Stocks Finish Negative Week in Positive Fashion

Though stocks did close out the week lower, the U.S. equity markets managed to produce a positive finish today as Fed Chairwoman Janet Yellen discussed in an afternoon speech factors that will likely guide the Fed’s decisions in adjusting its stance of monetary policy over time. Treasuries were higher following an inline read on 4Q GDP growth and a stronger-than-expected…

NIRO to build eight shopping malls

Five of the malls are expected to be operational in 4Q15, and the remaining will be operational next year. In total, the company will own ten shopping malls this year from its current existing five malls. Nirvana has prepared Rp60bn-Rp80bn(US$4.6mn-US$6.2mn) to build one mall, and a total of Rp360bn-Rp480bn(US$27.7mn-US$36.9mn) for six malls. Nirvana President Director Wilson Effendy stated their revenue…

KLBF’s injection drugs production line was stopped

Kalbe’s injection drugs production line was stopped. Food and Drugs Supervisory body (BPOM) has instructed Kalbe to stop production for all its injection production line post BPOM’s inspection to Kalbe’s factory. In addition, Kalbe is also asked to recall its injection drugs in the market to do a batch review.

The gov’t is preparing a new regulation ensuring its recent decision to waive visa requirements for 30 countries starting in April can be imposed without delay, despite an immigration law stipulating that visa exemptions could only be made on a reciprocal basis

Visa policy to go ahead. The gov’t is preparing a new regulation ensuring its recent decision to waive visa requirements for 30 countries starting in April can be imposed without delay, despite an immigration law stipulating that visa exemptions could only be made on a reciprocal basis. Tourism Minister Arief Yahya said that a presidential regulation was being drafted as…

Equities Recover From Lows, but Still See Negative Close

The U.S. equity markets pared early losses, but still closed the trading session below the flatline. Some of the early pressure on stocks arose from flaring Middle East concerns with Saudi Arabia and its Gulf allies launching airstrikes on rebel forces in Yemen. The actions were followed by a rally in crude oil prices, while the U.S. dollar and gold…

Deposit Insurance Corporation (LPS) claims high interest rates indicate tight liquidity with a LDR 88.5% in the system and liquid assets to non-core savings of 92%

Deposit Insurance Corporation (LPS) claims high interest rates indicate tight liquidity with a LDR 88.5% in the system and liquid assets to non-core savings of 92%. The deposit insurance corp suggests the LDR and liquid assets to non-core deposits are the highest since 1998. The system’s CAR is above 21% hence there is plenty of ability to withstand any shocks….

4G update: The government to hold beauty contest for 2,300Mhz

The ministry of communications and information technology (Kominfo) plans to do a beauty contest for the 30MHz spectrum in the 2,300Mhz frequency band (national license in 15 zones). The government indicates strong demand from the telecom operators as they can use it for 4G services. Currently TLKM, ISAT, and EXCL use 900Mhz band for their 4G services and plans to…

ICBP: Noodles Boosted Earnings

Indofood CBP (ICBP)’s FY14 earnings came in at IDR2.6trn (+17.0% YoY), in line with our and consensus expectations. Its 4Q14 earnings slipped to IDR535bn (-26.9% QoQ) as expected since the period has the lowest earnings during the year. It is worth noting that 4Q14 dairy EBIT grew by 81.9% QoQ to IDR150bn. We reiterate BUY on Indofood CBP with a…

Tax revenue stamp for property and stock might be bigger

Tax revenue stamp for property and stock might be bigger. Directorate general of tax suggested special revenue stamp (ad valorem) for stock and property at 0.1% of total transaction. In the past, the stamp is a fixed Rp6,000 for legal documents for transaction above Rp1m, and Rp3,000 for below. The tax authority claimed that this is in line with international…

PGAS: Buying opportunity ahead of the Apr 6 AGM

What’s happened? · PGAS has come under persistent selling pressure in the lead up to its AGM (Apr 6th) on the back of a variety of market rumours. We summarized a few of these in our recent note (link here: Perusahaan Gas – BUY (Value opportunity)). · The most recent concerns are around an expected increase in a major offtake…

TINS cut dividend this year for the sake of new project

Timah cut dividend this year for the sake of new project – Based on the recent AGM, PT Timah (TINS) decided to cut the amount of dividends this year, considering the company plans to realize several projects which are expected to increase future income of TINS. This year, TINS will distribute IDR191.39bn of dividends, compared to last year dividends of…

SMRA: No Impact From Halt Order

Local media report that Summarecon’s fourth project – Summarecon Bandung in Gedebage, West Java – has been put on hold. It was asked to stop the construction of its marketing office and show units, as it has the land development license (SIPPT) but not the building permit (IMB) yet. As there is little risk of the project being cancelled, we…

TINS menargetkan laba bersih 2015 berkisar Rp1 triliun, naik 56,98% dari labar bersih Rp637 miliar yang telah dibukukan 2014

PT Timah Tbk (TINS) menargetkan laba bersih 2015 berkisar Rp1 triliun, naik 56,98% dari labar bersih Rp637 miliar yang telah dibukukan 2014. Emiten juga menetapkan pembagian dividen kepada para pemegang saham pada tahun buku 2014 sebesar Rp25,70 per lembar saham atau total Rp66,9 miliar atau 30 persen dari laba bersih.

LPKR and LPCK: FY14 results In-line

Lippo Karawaci (LPKR) together with its listed subsidiaries have announced the FY2014 financial results which is largely in-line with our expectations. Lippo Karawaci managed to book earnings of IDR2,527bn (+106% YoY) which made up 98% of our estimates and 122% of consensus estimates. The doubling of earnings is mostly contributed by the sale of Kemang Village mall which gives additional…

The Brent oil price was up USD2.5/bbl

The Brent oil price was up USD2.5/bbl after Saudi Arabia and its allies attacked Yemen. Even though Yemen is not a big oil exporting country, it is strategically located from shipping perspective. How long will the war will last, we don’t know, but the longer the war lasts the higher the chance oil prices will go up. Inflation will go…

ROTI’s FY14 earnings rose 19.3% YoY, in line

Nippon Indosari (ROTI)’s FY14 revenue and net profit rose to IDR1.9trn (+24.9% YoY) and IDR189bn (+19.3% YoY), respectively. Comment: ¨ Nippon’s FY14 earning was below our expectation which was driven by lower other non-operating income, but in line with that of consensus estimates. Excluded other operating income, FY14 earnings was in line with our recurring earnings estimates. FY14 earnings achieved…

New land acquisition law; which projects to monitor?

-Execution of the new land acquisition law should be the key focus — The Indonesian president has just signed a revised land acquisition law under the presidential decree no. 30, 2015 to accelerate infrastructure development. Strong efforts have been put by the government to push through this law to expedite infrastructure projects as many of them were stalled due to…

Indonesia to become Toyota production hub in ASEAN

Toyota Motor Company (TMC) has committed to make Indonesia as a production hub for its car and spare part production in ASEAN. It will triple its car export from 200.000/year to 700.000/year. To achieve the plan, Toyota will gradually invest Rp 20tn until 2017. Following those commitments, government will ease things related to work visa, logistics, and seaport permit. In…

SCMA FY14 Results: Slightly below ours

Slightly below results. SCMA reported FY2014 NPAT of Rp1.45, a growth of 13.6% YoY. Result is slightly below target (93% of ours). Meanwhile, the company reported FY14 revenue of Rp4.06tn, an increase of 9.8% YoY. FY14 Ad Revenue of Rp963bn reflects growth of 1.8% QoQ. Albeit booking positive QoQ revenue growth, 4Q14 ad revenue is still slower than expected due…

PWON: good set of results

Good FY14 results. PWON reported FY14 NPAT of Rp2.5tn, up by 122% YoY. Result is in-line with our forecast (103% of our FY14) and better than consensus (143% of consensus’ FY14), as consensus has not priced in the Rp1.1tn of gain from the purchase of subsidiary and investment gain. Operating margin in FY14 remains solid at 49%. In 4Q14, the…

Stocks Continue to See Pressure

The domestic equity markets are trading decisively lower in early action, with an escalation of the crisis in Yemen exacerbating global sentiment, which has been hamstrung as of late by volatility in the currency and commodities markets amid elevated Fed rate-hike uncertainty. Crude oil prices are gaining on the news that Saudi Arabia and its Gulf allies launched airstrikes on…

PLN invites investors or interested parties to submit PQ applications

PLN invites investors or interested parties to submit PQ applications – PLN is inviting investors to help with the implementation of barge mounted gas fired peaker power plants of its 250 MW in North Sumatera, 200 MW in South Sulawesi, 200 MW in Southeast Kalimantan, and 120 MW in Sulbagut.

Gov’t cancelled cooperation agreement of private water operators PAM Lyonnaise Jaya (Palyja) and Aetra Air Jakarta (Aetra)

Gov’t cancelled cooperation agreement of private water operators PAM Lyonnaise Jaya (Palyja) and Aetra Air Jakarta (Aetra). Chief Justice Iim Nurohim stated the agreement would violate DKI Jakarta Perda no. 13 1992, where local gov’t have neglected their obligations to provide drinking water to Jakarta residents. Iim also stated the agreement would be detrimental for Palyja and the state. Palyja…

TINS BAGIKAN DIVIDEN RP 66,9 M~RP.25,70/LEMBAR

PT Timah (Persero) Tbk (TINS) menetapkan pembagian dividen kepada para pemegang saham pada tahun buku 2014 sebesar Rp25,70 per lembar saham. Direktur Utama PT Timah Sukrisno mengatakan, pembagian dividen juga telah dialokasikan sebesar Rp66,9 miliar dari Rp191 miliar atau 30 persen dari laba bersih yang sekira Rp637 miliar. “Dividen tunai dibagikan kepada negara sebesar Rp124,403 miliar,” kata Sukrisno di Hotel…

ASII targets 5.05mn units of 2W sales this year, flat growth from last year

Astra (ASII) targets 5.05mn units of 2W sales this year, flat growth from last year. AHM (Astra Honda Motor) Marketing Director Margono Tanuwijaya expects weak sales across all brands this year due to rupiah depreciation and inflation.

1st SESSION JCI on 26.03.2015(By: D’ORIGIN – Veni Fitriani)

IHSG @5399.85 (-5.64pts) (-0.10%) (H: 5413.29 ; L: 5368.67) Value: 3.026 T (NG 489 B ) Volume: 29.305 M Lot (NG 5.428 M Lot) Foreign Nett Sell 138.03 B Foreign Value 42.1% *BUY (Regular) F Buy 895.6 B D Buy 1640.5 B *SELL (Regular) F Sell 1077.1 B D Sell 1459.1 B USD/IDR……!!! JISDOR: 12,932/13,003 NDF: 12,983/13,016 JCI for today:…

Jokowi upbeat about Batang coal-fired station

Jokowi upbeat about Batang coal-fired station. Jokowi said on Tuesday that the construction of the Batang coal-fired station, which is being developed by Japan’s Electric Power Development, Itochu and Indonesia’s Adaro Energy (ADRO), could start in April. Building of the 2,000-megawatt project in Central Java was supposed to begin in 2012 and has been held up by local opposition, environmental…

Cepu output to double in April 2015

Currently the output of the Banyu Urip Field in the Cepu Block is 40,000 barrels per day (bpd). Production is now expected to gradually increase to 80,000 bpd in April once approval from the Environment and Forestry Ministry for environmental impact analysis is cleared. Peak production of 165,000 bpd is expected to be achieved in October 2015. Additionally, Indonesia’s yearto-date…

BBTN Bagi dividend IDR21.1 per saham (Yield: 1.8%)

• Para pemegang saham Bank Tabungan Negara (BBTN) menyetujui pembagian dividen sebesar IDR21.1 per saham (yield:1.8%), dengan total IDR220miliar. • Dividen tersebut setara dengan 20% dari laba bersih tahun 2014 yang tercatat sebesar IDR1.1t. • Berita terpisah (dikutip dari Tribune), Bank Tabungan Negara (BTN) akan menerbitkan obligasi sebesar IDR3t, untuk mendukung proyek 1 juta rumah. Rencananya obligasi ini akan dikeluarkan…

35GW Power – The govt is plans to issue Presidential Decree to smoothen fund raising for projects

35GW Power – The govt is plans to issue Presidential Decree to smoothen fund raising for projects. The decree will make it easier for state-owned enterprise to raise funding for power projects from abroad. The govt also added that it believes the land acquisition process will no longer be a problem for the 25GW capacity that will be built by…

SUPR: Akan menjual 30% sahamnya melalui placement

• Dikutip dari kontan, Pemegang saham PT Solusi Tunas Pratama Tbk (SUPR) akan menjual saham tanpa hak memesan lebih dulu melalui private placement. • Cahaya Anugerah Nusantara Holdings Limited dan PT Kharisma Indah Ekaprima, dua pemegang saham SUPR, tercatat sebagai calon penjualnya. • Pelaksanaan rencana private palcement ini ditargetkan selesai kuartal kedua 2015. • SUPR akan melakukan private placement sekitar…

HOSPITAL: Ciputra dan Lippo bisnis klinik kesehatan di mal

Pengembang properti makin agresif merambah bisnis rumah sakit. Seperti Grup Ciputra lewat Ciputra Healthcare yang meresmikan klinik pertama di mal bertajuk Ciputra Medical Center (CMC) di Lotte Shopping Avenue, Ciputra Wolrd Jakarta 1 akhir pekan lalu. Menurut Direktur Ciputra Mitra Medika, Veimeirawaty Kusnadi, Ciputra  sengaja memilih lokasi ini demi merangkul eksekutif dan profesional yang beraktivitas di Ciputra Wolrd Jakarta, seperti…

West Java’s Tanjung Lesung plans to build Southeast Asia’a largest marina

That West Java’s Tanjung Lesung plans to build Southeast Asia’a largest marina? The coastal area of Banten is not exactly new destination for the Jakartans, but due to the ppor road infrastructure, many opted to go to Bandung instead during weekends. However, the situation may soon change as the gov’t declared Tanjung Lesung a tourism special economic zone (KEK) and…

ICBP’s beverage plant to start operation in April

Indofood CBP (ICBP) is to commence new beverage manufacturing facility in April 2015. The new plant – which will produce RTD green tea, Ichi Ocha and RTD coffee – has production capacity of 1m bottle per day. The plant located in Cicurug, Bogor West Java on top of 5.9ha piece of land with total investment IDR815bn funded by a JV…

GIAA Analyst Meeting Key Takeaways

· Restructuring Routes. Garuda Indonesia (GIAA) is cutting its non-profitable and non-efficient double routes such as Jakarta – Japan, Denpasar – Japan, and reallocating them to more profitable & potential market (China & Middle East). They recently opened Depnasar – Beijing route 7 times a week in 2014 which is a huge potential market for Garuda. · Cost- Saving Program….

ICBP: Food for thought

Noodles – Growth through price hikes as volume growth stalls: Given Indonesia’s high instant noodles/capita consumption of 4.5kg, the second highest in the region behind South Korea (exhibit 5), there is a need for ICBP to diversify away from its instant noodles business, particularly as 2014 volumes were flat. However, we are of the view that, over the medium term,…

Planned change to pension payments

The government aims to change pension payments to retired civil servants from monthly to one lump sum payments. This is aimed to make more efficient payments. From government perspective, the lump sum payments will also make for easier monitoring and as well as potentially minimising pension costs which have been ballooning to Rp92tr in 2015 (from Rp86tr in 2014). And…

External debt update: stabilizing on the back of economic moderation

 Jan15 external debt increased on the back of public debt…Total external debt reached US$298.7bn (34% of GDP), marginally increasing to 10.1% yoy in Jan15 from 9.9% yoy in Dec14 due to public debt pick up (total public external debt reached US$136bn or 15% of GDP). We believe the increase on public debt was owing to larger foreign ownership on…

Coal price is now below USD60/t

It’s still March, but benchmark coal prices (according to Platts) have sunk to be below USD60/tonne (it was USD56.7/tonne yesterday!!). The prices seem in contrary to what’s going on the supply side, i.e. YTD Feb production in Indonesia down almost 19% YoY to 65m tonnes & Glencore’s plan to lower its Australian output by 15% for this year. When the…

BJBR: Kualitas meningkat secara perlahan

• Berdasarkan riset Bank BJB (BJBR), Rahmi Marina mempertahankan rekomendasinya HOLD dengan TP IDR1,000 per saham (2015: 7.2x PER, dan 1.2x P/BV). • Kualitas kredit BJBR dalam proses pemulihan. Total NPL senilai IDR250miliar dari kredit komersial, akan dilakukan melalui repayment, Collateral, dan juga penghapus bukuan. • Dengan upaya tersebut, Rahmi memperkirakan NPL akan turun menjadi 3.3% di akhir 2015 vs….

BBCA: Best status: In the price

Targeting net loan additions of IDR43-45tn or 12-13% y-y growth Focusing on SME loans, BBCA has targeted 2015 net loan additions of IDR43-45tn for 12-13% y-y growth, in line with our 13.1% estimate. Meanwhile, BBCA expects mortgages to pick up, targeting 8-9% y-y growth in 2015. The bank would continue to focus both on the high-end segment (average mortgage size…

BI jadikan utang swasta penyebab pelemahan rupiah

Bank Indonesia menjadikan utang luar negeri (ULN) swasta dan defisit neraca transaksi berjalan (current account deficit/CAD) sebagai faktor penyebab pelemahan rupiah, di samping ketidakpastian ekonomi global. “Kondisi dunia ditambah CAD dan ULN, menambah tekanan terhadap nilai tukar rupiah,” kata Gubernur BI Agus Martowardojo saat paparan di Komisi XI DPR RI, Jakarta, Rabu. Agus menuturkan, banyaknya utang luar negeri swasta dan…

PGAS: Growing pains

PGAS FR CIMB TARGET PRICE RP 5,000 Growing pains PGAS’s near-term growth outlook looks challenging given the lack of new gas supply contracts and weak oil price. The government’s proposed change in the gas regulatory framework will not necessarily bode ill for the company, in our view, though this may pose uncertainty to the long-term margin outlook.  We cut our…

BERITA EMITEN 26 March 2015

• COAL : Harga Batu Bara: Kembali memasuki pola reli (bisnis) • ACST: Acset Indonesia dapat pinjaman Rp60 miliar dari pemegang saham (IQPlus) • AGRO: BRI AGRO alokasikan 10% laba 2014 untuk dividen (IQPLus) • APLN: APLN catatkan Obligasi Berkelanjutan Rp99 miliar • (IQPlus) • BEST: BEST tanam US$ 20 juta untuk hotel dan perkantoran (kontan) • BIRD: Laba Blue…

Deviden & Window Dressing Catalyst IHSG

Oleh ini Rahardjo Jakarta – John D Rachmat,Head of Equity Mandiri sekuritas mengatakan bahwa saham di Bursa efek indonesia masih Bullish.   John mengatakan IHSG akan terangkat kembali ke level 5800 di medio 2015.  John menambahkan saham infrastruktur dan property masih menjadi idola investor. Penurunan index  hanyalah koreksi minor dan wajar.  Ia merekomendasikan : WIKA,WTON,SOCI,SMRA,LPCK,TBIG,BBRI. Hal senada di ungkapkan oleh…

Contractor ACST booked Rp1.36tn (US$105mn) new contract ytd, 68% of FY15 target

Contractor Acset (ACST) booked Rp1.36tn (US$105mn) new contract ytd, 68% of FY15 target. The new contracts came from Thamrin Nine mix-use, Millennium Centennial and Langham Senopati project. The contract from Thamrin Nine alone reached Rp1tn.

Mitsubishi starts factory construction in Indonesia

Mitsubishi starts factory construction in Indonesia. Mitsubishi Motors Krama Yudha Indonesia — a partnership between Japan-based Mitsubishi Motors and Jakarta-based automotive firm Krama Yudha — began construction of a new plant in Cikarang, West Java. The company has allocated 60 bn yen (US$502 million) for construction of the plant, which is slated to begin operations in April 2017. The plant,…

Government to float electricity prices for households with 1,300VA and 2,200VA in May

Government to float electricity prices for households with 1,300VA and 2,200VA in May. The government actually plans to do so in Jan 2015 but postponed it until May. The government has already floated the tariff for households with power capacity more powerful that 2,200VA since last year. The price depends on US$ exchange rate, Indonesia Crude Price, and inflation.

Third revision of land acquisition law was issued recently by the government through Perpres No. 30/2015

Third revision of land acquisition law was issued recently by the government through Perpres No. 30/2015. In this revision, the stipulates that all projects that have done land clearing (below or above 75%) can use the new law (UU No 2 2012) without the need to start the process from square one.