Bakrie Telecom Q1 profit jumps 406.81%

Despite a recent plunge of stock prices on seven publicly listed firms under Bakrie Group, CDMA-based telephone operator PT Bakrie Telecom Tbk (BTEL) was the only stock experiencing the smallest fall. A robust first quarter financial report is the reason.

Bakrie Telecom posted a 406.81% jump in net profit during the first three months this year from Rp5.73 billion  or Rp0.20 per share in the first quarter last year to Rp29.04 billion or Rp1.02 per share.

Bakrie Telecom booked Rp708.46 billion in operating revenue at the end of March 2010, a 7.63% rise compared to the same period last year of Rp658.24 billion.

The operator enabled to shrink operating expenses 3.40% from Rp585.22 billion in Q1 2009 to Rp605.12 billion in Q1 2010. In return, operating profit rose 41.54% from Rp73.01 billion in Q1 2009 to Rp103.34 billion in Q1 2010.

But, you should watch a ballooning financial charges from Rp45.27 billion in Q1 2009 to Rp84.61 billion in Q1 2010.

Bakrie Telecom also gained foreign exchange of Rp28.21 billion in Q1 2010 from the same period last year of foreign exchange loss of Rp14.19 billion.

The company on May 7 2010 issued senior notes worth US$250 million and guaranteed by Bakrie Telecom and two subsidiaries PT Bakrie Connectivity and PT Bakrie Network. The proceed will be used to repay Rp1.21 trillion loan to its loyal creditor Credit Suisse.

Berau Coal Energy delays IPO

PT Berau Coal Energy decided to postpone its initial public offering (IPO) intially scheduled in July due unfavorable global stock market situation.
Berau Coal's Commissioner Bob Kamandanu said the IPO of PT Berau Coal Energy, previously known PT Risco, may delay the IPO to the fourth quarter of this year if the market condition is getting better.
Berau Coal Energy, previously known PT Risco, is parent of Indonesia's fifth largest coal mining company PT Berau Coal.
Berau Coal, as reported by Bisnis.com today, estimates to produce 17 million tons of coal this year. It is estimated to elevate the output to 30 million tons in 2014 because of rising demand from India.

Tifico to get US$80 m loan from BCA

One of Indonesia's polyester fiber manufacturer PT Tifico Fiber Indonesia Tbk (TFCO) aims to put its assets worth Rp2.36 trillion as collateral to PT Bank Central Asia Tbk (BBCA) in a bid to secure US$80 million both letter of credit (L/C) and loan.

In a prospectus published today, Tifico said it has proposed L/C facility amounting to US$60 million and US$20 million of loan to BCA. The L/C facility will be used by Tifico to replace previous facility and the loan will be utilized as working capital.

Tifico puts 616,565 meter sequares of land with market value of Rp1 trillion, buildings worth Rp167.61 billion, machineries and equipment worth Rp1.18 trillion, and infrastructure worth Rp6.75 billion as collaterals to secure the L/C.

It also provides working capital worth Rp273.92 billion as collateral to secure US$20 million loan from BCA. 

Tifico is now controlled by new shareholders. They have acquired majority stakes at Tifico from previous single shareholder Teijin Limited.

The acquisition, takes an effective on April 15 2010, has allowed Pioneer Atrium Holdings Limited controls 31.69% stakes in Tifico, PT Hermawan Sentral Inveatama owns 17.28%, PT Prospect Motor owns 33.08%, and PT Wiratama Karya Sejati holds 16.79%.

Jembo Cable suffers net loss

Cable manufacturer PT Jembo Cable Company Tbk posted a 23.78% growth in sales, but it suffered operating lost and net loss as a result of soaring both cost of goods sold and operating cost.

In a financial report ended March 2010, Jembo Cable booked Rp190.21 billion in sales from a year before of Rp153.67 billion.

Cost of goods sold ballooned 46.15% from Rp129.41 billion during the first three months last year to Rp189.13 billion at the end of March 2010.

In line with a higher COGS, operating cost soared 6.57% from Rp9.29 billion to Rp9.90 billion as of March 2010. In return, Jembo Cable posted an operating loss Rp8.82 billion in the first quarter 2010 from operating profit of Rp14.98 billion in Q1 2009.

The company also suffered a net loss of Rp7.09 billion in Q1 2010 compared to the same period last year of net profit of Rp4.22 billion.

Jembo Cable is 52.57% controlled by PT Monaspermata Persada, PT Indolife Pensiontama owns 17.58%, Fujikura Ltd Japan owns 13.51%, Fujikura Asia Ltd Singapore owns 6.49%, and public shareholders hold 9.85%.

Timah profit may jump above 10 folds

Indonesian tins miner PT Timah Tbk (TINS) estimates first half net profit this year would jump more than 10 folds compared to the same period last year.
Timah's Finance Director Krishna Syarif the company posted net profit of Rp42.83 billion at the end of June last year.   
"We set a sales target of 24,000 metric tons as of June 2010 compared to the same period last year of 19,378 metric tons," he told Insider Stories.
But, the state-owned enterprise estimates that sales price would soar from an average of US$12,087 per metric tons to US$16,000 per metric tons. "We estimate that June's net profit would elevate more than 10 times," he said.
Sales this year is calculated to reach 49,000 metric tons and increase to 50,000-60,000 metric tons in 2015.
In a bid to boost the sales, Timah will set up block system in the onshore tins mine, boost production capacity of offshore mining. The company will allocate capital expenditure of Rp2 trillion in the next 2 years.

Timah  recorded Rp141.8 billion in net profit in Q1 2010, a 882% jump compared to the same period last year of Rp14.4 billion. In return, net profit per share rose from Rp3 in Q1 2009 to Rp28 in Q1 2010.
The soaring profit was mainly boosted by strengthening average of global tin price reached US$18,355 per metric ton and the lowest level of US$14,950 per metric ton. Average price was US$17,225 per metric.

Adaro acquires 25% ICP at US$335 mio

Indonesia's second largest thermal coal miner PT Adaro Energy Tbk (ADRO) today announces formation of new joint venture for Indonesian Coal Project (ICP) with BHP Billiton, following confirmation of outstanding Government approvals.
Adaro has acquired 25% interest in the ICP joint venture for US$335 million, with BHP Billiton holding the remaining 75%.
“We are delighted to have received government approval and now formed the ICP joint venture and we look forward to working together with BHP Billiton, a global leader in the resources industry and the world’s largest coking coal producer, in developing this world class asset, which we expect will create significant shareholder value,” Adaro Energy's President Director Garibaldi Boy Thohir, said in a press statement.
BHP Billiton President Metallurgical Coal Hubie van Dalsen said “We are very pleased that the Indonesian Government has approved the formation of the joint venture with Adaro, a strong Indonesian partner who shares our values and our commitment to the protection of the region’s outstanding biodiversity. “We are progressing study work to identify development options across the seven coal contracts of work (CCOWs) which will now be known as the IndoMet Coal project.”
The projects of Maruwai mining are PT Maruwai Coal, PT Juloi Coal, PT Kalteng Coal, PT Sumber Barito Coal, PT Lahai Coal, PT Ratah Coal, and PT Pari Coal.

Medco to issue US$250 million CB

Oil and gas producer PT Medco Energi Internasional Tbk (MEDC), controlled by Indonesian tycoon Panigoro family, intends to issue convertible bond (CB) amounting to US$150 million-US$250 million as part of financing need worth US$1.4 billion in the next three years.

Medco has mandated two investment banks Credit Suisse and Deutsche Bank to arrange the convertible bond. 

According to Medco's Finance Director Cyril Noerhadi, the company will utilize its treasury stocks of 6.7% stakes or 223.59 million shares as collateral of the convertible bond.

Medco now holds 11.72% stakes or 390.45 million treasury stocks. According to the corporation law No.40/2007, around 223.59 million shares or 6.7% must be used before August 2010.

The company will offer 5% or 166.62 million of its treasury stocks as employee stock option program (ESOP) and management stock option program (MSOP). "The remaining or 6.7% stakes will be used as CB's collateral," Cyril said.   

In a bid to develop oil and gas projects such as Donggi-Senoro, Sarulla, Libya oil field, and Block A, Medco needs around US$1.4 billion financing.

Antam to distribute Rp25.38 dividend

One of Indonesia's largest nickel and gold mining producer PT Aneka Tambang Tbk (Antam) will distribute 2009's cash dividend of Rp25.38 per share to shareholders.

During Antam's annual general meeting, shareholders agree to allow Antam to provide the total dividend of Rp241.7 billion or 40% of its net profit last year.
Antam's President Director Alwin Syah Loebis said the company set a production target of 3 tons gold this year, up from 2,6 tons last year. Ferronickel is estimated to balloon from 19,000 tons this year, up from 12,000 tons last year. 
In 2009, Antam reported a sales drop by 9% year on year to Rp8.71 trillion, while net profit plunged 56% year on year to Rp604 billion or Rp63.5 per share.

On a quarterly basis, Antam booked Rp312 billion of net profit, 352% quarter on quarter higher compared to 3Q09 and a reversal from Rp256 billion loss from corresponding figure a year earlier.
Kim Eng morning notes said the result is 9% and 14% above consensus estimate for sales and net profit, respectively.
The decline was caused by lower nickel sales volume for both ferronickel (‐17% year in year ) and nickel ore (‐8% year on year) with average selling price for nickel in ferronickel plunged 33% year on year to US$6.6/lbs.
Gold trading business cushioned the decline as gold sales volume rose 31% year on year to 12.9 tons. However, gold production declined by 7% year on year to 2.6 tons as Pongkor mine aged and Cibaliung has not commenced production.

Medco to divest 6.7% treasury stocks

Parent company controlled by Indonesian tycoon Panigoro family PT Medco Energi Internasional Tbk (MEDC) intends to monetize treasury stocks of 6.7% or 223.59 million shares through employee stock option program (ESOP) and management stock option program (MSOP) to its employees, directors, and commissioners.

Medco, oil and gas producer, also aims to offload small part of the treasury stocks into the market, exchange with debt, or underlying assets of notes which will be issued by the company and subsidiaries. 

According to prospectus today, Medco will offload a maximum of 5% treasury shares or 166.62 million shares obtained from buyback program as ESOP and MSOP.

The company aims to directly divest 56.97 million of its treasury stocks to shareholders. Medco now holds 11.72% stakes or 390.45 million trasury shares. According to the corporation law No.40/2007, around 223.59 million shares or 6.7% must be used before August 2010.

Medco obtained 223.59 shares from buyback program approved by extraordinary general meeting in 2001. The company bought the shares from the market at average price of Rp1.245.42 per share. In 2006, the company had utilized the shares as collateral of convertible bond due in 2011. But, in May 2009, Medco repaid the convertible bonds and obtained the shares.

Medco repays US$250 million notes

Oil and gas producer PT Medco Energi Internasional Tbk (MEDC) reports that it has fully repaid US$250 million of guaranteed notes mature in 2010 amounting to US$88.2 million and its last interest payment.

In a public statement to Indonesia Stock Exchange (IDX), Medco has repaid a total notes of US$92.1 million and funded from its internally generatec cash flow.

The 7 year notes was previously issued by MEI Euro Finance Limited on behalf of Medco Energi on May 22 2003. The notes provided an annual coupon rate pf 8.75%.

According to Medco President Director Darmoyo Doyoatmojo said the notes repayment will shrink its total debt at the end of May compared to the total debt of US$868.46 million at the end of March. 

Berau Coal Group seeks US$700 m loan

PT Bukit Mutiara has decided to revise down its bond issue from US$600 million to US$400 million.
In total, it is seeking US$700 million of debt, consisting bond and loan.
CEO of PT Recapital Advisors Rosan P. Roeslani, parent of PT Bukit Mutiara and PT Berau Coal Energy, said the group will use the financing to refinance debt and prop up business expansion.
"We will offload 18.2% stakes of Berau Coal Energy into the market, targeting US$300 million in cash," he said.
Bukit Mutiara will enter the bond market in June or July. The 7 year bond is arranged by Credit Suisse.
Rosan said Berau Coal will jack up production capacity to 30 million tons of coal in 2014.  

Indopoly Swakarsa Industry launches IPO

Biaxially-oriented polypropylene (BOPP) maker PT Indopoly Swakarsa Industry plans to offload 2.30 billion of shares at maximum or equal to 35.17% stakes into the stock market during initial public offering (IPO). Indopoly has mandated PT OSK Nusadana Securities Indonesia as the only IPO stock underwriter.

In parallel with the stock sale, Indopoly plans to issue a maximum 480.04 million warrants series I or 6.67% of its total capital paid in.

In a prospectus published today, Indopoly will use proceed of IPO worth Rp450 billion to cover capital expenditure in relation to expansion of BOPP's production capacity. The expansion needs around Rp350 billion of investment. About Rp100 billion will be used by Indopoly to refinance bridging loan facility from PT Bank CIMB Niaga Tbk, maturing the next 12 months since February 12 2010. The remaining proceed will be utilized by Indopoly to fulfill working capital.

Before the IPO, Jefflyne Golden Holdings Pte Ltd controls 63.82% stakes in Indopoly, Noble Ox International Ltd owns 36.03% stakes, and PT Inti Pincuranmas Nugraha 0.15%. Post IPO and warrant exercise, Jefflyne Holdings will hold 38.29%, Noble Ox owns 21.62%, Inti Pincuranmas holds 0.09%, and public shareholders hold 33.33% and warrant holders own 6.67%.    

Hankook to build US$600 mio factory

South Korean's tire manufacturer Hankook Tire Co Ltd aims to spend US$600 million in a bid to build tire factory in Indonesia, one of the most potential tire market in Asia.

Association of Indonesian Tire Manufacturer's Chairman A. Azis Pane said the association has informally talked with Hankook in relation to the tire investment. "It is true that Hankook will invest in Indonesia. We have schedule to discuss with them in June to continue discussion. If the negotiation reaches an agreement this year, Hankook's tire will be commercially in production in 2012," he said as reported by Bisnis Indonesia daily today.

Hankook is one of potential strategic bidders interested to acquire controlling stakes in PT Multistrada Arah Sarana Tbk (MASA). Talks have been held for long time. But it depends on Multistrada's majority shareholder.

If Hankook has finally decided to build tire factory in Indonesia, it signals that the intention to buy Multistrada hasn't reached any positive progress.

Kaltim Prima Coal wins tax battle

Supreme Court on May 24 2010 has finally determined to reject appeal of Director General of Taxes on legal battle case worth Rp1.5 trillion againts PT Kaltim Prima Coal (KPC).

Based on website of Supreme Court, the case has been determined on May 24 with rejectior. Director Genetal of Taxes submitted the appeal to Supreme Court on March 29 2010 and registered No.141/B/PK/PJK/2010. The case was handled by judges Imam Soebechi, H. Supandi, and Paulus E. Lotulung.
Director General of Taxes submitted the appeal to Supreme Court after Tax Court on December 8 2009 determined to halt investigation of initial evidence on KPC's tax case. The issue of investigation of initial evidence is a gate to proceed the case investigation. The rejection by Supreme Court will cease KPC tax case investigation.

Bumi to repay US$500 million debt

PT Bumi Resources Tbk (BUMI) in a press statement today that the company aims to reduce US$1 billion of debt in the next 12 months.

Bumi today announces that it has revived its intent to issue non-preemptive shares and added this to the agenda to be included in its upcoming extraordinary meeting of shareholders which is now due to be held on June 24, 2010.
"We submitted the agenda yesterday to the regulators. Essentially, this is the first step in a series of debtcutting moves to take place over the next 12 months, as we have earlier announced to the market and the public at large," says Dileep Srivastava, BUMI Senior Vice President of Investor Relations.
As per regulation, the non-preemptive issue allows the company to issue new shares to a maximum of 10% of the total outstanding shares of the company with price at an average of previous 25-day trading closing price before the announcement date.

Based on the regulation, the exercise price of non-preemptive rights is around Rp2,328 per share. Bumi will use the proceed to repay high cost debt of US$500 million, which is from China Investment Corporation.

"This deleveraging move will strengthen the company's fundamentals and serve to increase shareholders’ value, he said.

Sentul City reports Rp4.06 bio profit

PT Sentul City Tbk (BKSL), parent company of PT Bukit Jonggol Asri, reports a  593.64% jump in revenue during the first three months this year to Rp77.41 billion from a year before of Rp11.16 billion.
In return, operating profit also sky rocketed 250.53% from operating loss of Rp11.22 billion in Q1 2009 to Rp16.89 billion.
Sentul City, which will be acquired by PT Bakrieland Development Tbk (ELTY), posted Rp4.06 billion in net profit in Q1 2010 from net loss of Rp14.12 billion in Q1 2009.
PT Citra Kharisma Komunika controls 41% stakes in Sentul City, Athena Offshore Holdings Ltd owns 27%, and public shareholders own the remaining stakes. 

Bukit Mutiara delays bond issue

Owner PT Recapital Advisors Sandiaga S. Uno confirmed that PT Bukit Mutiara, 99% owned by Recapital and parent company of PT Berau Coal Energy, delays US$600 million bond issue and awaits for more market situations.  

"The issue process remains goes on. When the market is better, we will enter the bond market," he told reporters today. Bukit Mutiara has mandates Credit Suisse to arrange the bond issue.

Berau Coal, Indonesia's fifth largest coal mining producer, initially plans to issue US$600 million of bond on April 14. The proceed will be used to refinance debt and capital expenditure.

Bukit Mutiara aims to use proceed of bond issue to refinance the companies debt to PT Bumi Resources TBk worth US$300 million and refinance PT Berau Coal’s debt (issued by Empire Capital) $300 millions.
"The bond issue is being talked in the shareholder's level. Credit Suisse is the arranger," said Y.A. Didik Cahyanto, Berau Capital's President Director.
Paralling with this corporate actions, Bukit Mutiara will release arround 18.2 percent their stakes in PT Berau Energy (arround 7 billion shares) by IPO in July or August. 

Credit Suisse, JP Morgan Securites, Recapital Securities and PT Danatama Makmur Sekuritas will help Berau Energy for the IPO’s plan. Berau Coal plans to increase capacity production from 17.8 million tonnes in 2010 to 30 million tonnes in 2014. Didik expects this year the revenues will grow over than 20% from last year Rp8 trillion.  

He said Berau Coal's production capacity will be boosted to 30 million tons of coal in 2014. "We set a production target of 17.8 million tons this year, hence we need capex of US$200 million-US$300 million."

Bakrie has to repay Rp600 b debt in May

Stocks prices of seven publicly listed companies (The Bakrie) controlled by Bakrie family are under pressure.

PT Bumi Resources Tbk (BUMI) now falls 2.24% to Rp1,640, PT Bakrieland Development Tbk (ELTY) drops 7.75% to Rp114, and PT Energi Mega Persada Tbk (ENRG) tumbles 17.71% to Rp70.

Stocks prices of PT Bakrie Sumatera Plantations Tbk (UNSP) plunges 16.42% to Rp245, PT Darma Henwa Tbk (DEWA) plummets 11.43% to Rp58, PT Bakrie Telecom Tbk (BTEL) decreases 6.48% to Rp120, and their parent PT Bakrie & Brothers Tbk (BNBR) retreats 3.70% to Rp52.    

Besides a market rumor of Bumi's rights issue at Rp1,400 per share, it is better for me to remind investors how many shares of those subsidiaries have been pledged by Bakrie & Brothers to snap up debt of US$278.86 million just in the first 2 months this year.      

Parent company of Bakrie family PT Bakrie & Brothers Tbk (BNBR) just in the first 2 months this year obtained US$278.86 million of short term debts using subsidiaries' shares as pledges.

In May, Bakrie & Brothers is scheduled to repay debt of Rp600 billion to Ascention Ltd, Seychelles worth Rp200 billion and another Rp400 billon to Ace Business Ltd.

How much debts have been secured by Bakrie & Brothers to both creditors? 

In February 2010, Bakrie & Brothers  secured US$42.1 million of 6 months loan or equals to Rp400 billion, bearing 15% of interest, from Ascention Ltd. Still, the company has pledged 761.90 million of UNSP shares and 50.79 million of UNSP warrants. In May, Bakrie has to pay Rp200 billion and the remaining will be paid in August 2010.

During the same month, Bakrie & Brothers bagged US$105.26 million of loan or equals to Rp1 trillion from Ace Business Ltd. About 1.90 billion of UNSP shares and 126.98 million of UNSP warants have been pledged. The first payment will due in May of Rp400 billion, in June worth Rp290 billion, and Rp310 billion in August. 

In addition, Bakrie issued zero coupon bond of US$128 million to Ascenton Ltd, enabling it to convert the bond into BNBR shares. The bond will mature on March 30 2012. The company uses the proceed to support investment.

Bakrie & Brothets, on January 21 2010, secured a 12 months loan of US$3.5 million from PT Trust Indonesia by pledging shares of PT Bakrieland Development Tbk (ELTY), PT Bakrie Sumatera Plantations Tbk (UNSP), and PT Bumi Resources Tbk (BUMI).

From January 12- March 23 2010, the loan was pledged by 253.24 million of ELTY shares and 12.42 million of UNSP shares. Starting from March 24- December 21 2010, Bakrie has been using BUMI shares worth Rp64.57 billion as collateral. Bakrie & Brothers is obliged to maintain collateral value is 200% higher than the loan.

As of December 2009, Bakrie posted Rp2.64 trillion of short term loan and Rp6.43 trillion of long term loan from a year before of Rp1.65 trillion. Bakrie also booked Rp2.10 trillion of bonds.

Regulations on non-preemptive rights

There are two kind of regulations on non-preemptive rights of a publicly listed company in Indonesia. PT Bumi Resources Tbk must obey the regulations.
1. Bapepam-LK's regulation No. IX.D.4. (please download here)
2. IDX listing regulation V.1.1. (download here)

BUMI to place of up to US$375 million?

Indonesia's PT Bumi Resources Tbk (BUMI), its biggest coal producer by output, said on Monday it plans to issue new shares equivalent to up to 10% of the total to a strategic partner in a deal worth up to $375 million.

Bumi, which has a market capitalization of $3.75 billion, has 19.4 billion existing shares. 

Based on the current regulation, it can raise capital by selling new shares equivalent to up to 10 percent through a placement.

If Bumi aims to offload 10% stakes, the deal would be around US$375 million (based on market capitalization)

Dileep Srivastava, Bumi's director for investor relations, said the plan was to raise funds through a share placement later this year in order to pay down mounting debts of $3.48 billion.

The company also plans to raise more than $500 million by listing its non-coal assets unit, PT Bumi Resources Mineral, in August to pay off debt.

Bumi's debt-to-equity ratio of 2.22 is well above that of its rivals including PT Adaro Energy and PT Tambang Batubara Bukit Asam.

"The whole purpose is reducing debts and our intention is to reduce debts substantially, at least $1 billion, by the end of the year," Srivastava told Reuters as published in www.forexyard.com

Bumi shares tumbled 16.24 percent to 1780 rupiah in Monday trading on talk that it was planning a rights issue. The stock is down more than a quarter this year, while the overall index is up slightly.

A source from the Bakrie Group told Reuters that China's sovereign wealth fund, China Investment Corp (CIC), will be the main buyer for the share placement. China Investment Corp last year said it had invested $1.9 billion in Bumi via debt instruments. It is expected to invest in Indonesia's infrastructure, resources and manufacturing sectors.

BUMI non-preemptive Rp2,285-Rp2,331?

Indonesia's largest coal mining company PT Bumi Resources Tbk (BUMI) has eventually revealed nonpreemptive rights in its agendas of extraordinay general meeting on June 24 2010.
Considering a listing regulation of Indonesia Stock Exchange, exercise price of Bumi's nonpreemptive rights will be pursuant to average price of BUMI stocks during 25 trading days before the announcement today.
Based on the regulation, the average price of nonpreemptive rights is around Rp2,285-Rp2,331 per share. 
During nonpreemptive rights, Bumi will issue 10% of new shares to China Investment Corporation (CIC) as a debt conversion. Bumi's Director Eddy Sugito said IDX won't suspend Bumi shares tomorrow.

BUMI non-preemptive rights flip-flop

Just a week after PT Bumi Resources Tbk (BUMI) announced its two agendas for June's extraordinary shareholder meeting (EGM) to Indonesia Stock Exchange (IDX), excluding non-preemptive rights, the company today resubmits another EGM's agendas including non-preemptive rights. What a flip-flop announcement.

Bumi also revises EGM schedule from initially on June 22 (the first announcement) to June 24 2010. The question is which announcement is the correct one? 

BUMI's Corporate Secretary Dileep Srivastava today denies a market rumor saying the company plans to hold rights issue at Rp1,400 per share, putting a pressure on its market price. Today, Bumi drops 15.76% to Rp1,790 per share.

BUMI requires equity balancing?

I got an information on PT Bumi Resoures Tbk (BUMI) from a securities house. Moody's is reviewing a possible downgrade of BUMI from the current Ba3 rating.

"With this, we analyze BUMI's debt position. Following are our findings. Tight position, considering 4x trailing adjusted EBITDA covenant of China Investment Corporation (CIC) loan, BUMI's expansion and debt repayment plans, we conclude that the current cash and debt position of BUMI is tight," the analyst said.

The brokerage believes that BUMI will not be able to raise further debt as currently its debt level should be at 4x trailing EBITDA. Equity balancing will be required.

But, BUMI's Corporate Secretary Dileep Srivastava has denied the market rumor saying the company will hold rights issue. 

In a formal statement to Indonesia Stock Exchange today, BUMI has eventually revealed two main agendas during extraordinary shareholder general meeting (EGM) scheduled on June 22 2010. Bumi aims to obtain shareholders approval to pledge its assets and mandate board of directors.

Barito to give US$7.5 m loan to Petrogas

PT Barito Pacific Tbk (BRPT), parent company of PT Chandra Asri dan PT Tri Polyta Indonesia Tbk and controlled by Indonesian tycoon Prajogo Pangestu, aims to provide 2 year loan worth US$7.50 million to its subsidiary PT Petrogas Pantai Madura.
In a public statement to Indonesia Stock Exchange (IDX) today, Barito has entered into a financing agreement with Petrogas on May 19 2010.
Barito controls 49% stakes in Petrogas Pantai Madura, while PT Petrogas Wira Jatim and PT Wira Usaha Sumekar own 25.50% stakes respectively.
According to Barito, the loan will be used by Patrogras Pantai Madura to take participation of 10% interest in oil and gas operator Madura Offshore PSC.
The 2 year loan will charge 10% interest up to February 11 2011 and 5% premium over Libor. Barito is 57.13% contolled by Magna Resources Corporation Lte Ltd.

J.P.Morgan downgrades Bakrieland

Emerging details of PT Bakrieland Development Tbk (ELTY)’s rights issue should exacerbate recent underperformance. 

A Rp5.4 trillion rights issue, the company’s third within the last 5 years, is about 5 folds larger than we had anticipated. ELTY issued US$155 million of equity-linked bonds in March 2010, after which we viewed that the financing risk for Bakrieland was subdued, as net gearing was just 60%.  This contention is no longer valid and the key to our change in view.

Bakrieland's rights issuance for Rp5.4 trillion (150% of market cap) is to be used for various acquisitions or developments, i.e.; stake purchase in Sentul City, capital infusion in Bukit Jonggol Asri, and LIDO (a development near Jakarta). While the broad catch of these properties is somewhat close to ELTY’s assets, our outlook is negative as much of the land is undeveloped.

"We also note a rising risk that the marketing sales and toll road traffic might fall short of forecasts. According to the 1Q10 revenue numbers, the toll road traffic in the first two months is only 7,300/day versus our expectation of 13,000 per day," said J.P.Morgan's analyst Liliana Bambang in a research report published on May 21.

Updated data indicates that ELTY’s monthly marketing sales in the next few quarters has to be up by 80% in order to meet our FY10E forecast of Rp600 billion.

Since the news broke of the rights issuance, Bakrieland has underperformed the JCI index by 20%. We do not see this reversing, and the stock is likely to remain as an underperformer as financing risk remains high for
ELTY due to its huge appetite for growth. 

"We attach wider discount of 70% (in line with previous troughs, but also corresponding to a 68% post
rights) from previously 25% for ELTY to its NAV. Our new Dec-10 target price is Rp150 (previously Rp325). Scaling back aggressive financing needs or strong volume growth could result in upside risk to
our price target," she said.

Samtan to sell Kideco to Indika Energy?

Parent company of Indonesia's coal mining contractor PT Petrosea Tbk (PTRO), PT Indika Energy Tbk (INDY) aims to boost its stakes ownership in Indonesia's third largest coal mining producer PT Kideco Jaya Agung from currently 46% to above 50%.

Business newspaper namely Bisnis Indonesia today reports Indika plans to buy additional stakes from another shareholder Korea's Samtan Co Ltd which currently owns 49% stakes in Kideco.

A source familiar with the matter said Samtan is now in talks with Indika about a possible disposal of Kideco. Samtan has proposed a sale offer of Kideco to Indika, which owns first rights of refusal. When Indika is not interested to buy Kideco, Samtan can offer the stakes to the other potential buyers.

According to my source, Samtan has invested in Kideco for long time. "For Samtan, Kideco is like a baby. So, why does Samtan sell Kideco?" the source said.

At the end of March 2010, Kideco produced 6.9 million tons of coal with overburden removal of 44.8 million bcm. Kideco's strip ratio reached 6.49.
Kideco has bought equipments such as dump trucks, excavator, and the others. It has improved crushing plant and loading facilities. Kideco has initiated development of Samarangau pit which has the largest coal reserves at Kideco's concession area. Samarangau is estimated to have coal resouces of 694 million tons and 348 million tons of coal reserves.  

In a morning notes published by Mandiri Sekuritas today, should Samtan sell Kideco to Indika, it would be positive for Indika to enhance value at operating level given that Kideco will now be consolidated in the books, should it acquire majority ownership. 

Currently, Indika’s has 46% stakes, while Korea’s Samtan Co Ltd owns 49% and the remaining 5% is held by Muji Inti Utama.  

This year it aims to produce some 30 million tons (+21%). Kideco has consistently achieved or outperformed its production targets since 1993, when it started commercial production and is looking to expand capacity to 40 million tons of coal by end of 2010.

Kideco’s contribution, recognized currently as other income (below operating level) in Indika’s books historically contributes close to over 90% of Indika’s net income. "We have not incorporated this in our forecast as the stock currently trades at PER10F of 13.3x."

       

Adhi's unit secures Rp75 billion loan

State-owned contractor PT Adhi Karya Tbk has provided a corporate guarantee to its fully owned subsidiary OT Adhicon Persada in a bid to secure bank loan.
In a public statement to Indonesia Stock Exchange (IDX), Adhi Karya has given the guarantee on May 20 2010.
Adhicon has proposed loan worth Rp75 billion to PT Bank Mandiri Tbk in term of cash of Rp15 billion and one year noncash loan of Rp60 billion.
The subsidiary has made its account receivables as initial collateral and Adhi's guarantee is the additional collateral.

Adhi Karya posted a lower revenue from Rp1.36 trillion as of March 2009 to Rp957.21 billion in the first quarter this year.

The company booked an operating profit of Rp4.01 billion in the first quarter this year from a year before of operating loss of Rp16.79 billion.

Net profit fell to Rp4.01 billion in Q1 2010 from the same period last year of Rp7.42 billion, owing to income from asset sale.

   

Berlian Tanker operating profit drops

One of Indonesia's largest tanker transportation company PT Berlian Laju Tanker Tbk (BLTA) posted a slight growth in revenue of 1.62% during the first three months this year compared to the same period last year. But, its operating profit fell 42.38%.

In a financial report submitted to Indonesia Stock Exchange (IDX), Berlian Tanker booked US$161.55 million in revenue in Q1 2010 compared to the same period last year of US$158.97 million.

Operating income dropped 42.38% from US$42.14 million in March 2009 to US$24.28 million in Q1 2010, owing to a soaring direct cost of 19.68% from US$109.45 million to US$130.99 million in Q1 2010.

But, Berlian Tanker booked a net profit of US$24.90 million in Q1 2010, a reversal from a year before of US$73.03 million in net loss.

BLTA enabled to ballooned its bottom line, underpinned by net gain on derivative transactions from US$19.09 million in Q1 2009 to US$37.13 million. It also made a net revaluation on its assets of US$67.92 million.

Piles up new loan 

Berlian Tanker's consolidated financial report reveals that its subsidiaries piled up Rp537.22 billion of new loans from financial institutions.

In April 2010, the company's subsidiary entered into loan agreement worth US$6.9 million with Toekay BLT Corporation. Its subsidiary also withdrew Rp207 billion of loan from Bank Negara Indonesia. Its subsidiary signed a loan agreement with DEG worth US$29.75 million.          

Pama to close coals acquisition in 2010

Indonesia's largest coal mining contractor PT Pamapersada Nusantara, subsidiary of PT United Tractors Tbk (UNTR), will accomplish acqusition of two coal mine companies in South Kalimantan in the second half this year. 

Speaking after annual general shareholder meeting, United Tractors' Corporate Secretary Sarah Loebis said Pamapersada has completed due diligence for two mining companies. "We will close the acquisitiond deal in the second half this year," she said.
Pamapersada has entered into shares sale agreement on January 14 2010 in a bid to acquire 30% stakes in two coal mining companies namely PT Asmin Bara Bronang and PT Asmin Bara Jaan with shareholders of both companies PT Mandira Sanni Pratama and PT Andalan Teguh Berjaya.
Both coal mining companies own coal concession areas in Kapuas and Murung Raya, Central Kalimantan. The acquisition deal is worth US$40.1 million and Rp75 million.
In January 2010, Pamapersada has paid US$11.6 million in cash and put US$28.6 million in escrow account which will be drawn down maximum in the next 12 months based on shares sale agreement.
In January 2010, Mandira Sanni Pratama was controlling share holder of a wounded sea transportation company PT Arpeni Pratama Ocean Line Tbk (APOL), while PT Ayrus Prima owned 21.04% stakes, Morgan Stanley & Co held 9,81%, and Melon S/A Cundill Recovery FD owned 8.30%, DEG 8.67%, and public holders held the remaining.

Indofood CBP mandates 4 underwriters

Subsidiary company of PT Indofood Sukses Makmur Tbk (INDF), PT Indofood CBP Sukses Makmur, has mandated 4 investment banks in a bid to arrange its initial public offering (IPO) scheduled in the last quarter this year.
INDF's Finance Director Thomas Tjhie said it has appointed Deutsche Bank Securities, Kim Eng Securities, Credit Suisse Securities, and Mandiri Sekuritas.
According to him, Indofood CBP will use proceed from the IPO to repay its debt. "Total debt of Indofood Group is now around Rp17 trillion," he said.

INDF to build sugar plants US$300 mio

Indonesia's largest instant noodle maker controlled by Salim family PT Indofood Sukses Makmur Tbk (INDF) sets Rp4.2 trillion of capital expenditure this year.
Indofood will use capex to roll out two sugar plants requiring US$300 million of investment in Pati, Central Java, and South Sumatra.  
"Total capacity of two sugar plants is around 13,000 tons of sugar," said Indofood's President Director Anthoni Salim in a press conference today.  
He explained that Pati's plant will have capacity of 3,000 tons and another one is set with the capacity of 8,000-10,000 tons.
"A sugar plant with capacity of 100,000 tons needs around US$150 million," he said.
Indofood's Finance Director Thomas Tjhie said the plants will start production in the second half semester this year.
In annual shareholder meeting today, Indofood agrees to distribute a dividend of Rp93 per share, implying 40% of its net profit last year.

BW Plantation profit up 28% in 3 years

UOB Kay Hian Securities, in a research report currently published, is positive on small player in CPO sector PT BW Plantation Tbk (PTBW). 

UOB also believes that BWPT's net profit is projected to increase at a three-year average of 28% in 2009-2012. Thanks to strong CPO production growth going forward on superior yield and huge immature area as well as operating efficiency leading to more advanced margins than that of the Indonesian plantation sector. 

BW Plantation had superior fresh fruit bunch (FFB) yield of about 27.4 tonnes per ha in 2009, higher than the industry average of 21 tonnes per ha in Indonesia, owing to improvement in its harvesting process. 

The conversion of immature area into mature area will gradually lower the FFB yield, because of lesser yield from young palm trees (aged 4 years-7 years old), but still higher than the industry average. 

However, beyond 2012, UOB projects higher FFB yield with the more mature area having trees reaching the peak production age of 8 years-18 years old. 

BWPT's nucleus immature area accounted for about two-thirds of total planted area as of end-09 with additional new planting area in the past few years now making up most of its total planted area. 

"We expect total matured area to grow at a three-year average of27% for 2009-12. Coupled with advanced FFB yield, we project double-digit growth for BWPT's CPO production for 2010-12, at a three-year average of 19%," said UOB analyst Stefanus Darmagiri in his report.

The use of mechanical application in the harvesting process and the fertilising process have improved BWPT's operating margin from 20.2% in 2006 to 44.3% in 2009. 

"We expect operating margin to gradually improve to 49.2% in 2012. Despite its smaller market capitalisation compared to other plantation companies, BWPT has better efficiency than its peers, resulting in higher operating margins than for example, Astra Agro (AALI), the largest plantation company in Indonesia in terms of market capitalisation with operating margin of 41%for 2012," he said.

Despite its smaller market capitalisation, BWPT offers investment opportunity given its superior productivity and efficiency over its peers.

Coupled with undemanding valuation with the cheapest EV/ha of US$8,600 and 2011FPEof9.5x, significantlybelow the sector's EV/haofUS$14,200 and 2011FPEof 12x, UOB initiates coverage on BWPT with a BUY call and target price ofRp950, based on 13.0x 2011F PE for an up-cycle mid-cap and pure plantation play.

Bakrieland rights issue at Rp160

Property developer PT Bakrieland Development Tbk (ELTY) has determined to set the price of fourth rights issue at Rp160 per share with 1 existing share has rights to buy 1.7 new shares. 

A source familiar with the knowledge said the price of Bakrieland's rights issue is 11.60% below the closing price yesterday of Rp181 per share.  

"Considering some business expansion, Bakrieland plans to issue new shares in a bid to snap up Rp5,43 trillion in cash. The proceed will be used to acquire PT Sentul City Tbk [BKSL] and inject a capital into PT Bukit Jonggol Asri," the source said.

The source said Bakrieland will utilize Rp1.92 trillion from rights issue to buy new shares in Bukit Jonggol. In return, ELTY enables to control 51% stakes in Bukit Jonggol and the remaining will be acquired by Sentul City.  

According to a public statement to Indonesia Stock Exchange (IDX), Sentul City will buy 49% stakes in Bukit Jonggol, using proceed of series I warrant, exercised of maximum of Rp350.59 billion. BKSL will use the proceed to buy 233.73 million in Bukit Jonggol in a rights issue at Rp1,500 per share. The investment will be done maximally on September 30 2010.
The strategic investor is committed to acquire 51% stakes in Bukit Jonggol and estimated to strengthen cash position of Bukit Jonggol.  

Acquisition of Sentul City 

The source said Bakrieland also aims to acquire 20% stakes or 5 billion shares in Sentul City worth Rp501 billion. Considering the value, ELTY might buy Sentul City at around Rp100.03 per share. It  is 27% discount from the closing price on Friday of Rp137 per share.

Bakrieland, which is controlled by Bakrie family, will utilize around Rp795 billion from rights issue as working capital and business development of its subsidiary PT Graha Andrasentra Propertindo. "The company is planning to exercise option in toll road operator Ciawi-Sukabumi worth Rp795 billion," the source said.

Sentul City is 43% owned by PT Citra Kharisma Komunika, Athena Offshore Holding Ltd owns 25% stakes, and public shareholders hold the remaining shares.

Should participate the rights issue or not?

Based on IDX data, Sentul City, previously dubbed PT Bukit Sentul, is never to pay a cash dividend since it has been listed in 1997. During 13 years listed in the stock market, Sentul City has conducted three times rights issue. 

The first was held in July 1999 by obtaining approval to offload 4 billion new shares worth Rp800.80 billion. In September 2006, Sentul City held second rights issue by offloading 8.15 billion new shares into the market. In 2010, the company has conducted the third rights issue of 507.51 billion shares.

How about Bakrieland?

Bakrieland is similar with Sentul City. Since it has been listed in the stock market for 15 years, Bakrieland never pays a cash dividend. But, last week, the company's shareholders agreed to distribute a cash dividend of Rp1 per share or 15% of its net profit last year. I think it is pathetic. It is pity for public investors who expect more from Bakrieland.

The question for public investor is what do you expect from Bakrieland's rights issue? If you expect a business growth, ask more dividend to Bakrieland's management.       

But, the company has grabbed much cash from the stock marker through series of rights issue. In 1997, the company conducted its first rights issue of 1.05 billion shares. 

In 2005, Bakrieland held its second rights issue of 4.2 billion shares. Two years later, in April 2007, Bakrieland completed its third rights issue of 14 billion shares. In 2010, the company again plans to the fourth rights issue worth Rp5.43 trillion to get more cash from public investors. When does Bakrieland distribute a worthy dividend to public shareholders?  

Japfa Comfeed profit jumps 111.73%

PT Japfa Comfeed Indonesia Tbk (JPFA) reports a 111.73% jump in net profit during the first three months this year, but operating profit dropped 11.78% on higher operating cost.

In March 2010 financial report, Japfa posted Rp166.36 billion in net profit as of March 2010 from a year before of Rp78.57 billion as a result of foreign exchange gain of Rp31.56 billion in Q1 2010 from a forex loss of Rp103.28 billion in Q1 2009.

Japfa suffered Rp14.32 billion of derivative loss in Q1 2010 from a year before of derivative gain of Rp10.26 billion.

The company's operating profit slumped 11.78% from Rp287.56 billion in Q1 2009 to Rp253.68 billion, while net sales booked a slight increase of 0.89% from Rp3.36 trillion in Q1 2009 to Rp3.39 trillion in Q1 2010.

Indosari sets IPO price Rp1,250-Rp1,500

Salim family-owned bakery products maker PT Nippon Indosari Corpindo has set a price range of initial public offering (IPO) Rp1,250-Rp1,500 per share, allowing it to snap up Rp189.82 billion-Rp227.78 billion of fresh cash.
Speaking in the IPO's public expose and due diligence meeting today, OSK Securities Indonesia's Director Mandy Sutanto, the IPO underwriter, said the bakery maker will offer 151.85 million shares or 15% stakes of the company's capital paid in.
Nippon Indosari will use the IPO proceed of Rp154 billion to build new factories in Semarang and Medan in a bid to boost capacity and strengthen market penetration.
Around Rp85 billion of the proceed will be allocated to repay bank loans to Bank Central Asia worth Rp65 billion and mature on July 21 2010.
Nippon Indosari also aims to repay debt to Bank Resona Perdania worth Rp20 billion and due on June 18 2012, and the remaining will go as working capital.

Nippon Indosari Corpindo operates factories in Kawasan Industri Jababeka, Cikarang Bekasi and in Kawasan Industri Pasuruan, East Java. 

In September 1996, Nippon Indosari had launched its first bakery products under the brand name of Sari Roti and in early 2001, unveiled its second brand dubbed Boti.

Nippon Indosari has set a sales target by 31% increase this year compared to last year of Rp636.60 billion and a 103% jump in net profit to Rp116 billion this year.   
In Makassar, Sulawesi, Nippon Indosari aims to build Rp30 billion new bakery factory. "In the next three years, we plan to meet a growing deman in Eastern Indonesia," said Indosari's Operation Director Yusuf Hadi.
By the end of 2010, Indosari has set a target of 300,000 packs of bread per daily and 1.1 million packs of sweet bread per day. The new factories enable to make 60,000 packs of bread per day and 200,000 packs sweet bread per day.

Nippon Indosari is now 40% owned by Bonlight Investments Ltd, Treasure East Investments Ltd holds 40%, Sojitz Corporation owns 10%, Shikishima Baking Co Ltd owns the remaining. Indonesian tycoon Anthony Salim controls 40% stakes in Nippon Indosari via Treasure East Investments.

ICBC & Santander eye Bank Panin?

Old market rumor on intention of Mukmin Ali Gunawan to dispose PT Bank Pan Indonesia Tbk (Bank Panin) is coming out. Is it serious for Mukmin Ali Gunawan to divest Bank Panin? It is only God and Mukmin himself know the answer.

I have heard the rumor since two or three years ago. But, it remains fake. It is not easy for him, founder and controlling shareholder of Bank, to sell the most precious empire asset. "Bank Panin is the only place and gate for Mukmin to get money easily. It is impossible for him to let it go to buyers. The concern is always about how much buyers want to offer," a source close to Mukmin Gunawan family.

Medias today report that Mukmin Ali Gunawan is considering to sell 44.68% stakes in Bank Panin in a bid to snap up US$1.4 billion in cash.

"Mukmin Ali Gunawan has officially mandated UBS Securities to advice and gather price indications from potential buyers."

I have confirmed about UBS appointment to Rajiv Louis, UBS's Head of Investment Bank. But, he hasn't responded.

The medias report said ANZ is Mukmin's partner in Bank Panin who will firstly obtain the first chance to buy the bank's remaining shares if Mukmin would offload the shares. Mukmin Ali Gunawan controls 44.68% stakes in Bank Panin via PT Panin Finansial Tbk (PNLF). Panin Finansial President Director Fadjar Gunawan, son of Mukmin Ali Gunawan, as quoted by Kontan daily, said "I don't know about the rumor."

Another investment banker said UBS has whispered about the sale to some overseas banks in order to obtain indicative price. But, so far UBS hasn't issued a teaser letter. "The teaser might be issued in June," the banker said.

So who are potential buyers for Bank Panin? Another source said ICBC Bank and European-based Santander are among strategic investors interested to buy Bank Panin. New potential buyers will partner ANZ Bank in Bank Panin. 

 

Danareksa targets Intiland Rp1,250

Assuming high yield assets, sales acceleration, divestment of non profitable property assets, PT Intiland Development Tbk (DILD) is estimated to reach earning growth of 35 folds in the next three years.
By using its cash of Rp2.1 trillion from rights issue, Intiland acquired land banks in 3 areas worth Rp2.76 trillion, boosting its total land bank to 2,130 hectares. To develop the land bank, the company needs Rp3 trillion and accomplish in 6 years.
In a research report published by Danareksa Sekuritas yesterday, estimation of return on investment will be around 40%. "We initiate to cover DILD with buy recommendation and set a target price of Rp1,250 per share," the research said.
The target price implies 21.4-15.8x of forecast PER 2010-2011 and 1.84-1.64x of PBV, a 30% discount to DILD's net asset value.
According to the report, Intiland will fasten disposal of existing low yield assets and sales of 19.3 hectares of inventory. In return, Intiland will reallocate its resources to new high yield property products.
In the next two years, growth on Intiland will be boosted by sales of existing mature assets on area of 19.3 hectares from housing products in Jakarta and Surabaya. Marketing sales from both areas now reaches Rp254 billion and Rp383 billion of the total cash will be obtained in the next two years. In total, Intiland will develop 689 hectares in the next five years.

New Finance Minister Agus Martowardojo

Indonesia's President Susilo Bambang Yudhoyono (SBY) has finally mandated Agus Martowardojo, PT Bank Mandiri Tbk (BMRI)'s CEO, as new Finance Minister, replacing his predecessor Sri Mulyani Indrawati who resigned and decided to put an end her political position. Sri Mulyani initiates her new carrier with World Bank on June 1 as Managing Director.
President also designates Anny Ratnawati, Director General of Budget at Ministry of Finance, as Vice Finance Minister.
"Tonight I can reveal to Indonesian people two candidates who will be mandates as new finance minister and vice finance minister," said Yudhoyono.
After considering many reasons in relation to main task, challenges, and portfolio of finance ministe, and also getting inputs from Vice President Boediono and Coordinating Minister Hatta Radjasa, Yudhoyono finallu mandates Agus Martowardojo as Finance Minister and Anny Ratnawati as Vice Finance Minister.
Agus Dermawan Wintarto Martowardojo, 54 and was born in Amsterdam, has been mandated by the government of Indonesia as President Director of Bank Mandiri since May 2005, replacing his predecessor who had strong related political E.C.W. Neloe.  
Before he led Bank Mandiri, Agus was President Director of PT Bank Permata Tbk (BNLI) for 3 years. He used to be an officer of Bank of America, Vice President Bank Niaga (now Bank CIMB),
In Bank Bumiputera, he was incharge as President Director, CEO Deputy of Maharani Holding and Bank Exim.
                

DOID & Recapital cease Berau Coal deal

Parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA),  PT Delta Dunia Makmur Tbk (DOID) and Recapital Investment Group, have mutually agreed to cease discussions regarding a potential transaction which was previously announced in a press release dated March 30, 2010. 

The potential transaction would have involved Delta acquiring a majority interest in PT Berau Coal Energy (formerly dubbed PT Risco), financed by way of a rights issuance with Recapital, the majority shareholder of Berau Energy, acting as the standby buyer.
Over the last 7 weeks, both parties have attempted to refine the commercial terms set out in a nonbinding termsheet, but without success. As both parties have been unable to reach common ground, they have mutually and amicably decided to end discussions.
Delta and Berau Energy remain committed to working together and maintaining a strong relationship through their respective subsidiaries, BUMA and PT Berau Coal, Indonesia's fifth largest coal mining. BUMA is the primary mining contractor at Berau Coal and is responsible for over 70% of its current production.

Astra Graphia to pay Rp20 dividend

IT solution and document solution provider PT Astra Graphia Tbk (ASGR) will distribute Rp20 per share dividend or Rp26.97 billion totally.

"The dividend is final and including interim dividend of Rp6 per share which was distributed in November last year. The remaining of Rp14 per share will be paid on June 17," Astra Graphia's Director Diana Makmur said in a public expose today,

In 2009, the company posted Rp66.97 billion in net profit, a 7.13% increase compared to the previous year of Rp62.48 billion.

Revenue grew 18.15% in the first quarter 2010 compared to the same period last year, while net profit was up 51.81%.

Indika Energy eyes 3 EPC projects

PT Indika Energy Tbk (INDY) and its partners have participated a bidding of three projects of engineering, procurement, and construction (EPC) in Pupuk Kaltim, refinery in Cilacap, and Block Cepu with total value of US$2.5 billion.

Speaking after annual shareholder meeting today, Indika's Director Wishnu Wardhana said EPC project in Pupuk Kaltim is worth around US$700 million, Cilacap project worth US$800 million, and Block Cepu of up to US$1 billion.

"If we could obtain the projects, Indika would set US$140 million of capital expenditure this year," he said.

In the coal business, Indika has set a coal production of 29 million tons this year from last year of Rp24 million tons. 

The company aims to boost the production to 40 million tons in 2011 by organic and acquisition expansion. 

 Indika's CFO Azis Armand said the company targets to jack up revenue by 50% this year from the previous year with a full year contribution from its wholly owned subsidiary PT Petrosea Tbk (PTRO), coal mining contractor. Net profit is estimated to grow by 50% this year as well.

Indika Energy has three portfolio coal assets, PT Kideco Jaya Agung, coal asset in West Kalimantan, and PT Santan Batubara.
In a public expose material submitted to Indonesia Stock Exchange, Indika owns 46% stakes in Kideco which has coal reserves of 579 million tons with concession area of 50,400 hectares. In Kalimantan Barat's coal asset, Indika controls 90% stakes at 34,200 hectares concession area. Through Petrosea, Indika owns 50% stakes in Santan Batubara with 264 million tons of coal reserves. 

Unilever to provide Rp399 dividend

PT Unilever Indonesia Tbk (UNVR) is agreed by annual general shareholder meeting to distribute a dividend of Rp399 per share from net profit last year.
The company booked Rp3.04 trillion in net profit, a 26% increase compared to the previous year of Rp2.4 trillion.
Operating income rose 22.74% from Rp3.43 trillion in 2008 to Rp4.21 trillion last year. Sales rose 17.14% from Rp15.58 trillion in 2008 to Rp18.25 trillion last year.
Unilever Indonesia Holding BV controls 85% interest in Unilever Indonesia and the remaining goes to public shareholders.

Indika to share Rp69.68 dividend

PT Indika Energy Tbk (INDY) will provide a cash dividend of Rp69.68 per share or Rp362.8 billion in total.
Annual general shareholder meeting today has allowed Indika management to distribute the dividend. 

Parent company of coal mining PT Kideco Jaya Agung, Indika Energy, reported lower net profit last year due to foreign exchange loss and impairment loss on intangible asset.
Indika booked Rp725.67 billion of net profit last year, a 33.10 drop compared to the previous year of Rp1.08 trillion.
The company suffered foreign exchange loss of Rp245.33 billion in 2009, a reversal from the previous year which posted foreign exchange gain of Rp194.84 billion.
But, in the operational level, Indika's operating profit rose 55.39% from Rp123.22 billion to Rp191.48 billion last year. Operating margin increased from 5.32% in 2008 to 7.7% last year. Sales slightly grew 7.79% from Rp2.31 trillion in 2008 to Rp2.49 trillion last year. Income from associated companies increased from Rp1.02 trillion in 2008 to Rp1.48 trillion.

DOID & Berau shares swap collapse

PT Delta Dunia Makmur Tbk (DOID), a parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), has finally determined to put an end a majority shares swap of PT Berau Coal Energy (previously dubbed PT Risco) with Bumi Resources-backed up company Recapital Investment Group.

A reliable source familiar with the shares swap said a single majority shareholder of Delta Dunia, which is officially 40% owned by Northstar Tambang Perkasa Pte Ltd and founded by Patrick Walujo, and Recapital Group are failure to reach agreement on shares swap price.

"The management of Delta Dunia has eventually decided to scrap the acquisition deal of majority stakes in Berau Coal as well as Rp10 trillion rights issue," the source said to Insider Stories tonight.

A local brokerage-based analyst said the shares swap collapsed will benefit DOID stocks. "It is now clear that DOID should improve operational to enhance value. The shares swap has continually emerged questions among investors. This is why many funds sold DOID's portfolio into the market," the analyst said.

The next question is whether Delta Dunia has another plan to inject any assets? If Delta Dunia's management could ensure no assets injected, it would be better for the market players.

On March 30 2010, Delta Dunia announced that it had signed a non-binding term sheet with Recapital Investment, allowing DOID to acquire the stakes in Berau Coal Energy, holding company of Indonesia's fifth largest coal mining producer PT Berau Coal and for Recapital, the 100% shareholder of Berau Energy, to swap a majority of its shares in Berau Energy for a substantial shareholding in Delta.

This transaction will be effected by Delta’s subscription to a mandatory exchangeable bond (MEB) issued by

an affiliate of Recapital, PT Bukit Mutiara. The MEB will be exchangeable at maturity (expected to be April 2011) into shares of Berau Energy at the value achieved by Berau Energy in a qualified international IPO. Delta intends to finance its subscription to the MEB by issuing approximately Rp10 trillion (or approximately US$1.1 billion) of shares through a rights issue at Rp 1,400 per share. 

Under the term sheet, Recapital will acquire a substantial interest in Delta through the rights issue and will act as the standby buyer. Berau Energy is the indirect owner of 90% of Berau Coal with coal production of 14.3 million tons in 2009. 

Berau IPO 

The source said Berau Energy's IPO remains on schedule. Berau Energy has mandated Credit Suisse Securities (CS), JPMorgan Securities, Danatama Makmur, and Recapital Securities as underwriters.

Berau Energy will raise US$300 million-US$400 million from 15%-30% of shares sale.
Bumi won't be a standby buyer for Berau IPO. So, Bumi will proceed US$600 million IPO of its non-coal subsidiary PT Bumi Resources Mineral by mandating JPMorgan Securities and Bank of America-Merrill Lynch to valuate its assets.  
DOID operational line
As of April 2010, Delta Makmur produced 10.7 million tons of coal, a slight increase compared to the same period last year of 10.2 million tons. In April 2010, DOID produced 2.6 million tons of coal from the same period last year of 2.3 million tons.
Overburden removal reached 84.1 million bcm in the first four months this year compared to the same period last year of 84.2 millions bcm.
Bukit Makmur in March and April signed financing agreements worth US$110 million in total from PT Komatsu Astra Finance of US$80 million, PT Bank Danamon Tbk of US$10 million, and the remaining of US$20 million from PT Bank Permata. The facilities are designed to finance heavy equipment purchases and have four year amortizing tenors. 

Astra Agro to share Rp685 dividend

CPO producer PT Astra Agro Lestari Tbk (AALI), subsidiary of PT Astra International Tbk (ASII), sets Rp1.2 trillion of capital expenditure this year in a bid to expand business including land planting and CPO factories.
Astra Agro's shareholders today agree to provide a total dividend of Rp685 per share or 65% of last year's net profit or Rp1.07 trillion, including interim dividend of Rp220 per share and final dividend of Rp465 per share.
Astra Agro's President Director Widya Wiryawan said new planting are this year is estimated smaller than last year's level of 13,000 hectares.
"We will build infrastructure such as 2 CPO plants worth around Rp160 billion-Rp200 billion," he said.
According to him, Astra Agro may use internally generated fund to fulfill the capex. 
In 2009, the company posted Rp1.66 trillion in net profit. Around Rp1.07 trillion will be distributed as totak dividend to shareholders.
In March 2010, Astra Agro booked Rp272 billion in net profit, a 24% growth compared to same period last year.

Rukun Raharja acquires 3 firms

PT Rukun Raharja Tbk (RAJA) aims to acquire 99.98% stakes in three different companies PT Panji Raya Alamindo (PRA), PT Capital Turbines Indonesia (CTI), and PT Triguna Internusa Pratama (TIP).
Rukun Raharja will buyout 99.98% stakes in PRA from Hapsoro. PRA is a holding company of PT Suryandra Nusa Bhakti which operates LPG distribution, transportation, and refill in Jabodetabek, West Java, and Medan with refill capacity of 410,000 kg per day.
Rukun Raharja plans to buyout 99.99% stakes in CTI from Ascent Resources Pte Ltd and Djani Sutedja.
CTI is electricity operator with 6 years experiences as electricity mechanical contractor. Since 2008, CTI has started to build power plan in Bintan island with capacity of 2x22 MW. Commerical operational is scheduled in June 2010.
Rukun Raharja aims to acquire 99.98% stakes in TIP from Hapsoro (97.99%) and Odira Energi Buana (1.99%).
TIP is a service operator for gas infrastructure. It manages 35 kmx8" gas pipe in West Java. The company is also capable to build gas infrastructure and operational of gas equipments.
According to conditional share sale and purchase agreement signed between Rukun Raharja and PRA, CTI, and TIP on May 14 2010, Rukun Raharja will issue 12 month promissory notes equals to the acquisitions value, providing an annual interest rate of 12%.
Rukun Raharja is 26.23% owned by Danny Tanoto BSC, PT Gemakreasi Mulianusa of 4.45%, Lita Anngriani Handoko of  0.58%, Franky Tjokrosaputro 0.14%, and public shareholders own 68.60%.  

Interview with Astra's Prijono Sugiarto

Prijono Sugiarto has been mandated as President Director of Indonesia's largest automotive distributor and manufacturer PT Astra International Tbk (ASII) since March 1 2010, replacing his predecessor, Michael Darmawan Ruslim who passed away.

In an exclusive interview in his headquarter yesterday, Prijono has given hints what he will do to bring the company to be one of Nation's precious assets.    

From 6 divisions of Astra International, which divisions will be the next growth engine? 

Astra manages 6 different divisions such automotive, financial services, agribusiness, heavy equipment & mining, information technology, and infrastructure.

On the back of buoyant macro economy and conducive investment climate boosting a stronger demand, automotive and financial services business count around 62%-65% of Astra International business consolidation.

In the past, contribution of automotive division counted around 80% of the company. We don't set which division to be our main engine growth. It depends on the situation in Indonesia. That is the beauty of Astra International.

In line with the robust market demand, during the first quarter 2010, Astra had enjoyed a 74% increase in four wheel sales and 35% growth in two wheel sales.

Following the conducive economy and investment, without neglecting automotive division, hopefully  always give a steep contribution, I estimate that agribusiness, mining contracting, and infrastructure will be the next engine growth.

How much capex do you need to expand agribusiness (under PT Astra Agro Lestari Tbk (AALI) group) and mining contracting and heavy equipment (under PT United Tractors Tbk (UNTR) group)? 

I believe using name of Astra Group won't be difficult to obtain loans from both banks and project vendors. But, I calculate that we will spend Rp1.5 trillion in agribusiness sector and Rp5 trillion in heavy equipment and coal mining contracting business. All capital expenditure will be funded by internally generated cash combined with small loans.We think that proceed from rights issue of United Tractors is still sufficient to cover the spending.

In the first quarter 2010, United Tractors doubled sales of heavy equipment from 628 units in Q1 2009 to 1,218 units. I do believe that heavy equipment sales nationally will record all time high this year at around 10,000 units.

How about infrastructure? 

For us, Astra will firstly calculate internal rate of return on an infrastructure project before we decided to invest. Infrastructure project is unpredictable. As long as the project will give a good return and good value chain, Astra considers to enter the project.

What is target for Astra Group this year?

In the automotive business, we set a target of 55%-56% of market share. National car sales is estimated to reach 600,000 units. In the motorcycle, Astra targets 46.5% of market share. UNTR eyes around 5,000 units of heavy equipment sales or 50% market share. PT Pamapersada Nusantara, subsidiary of UNTR and Indonesia's largest coal mining contractor, sets a 75 million tons of coal extraction. AALI targets to reach a minimum 1 million tons of CPO production this year. Coal production, produced by coal mining company under Pamapersada, is estimated to reach 4 million tons.

I hear that Fuji Xerox has approached Astra International to buy PT Astra Graphia?

For us, Astra Graphia, document solution and IT solution provider, is small to medium company. But, it has excellent operational business. We see some opportunities. Astra Graphia has AGIT and we can make AGIT business growing. We don't want to sell subsidiaries if there is no strategic value.

How about land acquisition for AALI? 

We are still looking around and We are open for possible acquisition.

What about new contract for Pama?

We are in talks with some clients to secure new contracts in the pipeline. We can't disclose to public.

Bumi Mineral eyes US$600 mio IPO

PT Bumi Resources Mineral, non-coal company owned by Indonesia's largest coal mining producer PT Bumi Resources Tbk (BUMI), will offload shares into the market during US$600 million initial public offering (IPO) in September.

A reliable source familiar with the matter said Bumi Resources Mineral has mandated two underwriters Bank of America-Merrill Lynch and JP Morgan Securities to help its valuation.

"The value of Bumi Resources Mineral is estimated around US$1.7 billion-US$2 billion. BUMI will offload around 25%-30% stakes in its subsidiary, gaining around US$425 million-US$600 million," he said.

Bumi Mineral has appointed local IPO underwriter PT Danatama Makmur and has set up a beauty contest on JPMorgan Securities, Credit Suisse, and UBS Securities.  

In February, Bumi Mineral has consolidated 99% stakes of Lemington Investments Pte, Calipso Investments Pte Ltd, PT Citra Palu Minerals, and PT Multi Capital.

Lemington is controlling share holder of Mauritania S.A (iron ore) and Konblo Bumi Inc (gold mining), while Calipso Investment controls 100% stakes in Herald Resources Australia (gold, lead and zinc mining). Multi Capital owns 17% stakes in PT Newmont Nusa Tenggara (gold mining).

Calipso, wholly owned by Bumi Resources, paid US$541.54 million for 84.15% interest in Herald. But now Bumi controls 100% stakes in Herald.

Bumi, via PT Multi Capital, paid US$637.81 million to acquire 17% stakes in Newmont. Book value of Bumi Mauritania is US$176.48 million, PT Gorontalo Mineral (US$44.41 million), Citra Palu (US$24.16 million), and Konblo (US$13.60 million).

The source said Gorontalo Mineral is estimated to obtain a mining license this month and Heral Resources will secure a license in the next two months.   

"China Investemt Corporation [CIC] will be participant in Bumi Mineral IPO with ownership equals to US$250 million. CIC will enter Bumi Mineral during non-preemptive rights," the source said. 

Ciputra Development to split stocks

Property developer PT Ciputra Development Tbk (CTRA) plans to split its nominal stocks at the ratio of 1:2.
Speaking in a public expose today, the company's Director Tulus Santoso said Ciputra Development will propose stock split agenda during extraordinary general meeting scheduled tomorrow.
"We hope that the corporate actiom will lift stocks trading liquidity," he said.
In the first quarter this year, Ciputra Development booked Rp352.5 billion, while net profit reached Rp33.7 billion. The compant sets a 30% increase in revenue and net profit at the end of 2010. 

ELTY & BKSL to develop Bukit Jonggol?

Property company PT Sentul City Tbk (BKSL) will set a cooperation with a strategic investor to develop PT Bukit Jonggol Asri.
According to a public statement to Indonesia Stock Exchange (IDX) today, Sentul City will buy 49% stakes in Bukit Jonggol, using proceed of series I warrant, exercised of maximum of Rp350.59 billion. BKSL will use the proceed to buy 233.73 million in Bukit Jonggol in a rights issue at Rp1,500 per share. The investment will be done maximally on September 30 2010.
The strategic investor is committed to acquire 51% stakes in Bukit Jonggol and estimated to strengthen cash position of Bukit Jonggol.
A source familiar with the matter said Sentul City might set up a strategic alliance with PT Bakrieland Development Tbk (ELTY) in Bukit Jonggol.  

Elnusa disposes Tristar Ramba US$1 mio

Integrated oil and gas services company PT Elnusa Tbk (ELSA) announces today that it has disposed 25% stakes in Elnusa Tristar Ramba Ltd worth US$1 million to British Virgin Island-based company Eurorich Group Limited.

Elnusa entered into sale and purchased agreement with Eurorich on May 10 2010. The sale will be effective in 3 days after the agreement has been signed.
According to a public statement to Indonesia (IDX) today, Elnusa's President Director M. Jauzi Arif said the company determined to sell Tristar Ramba as agreement of technical assistance contract in Ramba field will due in October 2010. Elnusa will use the sale proceed to strengthen its capacity in the business of integrated oil and gas upstream.
On May 25 2007, Elnusa entered into share sale and purchase agreement with ConocoPhillips Indonesia Holding Ltd to buy stakes at ConocoPhillips Ramba Ltd (CPRL) worth US$20 million.
According to the sale agreement, CPRL had  60% of participating interest in technical assistance contract (TAC) in Ramba oil field.
TAC Ramba is a joint venture between PT Pertamina and Asamera (South Sumatra) Ltd, dated on April 27 1989, with period covering 20 years since 16 October 1990.
Based on agreement signed on May 25 2007, Elnusa and Tristar Global Holdings Corporation, BVI, agreed to transfer all of its rights and novate all of its obligation included the share sale agreement to Tristar, at closing date, to sell or transfer all of its equity interest in the capital of CPRL in relation with funding working capital and capital expenditure prior to establishment of joint venture company (JVCO).
JVCO was 75% owned by Tristar and 25% by Elnusa.   
Elnusa booked Rp1.15 trillion in revenue at the end of March 2010, a steep jump compared to a year before of Rp698.17 billion.
Operating income slighly dropped from Rp96.03 billion in Q1 2009 to Rp81.94 billion in Q1 2010. Net profit increased from Rp40.09 billion in Q1 2009 to Rp49.93 billion in Q1 2010.

      

Salim's Nippon Indosari launches IPO

One of Indonesia's largest bakery products maker PT Nippon Indosari Corpindo plans to offload 151.85 million shares or 15% stakes at a nominal price of Rp100 per share to public investors during initial public offering (IPO) scheduled on June 23 2010.

PT OSK Nusadana Securities Indonesia is advising and underwriting for Nippon Indosari's IPO. In a public statement today, Nippon Indosari, which is 40% controlled by Indonesian tycoon Anthony Salim, will use Rp154 billion of the IPO proceed to underpin new bakery plant in Semarang and Medan in a bid to boost capacity. The company would fulfill the financing from bank loan if the IPO proceed couldn't cover the cost.    Nippon Indosari also plans to use Rp85 billion from the IPO proceed to repay bank loan of around Rp65 billion to PT Bank Central Asia Tbk and Rp20 billion to PT Bank Resona Perdania. The remaining will be used for working capital.

Nippon Indosari Corpindo operates factories in Kawasan Industri Jababeka, Cikarang Bekasi and in Kawasan Industri Pasuruan, East Java. 

In September 1996, Nippon Indosari had launched its first bakery products under the brand name of Sari Roti and in early 2001, unveiled its second brand dubbed Boti. 

Nippon Indosari is Indonesia’s first bakery products company that utilizes modern technology from Japan in the production of their goods. All their products are highly hygienic and ‘halal’.
56% of the company’s products are distributed through modern channels such as hypermarkets, supermarkets and minimarkets, while 44% are distributed through traditional channels such as traditional markets and agents. 

Nippon Indosari is 40% owned by Bonlight Investments Ltd, Treasure East Investments Ltd holds 40%, Sojitz Corporation owns 10%, Shikishima Baking Co Ltd owns the remaining.

In 2009, Nippon Indosari booked Rp485.92 billion in sales, an increase from the previous year of Rp383.55 billion.

Operating profit rose from Rp61.67 billion in 2008 to Rp88.29 billion in 2009, while net profit increased from Rp42.41 billion in 2008 to Rp57.12 billion last year.

Bakrieland to acquire Sentul City?

Property developer arm of Bakrie Group, PT Bakrieland Development Tbk (ELTY), is rumored having a plan to acquire 14%-20% stakes in another property developer PT Sentul City Tbk (BKSL) as it has land bank of around 1.900 hectares.

Citing unnamed source, Kontan daily today reports that Bakrieland will use proceed from issuing new shares worth more than Rp1 trillion to underpin the acquisition. According to Bakrieland's announcement, it schedules an extraordinary shareholder meeting in June.

Bakrieland's President Director Hiramsyah S. Thaib hasn't confirmed the acquisition. But, he said the company strives to expand land bank whether it buys land bank or acquires the other property companies.

Sentul City is now 41.79% owned by PT Citra Kharisma Komunikasi, Athena Offshore Holding owns 27.11%, and public holds 31.09%.

But, another source said Bakrieland hasn't decided whether it would acquire Sentul City or set up a strategic cooperation.  

Indika Energy & coal assets expansion

PT Indika Energy Tbk (INDY) has three portfolio coal assets, PT Kideco Jaya Agung, coal asset in West Kalimantan, and PT Santan Batubara.
In a public expose material submitted to Indonesia Stock Exchange, Indika owns 46% stakes in Kideco which has coal reserves of 579 million tons with concession area of 50,400 hectares. In Kalimantan Barat's coal asset, Indika controls 90% stakes at 34,200 hectares concession area.
Through PT Petrosea Tbk (PTRO), Indika owns 50% stakes in Santan Batubara with 264 million tons of coal reserves.

Kideco expansion
At the end of March 2010, Kideco, Indonesia's third largest coal mining company, produced 6.9 million tons of coal with overberden removal of 44.8 million bcm. Kideco's strip ratio reached 6.49.
Kideco has bought equipments such as dumptrucks, excavator, and the others. It has improved crushing plant and loading facilities. Kideco has initiated development of Samarangau pit which has the largest coal reserves at Kideco's concession area.
Samarangau is estimated to have coal resouces of 694 million tons and 348 million tons of coal reserves.  
Santan production
Santan Batubara is a joint venture between Petrosea, coal mining contractor acquired by Indika mid last year, and PT Harum Energy, a coal mine company owned by Indonesian tycoon Kiki Barki. Petrosea is responsible for coal mining contract and Harum Energy holds Santan's coal marketing.
Santan has commenced a commercial production in March 2009 by mining 1.25 million tons of coal. Santan has signed five contracts of overburden removal with Petrosea. The first productions this year and 2011 are estimated to obtain 2.5 million tons of coal annually.
In mrach 2010, Santan posted US$43.79 million in revenue and recorded 660,456 tons of coal in sales.
Santan has current production capacity of 200,000 tons per month in a bid to provide coals for customers in the local market, India, Korea, and others.  

No pre-emptive rights in BUMI EGM

Resignation of Indonesia's Finance Minister Sri Mulyani Indrawati, mandated as World Bank's Managing Director, has boosted a market speculation that tax case of PT Bumi Resources Tbk (BUMI) would be settled soon. 

Following possibility settlement of the tax case, China Investment Corporation (CIC) might bravely convert BUMI's debt into new shares by issuing non-preemptive rights of 10% shares.

But, the prolonged market speculation will collapse due BUMI's management doesn't has any agenda to hold non-preemptive rights.

The market rumor said Bumi will use its first quarter earnings as a base to determine the share price for the planned non-preemptive rights amounting as much as 2.5 billion shares. With an assumption of Rp74 trillion in assets and a book value of Rp760, the base price for the non-preemptive rights is at Rp2,950 per share or on a goodwill of a price to book ratio of 3.88 times.

In a formal statement to Indonesia Stock Exchange today, BUMI has eventually revealed two main agendas during extraordinary shareholder general meeting (EGM) scheduled on June 22 2010. Bumi aims to obtain shareholders approval to pledge its assets and mandate board of directors. 

So, when does BUMI issue non-preemptive rights for CIC? or debt conversion is just a rumor to jack up BUMI shares price?

2 Strategic buyers eye Astra Graphia

Two potential strategic buyers are interested to acquire majority stakes in information technology solutions company PT Astra Graphia Tbk (ASGR).

A source with knowledge of the buyers' approach said they have expressed their interest to buy stakes in Astra Graphia. But, preliminary talks have not been finalized as it would depend on ASGR's 77% stakes owner PT Astra International Tbk (ASII).   

"I hear that two potential strategic investors have expressed their interest on Astra Graphia. But, it would depend on decision of Astra International. For Astra International, Astra Graphia's contribution remains tiny," the source said.

Astra International posted Rp29.69 trillion in revenue and Rp3.01 trillion in net profit as of March 2010. Revenue's contribution of others business, including Astra Graphia, counted Rp1.05 trillion or 19% of ASII's total revenue. Net income of others business, including Astra Graphia, took only 3% of ASII's net income consolidation of Rp3.01 trillion at the end of March 2010.  

Today, stocks price of ASGR jumps 6.81% to Rp470 per share, reflecting 9.47x price to earning ratio in 2009. Astra Graphia booked Rp1.34 trillion in revenue last year, grew from the previous year of Rp1.03 trillion in 2008. Net income rose from Rp62.49 billion in 2008 to Rp66.95 billion last year.

I should be better for Astra International to sell Astra Graphia to the strategic investors in a bid to develop business information technology solution. Who is ASGR's strategic partner? Fuji Xerox is the answer.

Ciputra Property eyes 74% jump in profit

PT Ciputra Property Tbk (CTRP), a subsidiary of PT Ciputra Development Tbk (CTRA), eyes a 74.32% jump in net profit this year on the back of soaring revenue.

Ciputra Property, which owns and operates five commercial and one under construction projects, sets a net profit target of Rp129 billion in 2010 from last year's level of Rp74 billion.

The company estimates that revenue will lift 12.17% from Rp337 billion in 2009 to Rp378 billion this year, but operating income is estimated to shrink 4.50% from Rp111 billion in 2009 to Rp106 billion in 2010.   

Ciputra Property, via two subsidiaries PT Ciputra Sentra and PT Buanasarana Sejatiindah, owns and operates  81.38% stakes in mall and four star Hotel Ciputra Jakarta.

Ciputra Property, via PT Ciputra Semarang, controls and operates 99.10% stakes in mall and five star Hotel Ciputra Semarang.

CTRP, through PT Dimensi Serasi and PT Ciputra Liang Courts, owns 39.94% stakes in Somerset Grand Ciputra Apartment, and under construction project namely Ciputra World is 94.63% owned by Ciputra Property via PT Kharismasaka Pratama, PT Citra Dimensi Serasi, and PT Ciputra Adigraha.

In 2010, Ciputra Sentra is estimated to book Rp222 billion in revenue, Ciputra Semarang is expected to post Rp106 billion in revenue, and Ciputra Adigraha is estimated to gain Rp48 in revenue.

Ciputra Sentra, Ciputra Semarang, and Ciputra Adigraha are estimated to book net profit of Rp52 billion, Rp45 billion, and Rp2 billion respectively this year, while Ciputra Propety may contribute Rp31 billion in net profit.

As of March 2010, Ciputra Property's revenue consolidation reached Rp80 billion, a 5% growth compared to the same period last year of Rp76 billion. Net profit suffered a steep plunge 76% from Rp71 billion in Q1 2009 to Rp17 billion in Q1 2010.