Dyandra Media International An eventful year

Dyandra Media International: An eventful year (DYAN, Rp370, Buy, TP: 425)

Part of Kompas Gramedia group, Dyandra Media International (DYAN) is one of the largest event company in the country. We are expecting 30% EPS growth this year driven by higher IIMS revenue and APEC and WTO events to be held in its Bali hall.

Established exhibition portfolios. Since 1995, DYAN has been very active in exhibition organizer space with main portfolios in consumer electronics and automotive. The top 4 exhibitions have been organized annually by DYAN since 2000s. As the growth strategy, DYAN is actively rolling out well accepted exhibitions to new cities in Indonesia.

Busy 2013. The optimism of PT Dyandra Media International in 2013, the 4Q13 will be a hectic quarter for DYAN. 2013 Indonesia International Motor Show has been launched last week (95% of the space has been booked). The 2013 APEC CEO Summit and the 9th WTO Ministerial Conference will be held in its Bali Nusa Dua Convention Center. We forecast revenue will grow by 78% yoy. In 2012, 4th quarter revenue contributed to 34% of FY revenue (15% in 1st quarter).

Strategically part of Kompas Gramedia group. Being part of the largest printed media group posses several advantages for DYAN, mainly in the area of media coverage and business relation. The group is also well known for its conservativeness and good corporate governance.

Initiating coverage with BUY rating and Target Price of Rp425/share. Our TP was derived from sum-of-the-part valuation of event and property business. At our TP, the event business will be valued at 12x PE2013 (10% discount to global peers) and 1.15x current PBV for the property business. The global event companies are trading at average of 13.2x PE2013. PBV method is utilized for the property business as the segment is still on the developing stage.

Risk factors. Cyclical business, high reliability to key personnel and political stability are among the key risks. Full year revenue and net earnings will also be skewed toward the last quarter of the year.

for Indonesia Market Summaries, 14 May 2013