Wintermar Stellar Results

Wintermar Offshore Marine, Tbk (WINS IJ) booked an impressive 1Q11 net profit amounted to IDR44bn (+143.2% y-o-y; accounts 31% to our FY11 forecast) driven by fleet expansion and third party chartering. This translates to a net profit margin of 19.7% in 1Q11 from 17.6% in 1Q10. WINS’ vessel expansion remains on track along with its ability to coping upped with greater demand in oil & gas services.

Indofarma Allocates IDR165Bn for Capex

Kimia Farma Completed Acquisition Dwaa This Year

KEB Hana Third Party Fund IDR22.50Trn

Bank Muamalat Third Party Fund Worth IDR47.31Trn

The Government Evaluates Foreign Ownership in Government Securities

IndoGB Rebounds with 10y Headed Back to 8%

Revenue mostly contributed by 3rd party vessels
Owned-vessels and 3rd party chartered vessels revenue increased 72.8% y-o-y and 184.5% y-o-y respectively on the back of rising oil & gas upstream activities. 1Q11 owned-vessel contribution to total revenue is 44.6%, which is lesser compared to 56% in 1Q10. It is worth noting that a 1Q11 owned-vessels margin is 46% whereas 3rd party chartered vessel is 3%.

Medco’s Revenue Increase 56%

United States Market Supported Kedaung’s Performance

Bank Mualamat Senior Term Notes Rating

Foreign Investors Avoids The Primary Market

Pace of the Economy Reflected Purchasing Power

Indonesia Bond Market Traded Mixed Amid Foreign Reserve Data

Swelling direct expenses
1Q11 COGS rose significantly to IDR170bn (+132% y-o-y) from IDR73bn in 1Q10 mostly contributed to time charter and depreciation expense. Higher 3rd party chartered vessel revenue contribution means higher time charter expense (tighter margins). By this, gross profit margin was choked to 24.1%, which is worse compared to 29% in 1Q10.

Siam Cement to Acquire 29% Catur Sentosa’s Stake

Mitra 10 to Enter Eastern Indonesia market

PLN Issues Bonds to Refinancing its Debt

Marga Lingkar Jakarta Bond Ratings at Level AAA

Bank Indonesia’s Year-end Inflation Projection to 3.29%

Italy Crisis affecting the Emerging Market Countries Exchange Rates

IDR20bn gain on other income
Other income reached IDR20bn in 1Q11 which is mainly contributed by forex gain of IDR20bn compared to IDR2bn in 1Q10. Assuming we takes out the 1Q11 forex gain, the bottom line will only reach IDR24bn (+32% y-o-y).

Vessel expansion remains on track
WINS remains on track to purchase 12 mid & high-end vessels, while 6 vessels will be bought in 2Q11. This is in line with WINS’ strategy to enhance profited by increasing the proportion of new mid & high end vessels as this commands higher rates up to USD18,000, which can be 5x to more than 20x higher than those of old vessels. Thus, we expect margins to improve in 2H11 as more owned-vessels will generate revenue. The cabotage regulation remains intact with exemptions for certain types of vessels.

Remains a BUY
WINS is trading at a discount of 54% to its industry based on current 2011 PE of 8.9x. We maintain our target price and recommendation.

TPS Food Focus on Snack Business

Kino Indonesia Form Two Joint Venture

Pelindo I Plans to Issue Bonds and Asset Securitisation for FY18 Capex Funding

MTN Raditya Priority Offering Coupon Rate 15%

Cigarette Retail Price and Tax Regulation will be Released

Investor on the Sideline; Bank Indonesia Hold Rate Unchanged