Berita investasi, saham, reksadana dan perencanaan keuangan
27 April 2018
Premier Insight
News & Analysis
Corporates
10,000
ADRO: Adaro Energy (ADRO IJ; Rp1,995; Buy) reported below estimate 1Q18
results with details as follow;
9,000
6,300
8,000
6,200
7,000
6,000
6,000
5,000
•
Rp bn
JCI Index
6,100
4,000
5,900
3,000
5,800
2,000
5,700
•
1,000
-
26-Apr
25-Apr
24-Apr
23-Apr
20-Apr
19-Apr
18-Apr
17-Apr
16-Apr
13-Apr
12-Apr
9-Apr
11-Apr
6-Apr
10-Apr
5-Apr
4-Apr
3-Apr
2-Apr
29-Mar
28-Mar
27-Mar
5,600
Foreign net buy (sell)
26-Apr
24-Apr
23-Apr
20-Apr
19-Apr
18-Apr
17-Apr
16-Apr
13-Apr
0%
12-Apr
-
(0)
11-Apr
5%
10-Apr
0
-5%
(0)
-10%
(0)
-15%
(0)
-20%
(0)
-25%
% net buy/market turnover
•
Net buy (sell) in Rp bn
Equity | Indonesia | Research Daily
JCI Index
6,400
Net profit reached US$74.4mn, down 32% qoq and 23% yoy, represent
only 13% of our and consensus’ forecast for FY18F, mostly caused by
higher mining costs as stripping ratio increased to 4.94x (1Q17: 4.62x).
Operating profit reached US172mn in1Q18, dropped 24% qoq and 1.4%
yoy as production and operating costs increased. Operating profit in 1Q18
formed only 16%-14% of consensus’ and our forecasts for FY18F,
respectively.
Revenues reached US$764mn, down 6.8% qoq
but up 5.1% yoy,
represent 22%-21% of consensus’ and our forecasts for FY18F.
(Company).
Comment: We are reviewing our forecast for ADRO given this lower than expected
results and management’s decision to lower FY18F EBITDA guidance from $1.3bn$1.5bn to $1.1bn-$1.3bn.
(US$ Mn)
Key Indexes
Index
JCI
LQ45
Closing
1 day
1 year
YTD
5,909
- 2.8%
3.5%
-7.0%
943
- 3.6%
-0.3%
-12.6%
24,322
1.0%
15.9%
-1.6%
SET
1,773
- 0.4%
13.2%
1.1%
HSI
30,008
- 1.1%
21.5%
0.3%
NKY
DJI
22,320
0.5%
15.9%
-1.8%
FTSE
7,421
0.6%
2.5%
-3.5%
FSSTI
3,570
0.1%
12.6%
4.9%
26
- 1.2%
-3.5%
-10.1%
EIDO
1Q18
4Q17
1Q17
% Q-Q
% Y-Y
vs. cons
vs. ours
Sales
764
819
727
(6.8)
5.1
21.6
20.8
COGS
538
537
509
0.0
5.6
Gross profit
226
282
218
(19.7)
4.0
18.2
16.2
Total opex
54
56
43
(2.3)
25.9
37.8
16.3
14.5
15.8
14.6
13.2
12.7
Selling expenses
G&A expenses
Operating profit
Non opr. inc. (exp.)
Pretax income
9
10
6
(10.4)
46
46
37
(0.6)
23.9
172
227
175
(24.0)
(1.4)
(8)
(4)
7
78.0
neg
165
222
182
(26.0)
(9.4)
Tax
77
100
72
(22.8)
7.4
Net Income
74
111
97
(32.8)
(23.4)
Gross margin
29.6
34.4
29.9
Operating margin
22.5
27.6
24.0
21.5
27.1
25.0
9.7
13.5
13.4
Coal prod vol (m tons)
11.0
12.4
11.9
(11.9)
(7.7)
19.8
Coal sales vol (m tons)
10.9
12.4
12.0
(11.7)
(9.1)
19.2
Profitability (%)
Commodity price
Commodities
Last price Ret 1 day Ret 1 year
(in USD)
68.2
0.2%
37.4%
Pretax margin
CPO/tonne
609.2
-0.3%
-5.0%
Net margin
Soy/bushel
10.0
-0.2%
9.2%
Oil/barrel (WTI)
Rubber/kg
1.7
0.0%
-31.5%
Nickel/tonne
14,181
0.7%
54.5%
Tins/tonne
21,555
0.4%
8.0%
Copper/tonne
6,929
-0.6%
21.8%
Gold/try.oz (Spot)
1,317
-0.5%
4.2%
93.5
0.1%
11.6%
Coal/tonne
Corn/bushel
Wheat/bushel (USd)
Source : Bloomberg
3.6
0.0%
6.7%
483.3
0.5%
16.9%
Coal sales (US$ Mn)
704
758
679
(7.1)
3.7
21.1
Coal ASP ($/t)
64.4
61.2
56.4
5.2
14.1
109.9
ANTM: Aneka Tambang (ANTM IJ; Rp830; Not Rated) 1Q18 result, net profit
grew 3,603% to Rp245bn (61% to FY18 consensus). Revenue up 247% to
Rp5.7bn from Rp1.6bn. Gold contribute 71% of 1Q18 sales at Rp4.09tn.
Ferronickel sales contribute 17% at Rp972bn. (Company).
(Rp bn)
1Q18
1Q17
YoY
4Q17
QoQ
Consensus
Revenue
5,731
1,650
247%
5,691
100.70%
39%
Gross Profit
727
82
787%
774
93.93%
40%
Operating Profit
478
(84)
569%
367
130.25%
63%
Net Income
246
7
3606%
468
52.50%
62%
12.7%
5.0%
Operating Margin
8.3%
-5.1%
Net Margin
4.3%
0.4%
Gross Margin
Refer to Important disclosures in the last page of this report
PremierInsight
CTRA: Ciputra development (CTRA IJ; Rp1,100; Buy) revised their previous ads
regarding the issueance of non pre-emptive share with maximum of 1.85bn shares in
exercise price of Rp1,191/share. Post the corporate actions the ownership of existing
shareholders will be diluted by 10% (from: 5.23%).
HMSP: HM Sampoerna (HMSP IJ; Rp3,650; Hold) recorded weak 1Q18 results with
details as follow;
•
•
•
•
Net profit reached Rp 3.0 tn in 1Q18, dropped by 9% qoq/8% yoy, achieving
only 21%/22% of consensus/our forecasts for FY18F, mainly caused by weak
sales growth and decline in margin.
Revenues reached Rp 23 tn in 1Q18, declined by -13.7% qoq/+2.5% y-y (vs
3% yoy in 1Q13 and 6.4% yoy in 4Q17). Sales of machine-made cigarette
(SKM) increased by 8% yoy to Rp 15.9 tn in 1Q18, while hand-rolled (SKT)
and white cigarette reported decline in sales by 1% yoy and 20% yoy,
respectively, in 1Q18. SKM accounts for 69% of sales in 1Q18 (vs 65% in
1Q17).
Gross profit dropped by 5% yoy/ 17% q-q to Rp 5.4 tn and gross margin
declined by 200 bps to 23.8% in 1Q18, in-line with weak sales number and
higher COGS (+5% y-y in 1Q18).
Operating profit reached Rp 3.7 tn in 1Q18, dropped 11% qoq/9%yoy,
achieving only 21%/21% of consensus/our forecasts for FY18F. EBIT margin
also decline to 16.3% in 1Q18 (vs 18.4% in 1Q17). (Company).
1Q17
4Q17
1Q18
qoq(%)
yoy(%)
Ours
to Ours
Cons
Total Sales (in Rp Bln)
HMSP
22,576
26,797
23,136
-13.7%
2%
105,468
21.9%
107,343
21.6%
COGS (in Rp Bln)
16,769
20,172
17,640
-12.6%
5%
81,290
21.7%
80,797
21.8%
-17.0%
-5%
24,178
22.7%
26,546
20.7%
Gross Profit (in Rp Bln)
5,807
6,625
5,496
Margin (%)
25.7%
24.7%
23.8%
OPEX (in Rp Bln)
1,645
2,362
1,720
As of sales (%)
7.3%
8.8%
7.4%
EBIT (in Rp Bln)
4,162
4,263
3,776
Margin (%)
18.4%
15.9%
16.3%
Earnings (in Rp Bln)
3,291
3,332
3,032
Margin (%)
14.6%
12.4%
13.1%
22.9%
-27.2%
5%
24.7%
6,478
26.6%
8,723
6.1%
-11.4%
-9%
-8%
19.7%
8.1%
17,700
21.3%
17,823
16.8%
-9.0%
to Cons
21.2%
16.6%
14,753
20.6%
13,810
14.0%
22.0%
12.9%
INDF: Indofood (INDF IJ; Rp6,750; Buy) Will aggressively penetrate Asian market
while sponsoring Asian Games 2018 with the sponsorship deal for Rp138bn. Three
products that will be pushed during Asian Games 2018 are Indomie, Indomilk, and
Popmie. INDF already opens its factory in Malaysia, Egypt, Saudi Arabia, Syria, and
Nigeria. (Kontan).
KINO: Kino Indonesia (KINO IJ; Rp2,450; Hold) reported a net income of Rp31bn
(+806.4% yoy) forming 18% of consensus’ forecast. On the top-line, gross profit
grew higher to Rp376bn (+33% yoy) on the back of higher revenue growth (+24%
yoy) that outpaced COGS growth (+17% yoy). Profitability margins also gauged
higher with gross, operating, and net profit reported at 45%, 6%, and 4%,
respectively at 1Q18 (1Q17: 42%, 3%, and 1%).
(IDR b)
Revenue
COGS
Gross profit
Operating cost
1Q18
4Q17
1Q17
(IDR b)
(IDR b)
(IDR b)
———Change———
(q-q%)
(y-y%)
1Q18
1Q17
Change
%
(IDR b)
(IDR b)
(y-y %)
Forecast
23%
832
815
670
2.1
24.2
832
670
24.2
(456)
(467)
(389)
(2.4)
17.3
(456)
(389)
17.3
376
348
281
8.0
33.8
376
281
33.8
(323)
(292)
(264)
10.8
22.4
(323)
(264)
22.4
Operating profit
53
57
17
(6.3)
208.2
53
17
208.2
Interest expense
(14)
(11)
(18)
25.2
(23.8)
(14)
(18)
(23.8)
Tax
(11)
(8)
(2)
34.8
519.9
(11)
(2)
519.9
4
(3)
6
(216.7)
(45.1)
4
6
(45.1)
Minority
0
(0)
(0)
(224.7)
(997.3)
0
(0)
(997.3)
Net profit
32
40
4
(19.5)
806.4
32.193
3.552
806.4
42.0
Other
45.2
42.7
42.0
45.2
Operating margin (%)
Gross margin (%)
6.4
6.9
2.6
6.4
2.6
Net margin (%)
3.9
4.9
0.5
3.9
0.5
Refer to Important disclosures in the last page of this report
18%
2
PremierInsight
RALS: Ramayana Lestari Sentosa (RALS IJ; Rp1,335; Hold) Collaborate with Shopee,
in order to grab more sales volume during Ramadan this year. Both RALS and Shopee
did not mention any specific target for this partnership. RALS is already collaborating
with Lazada and Tokopedia although online contribution relatively insignificant to the
business. (Kontan).
Markets & Sector
Heavy equipment sector: According to Indonesia heavy equipment association
(Hinabi), 1Q18 heavy equipment production is up 46% yoy to 1,684 units from
previously 1,153 units last year. Hydraulic excavator contribute 91% with 1,534 units,
followed by bulldozer 89 units, dump truck 60 units, and motor grader 1 unit. Hinabi
production target this year is 7,000 units, 25% higher from last year. (Bisnis
Indonesia).
Economics
Monetary update: In response to recent plunge in the capital market, Bank
Indonesia held a press conference emphasising:
•
•
•
That recent decline in the rupiah is due to dollar strengthening, above all, as
an impact of increase in UST yield as well as seasonal increase in the dollar
demand – but also worth noting that the rupiah depreciation of -0.88% mtd
was still better than other countries including Thai’s bath (-1.12% mtd),
Malaysian ringgit (-1.24% mtd), Singapore dollar (-1.17% mtd), South
Korean won (-1.38% mtd), and Indian rupee (-2.4% mtd);
That Indonesian economy fundamentals remain robust and come with
continuous growth momentum, strong financial system, and improving trust
from foreign stakeholders (as seen in Moody’s rating, JCRA, R&A, Fitch as well
as inclusion of Indonesian sovereign in Bloomberg Global Bond Index);
That in the vigilance of recent situation, Bank Indonesia has undertaken dual
interventions both in foreign currency and sovereign bonds market and that it
will continue or embark upon the following steps:
o
Being present in the market to ensure the sufficiency of foreign
currency and rupiah supplies;
Carefully observing global economic development and its impact to
o
domestic market;
o
Preparing 2nd line of defense with related external institutions such as
among other central banks;
Considering increase in reference rate with measured and careful
o
steps. (Bank Indonesia)
Refer to Important disclosures in the last page of this report
3
Head Office
PT INDO PREMIER SEKURITAS
Wisma GKBI 7/F Suite 718
Jl. Jend. Sudirman No.28
Jakarta 10210 - Indonesia
p +62.21.5793.1168
f +62.21.5793.1167
INVESTMENT RATINGS
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
This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility
or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general
circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular
needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any
securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.
Premier Insight
News & Analysis
Corporates
10,000
ADRO: Adaro Energy (ADRO IJ; Rp1,995; Buy) reported below estimate 1Q18
results with details as follow;
9,000
6,300
8,000
6,200
7,000
6,000
6,000
5,000
•
Rp bn
JCI Index
6,100
4,000
5,900
3,000
5,800
2,000
5,700
•
1,000
-
26-Apr
25-Apr
24-Apr
23-Apr
20-Apr
19-Apr
18-Apr
17-Apr
16-Apr
13-Apr
12-Apr
9-Apr
11-Apr
6-Apr
10-Apr
5-Apr
4-Apr
3-Apr
2-Apr
29-Mar
28-Mar
27-Mar
5,600
Foreign net buy (sell)
26-Apr
24-Apr
23-Apr
20-Apr
19-Apr
18-Apr
17-Apr
16-Apr
13-Apr
0%
12-Apr
-
(0)
11-Apr
5%
10-Apr
0
-5%
(0)
-10%
(0)
-15%
(0)
-20%
(0)
-25%
% net buy/market turnover
•
Net buy (sell) in Rp bn
Equity | Indonesia | Research Daily
JCI Index
6,400
Net profit reached US$74.4mn, down 32% qoq and 23% yoy, represent
only 13% of our and consensus’ forecast for FY18F, mostly caused by
higher mining costs as stripping ratio increased to 4.94x (1Q17: 4.62x).
Operating profit reached US172mn in1Q18, dropped 24% qoq and 1.4%
yoy as production and operating costs increased. Operating profit in 1Q18
formed only 16%-14% of consensus’ and our forecasts for FY18F,
respectively.
Revenues reached US$764mn, down 6.8% qoq
but up 5.1% yoy,
represent 22%-21% of consensus’ and our forecasts for FY18F.
(Company).
Comment: We are reviewing our forecast for ADRO given this lower than expected
results and management’s decision to lower FY18F EBITDA guidance from $1.3bn$1.5bn to $1.1bn-$1.3bn.
(US$ Mn)
Key Indexes
Index
JCI
LQ45
Closing
1 day
1 year
YTD
5,909
- 2.8%
3.5%
-7.0%
943
- 3.6%
-0.3%
-12.6%
24,322
1.0%
15.9%
-1.6%
SET
1,773
- 0.4%
13.2%
1.1%
HSI
30,008
- 1.1%
21.5%
0.3%
NKY
DJI
22,320
0.5%
15.9%
-1.8%
FTSE
7,421
0.6%
2.5%
-3.5%
FSSTI
3,570
0.1%
12.6%
4.9%
26
- 1.2%
-3.5%
-10.1%
EIDO
1Q18
4Q17
1Q17
% Q-Q
% Y-Y
vs. cons
vs. ours
Sales
764
819
727
(6.8)
5.1
21.6
20.8
COGS
538
537
509
0.0
5.6
Gross profit
226
282
218
(19.7)
4.0
18.2
16.2
Total opex
54
56
43
(2.3)
25.9
37.8
16.3
14.5
15.8
14.6
13.2
12.7
Selling expenses
G&A expenses
Operating profit
Non opr. inc. (exp.)
Pretax income
9
10
6
(10.4)
46
46
37
(0.6)
23.9
172
227
175
(24.0)
(1.4)
(8)
(4)
7
78.0
neg
165
222
182
(26.0)
(9.4)
Tax
77
100
72
(22.8)
7.4
Net Income
74
111
97
(32.8)
(23.4)
Gross margin
29.6
34.4
29.9
Operating margin
22.5
27.6
24.0
21.5
27.1
25.0
9.7
13.5
13.4
Coal prod vol (m tons)
11.0
12.4
11.9
(11.9)
(7.7)
19.8
Coal sales vol (m tons)
10.9
12.4
12.0
(11.7)
(9.1)
19.2
Profitability (%)
Commodity price
Commodities
Last price Ret 1 day Ret 1 year
(in USD)
68.2
0.2%
37.4%
Pretax margin
CPO/tonne
609.2
-0.3%
-5.0%
Net margin
Soy/bushel
10.0
-0.2%
9.2%
Oil/barrel (WTI)
Rubber/kg
1.7
0.0%
-31.5%
Nickel/tonne
14,181
0.7%
54.5%
Tins/tonne
21,555
0.4%
8.0%
Copper/tonne
6,929
-0.6%
21.8%
Gold/try.oz (Spot)
1,317
-0.5%
4.2%
93.5
0.1%
11.6%
Coal/tonne
Corn/bushel
Wheat/bushel (USd)
Source : Bloomberg
3.6
0.0%
6.7%
483.3
0.5%
16.9%
Coal sales (US$ Mn)
704
758
679
(7.1)
3.7
21.1
Coal ASP ($/t)
64.4
61.2
56.4
5.2
14.1
109.9
ANTM: Aneka Tambang (ANTM IJ; Rp830; Not Rated) 1Q18 result, net profit
grew 3,603% to Rp245bn (61% to FY18 consensus). Revenue up 247% to
Rp5.7bn from Rp1.6bn. Gold contribute 71% of 1Q18 sales at Rp4.09tn.
Ferronickel sales contribute 17% at Rp972bn. (Company).
(Rp bn)
1Q18
1Q17
YoY
4Q17
QoQ
Consensus
Revenue
5,731
1,650
247%
5,691
100.70%
39%
Gross Profit
727
82
787%
774
93.93%
40%
Operating Profit
478
(84)
569%
367
130.25%
63%
Net Income
246
7
3606%
468
52.50%
62%
12.7%
5.0%
Operating Margin
8.3%
-5.1%
Net Margin
4.3%
0.4%
Gross Margin
Refer to Important disclosures in the last page of this report
PremierInsight
CTRA: Ciputra development (CTRA IJ; Rp1,100; Buy) revised their previous ads
regarding the issueance of non pre-emptive share with maximum of 1.85bn shares in
exercise price of Rp1,191/share. Post the corporate actions the ownership of existing
shareholders will be diluted by 10% (from: 5.23%).
HMSP: HM Sampoerna (HMSP IJ; Rp3,650; Hold) recorded weak 1Q18 results with
details as follow;
•
•
•
•
Net profit reached Rp 3.0 tn in 1Q18, dropped by 9% qoq/8% yoy, achieving
only 21%/22% of consensus/our forecasts for FY18F, mainly caused by weak
sales growth and decline in margin.
Revenues reached Rp 23 tn in 1Q18, declined by -13.7% qoq/+2.5% y-y (vs
3% yoy in 1Q13 and 6.4% yoy in 4Q17). Sales of machine-made cigarette
(SKM) increased by 8% yoy to Rp 15.9 tn in 1Q18, while hand-rolled (SKT)
and white cigarette reported decline in sales by 1% yoy and 20% yoy,
respectively, in 1Q18. SKM accounts for 69% of sales in 1Q18 (vs 65% in
1Q17).
Gross profit dropped by 5% yoy/ 17% q-q to Rp 5.4 tn and gross margin
declined by 200 bps to 23.8% in 1Q18, in-line with weak sales number and
higher COGS (+5% y-y in 1Q18).
Operating profit reached Rp 3.7 tn in 1Q18, dropped 11% qoq/9%yoy,
achieving only 21%/21% of consensus/our forecasts for FY18F. EBIT margin
also decline to 16.3% in 1Q18 (vs 18.4% in 1Q17). (Company).
1Q17
4Q17
1Q18
qoq(%)
yoy(%)
Ours
to Ours
Cons
Total Sales (in Rp Bln)
HMSP
22,576
26,797
23,136
-13.7%
2%
105,468
21.9%
107,343
21.6%
COGS (in Rp Bln)
16,769
20,172
17,640
-12.6%
5%
81,290
21.7%
80,797
21.8%
-17.0%
-5%
24,178
22.7%
26,546
20.7%
Gross Profit (in Rp Bln)
5,807
6,625
5,496
Margin (%)
25.7%
24.7%
23.8%
OPEX (in Rp Bln)
1,645
2,362
1,720
As of sales (%)
7.3%
8.8%
7.4%
EBIT (in Rp Bln)
4,162
4,263
3,776
Margin (%)
18.4%
15.9%
16.3%
Earnings (in Rp Bln)
3,291
3,332
3,032
Margin (%)
14.6%
12.4%
13.1%
22.9%
-27.2%
5%
24.7%
6,478
26.6%
8,723
6.1%
-11.4%
-9%
-8%
19.7%
8.1%
17,700
21.3%
17,823
16.8%
-9.0%
to Cons
21.2%
16.6%
14,753
20.6%
13,810
14.0%
22.0%
12.9%
INDF: Indofood (INDF IJ; Rp6,750; Buy) Will aggressively penetrate Asian market
while sponsoring Asian Games 2018 with the sponsorship deal for Rp138bn. Three
products that will be pushed during Asian Games 2018 are Indomie, Indomilk, and
Popmie. INDF already opens its factory in Malaysia, Egypt, Saudi Arabia, Syria, and
Nigeria. (Kontan).
KINO: Kino Indonesia (KINO IJ; Rp2,450; Hold) reported a net income of Rp31bn
(+806.4% yoy) forming 18% of consensus’ forecast. On the top-line, gross profit
grew higher to Rp376bn (+33% yoy) on the back of higher revenue growth (+24%
yoy) that outpaced COGS growth (+17% yoy). Profitability margins also gauged
higher with gross, operating, and net profit reported at 45%, 6%, and 4%,
respectively at 1Q18 (1Q17: 42%, 3%, and 1%).
(IDR b)
Revenue
COGS
Gross profit
Operating cost
1Q18
4Q17
1Q17
(IDR b)
(IDR b)
(IDR b)
———Change———
(q-q%)
(y-y%)
1Q18
1Q17
Change
%
(IDR b)
(IDR b)
(y-y %)
Forecast
23%
832
815
670
2.1
24.2
832
670
24.2
(456)
(467)
(389)
(2.4)
17.3
(456)
(389)
17.3
376
348
281
8.0
33.8
376
281
33.8
(323)
(292)
(264)
10.8
22.4
(323)
(264)
22.4
Operating profit
53
57
17
(6.3)
208.2
53
17
208.2
Interest expense
(14)
(11)
(18)
25.2
(23.8)
(14)
(18)
(23.8)
Tax
(11)
(8)
(2)
34.8
519.9
(11)
(2)
519.9
4
(3)
6
(216.7)
(45.1)
4
6
(45.1)
Minority
0
(0)
(0)
(224.7)
(997.3)
0
(0)
(997.3)
Net profit
32
40
4
(19.5)
806.4
32.193
3.552
806.4
42.0
Other
45.2
42.7
42.0
45.2
Operating margin (%)
Gross margin (%)
6.4
6.9
2.6
6.4
2.6
Net margin (%)
3.9
4.9
0.5
3.9
0.5
Refer to Important disclosures in the last page of this report
18%
2
PremierInsight
RALS: Ramayana Lestari Sentosa (RALS IJ; Rp1,335; Hold) Collaborate with Shopee,
in order to grab more sales volume during Ramadan this year. Both RALS and Shopee
did not mention any specific target for this partnership. RALS is already collaborating
with Lazada and Tokopedia although online contribution relatively insignificant to the
business. (Kontan).
Markets & Sector
Heavy equipment sector: According to Indonesia heavy equipment association
(Hinabi), 1Q18 heavy equipment production is up 46% yoy to 1,684 units from
previously 1,153 units last year. Hydraulic excavator contribute 91% with 1,534 units,
followed by bulldozer 89 units, dump truck 60 units, and motor grader 1 unit. Hinabi
production target this year is 7,000 units, 25% higher from last year. (Bisnis
Indonesia).
Economics
Monetary update: In response to recent plunge in the capital market, Bank
Indonesia held a press conference emphasising:
•
•
•
That recent decline in the rupiah is due to dollar strengthening, above all, as
an impact of increase in UST yield as well as seasonal increase in the dollar
demand – but also worth noting that the rupiah depreciation of -0.88% mtd
was still better than other countries including Thai’s bath (-1.12% mtd),
Malaysian ringgit (-1.24% mtd), Singapore dollar (-1.17% mtd), South
Korean won (-1.38% mtd), and Indian rupee (-2.4% mtd);
That Indonesian economy fundamentals remain robust and come with
continuous growth momentum, strong financial system, and improving trust
from foreign stakeholders (as seen in Moody’s rating, JCRA, R&A, Fitch as well
as inclusion of Indonesian sovereign in Bloomberg Global Bond Index);
That in the vigilance of recent situation, Bank Indonesia has undertaken dual
interventions both in foreign currency and sovereign bonds market and that it
will continue or embark upon the following steps:
o
Being present in the market to ensure the sufficiency of foreign
currency and rupiah supplies;
Carefully observing global economic development and its impact to
o
domestic market;
o
Preparing 2nd line of defense with related external institutions such as
among other central banks;
Considering increase in reference rate with measured and careful
o
steps. (Bank Indonesia)
Refer to Important disclosures in the last page of this report
3
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Wisma GKBI 7/F Suite 718
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Jakarta 10210 - Indonesia
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INVESTMENT RATINGS
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
This reserch is based on information obtained from sources believed to be reliable, but we do not make any representation or warraty nor accept any responsibility
or liability as to its accruracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general
circulation. Any recommendations contained in this document does not have regard to the specific investment objectives, finacial situation and the particular
needs of any specific addressee. This document is not and should not be construed as an offer or a solicitation of an offer to purchase or subscribe or sell any
securities. PT. Indo Premier Sekuritas or its affiliates may seek or will seek investment banking or other business relationships with the companies in this report.