Kategori: Misc Industry

Despite declining 1Q15 consumer consumption, MDS’ SSSG managed to grow 5.4% YoY, which points to the resilient spending power of its target middle-income segment. Maintain BUY and DCF-based IDR22,000 TP (29% upside). Its 1Q15 numbers, consistent with its historical performance, were in line with our/consensus estimates. It is also on track to open 12 new.

We reinitiate coverage of PT Matahari Department Store Tbk (MDS) with a BUY rating and a DCF-derived TP of IDR22,000 (implying a 32.6x FY15F P/E). We like MDS due to its: i) solid strategy positioning; ii) widening market share lead; iii) excellent supply chain network; and iv) strong free cash flow generation and healthy balance.

Management of PT Semen Indonesia (SMGR IJ, BUY, TP: IDR18,150) is seeking bank loan of IDR1-2trn to fund 2015’s planned capex of IDR5trn. One of its plans is to build 3m tonnes cement plant in Rembang, Central Java. Meanwhile, the company is still in feasibility studies phase in building 600,000 – 1m tonnes cement plant.

3Q14 net profit increased 13.3% q-o-q to IDR48bn, bringing 9M14 bottom line to IDR176bn (+22.5% y-o-y), comprising 67% to our FY14 forecast. 4Q14 earnings to pick up given seasonality factors derived from the construction sector yet not adequate to reach our FY14 target. Thus, we slightly cut 2014 earnings by 4% following the results but.

PT Semen Indonesia (SMGR IJ, Neutral , TP: IDR18,150) will build additional production facility in Aceh, North Sumatra with estimated capacity of 3m tonnes. Management stated that the construction will begin in 2H15 or 2016 and the factory will cater to demand from Aceh, Riau, and its surrounding. On the other hand, the company also.

On 19 Sept we took investors on a 1-day visit to four of Spindo’s East Java plants, which made up 81% of its production capacity in 1H14. We got to observe the efficiency at its new Sidoarjo plant relative to its older plants, cementing our confidence in Spindo’s commitment to cost efficiency as the plant.

On 19 September 2014 we held a 1-day site visit trip with investors to four of Spindo’s East Java plants which contributes 81% of its production capacity in 1H14. We were able to see how the new Sidoarjo plant operates so efficiently relative to its older plants. This arise our confidence in Spindo’s commitment in.

PT Holcim Indonesia (SMCB IJ, Not Rated) will distribute interim dividend of IDR260.5bn or IDR34/share (1.2% yield). The dividend will be paid in October 2014 with cum date set on 19 September. Currently, the company is adding 1.7m tonnes of production capacity to the current Tuban mill #2. The additional capacity is targeted to start.

We initiate coverage on Spindo with a DCF-derived TP of IDR370 which represents a 100% potential return upside and recommend a BUY. Our TP implies a 7.0x FY15F earnings. Main triggers: i) its dominance in the domestic steel pipe market with a 30% share; ii) the company being a beneficiary of the nation’s growing gas.

We initiate Spindo with BUY conviction premised on: 1) Its dominant position in domestic steel pipe market (~30% share); 2) Main beneficiaries to the nation’s rise in gas infrastructure, construction developments and higher local content requirements in the automotive sector; and 3) Super appealing 3.3x FY15F P/E with 13% ROAE and PEG of 0.1x. We.