Perusahaan Gas Negara A Strong Position
PGAS’ long-term outlook remains bright despite concerns over its short-term gas supply and it is well positioned to venture into other gas-related businesses, as well as undertake upstream takeovers. We maintain our BUY call, with DCF-based IDR6,000 TP unchanged, on its defensive characteristics and project diversification visibility, which is aligned with the strengthening of its.
Read More...Wintermar An OSV Leader In Indonesia
The earnings of Wintermar Offshore Marine, Tbk (WINS IJ), a leading Indonesian OSV player, have risen consistently since its Nov 2010 IPO. It has beaten the JCI by 40% since the market peaked on 20 May 2013, buoyed by its sturdy fundamentals. As its 9M13 earnings beat our estimate, we expect alluring double-digit earnings growth.
Read More...Perusahaan Gas Negara a Strong Position
PGAS’ long-term outlook remains bright despite concerns over its short-term gas supply and it is well positioned to venture into other gas-related businesses, as well as undertake upstream takeovers. We maintain our BUY call, with DCF-based IDR6,000 TP unchanged, on its defensive characteristics and project diversification visibility, which is aligned with the strengthening of its.
Read More...Malindo Feedmill, Rising Above The Pack
We are keeping MAIN as our Top Pick in the poultry sector for the following reasons: i) the company’s above-industry growth prospects, ii) strong profitability, and iii) potential improvement in gearing. Maintain BUY and IDR4,000 TP, pegged to a 15.2x FY14 P/E. The counter is currently trading at a 12.1x FY14 P/E. Above-industry growth prospects.
Read More...Gudang Garam, Set To Regain Glow In 2014
We believe GGRM’s fundamentals are firm given: i) its strong market share, which outpaced industry’s growth in 9M13, ii) its re-branding attempts to capture Indonesia’s young demographics, ii) the general election euphoria, which should offset the interest expense hike in its P&L due to large debt for revamping purposes. In view of the company’s solid.
Read More...Ramayana Lestari, 2014 Growth To Get Election Boost
RALS’ 4Q13 sales are set to improve as October SSSG rose ~14% m-o-m The company’s plans to add 5-6 stores annually should get a boost from the potential income increment among low-end consumers during next year’s election. The biggest risk to RALS’ 2014 sales is the close timing of the Lebaran and back-to-school sales season..
Read More...BSD City, Sufficient Liquidity To Weather The Storm
BSDE remains our sector Top Pick, as we favour its: i) abundant cash that provides flexibility to finance its current and future developments, ii) large landbank – mainly in Greater Jakarta and in new areas like Palembang and Manado, and iii) growing recurring income. Our IDR2,400 TP is derived by applying a 40% discount to.
Read More...Indonesia Strategy, Navigating a Challenging 2014
While we are still cautious on Indonesia’s short-term equity market outlook owing to economic and political uncertainties, we are of the view that its long-term fundamentals are intact. We foresee 2014 GDP growth dipping to 5.4% while Bank Indonesia (BI) may have to raise the BI rate to 7.75-8.25%. As short-term macroeconomic fundamentals are weak,.
Read More...Telekomunikasi Indonesia Size Matters
Given its superior fundamentals, Telkom is set to outperform in an uncertain market environment. Investors should accumulate on excessive weakness, given the re-rating catalysts from its tower asset’s IPO in 1H14 and continued market share gains. It is executing well on most fronts while peers are distracted by network and merger challenges. We see a.
Read More...Bank Rakyat Indonesia, Banking On Its Forte
BBRI’s investments in the micro business ensures sustainability of its micro lending market share, growth and asset quality. An enlarged network, growing e-banking and emphasis on deposits should protect BBRI’s funding profile. The earnings risks are rising credit cost and NIMs. BBRI is our Top Pick as its share price correction has driven its multiples.
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