Sido Muncul, Herbal Medicine Rebounding Strongly
We continue to see a sustained, strong rebound of Sido’s leading herbal medicine product Tolak Angin in early 2016, while the new herbal medicine Tolak Linu has been gaining good sales traction since its launch in Jun 2015. Sido’s cash conversion cycle also improved significantly in FY15. Maintain BUY with a higher IDR650 TP (27%.
Read More...Sarana Meditama Metropolitan, Well-Managed Emerging Hospital Chain In Indonesia
Sarana Meditama is the operator of the well-managed OMNI Hospitals in Indonesia The third new OMNI hospital in Cikarang (West Java) would commence operation in mid-April this year. OMNI Hospitals has had excellent track record of increasing revenue/inpatient and good annual growth in both total inpatient and outpatient traffic. With the recent asset revaluation in.
Read More...Link Net Sailing In The Waves
We maintain our BUY recommendation on Link Net with a revised TP of IDR5,500 (from previous IDR6,250, 40% upside) given the company’s strong broadband market share of 67% and ability to capture growing broadband demand. We expect the company to generate revenue growth of 18%-19% YoY in FY16F-17F respectively, driven by subscribers growth. However, we.
Read More...Matahari Putra Prima Leaner Inventory Days At The Expense Of Margins
We see an improvement in Matahari’s inventory days at end-2015 while its balance sheet remains strong. Maintain BUY as the company focuses on the middle-income segment and we see lessening margin pressure from its inventory clearance in 2Q16. However, we revise down our TP to IDR2,000 TP (22% upside) as we cut FY16F-17F net income.
Read More...Mostly Positive Affirmation on Rating Front; Pertamina Affirmed at Baa3 Eventually
On rating front, Indonesia Eximbank and Astra Sedaya Finance (ASF) were affirmed at AAA/Stable by Pemeringkat Efek Indonesia (Pefindo). Both companies are benefited from strong their majority shareholders’ support. Besides that, the AAA rating on Eximbank also reflects their strong market share in export finance as well as solid liquidity profile. As for ASF, their.
Read More...Another Downgrade Week in Indonesia Bond Market
There were there corporate downgraded by Pemeringkat Efek Indonesia (Pefindo) last week. Buana Finance (BFIN:IJ) was downgraded to idBBB+/Stable from ‘idA-/Negative mainly driven by ongoing pressure on its financing lease business that resulted in weakening market position due to lower new booking since FY2014. The declining asset quality and lack of affiliation also weigh down.
Read More...Oversubscribed Bonds Offering Marks Growing Indonesia Market Liquidity
The last two bonds offering this month received decent demand from investors. Recent new bonds offered by Sarana Multigriya Finansal (idAA+/Stable) was oversubscribed by 2 times registering a total demand of IDR 2trn yet the company only issued IDR630bn. Oversubscription was seen also in Federal Finance’s (FIFA) new continuous bonds offering that received IDR3.9trn demand,.
Read More...Sarana Multi Infrastruktur Rating Upgraded to AAA
Pemeringkat Efek Indonesia (Pefindo) raised the rating on Sarana Multi Infrastruktur (SMI) to AAA from AA+ with the outlook maintained stable. The upgrade was driven by stronger government support as reflected by a capital injection of IDR20.4trn last year. This rating reflects the company’s status as critical government related entity, the high potential demand for.
Read More...Kalbe Farma Consumer Health And Nutritionals Are Growth Drivers
Kalbe’s source of growth is its consumer health and nutritionals divisions, which collectively contribute c.47% of total sales. We are less concerned with its pharmaceutical division (contributes c.25% of total sales) as we see Kalbe can alter its product mix for the BPJS sales, resulting in relatively stable margins for this division. Considering its very.
Read More...Energi Mega Downgraded to B-/Negative
Standard &Poor’s (S&P) has downgraded Energi Mega Persada Tbk (ENRG:IJ) to B- with negative outlook. The downgrade was driven by higher refinancing risk given the company has substantial short term debt in its parent company. S&P sees that the affiliated Bakrie Group’s internal cash will not be sufficient to cover the short term debt. As.
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