Indonesia Market Summaries 18 August 2014

PT Semen Indonesia Tbk (SMGR, Rp16.625, BUY, TP Rp18.300) targeting revenue growth of 120% for the second semester of 2014 compared to the previous semester. The Company is optimistic that the target can be realized due to the company's production lines have to meet national demand for cement. (Bisnis Indonesia)

PT Pembangunan Jaya Ancol Tbk (PJAA, Rp1.195) intends to build a recreational park in Solo and Cibodas. Nevertheless, the company still has not received permission from the local government to build a recreational park in Cibodas. (Kontan)

MDS Investment Holding Ltd. controls 25.6% of PT Prime Gapuraprima Tbk (GPRA, Rp371). MDS collecting GPRA shares since July. On July 14, MDS buy 15.4% of GPRA stake from International Leasing & Investment Company from Kuwait. In late July, MDS buy another 10.2% of GPRA stake from PT Citra Abadikota Persadana. (Investor Daily)

PT Media Nusantara Citra Tbk (MNCN, Rp 2,900) intends to increase the loan to $ 250 million from the initial amount of $ 150 million which the company acquired from Deutsche Bank and Standard Chartered. The plan was carried out by taking the greenshoe option. (Investor Daily)


for Indonesia Market Summaries 18 August 2014

PT Semen Indonesia Tbk want to keep the average selling price

PT Semen Indonesia Tbk (SMGR, Rp16.100, NEUTRAL, Rp19.000) want to keep the average selling price (ASP) amid rising fuel prices and electricity. Transportation component in the production cost is 17%, and 40% of them from the cost of fuel.

Electrical load contribute 11% of cost production, but will not have a major impact on the company because SMGR already using electricity industry. Since June, SMGR has raised their ASP less than 2% and not intend to raise its ASP so that no more than inflation rate of 7.2%. Price increases can be done again by 2% - 3% in the first half semester II/2013, so total increase of ASP during 2013 worth 4% -5%.

We still concern at cement sector, especially considering the limited capacity of the two competitors of SMGR, PT Holcim Indonesia Tbk (SMCB, Rp2.650, SELL, TP Rp 3,000) and PT Indocement Tbk (INTP, Rp22.750, NEUTRAL, TP Rp25. 000). (Kontan)

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Indonesia Market Summaries 1 July 2013

PT Bank Central Asia Tbk (BBCA, Rp9.950, NEUTRAL, TP Rp10.300) bought a 75% shares of PT Central Sejahtera Insurance from their affiliate, Dana Pensiun BCA. The purchase was valued at Rp102 billion, Rp104,42 billion under reasonable rates by public appraisal. A total of 25% shares of Central Sejahtera Insurance owned by its subsidiary, PT BCA Finance BCA. (Disclosure)

PT Semen Indonesia Tbk (SMGR, Rp17.050, NEUTRAL, TP Rp19.000) get an export loan from export credit agency (ECA) worth of USD 200 million from several banks in Europe. (Bisnis Indonesia)

A total of 75.1% stake in PT Multi Bintang Indonesia Tbk (MLBI, R1, 2 million) will be bought by Heineken International BV. The Purchases valued at Rp18,99 trillion will be made from Heineken subsidiary, Asia Pacific Breweries Ltd, so it will not be required to hold a tender offer. (Kontan)

for Indonesia Market Summaries 1 July 2013

PT Semen Indonesia Tbk will conduct a stock split

PT Semen Indonesia Tbk (SMGR) will conduct a stock split if the stock price in the market reach the level of Rp 20,000 per share.

"We're going to do a stock split, if the stock price SMGR was at Rp 20,000 per share," said Director of SMGR, Dwi Soetjipto Saturday (1/6) in Gresik, East Java.

Dwi Soetjipto said that corporate action plan is done so the SMGR stocks are more liquid in the market, then it can be more affordable and absorbed by retail investors.

Dwi said this stock split plan would use ratio of one to five (1:5). Thus the nominal value of SMGR will be Rp 100 per share compared to the current Rp 500 per share.

SMGR stock price is currently still in the range of USD 18,000 per share, at the close of trading on Friday (31/5). The SMGR at the level of Rp 18,000 per share, down USD 250 from the previous closing price of Rp 18,250 per share.

for Indonesia Market Summaries 3 June 2013

Friday 12 April 2013 in brief

BSDE recorded a yoy jump on 1Q13 marketing sales by 214%

Bumi Serpong Damai announced their Q1 marketing sales of Rp2.6tn which jumped by 214% yoy. The marketing sales itself is already 37% of BSDE’s full year target of Rp7tn. Land plot sales (77% of 1Q13 marketing sales) is the main contributor, where it grew by 613% yoy. Meanwhile, residential contributed 20% of total marketing sales while commercial contributed 11%. The company’s JV with Hongkong Land and AEON Mall was a strong push to BSDE’s early year achievement, according to the company, as they managed to book gain of Rp1.7tn from selling 66ha to the two partners. Moreover, BSDE and Hongkong Land’s JV company will acquire 10ha more land from BSDE, according to the company. (Kontan)

Sentul City gained Rp250bn working capital loan

Last month, BKSL, through PT Bukit Jonggol Asri, gained a Rp250bn loan from Bank Panin to be used to develop a township. The tenor is 3 to 5 years with a single digit interest rate. BKSL added that Rp20bn will be used for working capital, Rp100bn for long term infrastructure and facilities, and Rp130bn for housing construction working capital. (Bisnis Indonesia)

Semen Indonesia showed the strongest growth in Q1

SMGR showed the strongest growth in sales compared to its peers in 1Q13 where the company’s sales grew by 8.6% yoy. The strong growth was due to capacity increase from their new Tuban IV and Tonasa V plants of 750k tons and 600k tons respectively. SMGR expects revenue to grow 21% yoy in 1Q13 which is resulted from sales volume growth. The company claimed that they saw less than 1% growth in ASP in Q1. (The Jakarta Post)

Jaya Agra Wattie to boost CPO and rubber productions

JAWA is targeting CPO production of 56,217 ton which is 21.4% higher compared to the same period last year. Production growth in CPO is expected due to higher palm age that should boost productivity. Fresh fruit bunches (TBS) purchases from third parties is also expected to increase where 39% of their total production will come from third parties. JAWA is also allocating Rp570bn for CAPEX to develop 4,000ha of CPO plantation and 5,500ha of rubber plantation. The company is planning to add landbank of 50,000ha in Kalimantan and Sumatra this year. (Kontan)

Wijaya Karya (WIKA) to accelerate IPO of Wika Beton.

A newspaper reported that Wijaya karya (WIKA) plans to accelerate the IPO of its precast concrete subsidiary, WIKA Beton, to this year. Current WIKA Beton capacity reaches 2mn ton per year at 9 precast concrete plants. It’s also planning to acquire a precast concrete company in Batam. Wika Beton assets is around Rp2.3tn with Rp180bn net profit. On the IPO, proceed is expected to be around Rp1tn for 20% shares. WIKA owns 78.4% ownership of Wika Beton. (Investor Daily)

PT Semen Gresik Tbk aiming for 72% of East Java market

PT Semen Gresik Tb (SMGR) aiming for 72% of East Java market

Semen Indonesia this year targets sales of 1mt or 72% of the market in East Java, including in Surabaya, Gresik, Sidoarjo, and Mojokerto. Last year, the company recorded sales of 878,000 ton with a market share of 70% in the region. According to the company, the growth is based on the rising national cement consumption which is expected to be around 14% yoy.
(Bisnis Indonesia)

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).