the second largest coal mining contractor in Indonesia, booked Jan’13 coal production of 2.5mn ton (0.0% yoy, -19.4%mom). Its OB volume decrease to 23.0mn BCM in Jan’13 (-8.0%yoy, -8.0% mom) because of lower Strip Ratio in Jan’13 (9.2x) than in Jan’12 (9.8x). 

Comment: The decrease in OB volume is the same with company guidance that its Strip Ratio would decrease in FY13F. The decrease in OB volume would decrease its profit margins due to lower utilization of heavy equipment. We think the lower utilization of heavy equipment would also trigger lower growth of service and sparepart sales of heavy equipment distributors. Therefore, we estimate UNTR’s FY13F Part and service growth only 14.0%, which far below 2006-2011 CAGR of 29/9% (UNTR, Rp19,100, Sell, TP: Rp16,700)

Fuel subsidy realization remains safe until now

The ministry of finance mentioned the realization of energy subsidy until February 15, 2013 remains reasonable, amounting Rp10.7tn or 3.89% of total energy subsidy planned in 2013 at Rp274.7tn. Nevertheless, despite the level of realization is considered safe, the risk of overconsumption (exceeding the quota level of 46mn kilo liter this year) remains high. Thus, the government has to immediately impose efforts and policies to reduce subsidy burden going forward (Bisnis Indonesia).

Monday, February 25, 2013

Market News Jakarta Feb 25 2013

Bosowa Corp investing US$600mn in cement

Bosowa is realizing US$600mn investment for new cement and packing plant this year. This is aimed to have 10-1mn capacity by 2015. The total capacity is estimated to contribute up to 20% national market share. The company has started the investment earlier this year by groundbreaking of its new plant in Maros, South Sulawesi (US$310mn), which followed by Banyuwangi, East Java (mill + packing plant = Rp1tn) and Sorong, Papua (mill = Rp679bn). In addition, the company also plans to build mill in Cilegon, Banten (Rp1tn), Amurang, North Sulawesi (Rp500bn) and new port in Barru, South Sulawesi (Rp500bn). Bosowa holds 6% market share as of Dec12, with accelerating trend. (Investor Daily)

Feb13 inflation projected at 0.3-0.4% mom

The Minister of Finance Agus Martowardojo, who has been nominated to be the next central bank governor, projects Feb13 inflation to come at 0.3-0.4% mom. The figure is bigger than the realization in the same month in 2011 & 2012 at 0.13% mom and 0.05% mom, respectively. Note that the government is also planning to increase the price of 12kg LPG (Bisnis Indonesia)

The government aims to realize more than 10% of budget absorption in 1Q13

The Ministry of Finance attempts to drive spending since 1Q13, targeting 10% of budget absorption. This is supported by simplified tender and procurement process which hopefully will accelerate spending. Though so, the Minister of Finance said that up until now there is not a single government institution starting to disburse budget on projects. In the same period last year, budget absorption is recorded at 11.08%, below target of 14.57% (Kontan)

Moody’s downgraded BUMI’s rating to B2

Moody’s has downgraded BUMI’s debt rating to B2 from B1 with outlook remain stable. This reflects Moody’s assessment of the likelihood  of lower debt-to-EBITDA ratio below 4.5x over the next 12-18 months. (Bloomberg)

Bumi Plc CEO sees vote on Bakrie separation in late April

Bumi Plc CEO, Nick Von Schirnding, reported to Blooomberg that Rotschild’s defeat on EGM last week was a good outcome for Bumi’s board as the board has a firm, clear plan for Bakrie separation and focus to Berau. He sees final vote on Bakrie separation would be in late April 2013. (Bloomberg)

Toyota expects cumulative Avanza sales to exceed 1mn units since established in 2004

Toyota Astra Motor (TAM) is confident that the total cumulative sales of Avanza would exceed 1mn units by end of this year, since the model was first being introduced in 2004. As of last month, TAM already sold a total of 912,842 units of Avanza since the model was first introduced in 2004. (Bisnis Indonesia)

Mitsubishi aims 20% growth in passenger car sales

Krama Yudha Tiga Berlian Motors, the exclusive dealer of Mitsubishi, expects its passenger car sales in 2013 to grow by 20% higher from last year’s position of 22,464 units. Successful new launchings, such as the new Outlander Sport and Mirage, helped increasing Mitsubishi’s grip in the passenger car segment. Including the commercial car segment, Mitsubishi eyes to sell 155,000 units this year, against 148,918 units realized sales in 2012. (Bisnis Indonesia)

Daihatsu aims 15% market share in the domestic market

Daihatsu projects 15% market share in the domestic 4W market this year, with a total sales of 165,000 units, relatively stable as compared to last year’s realization at 163,000 units. The projection was made based on total national car sales of 1.1mn units, unchanged from last year.

Comment: The projection implies monthly run-rate of 13,750 units, versus last year’s monthly average of 13,562 units. We view this forecast as conservative. This year, Daihatsu should benefit from the realized booking of its LCGC, Daihatsu Ayla. The regulation for LCGC itself is expected to be announced this quarter, allowing Daihatsu to deliver the cars to the consumers. We forecast monthly average sales of 17,587 units for Daihatsu this year, after factoring in 36,000 units of Daihatsu Ayla sales for the entire year.