Stocks Turn South Despite Another Strong Job Report

The U.S. equity markets are trading lower in early action, as another stronger-than-expected February U.S. nonfarm payroll report may be fostering concerns about a sooner-than-expected rate hike from the Federal Reserve. Treasuries are seeing solid pressure and the U.S. dollar is rallying following the employment data, which was accompanied by a narrowing of the domestic trade deficit. Gold is lower…

INDF held an analyst briefing session to provide FY15 guidance

Indofood held an analyst briefing session to provide FY15 guidance (details in Table 1, briefing notes below). FY15 guidance does not imply any meaningful deviation to our FY15 earnings estimate for ICBP. Indofood expect volumes for noodles and dairy to recover in FY15 following declines in FY14. Management attributes the recovery expectations to lower price hikes expected in FY15 given…

INDY mengucurkan utang ke anak usahanya yaitu Indika Capital Investments Pte Ltd senilai US$65 juta (setara Rp846,49 miliar)

PT Indika Energy Tbk (INDY) mengucurkan utang ke anak usahanya yaitu Indika Capital Investments Pte Ltd senilai US$65 juta (setara Rp846,49 miliar). Dana itu akan digunakan untuk menunjang usaha perdagangan batu bara Indika Capital.

HERO: 4Q14 results: Way below our estimates; maintain REDUCE

§ 4Q14 net profit -102.1% y-y: On the back of swelling operating expenses, HERO reported a disappointing 4Q14 net loss of IDR9bn, versus net profit of IDR452bn in 4Q13, way below our expectation of IDR56bn profit. This brought the FY2014 net profit to IDR44bn (-93.5% y-y), accounting for only 40.4% of our full-year estimate. § High operating costs to squeeze…

DAJK is a one stop packaging firm is set for further expansion over the next two years

We met with Dwi Aneka Jaya Kemasindo (DAJK) and spoke with Witjaksono, the Finance Director. The company is a one stop packaging firm is set for further expansion over the next two years. We see that the company is one of beneficiaries of rising consumer spending. The company was listed in the first half of 2014 in which 1bn shares…

MPPA: FY14 Results Above Expectation. Surprise in 4Q14 due to marketing income

Pendapatan MPPA dibukukan Rp13,6 triliun (+14% YoY) dan laba bersih Rp554 miliar (+25% YoY) pada tahun lalu, di atas prediksi Mandiri Sekuritas dan konsensus. Penyebab utamanya adalah pendapatan marketing pada kuartal IV/2014 yang secara hitungan bersihnya Rp90 miliar. Pendapatan itu didapat dari iklan toko dan promo brosur katalog yang dilakukan oleh pemasok. Ekspansi margin lain dibukukan oleh kegiatan perdagangan yang…

CNKO menghentikan dua proyek pembangkit listrik yang sedang digarap karena membengkaknya biaya investasi

PT Eksploitasi Energi Indonesia Tbk (CNKO) menghentikan dua proyek pembangkit listrik yang sedang digarap karena membengkaknya biaya investasi. Kenaikan biaya itu membuat kreditur menunda pengucuran pinjaman selanjutnya.

ELSA: One Stop Oilfield Services

Providing full-range of oil and gas services Originated as a support service company for Pertamina, Indonesia’s state-owned oil company, ELSA has transformed itself into a services company for the oil and gas industry. Currently, ELSA has three main business segments: 1. Upstream support (FY14: 61% of total revenue); 2. Downstream support (35%) and; 3. Auxiliary upstream support (4%). ELSA’s upstream…

PTBA: FY14 net profit inline. FY14 net profit inline

PTBA membukukan laba bersih Rp434 miliar pada kuartal IV/2014 (+2% QoQ, -25% YoY). Realisasi kinerja itu membentuk laba bersih sepanjang FY2014 menjadi Rp2 miliar (+10% YoY), sejalan dengan prediksi Mandiri Sekuritas dan konsensus. Pendapatan sepanjang FY2014 naik menjadi Rp13 triliun (+17% YoY), sedangkan beban produksi juga naik menjadi Rp9 triliun (+17% YoY). Kami menduga kenaikan pendapatan terutama didorong oleh kenaikan…

TINS mengumumkan akan menunda pembangunan pabrik pengolahan mineral (smelter) di tanah jarang (rare earth smelter) di Tanjung Ular Industrial Estate, Bangka Belitung

TINS mengumumkan akan menunda pembangunan pabrik pengolahan mineral (smelter) di tanah jarang (rare earth smelter) di Tanjung Ular Industrial Estate, Bangka Belitung. Penundaan dilakukan dari jadwal awal Maret 2015 menjadi Agustus 2015 karena lambatnya kedatangan mesin dan peralatan dari luar negeri. TINS telah mengalokasikan anggaran konstruksi Rp20 miliar dan pabrik itu akan memproduksi mineral tanah jarang (ROEH3) berkapasitas 50kg per…

ITMG: Meager Outlook

FY14 results generally in-line Indo Tambangraya (ITMG) reported a 13% qoq decline in revenue to US$454 mn from US$522 mn while operating income stood at US$43 mn or 10% qoq decrease in 4Q14. Net profit rose by 51% to US$31 mn from US$21 mn on the back of tax adjustment in 4Q14. Revenue, operating income and net income in FY14…

Pemerintah Akan Tunda Pajak Property

Ketua Kehormatan Dewan Pengurus Pusat Real Estate Indonesia (REI) Teguh Satria di Jakarta mengatakan pihaknya telah memberikan saran kepada Menteri keuangan akibat dampak penambahan pajak property.  Teguh mengatakan kebijakan ini perlu dikaji ulang mengingat rata-rata hunian di kawasan perkotaan memiliki harga di kisaran Rp 2 miliar sehingga tidak tepat dikategorikan sebagai barang mewah. Selain itu, ada faktor inflasi yang tercermin…

Rio Tinto energy chief’s job cut may signal coal exit

To cut costs as commodity prices fall, Rio Tinto is letting go of its energy chief and rolling its coal and uranium businesses into two other units, signalling the possibility to divest its coal assets. Glencore, Mick Davis among the potential buyers if Rio wants to sell. About 80% of Rio’s earnings is from iron ore while its coal division…

UNTR: The storm is coming

 Komatsu’s Jan’15 market share drops to 37% (vs 51% in Jan’14). Amid UNTR’s all-time high heavy equipment inventory (in term of Rupiah) of Rp3.7tn (+82.9%yoy, +40.3%qoq) at the end of 2014, UNTR booked weak Komatsu sales of 244 units in Jan’15 (-51.5%yoy, +121.8%mom). Compare with Jan’14 sales, its Jan’15 Komatsu sales decrease in all sectors. We contribute the decrease…

NRCA which is a private contractor company specializing in commercial building which recently entered the infrastructure development market

We met Nusa Raya Cipta (NRCA) which is a private contractor company specializing in commercial building which recently entered the infrastructure development market. The key takeaways from the meeting are: ¨ Tollroad project will be expired soon. JO Karabha NRC Cikampek – Palimanan toll project is expected to finish in June 2015. The income contribution from this JO is only…

Glencore slashes Australian coal production, jobs on the line

Glencore, a Swiss miner, reported on Friday February 27th that it would cut coal production in Australia by 15 million tonnes in 2015, which could represent a cut of more than 20% from its total production in Australia. This is to adjust its coal output with customer demand levels, and sees the possibility of some expansion projects slowed. The cut…

TINS: FY14 net profit 19% above consensus forecast

FY14 net profit above consensus forecast. Timah (TINS) membukukan laba bersih Rp310 miliar pada kuartal IV/2014 (+148% QoQ, -17% YoY). Realisasi kinerja tersebut membuat laba bersih FY2014 perseroan menjadi Rp638 miliar (+24% YoY), 19% di atas prediksi konsensus Rp534 miliar. Laba kuartal IV/2014 yang kuat itu didorong oleh pertumbuhan volume penjualan 89% QoQ menjadi 11.300 ton, sedangkan rerata harga jual…

DSNG: Fully Valued Despite Strong Results

Strong and in-line 2014 results Dharma Satya Nusantara (DSNG) posted a robust 202% yoy jump in net income to Rp649 bn in 2014 from Rp215 bn in 2013. Both of operating income and bottom line were relatively in line with our estimates, representing 96% and 98% of our forecasts, respectively. The profits growth was mainly driven by 16.4% yoy higher…

NIRO: The next big thing is here

Nirvana Development (NIRO) is Indonesia’s largest listed property developer that focuses exclusively on developing and leasing shopping malls in the country. So far, NIRO has developed (and currently manages) 5 retail malls and one hotel in 2nd to 4th-tier cities in Indonesia. NIRO listed 33.33% of its shares on the IDX in Sep 2012. The owner holds a 56.5% stake…

Enjoy it while it lasts

“People can foresee the future only when it coincides with their own wishes, and the most grossly obvious facts can be ignored when they are unwelcome,” George Orwell. We are reducing our JCI year-end target to 5,450 (from 6,350) and our country rating to neutral (from Over Weight) on risks of a correction. Strong rally on the back of old…

PTBA to focus on developing coal business

Due to coal prices falling, PT Bukit Asam Tbk (PTBA) is keen on strenghtening its businesses in Independent Power Producers (IPP), coal gasification, and coal liquidation. PTBA is also ready to complete its acquisition of Australian company Ignite Energy Resources Ltd in Semester I-2015.

2015 Indonesia Consumer Day – Key Takeaways

The appetite was strong during our 2015 Indonesia Consumer Day in which 10 consumer companies participating and almost 90 buy-side fund managers/analyst attending the one-day conference. All consumer companies – which attend the conference – see a more promising year in 2015 as they believe consumer spending to recover this year, after being hit by high inflation in 2014. We…

AISA: Ambitious rice mill expansion

CFO AISA Sjambiri Lioe mengatakan perusahaan berencana membuat 17 unit penggilingan padi untuk mencapai target kapasitas produksi beras 2 juta ton pada 2020 (sama dengan 5% pangsa pasar), dari kapasitas terpasang saat ini 480 ribu ton per tahun. Menurut wawancara baru-baru ini yang dilakukan oleh Investor Daily, kontribusi penjualan beras ditargetkan mencapai US$1 miliar pada tahun 2020. Anggaran belanja modal…

SIMP: A Good Ending

FY14 results above expectations After having devastating period in 3Q14, Salim Ivomas (SIMP) booked a giant leap in 4Q14 result with operating profit doubled by 104% qoq to Rp830 bn from Rp407 bn. This drove net profit to jump by 377% qoq to Rp285 bn from Rp60 bn. Furthermore, gross margin and operating margin also rose by 5.5% and 8.5%…

Profitable Year for State Miners

‘Positive’: Indonesia is the world’s second largest tin producer after China, and both face a glut of supply Two state-controlled miners posted positive profit growth last year on the back of improved commodity prices, giving hope for a more optimistic view on the industry this year. Tin miner Timah (TINS), the largest state-owned tin producer, saw its net income grow by…

RALS: Devil is in the details!

 RALS opened of 3 out of 15 SPAR supermarkets planned for this year. Key strategies are yield and margin improvements.  Foresee vast upside potential on the current low base and size of captive market.  Reiterate BUY & IDR1,150 TP. Key strategies: higher yield, better margin RALS announced the opening of three new SPAR supermarkets at the press…

LSIP: Sideways Outlook

14A results – Relatively flat and in line London Sumatera (LSIP) reported a top line growth of 4% qoq from Rp1.15 tn in 3Q14 to Rp1.2 tn in 4Q14 while operating income and bottom line were experiencing relatively flat performance to Rp304 bn (+0.2% qoq) and Rp218 bn (-4% qoq), respectively. This brings top line and bottom line results in…

PTBA menyiapkan investasi Rp5 triliun tahun ini untuk membiayai ekspansi pembangkit listrik dan elektrifikasi

PT Bukit Asam Tbk (PTBA) menyiapkan investasi Rp5 triliun tahun ini untuk membiayai ekspansi pembangkit listrik dan elektrifikasi. Dana kebutuhan itu akan diambil dari kas internal.

CKRA menyiapkan saham baru US$100 juta untuk mendanai akuisisi saham Cokal Ltd, perusahaan batu bara asal Australia

PT Cakra Mineral Tbk (CKRA) menyiapkan saham baru US$100 juta untuk mendanai akuisisi saham Cokal Ltd, perusahaan batu bara asal Australia. Perseroan sudah mengajukan penawaran senilai A$700 juta (setara Rp700 miliar).

The government proposes elimination of land and building tax payment (PBB) for low-income residents

The government is planning to eliminate land and building tax payment (PBB) for low-income residents. The program is prioritized towards residents with low-income, heavy tax burden and under subsidized housing scheme. Verification will be conducted to ensure that the requestors qualify. This is expected to be implemented starting in 2016.

Realisasi pajak, di luar pendapatan pajak dari sektor migas, mencapai Rp125 triliun hingga Februari 2015

Realisasi pajak, di luar pendapatan pajak dari sektor migas, mencapai Rp125 triliun hingga Februari 2015 atau 3,8% lebih rendah dibandingkan dengan periode yang sama pada 2014 yaitu Rp130 triliun. Kemenkeu menyadari realisasi yang rendah itu, dan mengklaim bahwa usaha untuk meningkatkan pajak akan mulai dilakukan setelah kuartal I/2015.

Stocks Shrug Off China Growth Cut

The domestic equity markets are trading higher in early action, showing some resiliency in the face of a lowered growth forecast out of China, aided by some favorable results from retailers Costco Wholesale and L Brands, along with a $21 billion announcement by AbbVie to acquire Pharmacyclics. Traders are paying attention to ECB President Mario Draghi’s press conference for details…

PTBA: 2014 Results a Tad Below Expectations

Bukit Asam (PTBA)’s high dependence on the local coal market vs peers has enabled it to book a 9% YoY coal production growth and 10% YoY net profit rise amidst weak benchmark thermal coal prices. Maintain BUY and IDR14,400 TP (31% upside) for now as we are currently reviewing our earnings forecasts. FY14’s profit was 5% below our estimates on…

TV Guide-Feb15: Take Back the Spotlight

Although MNCN is still number one in terms of all-time audience shares, SCMA made a strong come-back in February as the latter company’s all-time shares grew by 310bps MoM. Indosiar alone recorded audience shares growth of 510bps MoM in February as it started to air the second season of “D’Academy” Dangdut music competition. VIVA remained defensive thanks to ANTV’s strong…

G-Resouces – Financial Results for the Financial Year Ended 31 December 2014

FINANCIAL RESULTS FOR THE FINANCIAL YEAR ENDED 31 December 2014 HIGHLIGHTS FOR THE YEAR ENDED 31 DECEMBER 2014 Revenue was USD387.6 million (Full Year 2013: USD429.0 million) EBITDA was USD219.4 million (Full Year 2013: USD221.2 million) Net profit was USD64.5 million (Full Year 2013: USD76.4 million) Production from the Martabe Mine was 275,515 ounces of gold and 2,238,076 ounces of silver…

Bukit Asam, Timah enjoy solid growth despite slump

Publicly listed mining companies Bukit Asam and Timah posted significant growth in their total revenues last year despite a sluggish global commodity market. Coal miner Bukit Asam reported a 17 percent increase in total revenues to Rp 13.08 trillion (US$1 billion) last year from Rp 11.2 trillion the previous year, while net profit grew by about 10 percent year-on-year to…

LSIP: Upgrade To Buy On Improving Visibility

Although LSIP’s rubber and seed units continue to do poorly, its palm segment is doing well enough to drive overall profitability. We upgrade the stock to BUY (from Neutral), while we lift our TP to IDR2,395 (27% upside). The stock trades at under 13x FY15/FY16 forward P/E and only at a very undervalued USD7,890 per planted ha. The company’s net…

PTBA FY14: On expansion mode; power as near-term earnings boost

PTBA has been one of the worst-performing coal stocks YTD after being a top performer in FY14 (+23% y/y) vs. its peers (-17% y/y). We think the recent build-up in coal export pricing did not help the sentiment for domestic-heavy PTBA. We do not think the market has properly valued PTBA’s venture toward power generation business in the region and…

Wall Street Dan Asia Melemah, IHSG Mixed

Melanjutkan arah pergerekan indeks pada sesi pembukaan kemarin, hari ini (5/3) bursa saham utama Asia dibuka di zona merah. Terpengaruh oleh pelemahan indeks di bursa saham Wall Street, dan pernyataan Perdana Menteri China Li Keqiang yang menargetkan pertumbuhan ekonomi China hanya sebesar 7%, terendah dalam 11 tahun. Indeks Nikkei 225, Jepang dibuka flat dan melemah 0,02% pada pukul 08.00 WIB….

TINS reported total revenue of Rp7,371 bn (+26% YoY), 16-18% ahead of expectations on the back of higher-than-expected tin sales volume, offset by lower ASP

● Timah (TINS) reported total revenue of Rp7,371 bn (+26% YoY), 16-18% ahead of expectations on the back of higher-than-expected tin sales volume, offset by lower ASP. Tin sales volume was up 16% YoY, from 23.2 kt in FY13 to 26.9 kt in FY14. ● ASP declined 5% YoY to US$21,686/t, below our estimate. However, gross margin declined 3%, from…

TCID: Benefiting from lower oil prices

§ Factory relocation = short-term pains, long-term gains: Starting 2Q15, Mandom (TCID) will move to its new factory located in Cibitung, Bekasi, which is estimated to have 60% higher production capacity. As a result, all of TCID’s production will be centralized in Cibitung, providing operational efficiency in particular lower transportation cost. Currently, for its plastic packaging needs, the company has…

INDF: Eyeing solid recovery in 2015F

INDF and ICBP are guiding for stronger volume growth recovery across its entire business segments in 2015F. On ICBP, noodle (66% of ICBP’s sales) is expected to post 1%-3% volume growth in 2015 (recovery from negative growth last year). Similar trend to be seen on other segments (34% of ICBP’s sales) such as dairy, snacks, nutrition and beverages that are…

FR CIPTADANA (KI)Daily Technical View 05 March 2015

We expect JCI to trade between 5,390 (support) – 5,500 (resistance) level today BMRI: Buy on weakness at Rp 11,775-Rp 11,600 Comment: Testing support level BBNI: Buy on weakness at Rp 6,600-Rp 6,550 Comment: Testing support level INDF: Buy on weakness at Rp 7,400-Rp 7,300 Comment: Testing support level MLPL: Buy on weakness at Rp 935-Rp 925 Comment: Retest the…

Panin Sekuritas Research 05 Mar 2015

Dow Jones melemah -106,47 point ke level 18.096,90. S&P500 -9,25 poin ke 2.098,53, dan Nasdaq -12,76 poin ke 4.967,14. Melemahnya Wall Street terjadi ditengah optimisme The Fed yan tertuang dalan The Fed’s Beige book akan menguatnya perekonomian regional.  Charles Evans, President The Fed Chicago, menyatakan The Fed harus menunggu hingga semester 1 tahun depan sebelum menaikan suku bunga dengan alasan…

SMGR: Earnings Improve In 4Q14

SMGR 4Q14’s IDR1.5trn earnings (+17.1% QoQ), in line with our/consensus expectations, was on higher sales volume. Maintain BUY and IDR18,150 TP (22% upside), based on 18x FY15F P/E. Sales volume growth was also faster than its peers, while domestic market share improved to 44% in January (FY14: 43.7%). We also expect its Vietnamese subsidiary, TLC, to start booking net profit…

PTBA: Stuck in Lower FY15 Coal Price

PTBA mencatatkan kenaikan laba bersih FY14 sebesar 10.4%, sesuai dengan ekspektasi. Pendapatan PTBA tumbuh 16.7% yoy menjadi Rp 13,08 triliun dimana laba usaha tumbuh 25.6% yoy menjadi Rp 2,3 triliun. Namun kerugian non operasional sebesar Rp 23 miliar membuat laba bersih tidak tumbuh optimal. Harga jual secara mengejutkan naik 20.7% yoy menjadi Rp762.003/ton, didukung membaiknya harga batubara domestik dan melemahnya…

UNTR: 2015 off to a weak start for Pama

Event § UNTR has released its January operating data, which showed a significant decline in Pama’s coal production and overburden volumes (by a respective 12.5% and 19.1% YoY). Heavy equipment volumes also remained weak (down 51.5% YoY). We discuss the implications moving into 2015. Impact § Weather the primary driver, but UNTR underwrites “weather” risk: UNTR believes the primary driver…

Building Material: Hanging in Balance

Hanging in Balance We are positive on the government’s ambition to build more infrastructure, as national capital spending is expected to go up by 65% YoY this year. However, the recent price cut on state-owned-enterprise caused us to downgrade the sector recently to Neutral. At this juncture, our preffered play is INTP. Demand recovery. Indonesia’s cement demand story remains attractive,…