Holcim Indonesia Better than expected

Holcim Indonesia: Better than expected FY12 result; above ours (109%) and consensus (112%) estimates (SMCB, Rp3,450, Sell, TP: Rp2,450)

• SMCB has announced a positive FY12 result where they managed to book Rp1.35tn net income (+27.0% yoy, +7.9% qoq), ahead of ours (109%) and consensus (112%) estimates. The company posted strong revenue of 19.8% yoy growth (+7.4% qoq) which leads to growths all the way to the bottom line.
• Strong domestic volume growth of 10% qoq, greatly helped SMCB’s sales albeit the slight decrease in ASP by 3% qoq due to change in product sales mix. 9% qoq increase in direct labor cost has also attributed to the slight decline in gross margin.
• A further slight in operating margin came mostly from the G&A cost of +4% qoq. Further, higher than expected finance cost (+32% qoq) attributed in the higher below the line cost.
• SMCB FY12 result may have surprised us. However, we maintain our Sell recommendation on the due to expensive valuation (22.4x PE2013 vs. industry 18.5x; 314 EV/ton vs. industry 368x), aside our jittery in margin that may come below than our expected due to rising import activities.

Market News Jakarta March 6 2013

ICP continues to increase; no sign of 2013 Revised State Budget proposal yet

ICP continues to increase this year, the latest to an average of US $114,86/barrel in Feb13 from US$111,07/barrel a month before. The figures are above 2013 state budget assumption of US$100/barrel. However, the impact is not expected to be worrying as on the other hand oil and gas
revenue will also rise in line with price increase. The chief of Fiscal Policy Agency Bambang Brodjonegoro said that the net impact to oil and gas revenue and expense is still positive. The Coordinating Minister of Economic Affair Hatta Rajasa mentioned that the current deviation in
macroeconomic assumptions is not strong enough for the government to accelerate the proposal of 2013 Revised State Budget, whereas it is usually delivered in the middle of the year. (Bisnis Indonesia)

Rp1.44tn aimed for BKSL FY13 marketing sales

Sentul City is targeting a growth of 21% for its FY13 marketing sales to Rp1.44tn where Rp1tn will come from Sentul City and the rest will come from Sentul Nirwana. (Investor Daily)

Bank Negara Indonesia - to pay up to Rp25b for Bahana

Bank Negara Indonesia’s CEO is reported as saying to pay maximum Rp25bn for the acquisition of Bahana Pembinaan Usaha Indonesia (BPUI) to the government with the transaction to be completed by 1H12. In addition however, BNI will pay Rp1.2tr of Bahana’s loans to the government.
Comment: Bahana, which has subsidiaries in the investment banking, securities, venture capital, asset management and building management should be a complimentary to BNI’s existing business. However, we have yet to calculate the financial impact to the bank’s bottom line which may not be material. (Bisnis Indonesia).

SMRA earned Rp550bn marketing sales in up to March 2013

Summarecon has managed to book Rp550bn of marketing sales as of March 2013 which reflects a 12.22% growth. The company is aiming for a marketing sales growth of 21.62% for FY13 to Rp4.5tn compared to Rp3.7tn last year. The sales from the beginning of the year was supported by sales of 40
units at the Kensington shophouses in Kelapa Gading which contributed Rp520bn to total marketing sales. Management guidance for this year indicated a 15-20% growth of revenue and 15-20% growth for net profit. (Investor Daily)