Kategori: Misc Industry

We initiate Spindo with a BUY conviction premised on: 1) Its dominant position in domestic steel pipe market (~30% share); 2) Strong proxies 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, 15% ROAE and PEG of only 0.1x..

PT Indocement Tunggal Prakarsa (INTP IJ, BUY, TP: IDR29,000) will finish developing new cement mill P14 in Citeureup, West Java by 2015. The new plant will have 4.4mn tons/annum of capacity and worth IDR5.5trn. Out of the IDR4-5trn of capex allocation, IDR880bn have been spent to develop the new mill. On the other hand, INTP.

Semen Indonesia (SMGR IJ, BUY, TP: IDR18,000) is planning to invest IDR638bn to build a waste heat recovery power generation (WHRPG) that has a capacity of 30.6 MW and located nearby Tuban factory. This project will be a joint operation between SMGR and JFE Engineering from Japan. This power plant is built as an efficiency.

Company background Established in 1971, Steel Pipe Industry of Indonesia (Spindo) is the biggest player in the domestic steel pipe industry with market share of more than 30%. Being a company that provides a wide range of pipes for various industries, Spindo is in a position to ride along with the growth in the construction,.

We initiate ISSP with a BUY premised on 1) Its dominant position in domestic steel pipe market (~30% share); 2) A strong proxy to the oil & gas (O&G) pipes demand, construction/infrastructure developments and higher local content requirements in the automotive sector; and 3) Highly appealing 3.3x FY15F P/E, 15% ROAE and PEG of only.

Indocement Tunggal Prakarsa (INTP IJ, BUY, TP: IDR26,000) intends to increase production capacity by planning to build two green field factories that will have production capacity of 1.5 – 2.5mn tonnes per annum. The investment value will be USD225-500mn per factory and it will be build in Pati, Central Java on 2016 and Langkat, North.

Pabrik Kertas Tjiwi Kimia (TKIM IJ, NR) is planning to issue 1.33bn new shares (50%) through rights issue. The company is targeting IDR1.33trn of fresh fund or equivalent to ~IDR1,000/share. The fund will be used for its subsidiary, PT Oki Pulp & Paper Mills, to finance the development of pulp & paper factory with estimated.

Semen Indonesia (SMGR IJ, BUY, TP: Rp16,700) recorded sales volume of 8.18 mn tons during January-April 2014 (+2.9% ytd). Domestic sales is still the largest contributor with 8.17mn tons of sales volume (+3.2% ytd) while export sales is recorded at 14,955 tons (-58.1% ytd). On industry level, domestic cement sales grew 2.7% ytd to 18.59.

Company Profile Steel Pipe Industry (ISSP) was founded in 1971 as a joint-venture between a local company, Itochu Corporation and Kawasaki Steel Corporation. In 1989, the company was acquired by Ibnu Susanto, a seasoned steel entrepreneur. In 1998, the company merged with PD&I Rajin, a steel pipe producer with the same owner. Constructions pipe, oil.

SMGR reported robust FY13 sales while its market share rose to 43.9% in Dec 2013 vs Dec 2012’s 40.9%. However, FY14F earnings growth may be slower than originally estimated due to higher electricity costs. As we foresee a time lag between the increasing input cost and a hike in its selling prices, we cut our.