Kategori: Agriculture

Pemeringkat Efek Indonesia (Pefindo) has revised Sinar Mas Agro Resources and Technology Tbk (SMAR:IJ) outlook to negative from stable. The outlook revision reflects SMAR’s weakening capital structure and cash flow protection. SMAR booked lower EBITDA margin during 9M15 due to continued low CPO price, while its debts increase partially because of foreign exchange debt following.

On rating front, Pemeringkat Efek Indonesia (Pefindo) lowered PT Medco Energi Internasional, Tbk (MEDC:IJ) to idA+/stable (from idAA-/negative) along with its Shelf Registered Bond I 2012-2013, USD bond I 2011-2012 and Bond III/2012. Downgrade was driven by continued weak crude prices which resulted a weaker revenue and profitability. In 1H2015, the company realized lower revenue.

On the rating front, Pemeringkat Efek Indonesia (Pefindo) downgraded another company last week. Pefindo lowered Trikomsel Oke, Tbk (TRIO:IJ) rating to idBBB (from idBBB+) though the outlook was revised to stable from negative. Its convertible bond’s rating was also slashed to idBBB from idBBB-. The downgrade was driven by its weakening capital structure and cash.

Sampoerna Agro (SGRO IJ, BUY, TP: IDR2,775) is seeking IDR650bn of loans in 2015. 65% of the funds will be used to finance its capex allocation of IDR600bn – 1trn. The company intends to plant new CPO area of 5,000-10,000 ha while rubber plantation area will be added for 1,000 – 2,000.

Wintermar Offshore Marine, Tbk (WINS IJ, BUY, TP: IDR1,200) will distribute USD2.705mn as dividend or 10% from FY13 net profit. The amount will translate into approximately IDR7.92/share and 0.67% yield by using yesterday’s closing price. The plan is subject to shareholders’ approval in the upcoming AGM on 5 June 2014. The scheduled cum date is.

Following a sector-wide CPO price upgrade, we raise our earnings projections for AALI by 12.3% for FY14 and introduce our FY15 forecast at IDR3,337bn. Our FV is similarly raised to IDR28,350, based on 18x CY14 earnings (our target P/E for large cap plantations). AALI is our preferred Jakarta plantation stock, being a prudently managed company,.

Palm oil inventory recovered further as palm oil production picks up pace in April. Despite this, palm oil price has been relatively resilient. We maintain our view that palmoil will stage a countertrend rally up to July as Indonesia suffers production disruptiondue to tail-end effect of the 2009 drought. After the brief recovery, palm oil.