Kategori: Infrastructure Transportation

We initiate coverage on Express Transindo with a NEUTRAL call and DCF derived IDR350 TP. The recent cancellation of the M&A from Saratoga’s group due to uncondusive market condition has resulted into 74% YTD dropped in share price. The company’s now focus to improve their financial performance by reorganise their business, lowering gearing level, and.

Indomobil Finance (IMFI) has conducted book building for Shelf Registered Bond II Tranche II with the coupon rate for 1y bond at 10.25%, higher 115 bps than its previously issued bonds on last April. Meanwhile, 3y and 4y bonds were priced at 10.75% and 11% respectively. They were both higher 75 bps than the last.

Indonesia transportation sector has been impacted by the slowdown in the Indonesia economy and also fierce competition especially from Uber. However, given the under penetrated of Indonesia taxi industry, lack of investment in public transportation, lowest taxi tariffs compare to other countries, and expanding middle class; we believe an improvement in the long run. Furthermore,.

Indonesia recent market volatility has caused some issuers to cancel the bond issuance this year. Las week, Tower Bersama Infrastructure Tbk (TBIG:IJ) has decided to cancel the sale of IDR 3.2 trillion bond from its remaining continuous bond I program due to unfavorable market condition. The company actually has completed the book building period for IDR.

We see Indonesia bond market prices have recovered in last week trading with  the yield on medium term bonds (5-7y) and long tenured bond (10y) tighten 7-11bps while short term bond only widen 3 bps. Recovery in corp bonds market was also seen in government bonds given foreign net sell minimized to Rp 1.2 trillion.

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.

The book building period for Waskita Karya, Tbk (WSKT:IJ) bond has ended on 18 September with an excess order book reached IDR 7.5 trillion, oversubscribed 5 times. As the bond received strong demand, Waskita able to set the coupon rate at a lower limit with Series A (3 years) offered at 10.4% and Series B.

Eximbank released 3 new bonds series last week with a total of IDR1,979 billion issuance size. The three series bonds are; Series A (370 days) has IDR757 billion in principal value while Series B (3 year) and Series C (5 year) carried IDR 309 billion and IDR 913 billion of principal value respectively. This new.

The new bonds release has been falling since the last two months as issuers turned cautious on higher premium expected by investors. However, there were two new bonds series released by Federal International Finance (idAAA) totaled IDR 1.5 trillion. Company issued short term bonds i.e. Series A (1 year) offered 8.5% coupon rate on IDR.

Express Transindo (TAXI IJ) is Indonesia’s second largest taxi operator that offers: i) a high predictability of future cash flow due to daily fixed payments, ii) robust volume-driven growth, and iii) minimum exposure to operating expenses such as fuel and maintenance. We initiate coverage with a BUY and DCF-based TP of IDR2,100, providing a potential.