Thursday, July 3, 2014

Indonesia Market Summaries 3 July 2014

PT Hexindo Adiperkasa Tbk (HEXA, Rp 3.590, BUY, TP Rp 4,250): Inline FY recurring net income. HEXA recurring net income for fiscal year of 2013 and 2014 in line with analist predictions (104%) and consensus (98%) (HEXA financial statements based on the fiscal year ending March 2013 and 2014).


We liked the HEXA performance because the company will be the beneficiary of the booming infrastructure budget after the election. We adjust our assumptions again and reassign BUY recommendation with TP revised to Rp 4,250, from the previous of Rp 5.450. (Mandiri Sekuritas)

The Indonesia Government will issue euro-denominated global bonds worth 1 billion euros (equivalent IDR 16,3 trillion) in the near future. Government with Bank of America Corp., Citigroup Inc., and Deutsche Bank as underwriters of its publication. The Bonds will be tenured 7 years and the coupon in the range of 195 bps to 210 bps above the median rate swaps Europe. (Kontan)

PT Mitra Investindo Tbk (MITI, Rp 201) will remove the granite quarry business if the acquisition by Saratoga through the Goldwater Group Pte been completed. In addition to his new business to focus on oil and gas, the company assesses granite reserves held just enough for the next 5 years. (Kontan)

PT Acset Indonusa Tbk (ACST, Rp2.350), The general contractor and foundation issuer, get credits worth IDR 250 billion from PT Bank Danamon Indonesia Tbk (BDMN, Rp 4.205, NEUTRAL, TP Rp 4,200). The loan tenure of 3 years. (Investor Daily)


PT Garuda Indonesia Tbk (GIAA, Rp 429) get a loan worth USD 200 million, equivalent to IDR 2.4 trillion. The loan that was originated from the six banks will be used for expansion. These six banks are PT Bank Pan Indonesia Tbk (Bank Panin, PNBN, Rp850, BUY, TP Rp1.000), Dubai Islamic Bank, Emirates NBD, First Gulf Bank, Standard Chartered, and Warba Bank. (Bisnis Indonesia)

Four tower issuers eyeing tower auction of PT XL Axiata Tbk (EXCL, Rp5.225). The four are PT Tower Bersama Infrastructure Tbk (TBIG, Rp7.975, BUY, TP Rp7.200), PT Sarana Menara Nusantara Tbk (TOWR, Rp3.970, NEUTRAL, TP Rp3.750), PT Solusi Tunas Pratama Tbk (SUPR, Rp8.250), and PT Inti Bangun Sejahtera Tbk (IBST, Rp3.175). (Investor Daily)


for Indonesia Market Summaries 3 July 2014

Wednesday, July 2, 2014

Indonesia Market Summaries 2 July 2014

PT XL Axiata Tbk (EXCL, Rp 5.075) to sell towers in 2H.
EXCL plans to sell part of its telecommunication towers in the second half of 2014 and will use the fund to proceeds the pay off of a portion of its debt which amounting to IDR 22 trillion (USD 1.9 billion).


The company has formed a bid committee to make recommendations to the board of commissioners and directors of the company. Although not mentioned the details of the number of towers that are intended to be sold, the company had mentioned will sell approximately 7,000 towers in the price of 9 to 10 times from EBITDA  tower business. (Bisnis Indonesia)


PT Bank Rakyat Indonesia Tbk (BBRI, Rp10.375, BUY, TP Rp12.100) allocates Rp 3 trillion on acquisition. BBRI allocated 3 trillion for investment in order to create inorganic growth. Currently, the company is following due diligence on the acquisition of PT Bank Mutiara Tbk (BCIC, Rp50) and two insurance companies. (Investor Daily)


PT Newmont Nusa Tenggaran complained Indonesia to the International Arbitration. Complaints that aims to overturn a ban on the export of raw mineral policy, whereas NNT have got delays on exports ban until 2017. (Kontan)


for Indonesia Market Summaries 2 July 2014

The government to Renegotiate LNG Tangguh Price with South Korea

Following the success of renegotiate the price of LNG Tangguh to China, the government also intends to renegotiate the price of LNG to South Korea, which is K-Power and Posco.


In the 20-year tenured contracts, LNG prices for both companies is USD 4.1 / MMBTU with a total sold volume of 1 million tons/year, which is distributed by the same amount to the two companies.


The government's efforts at this time is to raise the price of LNG to USD 8 / mmbtu. The challenge was very hard. One of the employees of SKK Oil and Gas stated, not like the treaty with China, there is no clause of price change with the South Korea. (Bisnis Indonesia)


for Indonesia Market Summaries 2 July 2014

Tuesday, July 1, 2014

Indonesia Market Summaries 1 July 2014


PT Pakuwon Jati Tbk (PWON, Rp 346, BUY, TP Rp 430) issued global bonds of $ 168 million. The number was lower than the company's previous targets of USD 175 million. Five-year bond was set 7.125% coupon. Value of the bond issuance is the maximum amount that can be issued by PWON today.


PWON itself now has a long-term bank debt amounted to IDR 1.28 trillion. PWON's total liabilities reached IDR 5.1 trillion and the equity Rp 4.5 trillion. Debt rtio to PWON' equity determined not be more than 50%. (Kontan)


PT Summarecon Agung Tbk (SMRA, Rp 1.115, BUY, TP Rp 1.550) build Summarecon Digital Center (SDC) as the first IT and the gadget center in Gading Serpong with an investment of IDR 200 billion. SDC is a commercial center that provides information technology needs such as computers, gadgets and other mobile technologies.
SDC Serpong has a wise area of ​​32395.21 square meters, consists of three floors and a basement. In addition, there are 101 stores and 240 counters that provide a variety of hardware and software. (Bisnis Indonesia)


for Indonesia Market Summaries 1 July 2014