Kategori: Property Real Estate

Summarecon Agung, Tbk (SMRA:IJ) will release Shelf Registered Bond II Tranche I worth IDR 500 billion into two bonds series i.e. 3 and 5 years maturity period. The indicative price for 3y bond is set at 10.5% – 11% while 5y bond at 11% – 12%. Summarecon plans to use 70% of the proceeds for.

On rating front, S&P cut Alam Sutera, Tbk (ASRI:IJ) rating from B+ to B with the outlook remains stable. The downgrade is driven by the expectation that ASRI’s leverage will remain elevated in 2016 – 2017 due to significantly weak property sales. The company’s EBITDA interest coverage is seen to stay below a downgrade trigger.

Last week’s IDR weakness that tumbles back to IDR 13,695/USD coupled with lackluster market sentiment have stirred market participant on the sideline. Trading activities on last week trading were weak with total market volume declined 27% WoW to IDR 2,246bn vs IDR 3,055 bn in the previous week. Meanwhile, trading frequency decreased slightly to 493x.

Indonesia corporate bonds yield tightened sharply on last week trading with the yields fell in all maturities curve supported by a relief rally of IDR which strengthened 8.4% WOW to IDR 13,412 per US dollar. Credit yield fell in all tenor bonds and rating classes by an average of 65 bps WoW. Flows also rose.

The bond market experienced a sharp volatility in the first four days of last week trading with the credit and govvies yield rallied significantly. Credit yield in AAA space jumped by an average of 30 bps in all tenors in four days trading as investors acted cautiously prior to FOMC meeting. However, investors bought back.

On rating front, Pemeringkat Efek Indonesia (Pefindo), local rating agency, downgraded two companies last week; Aneka Tambang, Tbk (ANTM:IJ) and Wika Realty. Aneka Tambang was lowered to A-/negative (from A/negative) on the back of weakening business margin due to the decline ferronickel prices amid increasing funding needs for the expansion of capacity of ferronickel plant.

Indonesia credit market transaction in last week trading touched IDR3,6 trillion, mostly short tenured (1-3 year) with a volume reaching IDR3,1 trillion or 86% of total market transaction last week. Looking at trading frequency, short tenured bonds (1-3 year) received higher trading frequency of 244x as compared to 35x and 15x in medium (5-7 year).

PT Pembangunan Perumahan (PTPP IJ, Neutral, TP: IDR2,590) booked net income of IDR290bn (+32.9% y-o-y) while revenue reached IDR7.8trn (+7.6% y-o-y). On quarterly basis, 3Q14 net income jumped to IDR143bn (+91.6% y-o-y) and 3Q14 revenue reached IDR3.2trn (+4.1% y-o-y). Comment: The 9M14 earnings was above our expectation that made up 56%/54% from our/consensus full year.

Management of PT Pembangunan Perumahan (PTPPIJ, Neutral, TP: IDR2,590) has stated that the company reduced this year’s target new contract from IDR24trn to IDR22trn. This was done because several projects are experiencing some kind of delays and will resume next year. As of September, PTPP’s new contracts has reached IDR12trn or 50% from the initial.

PT Pembangunan Perumahan (PTPP IJ, Neutral, TP: IDR2,590) together with PT Pelabuhan Indonesia I (Pelindo I) and Waskita Karya (WSKT IJ, Not Rated) will form a joint venture of PT Prima Multi Terminal to operate Kuala Tanjung port in Medan, Sumatera that will have an estimated capital requirement of IDR580bn. Pelindo I will have 55%.