Matahari Department Store, Positive SSSG Due To Middle Income Segment
Despite declining 1Q15 consumer consumption, MDS’ SSSG managed to grow 5.4% YoY, which points to the resilient spending power of its target middle-income segment. Maintain BUY and DCF-based IDR22,000 TP (29% upside). Its 1Q15 numbers, consistent with its historical performance, were in line with our/consensus estimates. It is also on track to open 12 new.
Read More...Mitra Adiperkasa Early Indicators Of A Turn Around
Despite 1Q15 earnings below our/consensus estimates on continued discounting at Mitra’s specialty stores division to reduce excess inventory, we observed early indicators that it might be turning around. Maintain NEUTRAL and IDR5,750 TP (3% upside). Department stores/F&B’s QoQ EBIT margins have increased 360bps/90bps, and inventory days stood at 163 days, similar to FY12. 1Q15 earnings.
Read More...Ramayana Lestari Supermarket Is Better, But Not Enough
During 1Q15 Ramayana (RALS) experienced consecutive quarters of negative operating income and negative SSSG which may set the tone for FY15. Although the supermarket division had positive operating income, the 3.2% gross margin decline YoY in its department stores and higher opex resulted in below our and consensus earnings. We downgrade RALS to SELL (from.
Read More...Matahari Putra Prima In Robust Shape
Despite weak consumer consumption in 1Q15, Matahari performed well and managed to increase both its gross and EBIT margins YoY by 90 bps and 50 bps respectively. Thus, we reiterate BUY, with a DCF-based TP of IDR4,650 (17% upside). The 1Q15 numbers, consistent with its historical performance, were in line with our and consensus estimates..
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...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...Sampoerna Agro Seeks IDR650bn of Loans
Sampoerna Agro (SGRO IJ, BUY, TP: IDR2,775) is seeking IDR650bn of loans in 2015. 65% of the funds will be used to finance its capex allocation of IDR600bn – 1trn. The company intends to plant new CPO area of 5,000-10,000 ha while rubber plantation area will be added for 1,000 – 2,000.
Read More...Inovisi to build IDR1.2trn power plant
Inovisi Infracom (INVS IJ, Not Rated) plans to spend Rp 1.2 trillion in 2015 to build two power plants in West and North Sumatra, through its unit QDC Technologies. QDC Technologies will construct hydropower plants in Pasaman, Batu Lunak, West Sumatra with capacity at 30 megawatts (MW) to 40 MW, for a cost of IDR1.
Read More...WIKA 11M14 new contracts booked at IDR13.9trn
Wijaya Karya (WIKA IJ, Neutral, TP: IDR2,930) achieved IDR13.9trn of new contracts in 11M14. This achievement was 53.81% from management’s guidance of IDR25.83trn. Management also stated that there were several projects delay that results in the reduction of FY14 capex allocation from IDR1.99trn to IDR1.3trn. Meanwhile, the company allocates IDR1.7trn capex for FY15, where IDR600bn.
Read More...Adhi Karya 11M14 New Contracts Only IDR6.3Trn
Adhi Karya, Tbk (ADHI IJ, Neutral, TP: IDR2,720) has booked IDR6.3Trn of new contracts in 11M14 that consist of building projects (59.4%), roads & bridges (21.1%), and other infrastructure projects. Most of its projects were still dominated by private projects (43.1%), while the Government portion was at 42.2%, and SOE portion was 14.5%. ADHI’s management.
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