Indopoly reports 105% jump in net profit

The producer of biaxially oriented polypropylene (BOPP) film, PT Indopoly Swakarsa Industry Tbk (IPOL), reported a strong growth in net income in the first 9 months of this year as a result of higher sales.

Indopoly posted Rp152.88 billion net income or Rp34.13 per share in 9M 2010, a 105.43% jump from Rp74.42 billion or Rp41.69 per share in 9M 2009.

Income from operations skyrocketed 198.63% from Rp75.13 billion in 9M 2009 to Rp224.36 billion in 9M 2010.

Cost of goods sold increased 23.23% from Rp677.38 billion in 9M 2009 to Rp834.73 billion in 9M 2010. Sales elevated 36.12% from Rp872 billion in 9M 2009 to Rp1.19 trillion in 9M 2010.   

Disclosure: No position at the stock mentioned above.
 
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Delta Dunia Makmur 3Q result improves

Publicly listed PT Delta Dunia Makmur Tbk (DOID), parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), showed a better performance in the third quarter (July-September) of 2010 compared to the second quarter (2Q 2010).

In the first 9 months of this year, Delta Dunia posted Rp351.93 billion net income, Rp755.96 billion operating profit, and Rp4.19 trillion revenue. 

I can't compare it with the performance of the first 9 months of last year due Delta Dunia's fully consolidated  BUMA's financial performance starting from the first quarter of this year.

If you look quarterly result, the 3Q 2010 reflected better performance compared to the 2Q result. Delta Dunia's 3Q 2010 revenue at Rp1.49 trillion was higher than Q2 and Q1 revenue which stood at Rp1.42 trillion and Rp1.28 trillion respectively.

In return, income from operations of the company in 3Q 2010 achieved Rp294.1 billion, higher than the previous two quarters of Rp231.82 billion (2Q) and Rp230.04 billion (1Q). Operating margin in the 3Q showed a slight improvement from 17.09% in 2Q to 18.03%.

Net income rose to Rp145.75 billion in 3Q 2010 from Rp55.54 billion in 2Q (the worst for the whole year). But the 3Q net income remained lower than the 1Q result of Rp150.64 billion. 

Disclosure: No position at the stock mentioned above.
 
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Berau Coal investment & coal contracts

Coal mining company PT Berau Coal Energy Tbk (BRAU) has put Rp1.18 trillion money, 2.8 folds of September's net profit, as short term investments at three firms, Chateau Asean Fund 1 worth Rp669.30 billion, PT Danatama Capital Management worth Rp220 billion, and PT Lautandhana Investment Management worth Rp296.77 billion.

Berau Coal signed an investment agreement with Chateau Asean Fund 1 on January 26 2010. Chateau issued premium convertible unsecured loan notes. Chateau issued premium convertible unsecured loan notes worth US$75 million.

Berau Coal signed an investment agreement with Lautandhana on August 12 2010 for a period of 3 months. Under the contract, Berau Coal has given a full authority to Lautandhana as investment manager.

On September 1 2010, Berau Coal and Danatama Capital agreed on 1 month investment contract. Based on the agreement, Berau Coal has given an authority to Danatama as investment manager.

Coal contracts

How about coal contracts? Berau Coal has entered into agreements with several parties regarding on sales contract.

In April, Berau Coal signed 5 year coal sales contract with China-based Huaneng Power International Fuel Co Ltd from 2011 to 2015. Under the contract, Berau commits to deliver 1.5 million metric tons to Huaneng. The selling price is determined based on annual basis.

Within the same month, Berau Coal also entered into 5 year sales contract from 2011-2015 with China-based company namely Shanxi Kingstar International Trade Co Ltd with annual coal to be delivered of 500,000 metric tons. The selling price is determined based on annual basis.  

In April 2010, Berau Coal entered into 5 year sales contract from 2011-2015 with China-based Guodian Fuel Co Ltd with the commitment quantity to be delivered of 500,000 metric tons. Still, the selling price is determined based on annual basis.

Berau Coal entered into 5 year coal sales contract from 2011-2015 with China-based company Rizhao Honglu Electricity and Energy Co Ltd with the annual quantity to be delivered by Berau of 500,000 metric tons. The selling price is determined based on annual basis.

In May 2010, Berau Coal agreed 3 year coal sales contract from 2010-2013 with Singapore-based firm namely Zhushui International Energy Pte Ltd with the annual commitment of 1.50 million metric tons. The selling price is also determined on annual basis.

Berau Coal's wholly owned subsidiary Seacoast Offshore Inc on August 18 2010 acquired 100% ownership in Maple Holing Limited, a company engaged in coal sales service, based on Labuan, worth US$200 million from Regulus International Pte Ltd.

In December 2009, Berau entered into a marketing services agreement with Maple Holdings Ltd. Maple has agreed to act as the exclusive marketing agent of Berau for all coal sales except those coal products which Sojitz Corporation is entitled to market and sell to customers in Japan under terms of the Japan Marketing
Agreement. The agreement shall become effective from December 30, 2009 to December 30, 2019 and can be renewed for a further period of 10 years by mutual agreement.  As compensation, Berau is required to pay Maple a commission of 2% of the sales.

The commission is US$2.5 lower than a commission charged by Glencore to PT Borneo Lumbung Energi & Metal Tbk under 3 year contract.

Disclosure: No position at the stock mentioned above.

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Berau Coal suffers 35% net profit drop

Coal mining company PT Berau Coal Energy Tbk (BRAU) suffered a 35.57% plunge in net profit during the first 9 months of this year (9M 2010) from a year earlier as a result of soaring net other expenses and both cost of goods sold and operating expenses.

BRAU posted Rp395.85 billion net profit in 9M 2010 from Rp614.41 billion in 9M 2009. The company's net others expenses ballooned a steeply 10,413% from Rp4.79 billion at the end of September 2009 to Rp503.60 billion in 9M 2010.

Loan interest surged two folds from Rp281.80 billion to Rp491.55 billion in 9M 2010, amortization of deferred financing charges, and amortization of goodwill had gone up sharply in 9M 2010. 

At the operational line, income from operations dropped 20.25% from Rp2.37 trillion in 9M 2009 to Rp1.89 trillion in 9M 2010, shrinking operating margin from 38.54% to 27.12% in 9M 2010.

Operating expenses swelled 68.25% from Rp199.58 billion in 9M 2009 to Rp335.79 billion in 9M 2010. Berau Coal's gress margin fell 13.23% from Rp2.57 trillion in 9M 2009 to Rp2,23 trillion in 9M 2010. The rise of cost of goods sold by 32.12% had reduced a 13.17% increase in sales from Rp6.15 trillion to Rp6.97 trillion.  

Disclosure: No position at the stock mentioned above.

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Harum Energy 9M revenue drops 10%

Newly listed coal mining company PT Harum Energy Tbk (HRUM), controlled by Indonesian tycoon Kiki Barki, posted a slight 0.14% increase in net income to Rp569.1 billion for the first 9 months ended September 30 2010 from Rp568.3 billion at the same period of last year.

But, revenue fell 10% from Rp3.50 trillion in the first 9 months of last year (9M 2009) to Rp3.16 trillion in 9M 2010.

Harum Energy produced coal of 5.2 million tons in 9M 2010, a 28% rise from 4.1 million tons a year earlier. The company sold 6 million tons coal in 9M 2010, an increase from 4.5 million tons in 9M 2009. 

During the first 9 months of this year, PT Mahakam Sumber Jaya, Harum's subsidiary, produced 3.6 million tons coal, a slight increase from 3.4 million tons in 9M 2009, and another subsidiary namely PT Santan Batubara produced 1.6 million tons, an increase from 0.7 million tons in 9M 2009.

Harum Energy plans to achieve a 7.4 million tons coal target by the end of 2010. It means the company should meet another 2.2 million tons in the fourth quarter of this year, which looks possible.

Average selling price of Harum Energy's coal sharply increased from US$72.8 per ton in 2Q 2010 to US$81.8 per ton in 3Q 2010 and US$65.1 per ton in 1Q.

In 9M 2010, Harum Energy's sales went to Taiwan (27% of sales volume), followed by South Korea (23%), China (20%), Japan (18%), Indonesia (10%), and India (2%). The mix of the company’s sales destinations has changed from 2009, mostly because of higher sales volume going to China.

On the liabilities side, Harum Energy drew down US$80 million from its US$200 million revolving credit facility in June 2010. 

The proceeds from the drawdown was used to refinance existing liabilities and fund capital expenditures. Harum Energy plans to pay down a portion of its existing debt in Q4 2010 using the available cash on hand.

4Q outlook 

Harum Energy is optimistic on its Q4 2010 outlook on the back of expected strong average selling price (ASP) and stronger production. 

For the full year of 2010, HRUM is targeting to achieve a combined production volume of 7.4 million tonnes, with 5.2 million tonnes coming from Mahakam Sumber Jaya and 2.2 million tonnes from Santan Batubara. Weather will continue to be a key factor in meeting the production target. Additional mining equipments have been brought into operation starting in September 2010 to support the production ramp up efforts in 4Q 2010.
Substantially all of the expected production in 4Q 2010 has already been sold and priced at similar level to the realized ASP in 3Q 2010. 

The company plans to engage in 2011 sales contract discussions with its customers starting in October 2010. Demand for thermal coal is expected to remain robust going into the winter season of 2010/2011 and should provide support for thermal coal prices in the near term.

Disclosure: No position at the position mentioned above.

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Gajah Tunggal earning rises 10.67%

Indonesia's top rank tire maker PT Gajah Tunggal Tbk today reports a 21.63% increase in sales for the first 9 months of this year to Rp7.10 trillion from Rp5.84 trillion a year earlier.
Sales coming from the local tire market remained the biggest main driver for Gajah Tunggal's total sales, counting 62.79%.
Java market contributed Rp2.82 trillion, a 26.15% growth, while outside Java market made Rp1.63 trillion in sales.
The tire export market made 37.21% sales of Gajah Tinggal consolidated sales or Rp2.64 trillion with US as the largest lucrative destination market.
For the period ended September 2010, Gajah Tunggal enabled to jack up its income from operations 29.38% higher to Rp981.30 billion from the same period last year of Rp758.48 billion.
Gajah Tunggal, which its stocks have proven bright performance among peers, dragged down operating expense 7.25% to Rp465.73 billion from Rp502.16 billion, underpinning the rise.
The bottom line rose 10.67% to Rp664.15 billion in 9M 2010 compared to the same period last year of Rp600.09 billion. The company has set a net sales target of Rp9.92 trillion for this year, a 20%-25% increase from last year's level of Rp7.94 trillion.
Gajah Tunggal Director Catharina Widjaja said the sales increase will be underpinned by tire sales this year, estimated to achieve 30 million units.

Disclosure: No position at the stock mentioned above.
 
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Sampoerna Agro net profit surges 21.90%

CPO producer PT Sampoerna Agro Tbk (SGRO) posted IDR365.39 billion operating profit for the 9 months period ended September 30 2010, a 9.37% increase from Rp334.09 billion a year earlier.
Sampoerna Agro, in the financial report submitted to Indonesia Stock Exchange (IDX) today, reported despite the higher income from operations, it booked a lower operating margin, fell from 28.18% to 26.69% in 9M 2010.
Net profit rose 21.90% from Rp204.13 billion or Rp110 per share in 9 months 2009 to Rp248.84 billion or Rp132 per share.
In line with the growth, gross profit also increased 12.74% from Rp429.08 billion in 9M 2009 to Rp483.75 billion in 9M 2010.
Cost of goods sold surged 17% from Rp756.68 billion in 9M 2009 to Rp885.35 billion.
Sampoerna Agro's sales in 9M 2010 was 16.10% higher than 9M 2009's level of Rp1.18 trillion to Rp1.37 trillion. 

Disclosure: No position at the stock mentioned above.
 
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BW Plantation reports profit drop 6.2%

CPO player PT BW Plantation Tbk (BWPT) today reports Rp142,23 billion net income during the first 9 months of this year, a 6.2% decrease from Rp151.61 billion a year earlier.
The decrease was mainly propelled by a slight sales drop.
In a press statement obtained by Bisnis today, despite the lower earning, BW Plantation's net margin inched up 0.3% from 33.7% to 34%.
Operating revenue suffered a 7% fall from Rp449.97 billion in 9 months last year (9M 2009) to Rp418.49 billion, mainly dragged down by a 14.6% decrease in CPO sales volume.
As of September 2010, the company sold 58,948 tons CPO from 68,946 tons in 9M 2009. Fresh fruit bunch (FFB) rose 3% to 270,563 tons from a year earlier.
Gross profit in 9M 2010 reached Rp271.65 billion, a 2.9% from Rp279.81 billion a year earlier. However, the company's gross margin rose from 62.2% to 64.9% in 9M 2010.
BW Plantation booked a slight decrease in operating profit of 2.6% from Rp217.88 billion in 9M 2009 to Rp212.18 billion. But, operating margin rose from 48.4% to 50.7% in 9M 2010.

Disclosure: No position at the stock mentioned above. 

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Adaro Energy 9M net profit plunges 52%

Publicly listed one of Indonesia's largest coal miner PT Adaro Energy Tbk (ADRO) today announces a 43% decrease in net income to US$186 million or a 52% decrease to Rp1.69 trillion for the first 9 months period ended September 30 2010.
In a press statement filed to Indonesia Stock Exchange (IDX) today, earning per share tumbled from Rp109.9 to Rp53 in 9M 2010.
The lower net income was due to extraordinary demurrage charges, lower gross profit as a result of higher costs and significantly higher interest expense and finance charges.
“It has been a difficult year due to unseasonal and unprecedented rainfall, but our long-term plans look better than before. We maintained a robust EBITDA of US$701 million and a solid industry topping margin of 35%. Our bright assessment of the future and financial strength means we will make long term investments and create maximum shareholder value," said Adaro Energy’s President Director Garibaldi Thohir in the statement.
Consolidated unaudited net revenue increased 6% to US$1.98 billion in 9M 2010 due to 12% production growth despite the 7% lower achieved average selling price.
Adaro's production and sales volumes in 9M 2010 both increased 12% to 31.84 million tonnes and 32.36 million tonnes respectively.
Lower than expected coal production volumes were caused by heavy rainfall during the period.
Due to higher mining costs, caused by a higher strip ratio and longer overburden hauling distances, the company's cost of revenue increased 22% causing operating income to decline 16% to US$593 million.
With net debt to equity at 0.45x and abundant access to cash of US$1.2 billion, its prudent financial policies have created a robust capital structure and strong access to capital markets.
Adaro Energy continued pursuing its strategy of continuing its annual organic production growth, improving the efficiency of its vertically-integrated coal supply chain which might include further downstream integration into power, and acquiring or investing in large quality coal deposits within Indonesia.

Disclosure: No position at the stock mentioned above.

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Astra Agro reports lower net profit

CPO player PT Astra Agro Lestari Tbk (AALI), subsidiary of PT Astra International Tbk (ASII), experienced a 1.59% decrease in net profit during the first 9 months of this year.
Net profit reached Rp1.22 trillion in 9M 2010 from Rp1.24 trillion a year earlier on the back of higher cost than revenue growth.
A 4.72% increase in Astra Agro's revenue from Rp5.46 trillion in 9M 2009 to Rp5.72 trillion in 9M 2010 was unable to underpin income from operations as cost of goods sold inched up 9.38% from Rp3.2 trillion to Rp3.5 trillion in 9M 2010.
Astra Agro Lestari posted a slight decrease of 1.59% in earning per share from Rp792.54 to Rp779.91, while net margin lowered 6.03% from Rp22.84% to Rp21.46% in 9M 2010. 

Disclosure: No position at the stock mentioned above.

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Lonsum 9M net profit rises 31.2%

Palm oil producer PT PP London Sumatra Tbk (Lonsum) enabled to jack up 9 months' net profit by 31.2% from Rp489.3 billion last year to Rp641.8 billion in 9M 2010, despite lower CPO output.
Lonsum, a subsidiary of Salim Group, in the financial report filed to Indonesia Stock Exchange last night, revealed that revenue sligth inched up 5.8% from Rp2.27 trillion at the end of September 2009 to Rp2.4 trillion.
But, sales coming palm oil-based products fell 4.2% from Rp1.92 trillion to Rp1.84 trillion. 
Sales of seeds soared 285.4% from Rp34.9 billion to Rp134.6 billion in 9M 2010 as well as rubber which posted a 43.9% growth from Rp271.4 billion to Rp390.2 billion.
Tea rose 27.5% from Rp12.7 billion to Rp16.2 billion, while cocoa sales decreased 32.3% from Rp30.2 billion to Rp20.4 billion.
Cost of goods sold shrank 3.9% and operating expenses lowered 1.5%, enabling Lonsum to jack up income from operations.

Disclosure: No position at the stock mentioned above.
 
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Stock recommendations today

The quarterly earnings season will still become the underlying of positive sentiment to the movement of Jakarta Composite Index (JCI). The recommended shares for today's trading are INCO, INDF, and PGAS.

Below is the complete insight for your recommendation as reported by Bisnis.com today. 

Panin Sekuritas:
Quarterly earning reports were still the positive underlying in yesterday's trading after the investors did profit taking one the day before. The financial report is still the focus of investors until the end of the week. The index will tend to volatile in the range of 3,618-3,660.

Trimegah Securities:
JCI is potentially to consolidate with resistant level of 238.2%. Yet, JCI is still prone to correction. Today, the index will be moving in the range of 3,609-3,653, with recommended shares, like INCO, INDF and PGAS.

e-Trading Securities:
 Yesterday, JCI was closed 14 point (+0.4%) higher at 3,638. Foreign investors booked a net sell of IDR27 billion at regular market. Today, JCI is predicted to be in the overbought area, around 3,612–3,671. The recommended shares are BSDE, INCO, ADES, and BUVA.

Disclosure: No position at the stock mentioned above.

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Multistrada 9M net profit abates 7.33%

One of Indonesia's tire maker with stellar brands Achilles, Corsa, and Strada, PT Multistrada Arah Sarana Tbk (MASA) experienced a slight decrease in net profit during the first 9 months of this year, despite lower foreign exchange gain.

The company, submitted the financial report to Indonesia Stock Exchange (IDX) today, posted Rp114.97 billion net profit or Rp18.8 per share in 9M 2010, a 7.33% decrease from Rp124.07 billion or Rp20.3 per share earning a year earlier.  

Foreign exchange gain bagged by Multistrada shrank 86.47% from Rp73.89 billion in 9M 2009 to Rp10 billion in 9M 2010, lowering its bottom line.

But, at the operational line, the company posted robust performances. Income from operations inched up 26.38% from Rp138.13 billion at the end of Septembet 2009 to Rp174.57 billion in 9M 2010, putting the margin stood at the level of 11.47%, a slight decrease from 11.52% a year earlier.

In addition, gross profit remained intact. Multistrada booked a 24.62% increase from Rp249.88 billion in 9M 2009 to Rp311.39 billion in 9M 2010. The top line rose 27.73% to Rp1.52 trillion in 9M 2010 from Rp1.19 trillion in 9M 2009.

Disclosure: No position at the stock mentioned above.

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Astra 9M net profit surges 45.86%

Publicly listed auto maker PT Astra International Tbk (ASII) posted a net profit of Rp10.36 trillion or IDR2,560 per share for the period January-September this year, increasing 45.86% from Rp7.1 trillion in the same period last year.
The company will also pay interim dividend as much as Rp470 per share on November 15, 2010. The amount is 62.07% higher than that of last year at IDR290.
The company posted Rp95.03 trillion revenue, surging 34.52% from Rp70.65 trillion. Moreover, the operating profit climbed 9.80% from Rp9.50 trillion to Rp10.43 trillion.
President Director of Astra International Prijono Sugiarto said in a press release today that the improvement in performance was supported by Indonesia’s economic growth in the third quarter this year.
In addition, the company’s performance was boosted by increasing foreign capital inflow and availability of consumer financing with competitive interest rate, although automotive sales declined in September on shorter workdays during the month.
"The company’s performance in the first nine months of this year shows an amazing result and we expect the performance will stay positive through the end of 2010,” Prijono said.
Astra recorded a 18% increase in net assets to Rp47.2 trillion, thus lifting the net asset value per share to Rp11,653.
The ASII-coded share slid IDR350 or 0.62% to close at IDR56,460 in today’s trading, forming a market capitalization of IDR228.5 trillion.

Disclosure: No position at the stock mentioned above.

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Indocement 9M net profit up 28%

Indonesia's second largest cement manufacturer PT Indocement Tunggal Prakarsa Tbk (INTP) today reports a 28% increase in net profit during the first 9 months in 2010 (9M 2010).
Indocement CFO Christian Kartawijaya said the company posted Rp2.38 trillion net profit in 9M 2010 from Rp1.86 trillion a year earlier.
EBITDA rose 24% from Rp2.96 trillion in 9M 2009 to Rp3.44 trillion in 9M 2010.
Indocement's operating profit rose 17% from Rp2.55 trillion in 9M 2009 to Rp2.97 trillion in 9M 2010.
As a result, operating margin increased from 34.3% to 36.7% in 9M 2010.
Gross profit also grew 16% from Rp3.53 trillion in 9M 2009 to Rp4.09 trillion in 9M 2010.
The company booked a 9% higher revenue from Rp7.42 trillion in 9M 2009 to Rp8.11 trillion in 9M 2010.
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Mandom 9M net profit rises 0.1%

Publicly listed cosmetic products maker PT Mandom Indonesia Tbk today announces a slight growth in net profit by 0.1% during the first 9 months in 2010.
Mandom, in an official announcement filed to Indonesia Stock Exchange (IDX) today, posted Rp110.6 billion net profit in 9M 2010 from Rp110.5 billion a year earlier.
Income from operating decreased 9.2% to Rp148.1 billion in 9M 2010 because the increase of operating expenses by 17.4% from Rp222.1 billion in the third quarter of 2009 to Rp260.6 billion.
Cost of goods sold elevated 4.9% from Rp663.6 billion at the end of September 2009 to Rp696.2 billion in 9M 2010. Gross profit rose 6.1% from Rp385.2 billion in 9M 2009 to Rp408.8 billion.
Net sales grew 5.4% from Rp1.05 trillion in 9M 2009 to Rp1.10 trillion in 9M 2010. The sales growth was also underpinned by both domestic and export markets.

 
Disclosure: No position at the stock mentioned above.
 
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IDX resumes Arpeni Ocean Line trading

Indonesia Stock Exchange (IDX) this morning lifted the suspension on PT Arpeni Ocean Line Tbk (APOL), thus it now can be traded in the regular and cash market.
In the information disclosure published in Indonesian Stock Exchange (IDX) site mentioned the stock exchange suspended Arpeni shares after the official announcement from the market on September 20, 2010.
Before it was suspended, Arpeni (APOL-coded stock) shares traded on September 17, 2010, the price dropped to Rp108 per share.
This morning, the shares soared 19.44% to the level of Rp129 per share.
Meanwhile, Saratoga Capital, the private equity firm, has entered into an agreement with PT Arpeni Ocean Line Tbk (APOL) to buy US$60 million of convertible bonds and new shares issued by the listed company.
According to a source who knows the detail about this transaction said that PT Rothschild Indonesia pointed out to manage the debt restructuring of the company, including the issuance of convertible bonds and new shares.
In the agreement, Saratoga Capital plans to buy US$60 million of convertible bonds issued by Arpeni and US$ 70 million of new shares.
The question is, will Saratoga give additional value to Arpeni? Currently, in Indonesia there are only two private equity firms engaged in coal business, namely Saratoga and Quvat Capital Management Ptd. Ltd. However, Saratoga has a larger volume of business compared with Quvat.
Saratoga’s investment in coal business, related to the business undertaken by one of the coal producer, PT Adaro Energy Tbk.
By acquiring Arpeni, Saratoga hopes it will realize a business synergy with shipping industry owned by the company.

Disclosure: No position at the stock mentioned above.

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Prudent confirms to sell 9.8% MASA

Prudent Capital confirmed has disposed 1,2 juta lots stake or 600 million shares (nearly 10%) in PT Multistrada Arah Sarana Tbk (MASA) to subsidiary of PT Indomobil Sukses Makmur Tbk (IMAS) via crossing today.

"It might be Prudent Capital which sold 600 million shares or 9.8% stake in Multistrada to Indomobil's subsidiary at Rp180 billion or Rp300 per share," a source said.

Indomobil, through its wholly owned subsidiary dubbed PT Central Sole Agency, recently revealed its interest to acquire 10% stake in Multistrada.

PT Buana Capital, brokerage-coded RF, today held MASA stocks' crossing at Rp300 per share. MASA today is stagnant at Rp330 per share.

Disclosure: No position at the stock mentioned above.

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Buana Capital crosses MASA at Rp300

PT Buana Capital, brokerage-coded RF, today has crossed PT Multistrada Arah Sarana Tbk (MASA) at Rp300 per share or worth Rp180 billion.
A stock trading said Buana Capital has crossed 1.2 million lots. MASA is now stagnant at Rp330 per share.
A source said Buana Capital is 60% controlled by Pieter Tanuri, President Director of Multistrada.
Referring to Indonesian Central Securities Depository (KSEI) on October 27, PVP XVIII Pte Ltd controls 26,09% stake in Multistrada, Prudent Capital Ltd owns 13,46% stake, dan The Bank of New York as Custodian holds 7,23%.
PT  Central Sole Agency, subsidiary of PT Indomobil Sukses Internasional Tbk (IMAS), recently revealed its interest to acquire 10% stake in Multistrada.

Disclosure: No position at the stock mentioned above. 

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Agung Podomoro IPO price at Rp365

Property developer PT Agung Podomoro Land Tbk has set the IPO price at Rp365 per share, Rp15 higher than the lowest level of the indicative price range at Rp350 per share.
A source close to the deal said Agung Podomoro enables to bag Rp2.24 trillion proceed from the IPO.
"During the book building, Agung Podomoro drew 4 folds higher demand than the initial size," the source told Bisnis this morning.
Agung Podomoro plans to offload 6.15 billion shares or 30% during the IPO. Director of PT Indo Premier Securities The Moleonoto recently said the target price is set at 13 to 17 times of the price to earning (P/E) ratio.
The share valuation determined by the company's underwriters, as he continued, is still cheaper than price of other property's shares in the area.
Indo Premier join with PT Mandiri Sekuritas act as the company's underwriters. On the other hand, Deutsche Bank and JP Morgan will help to offer the shares to foreign investors.
 

Disclosure: No position at the stock mentioned above.
 
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Bentoel posts Rp212 billion net profit

Indonesia’s cigarette maker PT Bentoel Internasional Investama Tbk (RMBA) reported a Rp212.93 billion net income in the end of September 2010 after posting net loss during the same period last year.
In the financial report submitted to Indonesia Stock Exchange (IDX), it was reported that Bentoel booked Rp19.08 net loss in the end of September 2009.
Compared to this year’s figure, Bentoel’s net income in fact soared by 1,215.98%, mainly propelled by 25.81% net sale growth, from Rp5.23 trillion in the first 9 months of 2009 to Rp6.58 trillion in the same period this year.
The leading contributors to the company robust growth were the sale figure of cigarette, non-cigarette and recreation park.
As a matter of fact, the company also posted 22.98% jump of cost of goods sold, from Rp4.22 trillion to Rp5.19 trillion in the end of September 2010.
However, Bentoel’s gross income still grew by 36.27% from Rp1.02 trillion in the end of September 2009, Rp1.39 trillion.
Gross margin rose from 19.50% in the end of Q3/2009 to 21.12%.
Meanwhile, the operating income climbed 70.80% from Rp284.40 billion to Rp485.79 billion in the end of September 2010 as its operating margin also surged from 5.43% to 7.38%.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Jakarta Composite Index yesterday failed to maintain its rally in four consecutive days. Stock brokerages estimate that the downside trend might continue today. Here are recommendations from local houses as reported by Bisnis.com today.

Panin Sekuritas:
Jakarta Composite Index (JCI) slightly fell yesterday as investors' sell-off on big cap stocks. Regional markets influenced JCI movement that investors await for The Fed decision.
Concern on a possible higher interest rate in the US market is estimated to shrink capital inflows into emerging market. We estimate that JCI might be prone and mixed with support and resistance level at 3,601-3,650.

e-Trading Securities:
 JCI retreated 29 points (0.81%) and stood at 3,624. Foreign investors recorded IDR37 billion net sell, while JCI surpassed death cross at the stochastic level, hence lower trend might be happened. JCI today is estimated to be in the range level of 3,612-3,671. Stocks to be watched are TLKM and TINS.

Erdikha Sekuritas: 
 JCI fell 29.64 points to 3,624.47 (-0.81%). The downside trend on mining-based stocks as well as regional markets dragged down and whispered negative sentiments on JCI. The JCI today is predicted to be in mixed ways at the range level of 3,580-3,670. INTP and JPRS are recommended.

Trimegah Securities:
JCI failed to maintain rally yesterday after four consecutive days. JCI fell 0.8%. Profit taking from foreign investors put JCI under pressure. After prolonged rallies, sell-off is possible. But, with dead cross trend, investors should be careful on another correction. JCI is estimated to be in the range of 3,600-3,658. INTP and UNVR remain the top picks. 

Disclosure: No position at the stocks mentioned above.

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Adhi Karya 9M net profit rises 17.91%

PT Adhi Karya Tbk (ADHI), a state-owned construction enterprise, booked an increase of its net income 17.91% at the end of this year’s third quarter, compared to same period last year.
The Secretary of Adhi Karya Kurnadi Gularso said the company booked Rp75.7 billion net income at the end of September 2010 compared to same period last year, i.e. Rp64.2 billion.
Besides that, the operating income of the listed construction service company grew 44.48% from Rp129.5 billion at the end of September 2009 to Rp187.1 billion.
Adhi Karya's gross income also rose 23.49% per September 2009 to Rp332.1 billion.
However, the SOE’s operating revenue fell 36.83% from Rp4.86 trillion per September last year to Rp3.07 trillion.
“The operating revenue decreases because a number of government projects are slightly moved backward from its original schedule,” he told Bisnis, this evening.
The company targets the contribution from government project to reach 65% of the operating revenue while last year’s contribution was only 55%.
“The operating revenue target of Rp8.6 trillion this year, is likely unreachable. Yet, we are optimistic that Adhi Karya could reach its net income target of Rp185 billion this year,” he said.

Disclosure: No position at the stock mentioned above.
 
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Adira Finance upsizes bond to Rp2 trio

Publicly listed PT Adira Dinamika Multi Finance Tbk (Adira Finance) upsized the emission value of bonds IV/2010 to Rp2 trillion from Rp1, 5 billion due to high demand for debt securities of the company.
Finance Director and Compliance Director of Adira Finance I Dewa Made Susila said that the bonds is oversubscribe as much as 1.7 times so that the company raise the value of its emissions.
"Our bonds is oversubscribed up to 1.7 times from the original target of IDR1, 5 trillion, so thevalue were raised to Rp2 trillion," said I Dewa Made.
The bonds that received double A rating with a stable outlook PT Pemeringkat Efek Indonesia was offered during the offering period from September 30 to October 13 2010. There were as much as five series of bonds offered during the period.
For the Series A bonds worth of Rp229 billion with an 18 months tenor the interest coupon of 7.60%. Series B amounting to Rp238 billion with a 24 months tenor and the interest coupon of 8.25%, while Series C amounting to Rp577 billion has a 30 months tenor and 8.70% of interest coupon.
As for the Series D amounted Rp284 billion with a 36 months tenor and a coupon interest of 9%, and Series E of Rp672 billion with 48 months tenor and the interest coupon of 9.25%.
According to I Dewa, the company has obtained the approval from the capital market regulator on October 21 last week. He revealed the major of bond investors who absorbed the bonds are mutual fund companies with a total investment of Rp666 billion or 33% of the total issued bonds.
The two sectors namely the pension fund with an investment of Rp451 billion or 23%, and banks reach Rp395.5 billion or 20%, insurance companies absorbed Rp372 billion, or 19%, and the rest were absorbed by securities firms, foundations, syndication, and individual investors.
"Most of our bonds investors are local investors," he said.

 
Disclosure: No position at the stock mentioned above.  

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BW Plantation bond coupon at 10.675%

Palm oil player PT BW Plantation Tbk, produsen minyak sawit mentah (crude palm oil/CPO), has determined Rp700 billion bonds coupon at 10.675% per annum.
BW Plantation Corporate Secretary Kelik Irwantono said the company and underwriters have decided the bonds size at Rp700 billion as well.
"I have't received any detail numbers from underwriters," he told Insider Stories.
BW Plantation will use the proceed to support debt refinancing, especiallu to Citibank NA and Bank Artha Graha, expansion, and working capital.
Three lead underwriters PT Danareksa Sekuritas, BNI Securities, and Kresna Graha Sekurindo arrange the bonds.

Disclosure: No position at the stock mentioned above.  

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Enseval 9M earning plunges 33.21%

Publicly listed PT Enseval Putera Megatrading suffered a 33.21% fall in net profit during the first 9 months of this year despite higher net sales.
Enseval, in the financial report filed to Indonesia Stock Exchange (IDX) today, posted Rp143.12 billion in 9M 2010 from Rp214.29 billion a year earlier.
In line with the bottom line drop, the company's operating profit slashed 33.05% from Rp308.46 million in 9M 2009 to Rp206.52 billion in 9M 2010.
Operating expenses and cost of goods sold soared 11.99% and 14.74%.
Gross profit plumetted 6.23% from Rp762.24 billion in 9M 2009 to Rp714.72 billion in 9M 2010. Net sales rose 12.07% from Rp6.13 trillion in 9M 2009 to Rp6.87 trillion in 9M 2010.

Disclosure: No position at the stock mentioned above.

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Moody's affirms Bumi Investment at Ba3

Moody's Investors Service has affirmed Bumi Investment Pte Ltd's Ba3 senior secured rating and removed its provisional status following the successful issuance of 7-year $700 million 10.75% notes.
Moody's has also affirmed the Ba3 corporate family rating of PT Bumi Resources Tbk (Bumi).
The notes benefit from joint and severable unconditional and irrevocable guarantees from Bumi and subsidiaries, and rank pari passu to all existing and future senior unsecured claims of the issuer and guarantors.
The outlook for the ratings remains negative.
"The issuance has extended Bumi's maturity profile and, together with US$360 million of fresh equity, will significantly alleviate some of the company's near term refinancing risk, " says Alan Greene, a Moody's Vice President and Senior Credit Officer.
"Notwithstanding the refinancing exercise, Bumi's negative outlook reflects the extent to which Bumi's performance, despite improvement, has lagged projections", says Greene, also lead analyst for Bumi Resources, adding.
"While deleveraging has occurred, on a pro forma basis, and reflecting the non-preemptive rights issuance of US$360 million, normalized, consolidated adjusted debt/EBITDA stood at 3.6x at LTM June 2010. This value remains in excess of our downward rating trigger of 3.0x."
Upward rating pressure is unlikely given the negative outlook.
The outlook could revert to stable should Bumi deliver on its financial projections and offer a clear plan to reduce the debt burden such that adjusted, consolidated, debt/EBITDA falls below 3.0x on a consistent basis.
Further downward pressure could emerge on the rating should Bumi fail to deliver on its projections and specifically its deleveraging plans, or if it deviates from the business plan and strategy currently contemplated as part of the rating.
Moody's would also look for holdco leverage to decrease and failure to do so would put downward pressure on the rating.
Established in 1973 and listed on the Jakarta Stock Exchange in 1990, Bumi is Indonesia's largest thermal coal producer and one of the top three largest thermal coal exporters globally.
Through its principal assets (65% stake in PT Kaltim Prima Coal and 70% stake in PT Arutmin), Bumi accounts for approximately 25% of Indonesia's total coal production.
Approximately 19.3% of Bumi's shares are held by Bakrie & Brothers, which is controlled by members of the Bakrie family. Members of the Bakrie family (outside of Bakrie & Brothers) also own shares in Bumi.

Disclosure: No position at the stock mentioned above.
 
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Bhakti disposes Citra Marga

PT Bhakti Investama Tbk disposed 1.48 million of its shares in PT Citra Marga Nusaphala Persada Tbk (CMNP), which made its shares decreases 15.09%.
About 1.48 million shares equals with 0.07% from the paid-in capital of PT Citra Marga Nusaphala Persada Tbk, which made the company total ownership decreases 15.09%.
In the information disclosure submitted to Indonesia Stock Exchange (IDX) today, Director of Bhakti Investama Darma Putra said the 1.48 million shares were sold for portfolio adjustment.
Bhakti, sold its shares at Rp1,350 per share in 25 Oktober. On the same day, CMNP’s shares price in the market was closed at Rp1,490 per shares.
This afternoon, CMNP’s shares continued to sink and was at Rp1,430 from Rp1,450 in yesterday’s closing.

Disclosure: No position at the stock mentioned above.
 
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Latinusa 9M net profit surges136.81%

Tin plate maker PT Pelat Timah Nusantara Tbk (Latinusa) experiences a steep jump in earning during the first 9 months this year. Thanks to higher net sales and shrinking foreign exchange loss.
In the financial report submitted to Indonesia Stock Exchange (IDX) today, Latinusa posted Rp71.47 billion net profit in 9M 2010, a 136.81% jump from Rp30.18 billion in 9M 2009.
The company's forex loss steeply shrank 83.14% from Rp6.17 billion in 9M 2009 to Rp1.04 billion in 9M 2010.
At the operational line, Latinusa experienced a 98.64% jump in operating profit from Rp47.74 billion in 9M 2009 to Rp94.83 billion in 9M 2010, resulting higher operating margin from 5.36% to 8.9% in 9M 2010.
Latinusa booked Rp176.65 billion gross profit, a 65.45% rise from Rp106.77 billion in 9M 2009.
Cost of goods sold elevated 13.47% from Rp783.28 billion to Rp888.80 billion in 9M 2010. Net sales remained robust at 19.71% growth from Rp890.05 billion in 9M 2009 to Rp1.06 trillion in 9M 2010. All sales came from the local market of 83,464 tons tin plate worth IDR1.07 trillion.

Disclosure: No position at the stock mentioned above.

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Indomobil to convert units debt

PT Indomobil Sukses Internasional Tbk and its subsidiaries plan to convert Rp339.76 billion and Rp40.24 billion of debt respectively to PT Tritunggal Intipermata into equity, thus the ownership of the Tritunggal in Indomobil rose to 24.58% from 20.47% today.

In the company’s prospectus released today Indomobil mentioned that the total debt to be converted into shares reached Rp380 billion. So, the company will conducted a rights issue without preemptive rights for as much as 54.29 million shares to Tritunggal.
The total debts of the company’s subsidiaries which were acquired by Indomobil and converted into shares of the Tritunggal, are PT IMG Sejahtera Langgeng (IMGSL) which is 75% owned by Indomobil, Trinity Intipermata of 21.25%, and Anthoni Salim of 2.5%.
Besides, PT National Assemlers’s debt that 97% of its shares owned by Indomobil, and PT Unicor Prima Motor’s debt that 83.81% of its shares also owned by Indomobil will be acquired by the company.
According to the plan, Indomobil must obtain approval first from its shareholders through a extraordinary general meeting of shareholders (EGM) which will be held in November 26.
Indomobil shareowners currently consists of PT Cipta Sarana Duta Perkasa of 72.63%, PT Trinity Intipermata of 20.47%, and public of 6.9%.

Disclosure: No position at the stock mentioned above.

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Mustika Ratu & Chinese cosmetics

PT Mustika Ratu Tbk, (MRAT) established in 1975 is engaged in the production, distribution and marketing of herbal-based and natural cosmetics, herbal drinks and other related activities. 

In a company report published by PT Pefindo, MRAT also produces body care products for men, opens and franchises spa centers, and creates home spa products. MRAT introduces Indonesian unique tradition SPA, namely Taman sari Royal Heritage Spa. Besides in Jakarta, Yogyakarta and other big cities in Indonesia, MRAT Spa has also penetrated Singapore, Malaysia, Thailand, Japan, China, Russia, Czech, Bulgaria, and Canada, even to Africa.
Efficiency for higher margin
Mustika Ratu recorded good performance in 2009, its sales reach Rp345.58 billion or increase 12.27% YoY from 2008 figure of Rp307.80 billion. 

Operating profit in 2009 shows even better increases, it reach Rp41.55 billion, raise 64.24% YoY from 2008 figure of Rp25.30 billion. MRAT’s efficiency showed its effect here, they success to reduce operating expenses from 47.45% to 44.44%, so they booked better operating margin of 12.02% compared to 8.22% in 2008.
Still growing after pressure from Chinese cosmetics
 MRAT booked moderate revenue growth of 3.15% YoY in 1H 2010; it might because there is more competition from China’s cosmetics, in 2009 almost 30% domestic market of cosmetic is devoured by China’s product which offer lower price. 

With such a competition, MRAT still can book revenue growth in 1H 2010, it shows that MRAT strategy in improving their sales is working. As they success to improve their margin in 2009, MRAT keep maintain it so in 1H 2010 they record 11.12% operating margin, comfy above 5 years average of 8.36%. 

"As we believe MRAT is consistent maintaining their margin, we estimate MRAT operating margin for 2010-2014 will be in range of 11.5%-12%."
Business prospects
 Global economic downturn seems not affected MRAT’s sales, pass 2008 global downturn, MRAT still can booked 12.27% YoY sales growth in 2009. 

"We estimate MRAT’s revenue growth will still in good figure in 2010, as they book 3.15% YoY growth in 1H10. In addition, the increase in Indonesia economic growth to above 6% in 2010 and recovering purchasing power is expected to support MRAT, for 2010 we estimate MRAT to book at least 8.97% YoY revenue growth to reach Rp 376.57 billion. 

Please download here to read all MRAT report.

Disclosure: No position at the stock mentioned above.

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Medco Energi placed on credit watch

Local rating agency PT Pemeringkat Efek Indonesia (Pefindo) assigned the rating of oil and gas producer PT Medco Energi Internasional Tbk (MEDC) on credit watch with developing implications following the proposed acquisition of Encore Energy Pte Ltd, the ultimate shareholder of MEDC, by PT Pertamina, the largest oil and gas producer in Indonesia.

Currently, the ratings of MEDC, its bond II/2009 of Rp1.5 trillion, MTN I-II/2009-2010 of US$100 million and proposed MTN III/2010 of USD50 million are _idAA-.

If the acquisition plan is materialized and Pertamina becomes the new shareholder, it could create a good business synergy and subsequently strengthen MEDC’s business profile. 

However, the change of shareholder structure may have implications on certain loans but the company believes that remedial steps can be taken.

Pefindo will closely monitor the realization of the acquisition and the impact to the MEDC’s overall business and financial performances.

MEDC is the largest privately-owned independent oil and gas company in Indonesia. MEDC is also engaged in downstream business (ethanol, LPG, distribution of high speed diesel) and power generation. MEDC is a public company listed in Indonesia Stock Exchange (IDX).

Disclosure: No position at the stock mentioned above.

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BNP Paribas owns 11.07% Voksel

BNP Paribas Wealth Management Singapore is recorded to have 11.07% stake or 92.03 million shares in cable manufacturer PT Voksel Electric Tbk (VOKS) on October 25 2010.

Based on data released by PT Kustodian Sentral Efek Indonesia (Indonesian Central Securities Depository) dated on October 25, following BNP Paribas, PT Transpacific Securindo is also recorded to add 34.39 million shares in Voksel from 11.07% to 15.21%.

The remain controlling shareholder in Voksel is Perfect Prospect Limited by holding 21.97% stake since July 10 2008.   

In 2009, Voksel Electric posted a 6.25% increase in total assets from Rp1.17 trillion to Rp1.24 trillion, but capital expenditure fell 68.28% from Rp89.92 billion in 2008 to Rp28.52 billion in 2009. Somethings is really weird here that there is no latest financial data available both at Indonesia Stock Exchange and Voksel Electric's site.

 
Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Trimegah Securities gave insights and recommendations on today's trading. What stocks are worth to buy or sell? Here is the recommendation as reported by Bisnis.com today: 
 

Trimegah Securities: 

With potential of further rally, Jakarta Composite Index (JCI) succeeded to record new high. Yet, profit taking by some investors towards end of trading session slowed the index's move as it was closed slightly higher 0.3%. 

Although another rally is possible, investors must be alert with Stochastic indicating overbought, offering a space for selling action to take place. Today, JCI may move between 3,631-3,674, with recommended shares like BMRI and TLKM.

Disclosure: No position at the stock mentioned above.

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Kalbe Farma 9M net profit rises 46.5%

One of Indonesia's largest pharmaceutical company PT Kalbe Farma Tbk (KLBF) keeps maintaining its performance growth. In the first 9 months of 2010, Kalbe Farma posted a 46.5% jump in net profit to Rp902 billion from Rp616 billion in 9M 2009. Thanks to robust collaboration between higher revenue and controllable production cost.

Kalbe Farma Corporate Secretary Vidjongtius said earning per share remains positive with a 50% growth from Rp64 to Rp96. EBITDA keeps climbing 20.6% from Rp1.18 trillion in 9M 2009 to Rp1.43 trillion in 9M 2010.

Operating profit rose 22.3% from Rp1.05 trillion in 9M 2009 to Rp1.29 trillion, reflecting a growth margin from 16.2% to 17.7% as a result of controllable production cost as well as productivity advanced.

Gross profit also increased 16.7% from Rp3.19 trillion at the end of September 2009 to Rp3.73 trillion in 9M 2010, lifting gross margin from 49.2% to 51.2% in 9M 2010.

Kalbe Farma booked a 12% growth in revenue from Rp6.49 trillion in 9M 2009 to Rp7.27 trillion in 9M 2010 

In term of nominal contribution, revenue coming from distribution and logistic division remained the largest. Still, nutrition business showed the highest growth of 22.6% and ethical division posted a 16.4% increase.

Disclosure: No position at the stock mentioned above. 
 
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Bukit Asam 9M net profit falls 36.93%

Despite higher coal sales volume, publicly listed coal miner PT Tambang Batubara Bukit Asam Tbk (PTBA) suffered a 36.93% drop in net profit as revenue fell.

In an official press statement today, Bukit Asam reported Rp1.4 trillion net profit in the first 9 months this year (9M 2010) from Rp2.23 trillion in 9M 2009.

In line with the plunge at the company's bottom line, operating profit also tumbled 45.94% from Rp2.96 trillion in 9M 2009 to Rp1.6 trillion in 9M 2010. In return, operating margin steeply drop from 45.19% in 9M 2009 to 27.12% in 9M 2010.

Still, Bukit Asam gross margin plummeted 32.11% from Rp3.83 trillion in 9M 2009 to Rp2.6 trillion in 9M 2010, dragging down its gross margin from 58.47% in 9M 2009 to 44.07% in 9M 2010.

Revenue also slashed 9,92% from Rp6.55 trillion to Rp5.9 trillion in 9M 2010 as a result of lower weighted average selling price (WASP) both the domestic market and export market.

Bukit Asam posted 9.78 million tons thermal coal, a 12% increase from 8.73 million tons a year earlier. WASP in the domestic market abated 18% from Rp751,428 per ton to Rp613,214 per ton in 9M 2010, while in the export market, WASP also fell 6% from US$68.98 per ton in 9M 2009 to US$65.44 per ton.

Disclosure: No position at the stock mentioned above.
 
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No talks with Michelin, GJTL says

The management of Indonesia’s largest tire producer PT Gajah Tunggal Tbk (GJTL) affirmed that his company has not yet held any talks with Michelin regarding the speculation over the shares uplifting.
Such rumor has boosted Gajah Tunggal’s stock price as much as 7.32% to IDR2,200 per share in yesterday’s trading.
Today, the GJTL-coded stock climbed by 1.17% to Rp2,225 per share. “As far as I know, there have not been any talks regarding to that matter. Michelin still controls 10% of the share since 2004,” said Gajah Tunggal’s Director Catharina Widjaja.
Indonesia Stock Exchange (IDX) data shows as per 3- September 2010, Michelin still holds 10% share of the GT Radial-brand tire producer.
Denham Pte Ltd becomes the majority shareholder of GJTL by acquiring 47.59% shares while the remaining 42.41% owns by public.
Who will excessively buy Gajah Tunggal’s stock?
CLSA Indonesia recorded Rp14.98 billion net buy over Gajah Tunggal’s share, while OSK Nusadana bought nearly Rp7.60 billion and Reliance Securities purchased around Rp5.82 billion.
Philip Securities and Danareksa Sekuritas booked a net buy over GJTL as much as Rp4.21 billion and Rp3.71 billion respectively.
Seeing from its valuation, Gajah Tunggal stock apparently poses relatively cheap stock valuation as it only books 6.58 times of price to earnings ratio (P/E).
Such stock price was only 2.52 times over its book value as per June 2010, reaching Rp879.82 per share.

Disclosure: No position at the stock mentioned above.

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Tower Bersama jumps 14.81% on debut

PT Tower Bersama Infrastructures Tbk (TBIG) today skyrockets 14.81% or IDR300 per share to IDR2,325 on trading debut at Indonesia Stock Exchange (IDX).
Tower Bersama downsized the IPO size from a maximum of 755 million shares or 15.86% stake to about 551.11 million shares or 12.09% stake at Rp2,025 per share, enabling the company to snap up Rp1.12 trillion.
Referring to Tower Bersama's IPO prospectus, when the IPO is oversubscribed, the company's shareholders dubbed PT Provident Capital Indonesia and PT Wahana Anugerah Sejahtera provide an option to the IPO underwriters to hold over allotment option of 82.67 million shares.
The shares, will be provided by Provident Capital and Wahana Sejahtera, will take about 15% of Tower Bersama's IPO size.
PT UBS Securities Indonesia and PT Indo Premier Securities are lead underwriters for the IPO, and PT DBS Vickers Securities Indonesia is the IPO underwriter.
On behalf of Tower Bersama, UBS Securities is in charge as allotment manager during the IPO.
Fixed allotment will take 98% of the IPO size or 540.08 million shares and the remaining shares or 11.02 million shares will be distributed for pooling allotment.
Besides the IPO, Provident Capital and Wahana Sejahtera aim to place 339.75 million shares to long-term investor, hedge funds, and wealth management. Provident and Wahana Sejahtera will place 169.88 million shares and 169.88 million shares respectively. 

Disclosure: No position at the stock mentioned above.

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Indosat fully repays Rp640 bio bond

Indonesia's second largest cellular operator PT Indosat Tbk (ISAT) today reports that the operator has fully repaid the principal and outstanding interest on Indosat Bond III series B, issued in 2003.
The principal repayment of Rp640 billion and associated interest was made on October 22, 2010. The payments were executed through PT Kustodian Sentral Efek Indonesia.
In first 9 months of 2010, Indosat suffered 63.4% plunge bottom line on the back of rupiah appreciation against US$ and higher financing cost.
The operator posted Rp530.9 billion net profit by the end of the third quarter this year from Rp1.45 trillion a year earlier.
Despite lower net profit, the operator stayed at a positive growth on its EBITDA margin.  As of September 30 2010, Indosat's EBITDA margin rose 1.9% from 46.1% at the end of September 2010 to 48%.
EBITDA rose 12.6% from Rp6.33 trillion in the first 9 months of last year to Rp7.13 trillion.
Revenue increased 8.1% from Rp13.73 trillion to Rp14.84 trillion as of September 2010. At the end of September 2010, Indosat spent Rp4.34 trillion, less than Rp9.46 trillion a year earlier. Subscribers grew 40.9% from 28.2 million to 39.7 million in September 2010.

Disclosure: No position at the stock mentioned above.

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BNI rights issue at Rp2,300-Rp3,700

One of Indonesia's largest state lenders PT Bank Negara Indonesia Tbk (BNI) today announces Rp7.75 trillion-Rp12.47 trillion third rights issue with preemptive scheduled on December 16 2010.
In the rights issue prospectus published today, BNI aims to issue 3.37 billion new shares of C series at Rp2,300-Rp3,700 per share. Each one preemptive give rights to buy one new shares, reflecting a 18.1% dilution for existing shareholders
Bahana Securities is mandated as standby buyer for the rights issue.
About 80% of the proceed will be used by BNI to support corporate loan, small to medium enterprises, and consumers credit. BNI will utilize 15% of the rights issue proceed to develop information technology infrastructure, new outlets, and automatic teller machines.
The remaining is planned by the bank to develop business of several subsidiaries.
Post rights issue, the government of Indonesia remains 60% stake controlling shareholder in BNI, shrinking from 71.84% stake, while public shareholders enlarge from 26.67% stake to 39.61% stake.

Disclosure: No position at the stock mentioned above.
 
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Petrosea, Kideco & US$200 mio contract

Engineering and coal mining contractor PT Petrosea Tbk (PTRO) has secured 1st contract with coal miner PT Kideco Jaya Agung, a 46% owned by PT Indika Energy Tbk (INDY).
Petrosea has signed a 5-year mining coal contract with Kideco at Samarangau, East Kalimantan, with an estimated value of US$200 million.
Indika Energy owns both Petrosea (98.55%) and Kideco (46%).
“We are very pleased with this progress. This is a concrete development for Indika Energy as these two companies begin to derive synergy from each other’s capabilities and resources to tap the growth potential of the energy industry” said Arsjad Rasjid, Indika President Director, in a press statement.
By securing the contract, Petrose has sealed US$890.7 million contracts. Petrosea has also bagged supply base contract worth US$18.5 million from Total E&P Indonesie.

Disclosure: No position at the stock mentioned above. 

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Gozco 9M net profit drops 21.13%

CPO player PT Gozco Plantations Tbk (GZCO) suffers a 21.13% drop in earning at the end of September 2010 as net sales tumbled.
In the financial report submitted to Indonesia Stock Exchange (IDX), Gozco reported Rp100.52 billion net profit or Rp20.10 per share in the first 9 months this year (9M 2010) from Rp127.45 billion or Rp25.49 per share in 9M 2009.
The profit contribution from associated companies to Gozco shrank from Rp64.50 billion in 9M 2009 to Rp58.21 billion in 9M 2010.
Despite lower earning, Gozco still enabled to jack up its operating profit 9.23% from Rp88.59 billion in 9M 2009 to Rp96.77 billion in 9M 2010, reflecting a higher operating margin from 28.98% to 33.21% as costs lowered.
In line with higher operating profit, Gozco's gross profit also inched 8.55% from Rp107.69 billion in 9M 2009 to Rp116.90 billion in 9M 2010. In return, gross profit climbed from 35.23% to 40.12% in 9M 2010.
Gozco dragged down cost of goods sold 11.89% from Rp198.02 billion at the end of September 2009 to Rp174.47 billion in 9M 2010.
But, net sales plummeted 4.69% from Rp305.71 billion in 9M 2009 to Rp291.37 billion in 9M 2010. CPO's sales abated 7.30% from Rp283.19 billion in 9M 2009 to Rp262.51 billion in 9M 2010.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Jakarta Composite Index (JCI) potentially books its new highest record amidst the global encouraging sentiments such as the positive indication from G-20 meeting, latest US’s economic data, the commodity prices jump and the Q3 earning reports of most best performing companies.

However, it is highly suggested for investors to anticipate the profit taking. So, what’s in the shopping lists today? Bisnis reports several recommendations:

Trimegah Securities: The improved buying interest over some blue chip shares may become certain catalyst to JCI’s gain. The fact that JCI was strongly stood at 3,600 as its psychological level produces an opportunity for further gain. Today, JCI shall move between 3,625 and 3,678 with recommended stocks, INCO and INDY.

Panin Sekuritas: JCI booked its new records following the rise of commodity prices and the vigorous Asian market.
Apart from that, it seems that investors will begin to anticipate the earnings report of K3-10.
Today, JCI may post another gain as banking, mining and cement companies may become the leading contributors to the gain. The range of supporting and resistant level is between 3,622 and 3,685.

e-Trading Securities: Yesterday, JCI was closed 45 points or 1.27% higher at 3,643 or below the JCI’s all time high range. Foreign investors still conducted 137 billion net buy in the regular market.

During Monday’s trading, the leading drivers were INDY, ASII and ANTM. Today, JCI shall move between 3,533 and 3,645 as commodity stocks such as plantation and mining may become your main priorities. The recommended stocks are ANTM, HRUM, ICBP, and UNSP.

Sinarmas Sekuritas: It seems that the global index such as the existing US’s home sales figure in September will become the main catalyst to JCI’s gain today.

The market expectation over such figure is somehow better than August. The index shall move within the range if 3,589 and 3,668 with recommended stocks: TINS, INCO, and INDF.

Erdikha Sekuritas: Finally, JCI was closed at its highest level by touching 3,643.49 (1.3% higher). The gain of agricultural stocks following the rise of global CPO price as well as the jump of banking stocks positively encouraged the gain.

Today, JCI may continue its limited gain as it will swing between 3,580 and 3,675. The recommended stocks are BBCA, BBTN and MEDC. 

Disclosure: No position at the stock mentioned above.

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Indika to pay Rp48 interim dividend

Engineering and coal mining company PT Indika Energy Tbk (INDY) will distribute Rp249.94 billion or Rp48 per share interim dividend on November 30 2010.
The interim dividend will be counted by Indika to the final dividend which will be decided during annual general meeting of shareholders for the fiscal year of 2010.
Indika has set a 89.9% growth in net profit to US$146.6 million this year from last year's position at US$77.2 million.
Net revenue is estimated to rise 81.2% from US$264.5 million in 2009 to US$479.4 million in 2010.  Capital expenditure is set to enlarge by 126.3% from US$41.1 million in 2009 to US$93 million.

 
Disclosure: No position at the stock mentioned above.

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Dayaindo eyes Rp1 trio revenue

PT Dayaindo Resources International Tbk may record Rp1 trillion revenue through the third quarter of 2010, following its partnership with Agritrade International Pte Ltd, a Singapore-based coal trading company.

“Our revenue may be more than IDR1 trillion, but I could not mention the exact number yet. Partnership with Agritrade helps us to export coal to China, which has been difficult to infiltrate,” Vice President of Finance Dayaindo Resources Heriman said.
He could not mention further the net profit recorded by the company at the same period, as the financial report is still being composed.

According to Heriman, the revenue is predicted to rise at least by 58.26% from the second quarter of 2010 at Rp631.87 billion.
The predicted revenue also jumped 719.51% from Rp122.02 billion, which was booked in the third quarter of 2009. In the second quarter of 2010, the company recorded Rp13.77 billion net profit, making the profit margin at 2.18%.

Disclosure: No position at the stock mentioned above.
 
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Kimia Farma revives rights issue

Publicly listed pharmaceutical producer PT Kimia Farma Tbk (KAEF) plans to hold rights issue in the first half of next year in a bid to boost free float and snap up Rp500 billion. revives
Kimia Farma's President Director Sjamsul Arifin said the company will issue 3 billion new shares into the market.
Post rights issue, the company's free float will enlarge from currently 550 million shares to 3.5 billion shares.
"The rights issue will dilute the government stake to 60%-65%, while public holders will balloon from 10% to 35%-40%," he said.
During the rights issue, Kimia Farma is estimated to issue new shares at Rp150 per share-Rp200 per share.
But, the corporate action is awaiting approval from the State-Owned Enterprises Ministry and calculation of P/E.
Kimia Farma will use the proceed to set up a plant in Kerawang worth US$10 million-US$12 million, partnering a Chiense state-owned.

Disclosure: No position at the stock mentioned above.

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Petrosea secures US$18.5 mio contract

Multidisciplinary mining, engineering, and construction company PT Petrosea Tbk, a wholly owned subsidiary of engineering and coal company PT Indika Energy Tbk (INDY), has recently signed a supply base logistic contract with Total E&P Indonesie worth US$18.5 million.

In a press statement today, Petrosea will provide logistic supply base of Total's offshore operations through Petrosea Offshore Supply Base in Tanjung Batu, East Kalimantan.
"This contract reflects momentum for growth of the supply base growth that has been started since 2006," said Wadyono Suliantoro, Petrosea President Director, said in the statement.
Petrosea also gas experiences providing supply base service to Exxon Mobil, ENI Burkat, Marathon, Anadarko, Baroid, Halliburton, and MI Swaco.

Disclosure: No position at the stock mentioned above.

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Borneo Lumbung Energi to lift IPO size

The only hard coking coal producer in Indonesia PT Borneo Lumbung Energi & Metal Tbk (BORN) is considering to enlarge the IPO size from current position of 20% stake or 3.32 billion new shares to 25% stake or 4.4 billion shares.

I Wayan Gemuh, Director at CIMB Securities, Borneo will consider to lift the IPO size when the market is positive.   

Borneo has set the IPO price at Rp980-Rp1,280 per share, to snap up Rp3.26 trillion-Rp4.26 trillion from the IPO of 3.33 billion new shares.

CIMB Securities, Credit Suisse, and Morgan Stanley are the IPO underwriters for Borneo Lumbung Energy.
BORN plans to use 50% of the IPO proceed for debt refinancing, to Sinarmas Sekuritas, CIMB Bank, and RZB Bank.
Borneo has secured 1 year contract to supply 1 million tons coking coal to Zhonglian Resources. Borneo is in talks with one Chinese buyer to supply another 1 million tons and one Taiwanese buyer for 3 month contract.

Disclosure: No position at the stock mentioned above.

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Krakatau Steel sets IPO at Rp850

State-Owned Enterprises Ministry and PT Krakatau Steel (Persero) Tbk have determined the IPO price at Rp850 per share, enabling Indonesia's largest steel manufacturer to snap up Rp2.69 trillion proceed.

Secretary to SEO Ministry Mahmuddin Yasin said referring to the IPO price, Krakatau Steel's IPO obtains 2 folds oversubscribed.

"About 65% of the IPO will be allocated to local investor and the remaining goes to foreign investor," he said today.

Disclosure: No position at the stock mentioned above.
 
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Borneo IPO price at Rp980-Rp1,280

Hard coking coal producer PT Borneo Lumbung Energi & Metal Tbk (BORN) today has set the IPO price at Rp980-Rp1,280 per share.

During a public expose and due diligence meeting, a source familiar with the matter said Borneo plans to snap up Rp3.26 trillion-Rp4.26 trillion from the IPO of 3.33 billion new shares.

CIMB Securities, Credit Suisse, and Morgan Stanley are the IPO underwriters for Borneo Lumbung Energy.

BORN plans to use 50% of the IPO proceed for debt refinancing, to Sinarmas Sekuritas, CIMB Bank, and RZB Bank. 

About 35% of the proceed is intended to support capital expenditure, and 15% is for working capital and general corporate purposes. Borneo Lumbung Energi mandates CIMB Securities, Credit Suisse, and Morgan Stanley as joint underwriters. Roadshow is scheduled on October 25-November 9 2010, pricing is scheduled on November 10, and listing date is estimated on November 29 2010.

Disclosure: No position at the stock mentioned above.

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Tri Polyta to pay Rp65 dividend

Petrochemical products maker PT Tri Polyta Indonesia Tbk (TPIA) today officially announces Rp65 per share interim dividend.
In a public announcement today, Tri Polyta's board of commissioner has approved the distribution of dividend interim. Tri Polyta also plans to merge with its sister company PT Chandra Asri.
The merger is estimate to generate a combined revenue amounting Rp17 trillion-Rp20 trillion per year along with US$1.5 billion (Rp13.35 trillion) assets.
Referring to the company’s performance as per June 2010, the merger of Tri Polyta, the maker of 360,000-ton polypropylene per year, and Chandra Asri, the producer of polypropylene, ethylene and polyethylene, may result in Rp17 trillion-Rp20 trillion total sale per year.
Tri Polyta is estimated to book Rp5 trillion revenue per year, while Chandra Asri may post three times higher revenue than Tri Polyta. With regard to gross profit, such joint venture controlled by PT Barito Pacific Tbk (BRPT), the holding company owned by Prajogo Pangestu, may generate Rp1.5 trillion gross profit.

Disclosure: No position at the stock mentioned above.

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LPKR eyes Rp2.38 trio rights issue

Property developer PT Lippo Karawaci Tbk (LPKR) had officially proposed rights issue worth Rp2.38 trillion to Capital Market Supervisory Agency and Financial Institution Supervisory Agency (Bapepam-LK) this week, which expected to be settle at least December 2010.
President Director of Lippo Karawaci, Ketut Budi Wijaya, said his party had officially registered the rights issue documents to Bapepam-LK this week, to receive approval from the shareholders.
The shareholders will asked to approve the new shares emission as much as 4.3 billion at price of Rp550 per unit.
"The shareholders who owned 100 units shares will have the right for 25 new shares at price of Rp550 per shares. This rights issue is expected to be settle on 27 December 2010," he said in the press release, this evening.
The corporate action, he continued, will increase the total fund of LPKR-coded shareholders as much as Rp2.38 trillion or 45.2% to Rp7.64 trillion. The fund will be used to finances the development of residential, malls, hospitals and working capital. 
Up to now, the recurring income of the property listed company was mostly gained from the residential division with contribution up to Rp1.16 trillion or equal 52% of its total income until September 2010, i.e. Rp2.23 trillion.
"Third quarterly is strong for residential. The recurring income reaching 52% and its overall images are encouraging. Fourth quarterly seem good, anticipate records in business and profit achievement," said Ketut. 
Beside supported by residential business, the company's income were also contributed by hospitals division that rose 12.5% and retail malls business that grew 15%. Even though, both contributions were still relatively small for the company yet its asset management division booked an increase of 63%. 

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Jakarta Composite Index (JCI) today will once more test the psychological level at 3,600. However, some regional factors are predicted to be a catalyst for the index. Some of the recommended shares are: BMRI, PTBA, BUMI, ANTM, BBCA, ADRO, HRUM, BDMN, and HEXA.

Here are recommendations from several securities companies as reported by Bisnis.com today:

Sinarmas Sekuritas:The result from G20 meeting last week in South Korea on Friday and Saturday becomes a catalyst for global index and JCI today. The stance of G20 countries to avoid discussion on currency may influence world’s major indices. JCI is expected to move within the range of 3,565–3,628. Recommended shares: BMRI, PTBA, and BUMI.

Trimegah Securities:JCI successfully extended the gains despite several pressures before the closing last week. As JCI failed to stay above the psychological level of 3,600, the level will be the key to its further move.
If it can pass the level and stay, there will be a chance to record the new high, at least for a short term. Today, JCI will move within 3,573-3,616, with recommended shares: ANTM, BBCA, and HEXA.

eTrading Securities:JCI last week strengthened 9 points (0.27%) to close at below 3,600. Foreign investors made a net sell at IDR8 billion in regular market on Friday.
The drivers of the index were mining sector and second liners. JCI today will move within 3,533-3,641 and several shares to watch include ADRO, HRUM, ANTM, and BDMN. 

Disclosure: No position at the stock mentioned above.

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Who is Borneo Lumbung Energi?

Hard coking coal producer PT Borneo Lumbung Energi Tbk (BORN) schedules a public expose and due diligence meeting of the IPO tomorrow. 

Share holders:

Borneo Lumbung Energi is 99% controlled by PT Republik Energi and Metal, which is 99% owned by PT Republik Komoditi.

Operational:

Borneo Lumbung Energi manages and operated two subsidiaries, PT Asmin Koalindo Tuhup (AKT), the only hard coking coal miner in Indonesia, and PT Borneo Mining Services (BMS), equipment rental to AKT.

AKT owns two coking coal mining blocks in Kalimantan, dubbed Kohong and Telakon with 21,630 hectares area.

Based on the IPO prospectus, Kohong is estimated to have 69.2 million tons hard coking coal reserves and 280.7 million tons resources. Telakon is estimated to own 98.1 million tons resources.

Borneo Lumbung Energi's production capacity is 3.6 million tons of hard coking coal by the end of 2010 and increased to 5 million tons in 2011.

As of June 2010, BORN produced 752,107 tons and 617,603 tons sales. Average selling price was at US$191.50 per ton with US$57.50 cash cost. Average stripping ratio stood at 12.9 times.

During the second half of 2010, BORN plans to spend US$50 million capital expenditure to buy mining equipments in a bid to boost production capacity to 3.6 million tons by the end of 2010.

BORN estimates that production and sales volume to reach 1.8 million tons and 1.6 million tons respectively in 2010.

BORN sells all its coking coal through its marketing agents, Glencore, which has a 3 year contract (expiring on July 23 2010), Sumitomo and AsiaCo.

Morgan Stanley research said Glencore charges BORN a 4.5% commission. For Sumitomo, commission is paid by customers, which are limited for Japanese clients and AsiaCo (US$0.5 per ton up to maximum of 300,000 metric ton in Japan and US$1 per ton for sales outside Japan).

In May 2010,  BORN entered into 1 year local take-off contract to supply a domestic customer, PT Shenrong Carbon with 10,000 metric ton per month.

BORN also has secured coal sales agreement of 1 million tons from Chinese company dubbed Zhonglian Resources Company Limited on October 4 2010. Under the agreement, AKT will sell 1 million tons coking coal at the negotiation price based on the quarterly market coking coal.

Financial performance:

BORN posted Rp1.07 trillion operating revenue, Rp350.90 billion operating profit, operating margin of 32.65%, and Rp20.65 billion net profit.

Morgan Stanley, one of joint global coordinators and book runners, estimates that BORN is expected to book Rp2.66 trillion revenue, Rp1.07 trillion EBITDA, and Rp238.2 billion net profit in 2010. BORN is estimated to post a steep jump in revenue to Rp6.76 trillion, Rp2.92 trillion EBITDA, and Rp1.49 trillion net profit in 2011. As of June 2010, BORN reported a US$374 million net debt

IPO Summary:

BORN aims to offload 4.4 billion new shares, representing 25% of the total shares issued of 39.81 billion. By selling 25% stake, BORN expects Rp5.15 trillion proceed, equal to Rp20.6 trillion market capitalization.

Morgan Stanley reports BORN valuation is around US$1.5 billion-US$2.1 billion based on 2011 EV/EBITDA of 6-8 times.

BORN plans to use 50% of the IPO proceed for debt refinancing, to Sinarmas Sekuritas, CIMB Bank, and RZB Bank. About 35% of the proceed is intended to support capital expenditure, and 15% is for working capital and general corporate purposes. Borneo Lumbung Energi mandates CIMB Securities, Credit Suisse, and Morgan Stanley as joint underwriters. Roadshow is scheduled on October 25-November 9 2010, pricing is scheduled on November 10, and listing date is estimated on November 29 2010.

 
Disclosure: No position at the stock mentioned above.

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BTPN to jack up rights issue

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) will potentially rise its value in rights issue from Rp1 trillion to Rp1.3 trillion.
Director BTPN Anika Faisal revealed that approval of the rights issue plan will be decided in the extraordinary meeting of shareholders scheduled on November 25, 2010.
”The proceed gathered from the rights issue will be allocated to strengthen the capital and to support business growth through credit expansion,” Anika said.
BTPN has appointed PT CIMB Securities Indonesia and PT Danareksa Securities as the underwriters. BTPN will also issue bonds worth as much as Rp1.25 trillion and it has chosen CIMB Securities, Danareksa Sekuritas, and Indo Premier Securities as the underwriters.
BTPN’s net profit in the first half of this year jumped 146% to Rp345.3 billion from Rp140.6 billion at the same period last year.
Fitch Rating set the long-term national rating of BTPN at AA-(idn), individual rating at level D, and support rating at level 4.

Disclosure: No position at the stock mentioned above.

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UNSP finally completes Domba Mas deal

After prolonged delay, CPO producer PT Bakrie Sumatera Plantations Tbk (UNSP) and one of Indonesia's largest lender PT Bank Mandiri Tbk (BMRI) today enter into settlement agreement on US$180 million debt take over of Domba Mas Group. 

In an official press statement, Thomas Arifin, Bank Mandiri's Director of Treasury, Financial Institutions, and Special Asset Management, said Bakrie Plantations takes over Domba Mas debt with settlement commitment of 18 months until 7 years, charging commercial interest rates.  

Since 2005, Domba Mas has entered into debtors' list of Bank Mandiri with total debt of US$320 million. The remaining debt is now around US$180 million after Domba Mas paid the installments.
Bakrie Plantation President Director said the settlement is in line with commitment mentioned on the rights issue prospectus. 

Disclosure: No position at the stock mentioned above.

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Krakatau Steel demand nigh to 6 folds

The State-Owned Enterprises Ministry, underwriters, and PT Krakatau Steel (Persero) Tbk last friday had determined the final price of the IPO.

Secretary to the SOE Ministry Mahmuddin Yasin confirmed that the market demand for the stocks is nigh to 6 times oversubscribed, or equal to Rp12 trillion. At what price Krakatau Steel stocks will be offloaded? Please login here.

Krakatau Steel plans to dispose 3.16 billion shares or 20% during initial public offering (IPO) scheduled on November 10 2010. The company, based on the IPO prospectus published today, will use 35.8% of the shares sale proceed to support capital expenditure regarding to revitalization and output capacity expansion.
Krakatau Steel is aiming to utilize 24.2% of the proceed as working capital. 

The company intends to use 25% of the proceed to finance 388 hectares area for integrated steel plant rolled out with POSCO.

Disclosure: No position at the stock mentioned above.

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Rinaldi Firmansyah still leads Telkom

Final Assessing Team (TPA) is reportedly deciding to announce new members of Board of Directors and Commissioners of PT Telekomunikasi Indonesia (Persero) Tbk (Telkom), a state-owned telecommunication company.
According to a person familiar with the matter Rinaldi Firmansyah was believed to remain at the position as President Director PT Telkom.
If the news are confirmed, it means that Rinaldi beat the Director of Network and Solution Telkom Ermadi Dahlan and Director of Enterprises and Wholesale Telkom Arief Yahya, who are reportedly named to hold the seat in the state-owned company.
”Rinaldi will reportedly remain as the President Director. Other candidates are Ermadi Dahlan and Arief Yahya,” the person said today.
In the meantime, Former Minister of Transportation Jusman Syafii Djamal reportedly will be appointed as the President Commissioner Telkom. Moreover, Rudi Antara and Joni Swandi Sjam will be Commissioners.
The current President Commissioner is Tanri Abeng while other commissioners are Bobby A.A Nazief, Mahmuddin Yasin, P. Sartono and Arif Arryman (deceased).
Rinaldi got the highest score in the assessment, but the employees prefer to choose Arief Yahya to hold the top position in Indonesia’s leading telecommunication company.
In terms with the reshuffle in Board of Directors of Telkom, Ministry of State-Owned Enterprise (SOE) Mustafa Abubakar declined to comment. “I could not tell [when]. Hopefully it will be announced soon,” he said.
Mustafa had mentioned before that there will be a reshuffle of Board of Directors by the end of this month.
In terms with the plan of partnership with Bakrie Telecom to make a join venture running a CDMA-based telecommunication business, Mustafa said that the corporate action may continue before the forming of new management.
Once the partnership realized, Flexi and Esia will be managed under the same roof, within the new joint venture.
“The plan of Flexi-Esia can continue. It has no connection with the management, so it does not have to wait for the new management,” he affirmed.

Disclosure: No position at the stock mentioned above.

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Indo coal output to reach 340 mio tons

Indonesian Coal Mining Association estimates that coal production volume coming from Indonesia to reach 340 million tons in 2011, surpassing this year's target of 310 million tons.
"Giant coal miners, lifting by 5%-6%, contribute the output rise as well as additional production from new mining companies," said ICMA Chairman Bob Kamandanu.
The target is more optimistic compared to the government official target, reaching 325 million tons in 2011.
During the nine months, said Bob, coal production volume reached 260 million tons, 60 million tons higher than the government record of 200 million tons. "Coal mining companies are optimistic that the output target of 310 million tons in 2010 is affordable."

Disclosure: No position at the stock mentioned above.
 
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MAPI to provide Payless ShoeSource

Publicly listed giant retailer PT Mitra Adiperkasa Tbk (MAPI) is aiming to provide Payless ShoeSource in Indonesia next year.
In a public statement filed to Indonesia Stock Exchange (IDX) today, Mitra Adiperkasa also has an opportunity to expand Payless ShoeSource chain in Singapore and Malaysia.
Payless ShoeSource is licensed concept from US focusing on shoes and accessories products. Payless ShoeSource networks are adopted by 4,500 outlets in the world.
Mitra Adiperkasa manages four main business such as department stores, specialty stores, food and beverage, and others.
In the department stores segment, Mitra Adiperkasa manages Sogo, Seibu, Debenhams, Lotus/Java. In the specialty stories, consisting sports, fashion and lifestyle, and chilren, MAPI manages famed brands such as Zara, Next, OshJOsh B'Gosh, Kipling, and others.  Licenses of Starbucks Coffee and Burger King are run by Mitra Adiperkasa.
In the first half of 2010, Mitra Adiperkasa posted Rp2.15 trillion net revenue, a 9.4% increase from Rp1.96 trillion a year earlier.
Gross profit rose 12.2% from Rp954 billion in 1H 2009 to Rp1.07 trillion in 1H 2010, while gross margin slightly increased from 48.6% to 49.9% in 1H 2010.
The retailer's operating income jumped 51.7% from Rp123 billion in 1H 2009 to Rp186 billion in 1H 2010. In return, operating margin went up from 6.2% to 8.7%. Bottom line abated 12.9% from Rp115 billion in 1H 2009 to Rp100 billion in 1H 2010.

Disclosure: No position at the stock mentioned above.

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Bukit Asam 9M coal sales rises 10%

Publicly listed coal miner PT Tambang Batubara Bukit Asam Tbk (PTBA) posted a 10% coal sales volume at the end of September 2010, while coal production elevated 4%.
Bukit Asam President Director Sukrisno said the company produced 8.8 million tons in 9M 2009. It means that Bukit Asam's output reached 9.68 million tons in 9M 2010.
According to him, bad weather for this year hasn't affected the company's production volume. In the domestic market, Bukit Asam sold 75% or 7.26 million tons of the total sales.
 

Disclosure: No position at the stock mentioned above.

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Krakatau Steel IPO demand Rp8 trio

Demand on PT Krakatau Steel (KS) shares is estimated to reach Rp7 trillion-Rp8 trillion, with 60% demands come from local investors and 40% from foreign investors.
KS President commissioner Zacky Anwar Makarim confirmed that investors demonstrate high response on the company’s initial public offering (IPO), as the result of the ongoing road show. “The result of road show, both domestic and abroad, is satisfying,” he said today.
He explained the possibility that the share will be offered at the highest price, but the exact price will not be announced until next Monday. The investors showing interest in the shares include Pohang Steel and Iron Co (Posco).
“Some foreign investors bid from Rp800 to Rp1,000, while local investors are willing to pay more.”
In the IPO, KS is planning to issue 3.15 billion shares, equal to 20% of 30% shares to be released by the company.
KS is offered with price in the range of Rp800-Rp1,150 per shares, with estimated price earning ration (P/E) reaching 9 to 11 times. The company has appointed PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas as the underwriters.
The company will complete the listing on November 10, 2010 and its road show to Asia, Europe, and US has been running from October 13.

Disclosure: No position at the stock mentioned above.  

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Bumitama Gunajaya seals US$135 mio

Consortia of 4 banks, DBS Indonesia, HSBC Bank Ekonomi Raharja, Bank Permata, and Bank Rabobank International pose to provide US$135 million loan facility to Bumitama Gunajaya Group.

Rajeev Babel, Head of Global Banking HSBC Indonesia, said initially Bumitama Gunajaya proposed US$110 million loan.

But, the demand from syndicated members were so strong. Hence, Bumitama Gunajaya took more 5 year loans. HSBC Indonesia and DBS Indonesia are lead arranger for the syndicated loan.

Bumitama Gunajaya is subsidiary of Harita Jayaraya, group of companies moving in mining, forestry, palm oil businesses.

In May 2010, Bumitama Gunajaya secured US$110 million loan facility to acquire plantation. The company also sealed US$80 million loan from Bank Mandiri. 

 
Disclosure: No position at the stock mentioned above.  

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BRI aims to issue Rp3 trio subdebt

State-owned PT Bank Rakyat Indonesia Tbk (BRI) aims to raise Rp3 trillion from subordinated bond issuance early next year. The proceed will be used to underpin business expansion.

A source familiar with the matter, as reported by Bisnis Indonesia today, said the subdebt issuance is part of BRI's financing plan next year.

BRI Head of Investor Relations Haru Koesmahargyo confirmed the bond issuance. "It is right that we plan to issue bond. But, we haven't determined the time, it is in line with the capital need."

The subdebt issuance is hopefully to jack up BRI capital adequacy ratio at the level of 12%. BRI keeps maintaining loan growth at 20%-25% next year.

Disclosure: No position at the stock mentioned above.  

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AMCO to be Indocitra standby buyer

PT Indocitra Finance today announces Rp3.60 trillion rights issue by issuing 1.44 billion shares at Rp2,500 per share.

In the rights issue prospectus published today, holder of one existing Indocitra share will obtain 30 preemptive rights to buy 30 new shares.

During the rights issue, AMCO Plc is posed as standby buyer with exercise commitment of up to 304.86 million shares at Rp2,500 per share or a total commitment of Rp762.15 billion.

Indocitra Finance plans to use 76.39% of the proceed to buy 20 billion new shares to be issued by Amstelco Plc, representing 99.65% stake.

Indocitra Finance also aims to use 0.0278% of the proceed to acquire 999,999 stake in AER, while the remaining of about 23.58% will be used as working capital.

Disclosure: No position at the stock mentioned above.

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