Matahari Department Store, Well Positioned For Indonesian Economy Recovery
Due to the currently weak Indonesian economy, Matahari Department Store (MDS)’ 6M15 net income is below our and consensus forecast after considering seasonality. However, we still like MDS as it is a well-run company with the right middle income segment focus. Considering its expansion plan of opening 12 new stores is on track and the.
Read More...Link Net Simply the best
We initiate coverage of Link Net (LINK) with a BUY call and a DCF derived TP of IDR6,500, implying a 27x/21x FY15F/16F P/E. Link Net is one of the leading providers’ of cable broadband and pay TV in Indonesia with a network in affluent areas. As a leader in Broadband internet industry, LINK has a.
Read More...MNC Sky Vision Looking for Silver Lining
We initiate coverage of MNC Sky Vision (MSKY) with a SELL call and a DCF derived TP of IDR1,100, implying 9.9x/8.9x FY15F/FY16F EV/EBITDA. MSKY’s performance has been poor in FY14 as subcribers growth has been muted at 2.5mn subs; and we expect only 4% additional subscribers growth in FY15F due to Indonesia economy headwinds, piracy,.
Read More...Surya Citra Media Sweet Bites
We initiate coverage on Surya Citra with a BUY and DCF-derived IDR3,400 TP, implying 29.0x/25.0x FY15F/FY16F P/Es. We believe local consumer firms will face macroeconomic headwinds in the near term, resulting in an ad spend slowdown in FY15. Yet, we do not think advertisers can cut ad spend for too long given Indonesia’s attractive structural.
Read More...Indonesia Retail, Confident And Connected Retail Consumers
With the economy growing >5% annually and its people increasingly connected via social media (evidenced in 2014’s presidential election), we see a new generation of confident and informed consumers on the rise. Vibrant, younger Indonesians in the sizeable middle class want to satisfy their secondary needs. They are optimists, entrepreneurial, technology-dependent and express their opinions.
Read More...Matahari Putra Prima Faster And More Profitable
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;.
Read More...Ramayana Lestari Cash From The Red Ocean
We reinitiate coverage of PT Ramayana Lestari Tbk (RALS) with a NEUTRAL rating and DCF-derived TP of IDR780 (implying a 15.8x FY15F P/E). RALS is the largest department store chain targeting the low- to mid-low income earners in Indonesia. Some of the key issues are: i) ubiquitous competition, ii) expansion outside Java is on hold,.
Read More...Mitra Adiperkasa Navigating The Red Ocean
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.
Read More...Matahari Department Store The Bright Morning Star
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.
Read More...Erajaya Swasembada Renegotiating With Goliath
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..
Read More...
