Kategori: Trade Services

Considering the weak purchasing power of Indonesian consumers, we believe retailers like Matahari Department Store and Matahari Putra Prima which have low leverage (net cash position), minimum imports, and targeting the resilient middle income will post decent results in 3Q15 compared to its peers. We also expect weak performance from ACE Hardware (due to its.

Indonesia corporate bonds yield continued widening on last week trading with the yields short tenor bonds rose faster than longer dated bonds. Short term bonds in AAA space climbed an average of 22 bps WoW while medium term papers only widened by 8 bps WoW. Based on the rating front, we saw AA and A.

Due to the weak economy and seasonal factors, Matahari Putra’s 6M15 sales fell below our/consensus forecasts. Thus, we cut our DCF-based TP to IDR4,100 (from IDR4,650, 41% upside) on lower SSSG and its store expansion plan. However, we maintain BUY, as it remains the healthiest, largest hypermarket chain operator in Indonesia. Its robust operations lifted.

It has not been smooth sailing for Mitra Adiperkasa in 2015 so far. Maintain NEUTRAL, with a lower TP of IDR5,000 (5% upside). Its specialty stores’ quarterly SSSG was level in 2Q15. With the IDR weakening against the USD, we are concerned over its ability to continue passing on higher costs by lifting prices to.

In the current economic slowdown, Indonesia’s low-income segment has been the hardest hit – which was reflected in Ramayana’s 6M15 results. Its 6M15 earnings were weak after taking into consideration the seasonal factors related to Lebaran. The stock is still a SELL, with a IDR640 TP (9% downside). A positive re-rating catalyst would be economic.

We initiate coverage of MNC Sky Vision (MSKY) with a SELL call and a DCF derived TP of IDR1,100, implying 9.9x/8.9x FY15F/FY16F EV/EBITDA. MSKY’s performance has been poor in FY14 as subcribers growth has been muted at 2.5mn subs; and we expect only 4% additional subscribers growth in FY15F due to Indonesia economy headwinds, piracy,.

We initiate coverage on Surya Citra with a BUY and DCF-derived IDR3,400 TP, implying 29.0x/25.0x FY15F/FY16F P/Es. We believe local consumer firms will face macroeconomic headwinds in the near term, resulting in an ad spend slowdown in FY15. Yet, we do not think advertisers can cut ad spend for too long given Indonesia’s attractive structural.

With the economy growing >5% annually and its people increasingly connected via social media (evidenced in 2014’s presidential election), we see a new generation of confident and informed consumers on the rise. Vibrant, younger Indonesians in the sizeable middle class want to satisfy their secondary needs. They are optimists, entrepreneurial, technology-dependent and express their opinions.

We reinitiate coverage of PT Matahari Putra Prima (MPPA) with a BUY rating and a DCF-derived TP of IDR4,650 (implying a 37.8x FY15F P/E). We like MPPA due to its: i) margin expansion and higher asset turnover; ii) expected higher customer traffic from store reformatting to its quality new G7 format; iii) focused, targeted marketing;.

We reinitiate coverage of PT Ramayana Lestari Tbk (RALS) with a NEUTRAL rating and DCF-derived TP of IDR780 (implying a 15.8x FY15F P/E). RALS is the largest department store chain targeting the low- to mid-low income earners in Indonesia. Some of the key issues are: i) ubiquitous competition, ii) expansion outside Java is on hold,.