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)

BKSL to buy back PT Bukit Jonggol Asri from ELTY

BKSL to buy back PT Bukit Jonggol Asri from ELTY

According to local news, Sentul City plans to buy at most 20% stakes in PT Bukit Jonggol Asri (BJA) from Bakrieland with a transaction value of approximately Rp300-500bn. The news’ source admitted that BKSL is still negotiating regarding the number of shares they are planning to buy back as well as the transaction value. As of now, ELTY is still the major shareholder of BJA, owning 51% while the rest is owned by BKSL. Should the transaction go through, BKSL will become the major shareholder with 69% stakes. BKSL is said to use standby bank loans and internal cash for the buy back. (Investor Daily)
Comments: As of FY12, BKSL has a net cash of Rp76bn and net gearing of 11%, which is at the lower end leading us to believe that they still have room for debt.

ELTY failed to expedite their USD155mn bond payment

Bakrieland was unable to fulfill their plan to expedite the payment of their USD155mn bond issued by their subsidiary in Singapore, BLD Investment Pte Ltd. The unsecured guaranteed equity linked bond was issued in March 23, 2010 and has a tenor of 5 years, but the company claimed that they were planning to pay it back by March 23, 2013. ELTY claimed that they have been restructuring the bond with the holders since February 2013. The bondholders are currently starting a coordinating committee to discuss the issue further. (Kontan)

Presidential decree for inter-province monorail project update

Vice Transportation minister, Mr. Bambang Susantono, stated that Presidential decree for inter-province monorail project will be issued by end of this semester. The decree will then be a legal basis for monorail project execution in Jabodetabek. He also added that the decree may include Adhi Karya (ADHI) appointment as the coordinator for public transportation projects. Consisted of Len Industri, PT Industri Kereta Api, Telekomunikasi Indonesia, Jasa Marga and Bank Mandiri, ADHI consortium will be appointed directly to execute the ~45km monorail projects (Kontan)

Budget disbursement remains slow along 1Q13

Government’s budget disbursement was still sluggish in 1Q13, only reaching 5.63% of total government target of Rp184.4tn. The realization figure was lower 1% - 2% than the same period of 2012. Thus, the Ministry of finance is concern if the budget disbursement could not be improved going forward, then most of it will likely be disbursed during the end of the year (Kontan).