Kategori: Trade Services

We reinitiate coverage of PT Mitra Adiperkasa Tbk (MAPI) with a NEUTRAL rating and DCF-derived TP of IDR5,750 (implying a 33.8x FY15F P/E). Despite the recent very welcomed spin-off of its sports division, we believe it is not easy for MAPI to return to the good old days as specialty stores are the last fortress.

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.

We reinitiate coverage of PT Erajaya Swasembada Tbk (ERAA) with a NEUTRAL and a DCF-derived TP of IDR900 (implying 9.7x FY15F P/E). 2015 may be rough for ERAA due to: i) heavy inventory of Samsung products, ii) proposed regulation requiring 4G smartphones to have 40% local components, and iii) product pricing amidst a weak IDR..

Despite 1Q15 earnings below our/consensus estimates on continued discounting at Mitra’s specialty stores division to reduce excess inventory, we observed early indicators that it might be turning around. Maintain NEUTRAL and IDR5,750 TP (3% upside). Department stores/F&B’s QoQ EBIT margins have increased 360bps/90bps, and inventory days stood at 163 days, similar to FY12. 1Q15 earnings.

During 1Q15 Ramayana (RALS) experienced consecutive quarters of negative operating income and negative SSSG which may set the tone for FY15. Although the supermarket division had positive operating income, the 3.2% gross margin decline YoY in its department stores and higher opex resulted in below our and consensus earnings. We downgrade RALS to SELL (from.

Despite weak consumer consumption in 1Q15, Matahari performed well and managed to increase both its gross and EBIT margins YoY by 90 bps and 50 bps respectively. Thus, we reiterate BUY, with a DCF-based TP of IDR4,650 (17% upside). The 1Q15 numbers, consistent with its historical performance, were in line with our and consensus estimates..

We reinitiate coverage of PT Matahari Putra Prima (MPPA) with a BUY rating and a DCF-derived TP of IDR4,650 (implying a 37.8x FY15F P/E). We like MPPA due to its: i) margin expansion and higher asset turnover; ii) expected higher customer traffic from store reformatting to its quality new G7 format; iii) focused, targeted marketing;.

PT TiPhone Mobile Indonesia (TELE IJ, BUY, TP:IDR1,000) is planning to acquires a distributor of electronic phone pulse voucher, PT Simpatindo Multi Media. The acquisition value is estimated at IDR500bn and will be commenced in 4Q14. The company also plans to prepare for cellphone assembly plant that will be located in Pluit, North Jakarta. Management.

Ramayana Lestari Sentosa (RALS IJ, Neutral, TP: IDR1,350) is planning to divest its supermarket business, Robinson. Currently the company is weighing on two options: 1) RALS will form a joint venture with a strategic partner for Robinson, 2) RALS will divest its entire stake in Robinson. RALS is currently operating 80 branches of Robinson supermarket.

Surya Citra Media (SCMA IJ, NR) will distribute IDR51 per share of final dividend. Combined with interim dividend of IDR15 per share, SCMA total dividend is equivalent to 75.4% from FY13 net income or IDR66/share (~2% yield using yesterday’s closing.