Arwana Citra Mulia, Standing Tall Amid Macro Uncertainties
Despite rising interest rates, ARNA does not expect monthly sales to slow down as most customers pay cash. There is minimal impact from higher financing cost as the bulk of its capex has been paid for while a mid-September selling price hike will offset some cost increases. ARNA is trading at 18.5x FY14F earnings, and.
Read More...Tiphone Mobile, Betting On Handset Segment
TELE’s acquisition of Samsung and Apple iPhone distributors will make its full impact as well as catalyse growth in 2014. Handset sales will soar 73% y-o-y while voucher sales will see a modest 11% y-o-y growth. TELE’s margin is set to improve as handset contribution to total revenue increases. We keep our 2014 earnings forecast.
Read More...Astra Agro Lestari, a Core Plantation Exposure
Following a sector-wide CPO price upgrade, we raise our earnings projections for AALI by 12.3% for FY14 and introduce our FY15 forecast at IDR3,337bn. Our FV is similarly raised to IDR28,350, based on 18x CY14 earnings (our target P/E for large cap plantations). AALI is our preferred Jakarta plantation stock, being a prudently managed company,.
Read More...Semen Indonesia, Prospects Lie In Growing Capacity
SMGR stands to benefit the most from higher domestic cement demand as it has the most unutilised capacity among its peers. The diversified locations of its plants also help to facilitate the group’s cement supply across Indonesia. SMGR is trading at c.1 SD below its 5-year average forward rolling P/E, which we deem a good.
Read More...Telekomunikasi Indonesia Size Matters
We expect Telkom to outperform in an uncertain market environment due to its superior fundamentals. Investors should accumulate on excessive weakness given the re-rating catalysts from the IPO of its tower assets in 1H14 and continued revenue market share gains. Telkom is executing well on most fronts when its peers are distracted by network and.
Read More...Telecommunications Gaining More Data Mileage
The Indonesian telco sector is a NEUTRAL for 2014 given the combination of (i) macro-economic/political headwinds, (ii) earnings pressure from higher data opex/decelerating revenue growth & (iii) sustained capex spending. We like the ITC (OVERWEIGHT) due to their stronger earnings prospects. A stock-picking strategy to identify companies with discernible price catalysts and a good track.
Read More...Wintermar Stellar 9M13 Results
WINS posted stellar 9M13 net profit of USD18m (+26.5% y-o-y), beating our expectations at 79%/80% of our/consensus estimates respectively. Such robust core earnings growth since its IPO is a re-rating catalyst, in our view. We increase our 2013/14 earnings by 1%/11% respectively, as WINS has raised its capex estimates to USD90m (+80% above our conservative.
Read More...Nipress Right Issue Analyst Meeting
As a local battery producer with third largest market share, NIPS is one of the beneficiary of low cost green car program, which uphold optimal local content spirit. New contract to supply ~500k unit car battery (~25% of current production) in the next year is already in hand. On top of that, since 2011 NIPS.
Read More...Mitrabahtera Segara Sejati Volume To Increase
We believe MBSS should be able to book higher coal volumes in 2013 and 2014 despite expecting clients to renegotiate rates, as long-term customers will bulk up volumes to compensate for lower fees. We trim our DCF-based TP to IDR1,400 and lower our 2013/14 earnings by 5/9%, but maintain a BUY call as it still.
Read More...Mitrabahtera Segara Sejati, Stronger volume deliveries going forward
Despite foreseeable fee re-negotiations by customers, we view that MBSS should be able to deliver stronger coal volumes in 2013 and 2014 as a compensation given by its long-term customers for lower fees. We lower our DCF based TP to IDR1,400 as we lower our 2013 and 2014 earnings by 5%/9%, yet maintain our BUY.
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