Express Transindo Hoping For a Swift Recovery
We initiate coverage on Express Transindo with a NEUTRAL and a DCF-derived IDR200 TP. The Saratoga M&A cancellation on non-conducive market conditions resulted in a 74% YTD drop in share price. Its focus now is on improving the financial performance via a business reorganisation, lowering gearing levels and improving receivables collection. We opine for slower.
Read More...Two Raters Downgraded ASRI’s on Weak Presales and Elevated Leverage
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.
Read More...BII Finance Starts November with IDR500Bn Bond Offering
BII Finance Center is currently offering two new series bond under the program of Shelf Registered Bond I Tranche I. Two offering bonds are; Series A (3 years) priced at 10.35% and Series B (5 years) at 10.90% coupon rate with the face value of IDR 300 billion and IDR 200 billion respectively. The bond.
Read More...ACE Hardware Carrying Too Big Of An Oversized Bag
It is a good home improvement retailer, but at the current share price, exceptionally high inventory days and weak 9M15 SSSG, we believe it is overvalued. Weak 9M15 results. ACE Hardware, Tbk (ACES IJ) 9M15 sales were at 71% and 69% of our and consensus sales forecasts respectively. Likewise, net income accounted 72% and 69%.
Read More...Ramayana Lestari No Positive Surprises Yet
9M15 net sales met 72%/73% of our/consensus of FY15F sales targets Upgrade to NEUTRAL as we believe it is nearing its IDR 640 TP (2% upside). Excluding other operating income and applying a normal effective corporate tax rate, Ramayana’s 9M15 core profit was 97%/94% of our/consensus FY15F net income numbers. The supermarket division has not.
Read More...Quiet Weekly Flows amidst Lackluster Market Sentiment
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.
Read More...Another Downgrade for Trikomsel’s Rating
On rating front, PT Trikomsel Oke, Tbk (TRIO:IJ) suffered another downgrade from Pemeringkat Efek Indonesia (Pefindo) as its rating was slashed to ‘idCCC’ from ‘idBB+’ given its inability to service financial obligations. The downgrade is based on Trikomsel announcement after its meeting with SGD bondholder. Trikomsel stated that is unlikely to be in a position.
Read More...Siloam International The Fastest-Growing Indonesian Hospital Operator
We initiate coverage on Siloam with a NEUTRAL and a DCF-derived IDR13,000 TP (10% upside), implying 22x/17x FY16F/17F EV/EBITDA. Siloam is the largest private hospital operator by bed capacity and, with Lippo Karawaci’s support and a planned non pre-emptive rights issue, it can easily further outgrow its IDX-listed peers. However, there is a potential delay.
Read More...Mitra Keluarga The Best Listed Hospital Operator In Indonesia
We initiate coverage on Mitra Keluarga (MIKA) with a DCF-derived TP of IDR3,150, implying a 67x/60x FY16/17F P/E and a 14% upside return; thus we assign it a BUY recommendation. MIKA is the best-in-class among community hospitals with the highest margins and strongest operating cash flow generation among Indonesian listed hospitals. We believe in its.
Read More...Indonesia Healthcare Services, Underserved, Growing Indonesian Hospital Market
We initiate coverage on Indonesia’s hospital sector with an Overweight Despite Indonesia’s growing healthcare spending, its hospital sector is still largely underserved compared to its ASEAN peers. With the increasing middle income class and the push of the Indonesian Government for a universal healthcare coverage, the structural growth opportunity for Indonesia’s hospital sector is tremendous.
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