Search result for: "raw materials"

The impact of trade war between the United States (US) and China provides benefits for paper companies such as Indah Kiat Pulp & Paper, Tbk (INKP IJ), post trade war caused the price of pulp or paper pulp higher. Currently, China is the shortage of raw materials.

Raw material tire factory of joint venture between Barito Pacific Group with Michelin Group, which produces dried rubber crumb rubber, or most will be supplied for the needs of the Michelin Group. This factory production capacity reached 27,000 tonnes of crumb rubber per year. Most of the raw materials harvested from Forest Plant Industry (HTI),.

Berlina, Tbk (BRNA:IJ) still rely on the domestic market to grow its business. Until 3Q17, domestic segment recorded increase 11% to IDR855Bn from IDR770Bn in 3Q16. While, the export segment was decrease 41% from IDR230Bn in 3Q16 to IDR135Bn in 3Q17. For the record, the domestic market share recorded amounted to 87% of the total.

Asia Pacific Investama, Tbk (MYTX:IJ) successfully recorded a sales increase in 3Q17. Unfortunately, the company has not been able to suppress the cost of good sold so that the company failed to made the profit in this period. Company’s sales grew 6.04% to IDR1.14Trn in 3Q17, compare to same period 2016 worth.

PT Kirana Megatara, Tbk (KMTR IJ) reported its revenue worth IDR6.72trn during 1H2017, or increase 85% compare to same period 2016 IDR3.63trn, amidst domestic’s economic weakening in 1H2017. The revenue’s increase supported by finished goods worth IDR6.68trn, followed by rubber raw materials and palm worth IDR20.75bn and IDR11.95bn.

Global Mediacom, Tbk (BMTR IJ) offers continuous bond and Sukuk worth IDR850bn and IDR250bn respectively. The company will use the funds added with IDR150bn from Sukuk emission to pay off bonds that will due on 12 July 2017 and the IDR100bn to be used for company’s working capital. The bond will offer in three series.

Despite a weakened IDR and DOC price capping headwinds, Malindo deserves attention at this juncture. This is due to: 1. Its attractive valuation – it is currently trading at 10-9x FY16F-17F P/E, close to -2SD from its 5 years mean of 15x; 2. 4Q16 to be another strong quarter – average broiler and DOC prices.

As it imports 95% of its raw material in USD, Kalbe is the primary beneficiary of the strengthening IDR vs USD. This is evidenced by the QoQ margin expansion in 1Q16. Consumer health and nutritionals are its key growth drivers as the two divisions contribute c.45% of its total sales. Its liquid milk manufacturing plant.

We initiate coverage on Kalbe Farma with a BUY and DCF-derived IDR1,600 TP (33x/27x FY16F/FY17F P/Es, 19% upside). Its pricing power and economies of scale have strategically positioned it in the high margin-high volume segment and it aims to double its exports to 10% by 2020. It is also focused on creating a value-add product.

On 19 Sept we took investors on a 1-day visit to four of Spindo’s East Java plants, which made up 81% of its production capacity in 1H14. We got to observe the efficiency at its new Sidoarjo plant relative to its older plants, cementing our confidence in Spindo’s commitment to cost efficiency as the plant.