Sarana Menara Nusantara Steady Performance
We maintain BUY on Sarana Menara with a IDR 4,700 TP (18% upside), premised on the following : 1. Superior balance sheet vs its closest peer (net debt/EBITDA of 1.6x vs Tower Bersama (TBIG IJ, NEUTRAL, TP: IDR6,450)’s 5x; 2. The new growth catalyst from its micro poles12 venture. We expect good 2H16 numbers from.
Read More...Link Net Ready To Run
Despite its operational performance facing short-term headwinds from new entrants like Telkom IndiHome and MNC Play Media, we remain positive on Link Net, given: 1. Its expansion into a new city (Malang) from July, plus Medan and Batam (3Q16); 2. New re-marketing strategy and improved product quality. Maintain BUY with a higher IDR6,100 TP (from.
Read More...Japfa’s Outlook Revised Back to Stable
The outlook on Japfa Comfeed Indonesia, Tbk (JPFA IJ) had been revised to stable from negative by S&P. While its long term corporate rating affirmed at ‘B’ along with its senior unsecured notes. The outlook revision due to Japfa’s improving liquidity and declining refinancing risk after equity sale to KKR & Co. (KKR) that now.
Read More...Indonesia Primary Market Getting Busier
Indonesia primary market is starting to get busy this week after seeing quiet week last month. The new bonds being offered at the moment coming from diversified sector with indicative prices seen getting lower compared to the last month issuance. Meanwhile, some companies also have announced their plans this week to get the bonds out.
Read More...Tower Bersama Stretched Balance Sheet Hinders Growth
Tower Bersama’s 2Q16 EBITDA were in line with our/consensus numbers Net debt/EBITDA ratio remains at 5x (1Q16: 5.1x), which is close to its 6.5x covenant. Management’s decision to pay an interim dividend of IDR330bn or IDR69/share (ie higher than our IDR55/share estimate) could have resulted a tight cash condition. Thus, we maintain our NEUTRAL rating.
Read More...The 3y and 5y of Bank BTN Bonds Offer c.172-211bps Risk Premium
Bank Tabungan Negara, Tbk (BBTN IJ, idAA+/Sta) prices the 3y bond of IDR1.5trn at 8.2% and 5y bond of IDR1.65% at 8.75%. The price for 3y bond was similar to the bonds issued by Sarana Multigriya Finansial (SMF, also rated idAA+/Sta) on mid-June when SUN benchmark yield still traded above 7%. As such, current bonds.
Read More...Indosat Awaiting New Catalyst
We think: 1. The sharp rally in the share price of 42% (+42% over the past 12 months) has priced in the mid-term positive prospects on the stock; 2. Indosat’s strong growth in 1H16 is likely to normalise going forward with the realignment of post Lebaran packages. Positive catalysts will come from the active sharing.
Read More...S&P Lowered Gajah Tunggal and MNC Investama Rating to ‘B-’
On rating front, S&P have downgraded the rating on MNC Investama, Tbk (BHIT IJ) and Gajah Tunggal, Tbk (GJTL IJ) to “B-” due to rising financing risks. The outlook for Gajah Tunggal was placed at CreditWatch while MNC Investama maintained at negative. The downgrade on both companies were mainly because of higher risk financing as.
Read More...Indonesia Eximbank Prices New Bonds Lower 25-35Bps from Last Issuance
Indonesia Eximbank is offering shelf registration bond III tranche II worth of IDR4.33trn of a total IDR24trn maximum limit. The company offers three series from this issuance; Series A (370 days) priced at 7.25%, Series B (3 years) priced at 7.95% and series C (5 years) priced at 8.35%. The prices on three series are.
Read More...Telekomunikasi Indonesia Run Will Go On
We continue to like Telekomunikasi Indonesia as (i) we expect a strong revenue growth on the back of strong data demand and healthy competition. We expect revenue to rise 11.6%/10.3%/9% in FY16/FY17/FY18 respectively; surpassing XL and Indosat. (ii) the stock is a proxy to foreign inflow from tax amnesty program. We view that, Telkom’s EV/EBITDA.
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