Indocement, Beneficiary of Rising Demand
Catering to Jakarta demand Given its huge unutilized capacity, INTP is in a good position to reap the most benefit from increasing cement demand. Most of its plants are located in Citeureup in West Java, which is close to Jakarta. The Jakarta government has plans to carry out massive infrastructure projects, and has started constructing.
Read More...Indofood, Strength in Diversity
BUY with target price Rp6,300 Our BUY call hinges on INDF’s i) diversified earnings, ii) ability to maintain robust margins, and iii) aggressive expansion for future growth. Our target price is Rp6,300, based on 18.8x-16.6x FY11-12f PE earnings multiple. Diversified earnings INDF’s diversified earnings base ranging from flour, noodle and dairy to plantations provides the.
Read More...Semen Gresik, New Engines to Drive Growth
Progress at Tuban IV development Construction on the Tuban IV–East Java cement plant is slightly ahead of schedule. The cooling tower is nearing completion while the clinker storage is now being built and machines and equipment delivered to the site. SMGR bought machineries such as crushers from reputed companies such as Thysenkrupp Fordentechnik, raw mill,.
Read More...Surya Citra, The Industry Stalwart
BUY, TP Rp3,900 Our Buy recommendation is based on SCMA’s i) strong position in Indonesia’s television network, ii) promising earnings growth, iii) improving profitability, iv) high dividend yield, and v) strong cash position. Our target price of Rp3,900 is premised on 14.9-13.0x FY11-12f PE. The share’s price catalysts include: i) a special dividend, and ii).
Read More...Harum Energy, Unleashing Latent Potential
Buy initiation, target price Rp9,900 Our Buy recommendation is premised on HRUM’s i) robust production growth, ii) huge untapped coal resources potential, iii) strong balance sheet, and iv) attractive coal market structure. Our end-2011 DCF target price is Rp9,900, which implies 13x 2012F earnings. Its share price catalysts may include: i) More reserves and resources.
Read More...Bank Danamon, Revival Under-appreciated
Advancing with renewed focus We think that the consistent improvements in Danamon’s fundamentals since 1Q10 have been largely under-appreciated. Recovery in credit growth led by its core mass market operations, rising CASA base and improving asset quality have fuelled an upward ROAE trend, which should underpin valuation. Maintaining composure is key. We maintain our Buy.
Read More...EXCL Poised Excel Further
EXCL Poised Excel Further. XL Axiata, Tbk (EXCL IJ) remains our top pick for exposure to Indonesian telecoms given. First, its strong management/operational execution. Second, the still-robust prospects within the telecoms sector on a proliferation of cheap and attractive low-priced handsets amid rising take-up of small screen access. Link Net Simply the best Shelf Registration.
Read More...BBRI Superior Many Fronts
BBRI Superior Many Fronts. We believe BRI’s growth story is a compelling one – the bank has expanded its micro lending reach to over 5,000 units (including its Teras outfits) to penetrate the most under-banked SMEs and consumers across the nation. As well as, this positions it as the primary beneficiary of the rising suburban.
Read More...Adaro Leader The Pack
Adaro Leader The Pack. Buy initiation; target price Rp2,900. Our Buy recommendation hinges upon ADRO’s, First, strong exposure to the domestic coal market, Second, proven record for production growth, Third, sizeable coal reserves, and Fourth, financing capability for expansion. As well as, our end-2011 DCF target price is Rp2,900, which implies 16.3x 2012F earnings. Furthermore,.
Read More...Mitrabahtera Segara Sejati Delivering Value (IPO)
Mitra Bahtera Segarasejati (MBSS) provides cost-effective and reliable sea and river based coal transport to Indonesia’s top tier coal producers, which are reaping the benefits of rising domestic and global demand for Indonesia’s coal. Equipped with a sizable and modern fleet of tugs and barges as well as floating cranes and a well-trained workforce, MBSS.
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