Refer to Important disclosures in the last page of this report
Premier Insight
6 July 2018
News & Analysis
Corporates
ADHI: Adhi Karya (ADHI IJ; Rp1,600; buy) increase their ownership in PT Adhi Commuter Properti (ACP) from 99% to 99.99% through asset transfer of Rp2.13tn from ADHI’s TOD & hotel business. The spin off of TOD & hotel division is in-line with ADHI’s plan to IPO ACP in 2020. In addition, government is preparing the development of LRT phase II from Velodrom-Tanah Abang with total conract of US$700.
EXCL: XL Axiata (EXCL IJ; Rp2,410; Buy) said already gradually start increasing data tariff. This is according to EXCL’s CEO. (Bisnis Indonesia).
Comment: Positive to EXCL.
LINK: Linknet (LINK IJ; Rp4,300; Not Rated) Announced cooperation with SoftBank Corp. This related to development and implementation of internet of things (IoT) for property, health service, and mobility ecosystem, esp. in Meikarta, Lippo Malls, and Siloam Hospitals (SILO IJ). (Bisnis Indonesia).
MEDC: Medco Energi Internasional’s (MEDC IJ; Rp890; Buy), Medco Power conduct IPO in the future. (Bisnis Indonesia).
TLKM: Telkom Indonesia (TLKM IJ; Rp3,830; Buy) Telkomsel to test 5G in Asian Games 2018. Telkomsel is waiting from location and cntent permit from Indonesia Asian Games 2018 (INASGOC). (Indotelko).
Comment: Neutral for now as 5G yet in commercial phase.
Markets & Sector
Media Sector: PT Net Visi Media (Not Listed) targets Rp1tn funding from IPO and bond convertion in 3Q18. PT Net Visi Media, part of Indika Group, operates Net TV station aired since 2013. According to Kontan, Tokopedia might take ownership from part of the mandatory bond covertion (MBC).
Targeted proceed: Total Rp1tn = IPO Plan ~Rp200bn (4.9%) + MBC ~Rp800bn (19.3% of capital)
Usage of proceed: Business development (expansion). Est. listed date: 29 Aug 2018. (Kontan, Tempo.co).
Retail Sector: PT Home Center Indonesia, a subsidiary of the Kawan Lama Group, is planning to open 15 new Informa stores this year. So far in 1H18 the company has opened 4 new stores, 2 in Java, 1 in Pekanbaru and 1 in Banjarmasin. With these additions the company is now operating 73 stores, and they are still hopeful in opening 11 more stores in 2H18. Informa’s customers now consists of 70% retail and 30% commercial. (Kontan).
JCI Index
Index Closing 1 day 1 year YTD
JCI 5,739 0.1% -1.9% -9.7%
Commodities Last price Ret 1 day Ret 1 year
PremierInsight
2
Refer to Important disclosures in the last page of this report
Property sector: Jakarta Provincial Government decision to increase the sales taxable of property (NJOP) of 19.54% reaping many critics. Vice Chairman of Indonesia Entrepreneur association (Apindo) claimed that the regulation is not relevant with Indoenesia slow economic condition. The NJOP increment will be add pressure to Indonesian economy from interest rate increase, oil price hike and trade war uncertainty. According to Regional leadership council of Indonesian Real Estate (REI), this increase is expected to put pressure on property sector which makes consumer reluctant to buy property given the high taxes. (Kontan).
Head Office
BUY : Expected total return of 10% or more within a 12-month period
HOLD : Expected total return between -10% and 10% within a 12-month period
SELL : Expected total return of -10% or worse within a 12-month period
ANALYSTS CERTIFICATION.
The views expressed in this research report accurately reflect the analyst;s personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
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