Refer to Important disclosures in the last page of this report
Premier Insight
30 January 2018
News & Analysis
Corporates
ASRI: Alam Sutera Realty (ASRI IJ; Rp406; Hold) booked total marketing sales of Rp2.2tn (-35% yoy) in FY17, cumulating 48% of company FY17 target of Rp4.5tn. In FY18, company targets marketing sales of Rp4tn. (Kontan)
Comment: Given low marketing sales in FY17, we maintain our Hold call on ASRI.
KAEF: Kimia Farma (KAEF; Rp2,450; Not Rated) targets that revenue in 2018F will reach Rp8tn but the company still would not disclose their achievement in FY17. Further, the company also try to complete acquisition of PT Dwaa Medical Ltd on which KAEF plan to acquire 60% of its shares. On top of that, the company currently set the operational of new medicine’s raw material factory in Cikarang. The company expect with the completion of this factory they could minimize their dependency to import raw materials. (Kontan)
MAPB: PT MAP Boga Adiperkasa (MAPB IJ; Rp1,855 ; Not Rated) plans to add 60 Starbucks stores located in Jabodetabek and outside Jabodetabek. Starbucks gets the biggest allocation of company expansion. MAPB plans to add 70 stores of which 60 new additional stores are for Starbucks and the rest is for Genki Sushi and Pizza Marzano. The investment amount for this plan is not specified but the management said that MAPI capital expenditure of Rp800bn will include MAPB spending. Furthermore, MAPB targets 20% revenue growth this year. (Kontan)
PGAS: Perusahaan Gas Negara (PGAS IJ, Rp , Hold) has been cited to spend capex of US$668mn in FY18, significantly higher than last year’s number of US$300mn. The company will spend cpaex to increase transmission and distribution capacity including household network. The prognosis net income of PGN is Rp1.4tn (US$103mn) in FY17, significantly down from Rp4.0tn in FY17. According to the finance director, the company is yet to see any recovery in gas demand from industry. (Jakarta Post)
Comment: If the net profit is at US$103mn, then the result will be well below our
numbers of US$257mn and consensus number of US$188mn.
WEGE: Wika Gedung (WEGE IJ; Rp284; Not Rated) gained new contract of Rp422bn in early FY18 from the construction of three projects. Company targets FY18 new contract of Rp7.83tn and Rp8.76tn carry over which is dominated by private sector (40%), followed by government (30%) and SOE (30%). In FY18 WEGE is guiding for Revenue of Rp5.2tn (+29% yoy) and earnings of Rp394bn (+38% yoy). (Investor Daily)
Markets & Sector
Industrial Estate: Industrial Estate Association (HKI) targets industrial land sales of 250ha or Rp2.5-5tn in FY18, with ASP assumption of Rp1-2mn/sqm. According to HKI, the total sales in FY17 is more than 200ha. However, the number is not final yet, as some of the sales has not been included. In FY17, the demand is dominated by F&B, pharmacy, automotive and electronic sector. For FY18, HKI forecast that the demand would come from F&B and textile sector. (Investor)
Comment: Assuming industrial sales of 200ha in FY17, the amount is already higher than FY16 number of 198ha. With the sales which happened in late FY17, the number is expected to reach around 250ha (+25% yoy). We are bullish on industrial estate sector with Buy call in DMAS with TP of Rp270, BEST with TP of Rp380 and SSIA with TP of Rp825.
JCI Index
Index Closing 1 day 1 year YTD
JCI 6,681 0.3% 26.0% 5.1%
Commodities Last price Ret 1 day Ret 1 year
PremierInsight
2
Refer to Important disclosures in the last page of this report
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.
DISCLAIMERS
