Search result for: "purchasing power"

We initiate coverage on Express Transindo with a NEUTRAL call and DCF derived IDR350 TP. The recent cancellation of the M&A from Saratoga’s group due to uncondusive market condition has resulted into 74% YTD dropped in share price. The company’s now focus to improve their financial performance by reorganise their business, lowering gearing level, and.

Indonesia transportation sector has been impacted by the slowdown in the Indonesia economy and also fierce competition especially from Uber. However, given the under penetrated of Indonesia taxi industry, lack of investment in public transportation, lowest taxi tariffs compare to other countries, and expanding middle class; we believe an improvement in the long run. Furthermore,.

Considering the weak purchasing power of Indonesian consumers, we believe retailers like Matahari Department Store and Matahari Putra Prima which have low leverage (net cash position), minimum imports, and targeting the resilient middle income will post decent results in 3Q15 compared to its peers. We also expect weak performance from ACE Hardware (due to its.

We expect Surya Citra and Link Net to report a good performance in 3Q15 Surya Citra will be buoyed by normalising Unilever contribution, higher audience share and margin improvement, while Link Net will be supported by higher number of new subscribers. We are cautious on Media Nusantara’s 3Q15 performance on a potential slip in audience.

Express Transindo (TAXI IJ) is Indonesia’s second largest taxi operator that offers: i) a high predictability of future cash flow due to daily fixed payments, ii) robust volume-driven growth, and iii) minimum exposure to operating expenses such as fuel and maintenance. We initiate coverage with a BUY and DCF-based TP of IDR2,100, providing a potential.

We initiate coverage on Link Net, a leading cable broadband and pay TV services provider with networks in affluent areas, with a BUY and DCF-based IDR6,250 TP (20% upside), implying 30x/23.2x FY15F/FY16F P/Es. It is in a significantly advantageous position to benefit from the internet boom in Indonesia as it could bank on rising wealth,.

We initiate coverage on MNC Sky Vision with a SELL and DCF-derived IDR1,100 TP, implying 11.5x/10.7x FY15F/FY16F EV/EBITDA. FY14 performance has been poor as subs growth has been muted (2.5m subs). We expect only 4.0% additional subs growth in FY15 on domestic economic headwinds, piracy and a clean-up of subs. We see competition remaining fierce.

While the growth of Indonesia’s media industry has slowed down to 9% (from a 21% mean in 2010-2014), media is still the most effective tool to promote consumer products, due to its long-term prospects. We believe ad spending may improve when the economy recovers. We initiate coverage on the sector with a NEUTRAL rating and.

We reinitiate coverage of Ace Hardware Indonesia, Tbk (ACES IJ) with a NEUTRAL and a DCF-derived TP of IDR640, implying 20x/18x FY15/16F P/E. This year proves challenging due to a weak IDR vs USD which might erode ACES’ lifestyle product gross margin, increasing inventory days, while its aggressive store expansion plan might further lower its.

In the current economic slowdown, Indonesia’s low-income segment has been the hardest hit – which was reflected in Ramayana’s 6M15 results. Its 6M15 earnings were weak after taking into consideration the seasonal factors related to Lebaran. The stock is still a SELL, with a IDR640 TP (9% downside). A positive re-rating catalyst would be economic.