Delta Dunia Makmur’s On Hand Contract Worth USD1.6Bn
Delta Dunia Makmur, Tbk (DOID IJ), a mining contractor company, had as many as nine main contract worth USD1.6bn until 2019. The ninth contracts such are: (1). Adaro (Paringin); (2). Kideco, (3). Berau Coal (Lati); (4). Berau Coal (Suaran); (5). Berau Coal (Binungan); (6). KPC Bengalon; (7). Darma Henwa; (8). Sungai Danau Jaya; and (9)..
Read More...WOM Finance Financing Reached IDR2.2Trn in 2016
Wahana Ottomitra Multiartha, Tbk (WOMF IJ), a company of 70% focus on new motorcycle financing, has been finance up to IDR2.2trn as of May 2016. This financing reached 37% of its target totally worth IDR6trn at the end of this year. The Company utilizes a 10% increase in May’s sales from the previous month, as.
Read More...Cikarang Listrindo Receives Fresh Fund IDR2.4Trn from IPO Proceeds
Cikarang Listrindo, Tbk (POWR IJ), an electricity provider company, managed to sell off its stock as much as 1.6 billion shares, around worth IDR2.4trn through initial public offering (IPO), listed in Indonesia Stock Exchange (IDX) on Tuesday (14/06). Cikarang Listrindo sell off as much as 10% its shares at price at level IDR1,500 per shares..
Read More...Nine Unilever’s Factory Expansion Worth IDR1.4Trn
Unilever Indonesia, Tbk (UNVR IJ), company’s based consumer goods business, expanding its plant production capacities worth IDR1.4trn, from its capital spending budget totally IDR2trn. Its expansion to support company’s performance amid the economic condition, that are more stable than last year. The company’s projecting overall consumption goods market could grow between 5% up to 7%..
Read More...Tower Bersama Little Headroom For Debt
We reinitiate coverage on Tower Bersamawith a NEUTRAL rating and DCF-derived TP of IDR6,450 (3% downside). We think the following factors could crimp tenancy growth and lease rates going forward: 1. The pressure on lease rentals amidst intensifying competition; 2. The consolidation of the telcosector; 3. Falling capex intensity; 4. The company’s over-leveraged balance sheet.
Read More...Sarana Menara Nusantara Better Positioned To Capture Inorganic Growth
We re-initiate coverage on Sarana Menara with a BUY given: Its balance sheet is stronger compared to peers (net debt/EBITDA ratio at 0.9x vs peers’ at 5.1x); Micro cell poles are its growth catalyst. Putting aside the softening organic growth in tower industry, we think that inorganic growth is still on the table. Our DCF-based.
Read More...Telecommunications Infrastructure Scaling a New Normal
Pressure on lease rates… XL Axiata’s (XL) (EXCL IJ, BUY, TP: IDR4,550)and Sarana Menara Nusantara’s (SMN) (TOWR IJ, BUY, TP: IDR4,700)Protelindo subsidiary’srecent sale and leaseback deal for 2,500 towers suggests that industry lease rentals remain under pressure. We think XL’s IDR10m per month/site rental has become the new industry benchmark for future lease rental negotiations.
Read More...Semen Indonesia Divest its Subsidiary
Semen Indonesia, Tbk (SMGR IJ) plans to sell one of its subsidiary, parts of company’s working capital increase plan. Based on 1Q2016 data, Semen Indonesia had 15 subsidiaries engaged in a variety of fields, such as the cement industry and supporting of industries cement. As a cement holding state owned enterprises (SOE), Semen Indonesia has.
Read More...Primary Activity in June Gets Lighter With New Deals Keep Flowing
We see primary activity was busy this month as new deals keep flowing. The ongoing offering are Indonesia Infrastructure Finance (IIF rated idAAA/stable) offering 3y (coupon: 8.0-8.25%), 5y (coupon: 8.45-8.70%) and 7y (coupon: 8.65-9.0%). We think the bonds will attract strong interest amid Otoritas Jasa Keuangan (OJK) planning to include certain percentage of state owned.
Read More...Indonesia SOE Bonds on the Market Radar
The planning to include 25% of State Owned infrastructure bonds to the minimum regulation government bonds portfolio for Non Bank Financial Industry (NBFI) will attract related SOE to issue more bonds. Bank Indonesia alone has requested SOE to issue bonds aggressively this year to absorb repatriated funds from the proposed tax amnesty program. This week,.
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