Kategori: Misc Industry

Despite rising interest rates, ARNA does not expect monthly sales to slow down as most customers pay cash. There is minimal impact from higher financing cost as the bulk of its capex has been paid for while a mid-September selling price hike will offset some cost increases. ARNA is trading at 18.5x FY14F earnings, and.

SMGR stands to benefit the most from higher domestic cement demand as it has the most unutilised capacity among its peers. The diversified locations of its plants also help to facilitate the group’s cement supply across Indonesia. SMGR is trading at c.1 SD below its 5-year average forward rolling P/E, which we deem a good.

As a local battery producer with third largest market share, NIPS is one of the beneficiary of low cost green car program, which uphold optimal local content spirit. New contract to supply ~500k unit car battery (~25% of current production) in the next year is already in hand. On top of that, since 2011 NIPS.

We like SMSM as a committed dividend player with a solid dividend payout ratio track record. We also view positively SMSM attempt to grow inorganically through acquisitions and joint ventures. However we keep our NEUTRAL recommendation due to current rich valuation of 14.3x FY14 PE. Our DCF based fair value is at IDR2,750 (12.6x FY14.

Yesterday we visited the opening of Indonesian International Motor Show 2013. We couldn’t see all of the car as some were still being concealed from public, but we sensed that the competition is heightening, especially in the low to mid segment market where automakers aggressively competiting to tap the growing middle income population that currently.

Company Profile Founded in 1976, Selamat Sempurna (SMSM) is a part of ADR Group and currently one of the largest filter and radiator manufacturers in the region. The Company manufactures filters, radiators, oil coolers, condensers, brake pipes, fuel pipes, fuel tanks, exhaust systems, and press parts for passenger vehicles and heavy equipment. Highlights A dividend.

Company Profile PT Voksel Electric (VOKS) manufactures power and telecommunication cables. It is the largest manufacturer of medium-voltage aluminium cables and fibre optics in Indonesia and the main supplier to the State Power Company Perusahaan Listrik Negara (PLN) and PT Telekomunikasi Indonesia (TLKM, BUY, TP IDR13,000). Highlights Directly benefiting from aggressive power and telco spending..

Despite an IDR30bn hedging loss in 2Q13 caused by falling commodity prices, VOKS guided for IDR1.2trn revenue over IDR49bn net profit in IH13. This is mainly because the company has locked in revenue at a high base after signing manufacturing contracts at high early-year commodity prices, which should boost VOKS’s gross margin upon the delivery.

Acquiring a growing and profitable company… We value positively SMSM’s acquisition of 49% in its sister company Hydraxle Perkasa (HP) last month. HP, which mainly produces dump body and hoists, is the market leader with a 20%-30% share in this growing fragmented market, whose demand is driven by the domestic mining and plantation sectors, and.

We initiate coverage on Voksel Electric (VOKS) with a BUY and IDR2,400 TP – a 65% upside to the current price. VOKS is the undisputed leader in the manufacturing of high-medium voltage aluminum and fiber optic cables. As a major supplier to PLN and TLKM, it is the main beneficiary of Government megaprojects in power.