Monday, September 8, 2014

Indonesia Market Summaries 8 September 2014

FX reserve continues to pick up. Foreign exchange reserve currency (cadev) continue rising. Foreign exchange is USD 111.2 billion in August, in line with Mandiri Securities  projections of USD 111 billion to USD 112 billion. The position is the fifth consecutive increase since March.

In general, cadev equivalent to 6.5 months of import value, or 6.3 months of imports and government foreign debt payments, still above the international standard 3 months of imports. (Bank Indonesia).

PT Ciputra Property Tbk (CTRP, Rp720) to prepare capex IDR 1.5 Trillion. CTRP prepare a capital expenditure (capex) of IDR 1.5 trillion (IDR 800 billion to IDR 700 billion for construction and land) project aimed at Rosewood Hotels and Villas in Tabanan, Bali. Construction will start in early 2015 and is predicted to finish in 2 years. (Bisnis Indonesia)

PT Summarecon Agung Tbk (SMRA, Rp1.230, BUY, TP Rp1.550) to issue bonds IDR 700 billion. SMRA will issue bonds worth IDR 700 billion, which will be divided into two types, namely conventional bonds and sukuk. Both will have a tenure of 5 years and a coupon of about 11-12%. Funds will be used for the issuance of land acquisition. (Bisnis Indonesia)

for Indonesia Market Summaries 8 September 2014

Friday, September 5, 2014

Indonesia Market Summaries 5 September 2014

PT Modernland Realty Tbk (MDLN, Rp510, NEUTRAL, TP Rp510) to revise marketing sales target to IDR 3.8 trillion. MDLN decided to revise the target company's marketing sales in 2014 to IDR 3.8 trillion from IDR 4 trillion since the launch of the bari project in the first semester of 2014 is lower than the target.

Pre-sales for 7M14 reached IDR 1.88 trillion (49.5% of the target). The company is optimistic to achieve the new targets by launching two new housing clusters in Jakarta Garden City in the second semester of 2014 and the contribution of Cikande Modern Industrial Estate. (Bisnis Indonesia)

PT Kresna Graha Sekurindo Tbk (KREN, Rp 405) intends to rights issue worth IDR 2 trillion. The step is a part of restructuring of the company into a group holding company, and will acquire Affiliate company in the insurance sector and the property. (Kontan)

Astra Group targeting Mulut Tambang power plant project worth USD 900 million in South Sumatra through tenders. Tender was followed by the Astra Group through PT United Tractors Tbk (UNTR, Rp 21.475, NEUTRAL, TP Rp 23.000) subsidiary', PT Pamapersada Nusantara (PAMA). (Investor Daily)

Division of Flour, PT Indofood Sukses Makmur Tbk (INDF, Rp 7.050, BUY, TP Rp 8.200) is targeted to achieve Bogasari revenue IDR 19.6 trillion this year, up 5% from last year. The target was supported by an increase in demand for capacity on the market, but there is no expansion this year. (Bisnis Indonesia)

for Indonesia Market Summaries 5 September 2014

Thursday, September 4, 2014

Indonesia Market Summaries 4 September 2014

Minister of Finance expects the fiscal position to REMAIN safe without Subsidized fuel price hike. The fiscal deficit as of July recorded IDR 68 trillion or 0.68% of GDP, still far from the target IDR 241,5 trillion or 2.4% of GDP. The surge in government spending is predicted to occur in November and December.

In the calculation of the Ministry of Finance, the increase in fuel price of Rp 1,000 per liter and 3,000 rupiah per liter in November can save subsidies amounting to IDR 7 trillion and IDR 21 trillion.

If the fuel price increased 1,000 per liter in January 2015, significant savings rose to IDR 48 trillion, assuming there are as many as 48 million kilo liters subsidy quota. In terms of the consumer price index (CPI) rise in fuel prices per liter Rp.1000 will add inflation by 1,5ppt. (Koran Tempo)

Ciputra-Trisula to invest IDR 5 trillion for superblock project. PT Ciputra Property Tbk (CTRP, Rp 740) with Trisula Group plans to develop an area of ​​7.4 hectare superblock on Puri land area, West Jakarta, with a total investment of IDR 5 trillion. The project will be divided into three phases over a period of 7 years.

Development of the first phase, which includes two office towers, one apartment, will cost 1.5 trillion and will be completed within 3 years. Trisula will account for 45% of total funding while the CTRP will cover the rest. (Bisnis Indonesia)

Ciputra Group intends to hold an IPO on the Singapore Exchange in th next 2 years. The company that will be listed are the International City Holdings Pte Ltd, to work on overseas property business. (Kontan)

PT Telekomunikasi Indonesia Tbk (Telkom, TLKM, Rp2.725, BUY, TP Rp2.900) to explore option of divesting 20% stake in Telkom Sigma. TLKM still exploring the options to divest 20% stake in Telkom Sigma, which provides data center services. Based on information from the company, the action targeting prospective new partners to grow the business. (Investor Daily)

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Wednesday, September 3, 2014

Indonesia Market Summaries 3 September 2014

PT Newmont Nusa Tenggara (NNT) agreed on terms of mining contract. NNT agrees six principal to renegotiate mining contracts with the government. With the renegotiation, Newmont will be allowed to resume exports to 200,000 tonnes of copper concentrate (USD 400 million) by the end of 2014. (Investor Daily)

PT Agung Podomoro Land Tbk (APLN, Rp 369, BUY, TP Rp430): Moving to the north. Indra Wijaya, Vice President Director of APLN, to discuss reclamation project run by APLN.

For land reclamation (including infrastructure and CSR), the company believes that the pre-sales of Pluit City can cover the initial load. We assign a BUY recommendation back to the main catalyst permits the issuance of project execution. (Mandiri Sekuritas)

Jababeka-Pelindo II to prepare capex IDR 580 billion. PT Kawasan Industri Jababeka Tbk (KIJA, Rp 292) and PT Pelabuhan Indonesia II (IPC II) prepared a capital expenditure (capex) of USD 50 million (IDR 580 billion) to develop 40-50 hectares Special Economic Zones (SEZs) in Tanjung Dimples, Banten .

The funds will specifically be used to build the ship terminal and supporting infrastructure and other facilities property. KIJA and  IPC will have a 50% part each in the project. In addition to the IPC II, KIJA also with PT Garuda Indonesia Tbk (GIAA, Rp 434) and PT Jasa Marga Tbk (JSMR, Rp 6.350, NEUTRAL, TP Rp 6.200) in developing Tanjung Dimples. (Bisnis Indonesia)


PT Semen Indonesia Tbk (SMGR, Rp 16.450, BUY, TP Rp 18.300) to enter the property business. SMGR plans to enter the property and infrastructure sectors. For the property, the company will cooperate with PT Wijaya Karya Tbk (WIKA, Rp 2.855, BUY, TP Rp 2,300) to create a new joint venture subsidiary. Currently, the company already has 200 hectares of land in Gresik, East Java. (Investor Daily)


PT Hexindo Adiperkasa Tbk (HEXA, Rp 3.680, BUY, TP Rp 4,250) targets to reduce its bank loan. HEXA plans to decrease the number of its bank debt from USD 66 million to USD 7 million in March 2015 Until July, HEXA still owes USD 48.4 million.

A lower position in bank debt will make the company's financial statements are healthier and lower interest expense. In the 2013 financial statements, the company's interest expense portion was 2.8% of total net income. (Bisnis Indonesia)

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Tuesday, September 2, 2014

Indonesia Market Summaries 2 September 2014

PT XL Axiata Tbk (EXCL, Rp 6,000, BUY, TP Rp 6.900) to Realize IDR 1.31 trillion sale of treasury stock. EXCL will sell 231.11 million treasury shares (2.7% of the total shares owned by the company) worth IDR 1.31 trillion, with an average price per share Rp 5.708. The gain is estimated at around IDR 98 billion and will be used for business expansion. (Kontan)

PT Alam Sutera Realty Tbk (ASRI, 500, NEUTRAL, TP Rp 680) to focus on completion of two office building projects. ASRI said it will focus on the completion of two office projects (The Tower and The Prominence) and will not start a new project until the end of this year. Another project that has been running by ASRI is Silk Victorian cluster, Superblock City of Ayodhya, and Garuda Wisnu Kencana. (Kontan)

Ciputra to work on projects valued at IDR 4.2 trillion offices. PT Ciputra Property Tbk (CTRP, Rp 745) works on four office projects worth 4.2 trillion starting 2014 and will be completed within 3 years. All four are in South Jakarta, West Jakarta and Central Jakarta. The area of ​​the project is expected to reach 410,000 square meters. (Investor Daily)


PT Waskita Karya Tbk (WSKT, Rp 910, NEUTRAL, TP Rp 600) set aside 3 trillion to work on the highway Legundi-Bunder in East Java who entered the bidding process. Through its subsidiary, PT Waskita Toll Road, WSKT already established a joint venture called PT Waskita Earth Legundi. (Investor Daily)


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Monday, September 1, 2014

Indonesia Market Summaries 1 September 2014

PT Aneka Tambang Tbk (ANTM, Rp 1.195) to Obtain new loan USD75mn. ANTM will get a new loan worth $ 75 million (IDR 877,95 billion) from PT Bank UOB Indonesia. The credit will be used to meet the capital expenditure (capex) of 2015. (Kontan)

PT Telekomunikasi Indonesia Tbk (Telkom, TLKM, Rp 2.685, BUY, TP Rp 2,900) plans to divest 20% stake of PT Metra TV. TLKM plans to divest 20% stake in TV Metra to develop a streaming TV and Internet Protocol TV business (IPTV). Further details have not been delivered by the company. (Kontan)

Telkom and Telstra plan to provide the cloud computing service. TLKM and Telstra plans to provide cloud computing services began 2015. Telstra will provide network services and applications (NAS) for local and foreign corporate customers. Based on the company, both companies have approved the agreements to establishing the joint venture (JV). (Bisnis Indonesia)

PT Surya Semesta Internusa Tbk (SSIA, Rp 810) to expand in West Java. SSIA will expand in West Java through three projects. All this three are Surya Cipta Industi Karawang third phase, Technopark estatem, and additional new industrial land. The company is optimistic to meet the revenue target of IDR 4.5 trillion-5 trillion and net profit of IDR 400 billion to 500 billion this year. (Kontan)


PT Pakuwon Jati Tbk (PWON, Rp 434, BUY, TP Rp 510) to build the superblock in South Jakarta. PWON plans to build three superblock in South Jakarta began 2015. The Sources of funding will come from internal cash and presales revenue. The new project will be developed in an area of ​​4.2 hectares that have been acquired in TB Simatupang. (Kontan)


for Indonesia Market Summaries 1 September 2014