Saturday, March 3, 2018

Indonesia - Stock Picks for Tomorrow - March 5, 2018

1. Bank Panin (PNBN)
  • PNBN net profit for the year 2017 recorded Rp 2.72 trillion, up 22.29 % compared to Rp 2,40 trillion in 2016. According to the financial report per December 2017, net interest income reached Rp 8,65 trillion, up 8.44 % from Rp 2.5 trillion in 2016.
  • Third-party funds rose 2.3%, from Rp 142.65 trillion in 2016 to Rp 145.89 trillion in 2017. Meanwhile, the company's assets per December 2017 of Rp 215.5 trillion per December 2017 or up from the year 2016 Rp 199.18 trillion
2. Vale Indonesia (INCO)
  • INCO recorded revenue in the year 2017 of US $629.33 million, up 7.74 % year-on-year compared to year 2016 which of US $584.14 million. But the cost of revenue INCO jumped 13.23 % yoy to US $622.78 million from the previous US $550.02 million due to rising prices of fuel and lubricating oil.
  • The company still suffered loss of US $15.27 million last year. But over the last three years, the profit of the INCO indeed continues to decline. In January 2014, the company's profit of US $172.27 million, at 2015 down 70.69% to US $50.50 million, in the year 2016, the profit down 96.23% yoy to US $1.91 million.
3. Bank Tabungan Pensiunan Nasional (BTPN)
  • PT Bank Tabungan Pensiunan Nasional Syariah, a subsidiary of PT Bank Tabungan Pensiunan Nasional Tbk. (BTPN), including the one of the public Sharia bank that gets earnings because of increase in financing.
  • Financial Director BPTN, Arief Harris Tandjung, said profit BTPN Syariah in the past year grew about 60% on an annual basis. "The profits of Rp 673 billion, grew 62% in year on year, driven the increase in financing for 20% to Rp6 trillion," he said not long ago.
  • Arief added, the current position of the FDR BTPN Syariah in the range of 93 - 94% with total assets amounted to Rp10 trillion and total amount of core capital amounted to Rp2,25 trillion.
4. Jasa Marga (JSMR)
  • Six toll road that the concession owned JSMR targeted operation in this year.
  • Over the past 40 years, JSMR has operates over 680 Km of toll roads. Additionally, Jasa Marga will operate concession with a total length of 1,260 Km.
5. Bumi Resources (BUMI)
  • ANTM sells 20% stake in PT Dairi Prima Mineral (DPM) to Bumi Resources Minerals (BRMS) worth Rp 773,67 billion. The DPM holds a Contract of Work (KK) is given by the Government of Indonesia on February 18, 1998. Under the terms of the Contract of Works, DPM explore minerals in an area of 27,420 hectares located in North Sumatra Province and Nangroe Aceh Darussalam (NAD) Province.
6. Japfa Comfeed Indonesia (JPFA)
  • In 2017, JPFA recorded net income of Rp 1.11 trillion or dropped 48.85% of year 2016 amounted to Rp2,17 trillion. The decline in profits caused by increased expenses. Gross profit in 2017 amounted to Rp 5,03 trillion or down compared to the previous year which amounted to Rp5,48 trillion.
  • Consolidated sales of the JPFA grow 9.38% to Rp 29.6 trillion in 2017 compared with sales in the year 2016 realisation amounted to Rp 27,06 trillion. Meanwhile, the company's assets rose to Rp 1.83 trillion from Rp 19.25 trillion in 2016 be Rp 21,08 trillion in 2017.
  • JPFA stock buyback will do as much as 2.5% of the shares placed worth Rp 462.13 billion. With the buyback, it would increase EPS and reward to shareholders.
7. Bank CIMB Niaga (BNGA)
  • BNGA hope with implementation of digital banking, the bank can raise savings and giro. Realization of CASA (current accounts, saving accounts) in 2017 grew 171 basis points to 52.6%.
  • In the year 2017, the bank posted profit rise 43% compared to 2016. The increase in profit was driven by the increase in operating income 5.6% year on year and operational costs can be pressed 2.1%. The Bank also able to managed quality of credit so the cost of reserve was down 18%.
8. Barito Pacific (BRPT), Indah Kiat Pulp and Paper (INKP), Kresna Graha Sekurindo (KREN), Sentul City (BKSL)
  • The FTSE Global index for Asia Pacific region enter the four stock issuers Indonesia into the small cap index. The four stocks that go into the FTSE Global Small Cap index are PT Barito Pacific Tbk (BRPT), PT Indah Kiat Pulp and Paper Tbk (INKP). PT Kresna Graha Sekurindo Tbk (KREN), and PT. Sentul City Tbk (BKSL). This index also moved stocks of Tbk PT Semen Indonesia (SMGR) and PT Perusahaan Gas Negara Tbk (PGAS) from the large cap index to mid cap stocks.
9. Samudera Indonesia (SMDR)
  • The company will buy two new ships in quarter I-2018. One of them already in operation to India route.
  • Both ships were purchased was container ships worth $17 million with capacity of 1200 teus. The ship was inaugurated in early February and early March.
  • SMDR will build a new warehouse in the area Semper, North Jakarta, on quarter II-2018. Investment that is prepared to build a warehouse covering an area of 4,500 square meters of US $4 million. In addition, SMDR completing construction of a warehouse in Malaysia worth US $7 million with an area of 11,500 square meters. It is estimated this warehouse will begin operating in April 2018.
  • Total capex SMDR year 2018 of US $195 million, and this year's SMDR will buy a maximum of 15 units of the new ships.
  • PT Tata Bandar Samudera has received 24 units of trucks MAN type CLA 12,280 from PT Duta Putera Sumatra (DPS). These trucks will be deployed to some existing company branches in Surabaya, Padang, Merak and Pontinanak. In the future, the company will add another branches to the truck fleet such as Banjarmasin, Medan and Palembang.
  • PT Tata Bandar Samudera, a subsidiary of PT Samudera Indonesia Tbk, is a holding company that owns 23 freight forwarder in ports throughout Indonesia.
10. Surya Semesta Internusa (SSIA)
  • The company bought 67.809 million shares of PT Nusa Raya Cipta Tbk (NRCA) on 21 February - 1 March 2018 worth Rp 32,42 billion for investment purposes. After the transaction, SSIA will owning 1,569,607,000 (62.88%) NRCA stocks, from 1,501,797,500 (60.16%).
  • Based on the financial statements as per September 2017, NRCA shareholder are SSIA 61.50%, PT Saratoga Investama Sedaya Tbk (SRTG) 7.12%, and public investors 31.37%.
11. Kalbe Farma (KLBF)
  • The company has the ambition to want to be a global player. KLBF products already circulating in the ASEAN and the company will increase its penetration in Myanmar, Vietnam, Philippines, Malaysia and Thailand. The latest, this year the company will be expanding in some African countries. Market opportunities in Africa is still wide open and the company already has a factory in Nigeria.
12. Wijaya Karya Gedung (WEGE)
  • WEGE posted net income of Rp 294.87 billion last year, or soar 105.88 % from the year 2016 of Rp 143.22 billion. Net revenue rose 102.60% in year on year from Rp 1.92 trillion in 2016 to Rp 3,89 trillion in 2017.
13. Krakatau Steel (KRAS)
  • The company remains the focus of its production for the domestic market because steel demand in the domestic market continued to rise. According to data of the Ministry of Public Works and Housing until 2017 needs steel for construction projects reached 13.49 million tons. However, only 7 million tonnes or 52% are able to be filled by the domestic industry, while the remaining 6.6 million tons still imports.
  • If the two factories i.e. blast furnace and hot strip mill 2 (HSM2) are completed, some will be used for the export market. The project is expected to be completed on the semester II-2018 and will provide an additional 1.5 million tons production of KRAS. If calculated with production capacity of Krakatau Posco which amounted to Posco 3 million tonnes, then the total capacity will be 4.5 million tons.
  • Steel import restrictions made by the Government of the United States are rated positively impact for the Indonesia steel industry. They also believed U.S. policy would make the Indonesia steel industry will grow and raise selling price of HRC products to the level US $600 per ton.
  • The growth of the domestic steel industry will move at a level of 10%. Specific to the KRAS, this year the company is targeting sales growth in the level of 40% or 2.8 million tons, and the KRAS is optimistic can get profit.
  • HRC's current selling price rising from under US $400 per ton to US $700 per tonne, resulting a reduced export China to Indonesia because of the China economy began to recover. As a result, demand a much higher than the supply. Early in 2018, the HRC sales usually only 100,000 tons per month, but this time the demand could reach 130,000 tonnes, up 30%.
14. Mitra Keluarga Karyasehat (MIKA)
  • General meeting of shareholders (AGM) Outstanding, held on 28 February, approving the buyback as many as 5% of the paid-in capital with a maximum fund worth Rp1,4 trillion.
15. Astra Otoparts (AUTO)
  • According to the Minister of Industry, Airlangga Hartanto, industry of commercial vehicles in Indonesia is already strong enough so that the Government would support a ban on the import of used trucks already produced in Indonesia. The Government set up the national automotive industry through Regulation of the Minister of Industry (Permenperin) No. 34/2017 concerning motor vehicles with two and four wheels. On the Permenperin, a set of schema import vehicles, including commercial and commercial vehicles.
  • Recorded in the year 2017, the commercial vehicle industry growth in Indonesia increased significantly, up 45 percent compared to the previous year. Not only does the recording industry nationally, commercial vehicles also notes the increase in the export sector.
16. Bank Mandiri (BMRI)
  • Bank Mandiri welcomed the Government plan that would use credit cards for shopping in the work units of Ministries and Agencies (K/L). President Director of PT Bank Mandiri, Wirjoatmodjo, Kartika said from such use will be additional sizable deals, estimated could reach from trillion to tens of trillions rupiah.
17. Mitra Pinasthika Mustika (MPMX)
  • In the year 2018, the company is targeting revenue growth of approximately 5-10%, and net profit could rise 20-25%. For achieving that target, the company will develop new business and increased productivity. In addition, the company will strengthen and develop its business in organic or non-organic, and open up opportunities to work or business alliances with strategic partners.
  • Until the quarter III-2017, the company's revenue was down 3.72% to Rp 11.92 trillion compared with the same period a year earlier. Meanwhile, net profit for the quarter to III-2017, up 25.39% to Rp 363.09 billion.
18. Salim Ivomas Pratama (SIMP)
  • In the year 2017 the company sales performance is good enough, that is up 9% to Rp 15.8 trillion from Rp 14,5 trillion in 2016. Meanwhile, the net profit at 2017 of Rp 512 billion, down 5% from the year 2016 are amounted to Rp538 billion.
  • As for the company's recorded rise in sales volumes of crude palm oil (CPO) by 7 % to 880,000 tons in 2017. In the meantime, palm kernel related products, up 9 % to 211,000 tons.
  • For information, the total area belonging to the SIMP in 2017 is 300,387 hectares, of which 82 % were planted with oil palm, rubber planted 7 % and the rest are planted with sugar cane, cocoa, and tea.
19. Waskita Karya (WSKT)
  • WSKT is optimistic the company operational cash flow will positive in 2018 along with payments a number of turnkey projects and toll roads divestments.
  • The performance of PWSKT streaked high in the past year. This construction company posted profit of Rp 4.2 trillion, or rose 131.72% compared to year 2016 profit amounted to Rp 1.8 trillion. The revenue in 2017 amounted to Rp 45.21 trillion or grew 90.04% compared to Rp 2016 amounted to Rp 23.79 trillion. The contracts in 2017 reached Rp 55.83 trillion, or down compared to the year 2016 of Rp 69.97 trillion. Meanwhile, the company's assets rose 59.35% from Rp 61.43 trillion to Rp 97.89 trillion. Total equity also rose 22.75% to Rp 35.65 trillion.
  • As many as 20 elevated projects  resumed work after it had stopped for 2 weeks. The company will undertake improvements to the methods of work as well as standard operating procedure.
  • A number of securities put up a target price for the WSKT between Rp 3000-3500 per share.

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Thursday, March 1, 2018

Indonesia - Stock Picks for Today - March 2, 2018: WSBP, WSKT, BBNI, ITMG, SMDR, BRPT, ANJT, LSIP, SIMP, AKRA, MIKA, LPPF

1. Waskita Beton Precast (WSBP)
  • The company successfully posted net profit of Rp 1,0 billion by 2017, rose 58% in year on year from 2016 which is Rp 635 billion.
  • In the meantime, the WSBP revenue doubled to Rp7,1 trillion in 2017, or soar 51% compared to 2016 amounted to Rp 4,7 trillion.
  • Up to the end of February 2018, WSBP successfully pocketing the contract value amounted to Rp 622,1 billion. New contracts targeted at this year's worth of Rp 11.52 trillion.
  • WSBP is committed to increase the production capacity of the factory prefabricated into 3.8 million tonnes per year or a rise 550,000 tons per year in 2018. The company currently has a production capacity of 3.25 million tons per year with 11 factories as well as the management of 70 batching plant and quarry.
  • WSBP will place their target income of Rp 9.7 trillion in 2018, or up 22.8% compared with a target of 2017 and net profit of Rp 1.47 trillion in 2018 or increased by 16% compared with a target of 2017.
2. Waskita Karya (WSKT)
  • The company recorded a fantastic profit growth through the year 2017. This construction company earned profits of Rp 4.20 trillion in 2017, or soar 131.72% compared to year 2016 profit amounted to Rp 1.81 trillion.
  • Meanwhile, revenues in 2017 of Rp 45.21 trillion or rose 90.04% in year on year (yoy) from last year's revenue of Rp 23.79 trillion. The contract value of the work until December 2017, up 32.76% yoy to Rp 138.1 trillion.
3. Bank Negara Indonesia (BBNI)
  • Indonesia Employees Social Security System (BPJS Ketenagakerjaan) conduct cooperation (MCC) with BBNI about synergy of protection of workers in the social security program's employment with channeling people's business credit (KUR). BPJA Ketenegakerjaan and BBNI synergize encourages increased membership and increased employment, channeling KUR facilities to prospective participants, the participants, ex-participants, and participants family of the BPJS Ketenagakerjaan. BPJS Ketenagakerjaan targets the funds managed in 2018 could reach Rp 367.88 trillion.
  • BBNI is already working with some companies financial technology (fintech) that existed in Indonesia. BBNI will continue partnering with the company fintech to provide services such as non-IPG payment method, agency, electronic money platforms, chatbot and other services, which are intended to improve the customer experience and create the digital ecosystem.
4. Indo Tambangraya Megah (ITMG)
  • In the next two years, the production of coal company also predicted stable at level 27-30 million tons. Now, the price of coal in the year 2018-2019 around US $80-90 per ton.
  • Research analyst Krishna Securities, Robertus Yanuar Hady convey, revenue in 2018 can grow 10% and profit grow 28%. As for, a target price of Rp 39,000 reflect PE 9, 7 x and EV/EBITDA ratio 5,4x.
  • In September 2017, ITMG has added a new quarry locations through the acquisition of PT Tepian Indah Sukses (TIS). The mine is estimated to save coal reserves reached 4.7 million tons. In addition, the ITMG will return adds new mines on this year around Indominco and Barintho mines in East Kalimantan.
5. Samudera Indonesia (SMDR)
  • SMDR are exploring the acquisition of two companies. Director SMDR Bani Maulana Mulia said, the execution could happen this year. SMDR spends 20% of capex this year amounted to US$ 195 million for acquisitions.
6. Barito Pacific (BRPT)
  • BRPT have plans to acquire 66.67% stake in Star Energy. Star Energy will be the infusion of additional revenue in the face of a cycle of ups and downs of the petrochemical business. Energy Star will be the catalyst to the next BRPT income.
  • In the year 2018, the BRPT estimates revenues of US $2.62 billion, up 6% compared to the estimated income of 2017, US $2.46 billion. For the net profits, predicted there is a rise of about 5% to $152 million US. However, this performance could still grow because valuations haven't done considering the performance of Star Energy.
7. Austindo Nusantara Jaya (ANJT), London Sumatra Indonesia (LSIP), Salim Ivomas Pratama (SIMP)
  • ANJT continued development of planting and palm factory this year in Papua. In its business plan, palm plantations in West Papua will be equipped with palm plant that has capacity of 45 tons per hour, and kernel processing plant capacity of 40 tons per hour.
  • ANJT has landbank covering 91,210 hectares including plasma. Per 30 September 2017, the core land (company) that has been planted 4,978 m2 hectares. The biggest landbank was in Papua. Planting until the end of this year could be 6,000-7,000 hectares.
  • The price of crude palm oil or crude palm oil (CPO) continued to show the trend of strengthening this week. The price of CPO rose five days consecutively. In addition to the sustained strengthening of the price of soybean oil, weather conditions deteriorated and the fall of the ringgit Malaysia participated and contributed to the rise in the price of palm oil for five consecutive days. Quoting Bloomberg, Thursday (1/3) price of CPO contract delivery May 2018 on the Malaysia Derivatives Exchange strengthened 0.27% to as low as RM 2,566 per metric ton at 13.40 BST. Meanwhile, this week, the price risen 1.02%.
8. AKR Corporindo (AKRA)
  • PT AKR Corporindo Tbk (AKRA) to sell one of his company's assets are located in mainland China with the value reached Rp 3.9 trillion. Removable assets land situated Liu Jinglan Zhoud Road 38 covering an area of 99,267 m2. The land previously belonged to Khalista Chemical Industries Ltd., a subsidiary of AKRA, who pulled off an asset through an authorized agency i.e. Liuzhou Land Bureau with auction scheme. The sale of the assets is a follow-up from the return purchase contract of the Rights to Build (HGB) between Khalista and the Land Trade and Reserve Center of Liuzhou City. Khalista is a company engaged in the field of sorbitol. The company's asset sale since ceased operations so AKRA focus on its business in Indonesia.
  • This time, AKRA focus developing Java Integrated Ports and Industrial Estate (JIIPE) i.e. the project develop sea ports with an industrial area and residential housing. The AKRA was located in Gresik in East Java. There were about 9 tenants who have rent in that area. Approximately 67% is derived from the chemical sector basis, then 25% of the food sector. While the rest came from the manufacturing sector.
9. Mitra Keluarga Karyasehat (MIKA)
  • Mitra Keluarga still remain consistent expansion adds hospital networks. After adding a network hospital i.e. Mitra Keluarga Kalideres, then this year MIKA will operate two new hospital namely in Gading Serpong (open at the end of March), and in the Bintaro (open in November 2018). For two projects of hospitals in Gading Serpong and  Bintaro, MIKA provides funds amounting to Rp 690 billion.
  • Late January 2018, the company has already started the construction of the 15th Restu Kasih hospital in Bekasi municipality. After that, MIKA will also continue the development of the hospital to 16 in Surabaya, and 17 still in Bekasi.
  • This year, Mitra Keluarga are targeting business growth of 17%.
10. Matahari Department Store (LPPF)
  • LPPF record gross sales of Rp 17.5 trillion in fiscal year 2017, rose by 1.2 percent from the previous year. The company also posted net income increase of 1.3 percent to Rp 10.0 trillion. Meanwhile, the company's net profit reached Rp 1.9 trillion, or the equivalent of 10.9% of sales.
  • Matahari Department Store is the first and largest department store in Indonesia. Currently LPPF has 155 outlets with areas over than one million square meter in 73 cities in Indonesia, including 8 new outlets were opened along the 2017. The company plans to open new outlets 6-8 in 2018. The company also sells its products online via
  • The company has obtained many awards, has employed more than 40,000 employees and partnership with 850 local suppliers and international suppliers.

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