Indonesia Market Summaries 10 May 2013

Bank BTPN - SMFG to buy more BTPN at Rp6,500

Sumitomo Mitsui Financial Group (SMFG) is buying 24.26% stake in BTPN for Rp9.2tr translating into Rp6,500/share, to be sourced from  TPG Nusantara (16.87%) and the market (7.39%). The group also plans to increase its stake up to 40% for Yen150b (US$1.5bn) without giving any time table for this. (Kontan, Bisnis Indonesia).

Comment: at Rp6,500 SMFG values the bank at 4.9x and 3.7x P/BV for 2012 and 2013E compared to the industry average of 3.5x and 2.9x. Based on P/E this translates into 19.2x and 15.0x versus the industry average of 15.4x and 12.5x for the same period.

PT Timah delays Myanmar expansion

TINS’ plan to expand to Myanmar has been delayed due to new local regulation requiring local companies to be involved in the mining investment. Thus, TINS is required to start a JV company with a local partner. (Bisnis Indonesia)

Deltamas aims for US$200-300mn IPO

PT Pembangunan Deltamas, the developer of Sinarmas Land’s Kota Deltamas, is aiming for an IPO proceeds of US$200-300mn or equivalent to Rp1.9-2.9tn. The IPO will be conducted in the near term this year. Currently, Deltamas is 50% owned by Sinarmas Land, 25% by Sojitz Corporation, and 25% by Fame Bridge Investment. Kota Deltamas is a 3,000ha township with an industrial estate as well as commercial and residential estates. (Investor Daily)

Surya Semesta recorded industrial land sales decline of 22.6%

In 1Q13, SSIA booked industrial land sales of Rp260bn which declined by 22.6% where the company only sold 28.8ha compared to 43.5ha last year. SSIA claimed that they had difficulties in handing over the land and will only manage to book the sales in the next quarter. The company still believes that they will be able to sell at least 100ha with an ASP of US$125 psqm this year. (Bisnis Indonesia)

General Motors reopens Bekasi Factory

General Motors reopened its factory in Bekasi, West Java, on Wednesday to domestically produce its car for the first time in the Indonesian market in seven years. GM injected US$150mn into the shuttered plant as part of a greater push into lucrative Asian markets. The 58,000sqm facility will assemble up to 40,000 vehicles a year when fully operational. Most of the vehicles will be sold in Indonesia. GM’s international operations president stated that Indonesia is one of GM’s fastest growing markets. GM recently rolled out Chevrolet Spin, a 7-seater MPV (pricing point of Avanza/Xenia at Rp170mn) that is also the first vehicle it made for the domestic market since the Chevrolet Blazer ceased production in 2006. (Jakarta Globe)

Agung Podomoro to pay Rp123bn dividend

Quoted on the news that APLN is paying a Rp123bn dividend in June 2013 or equivalent to Rp6/sh. (Bisnis Indonesia) Comments: The dividend payment implied a yield of 1.3% in 2013.

for Indonesia Market Summaries, 10 May 2013