META sets Rp450 bio revenue in 2011

 Toll road operator PT Nusantara Infrastructure Tbk (META) targets 25% revenue increase or Rp450 billion by next year, compared to this year’s revenue target by Rp360 billion.
Finance Director of Nusantara Infrastructure Danni Hasan confirmed the infrastructure company is optimistic for a stronger operational performance by next year, following Rajawali group as a new shareholder.
“Operationally, our revenue can go up 25% for a coming year,” he said.
The acquisition of 3.2 million shares by Rajawali Group, as he continued, leads to lower significantly cost of fund and credit risk. On the other hand, today Rajawali Group announced for 23.6% acquisition of the shares worth IDR448 billion.
Meanwhile, the composition of the shares are Rajawali Group with 23.6%, followed by Hong Kong-based Eagle Infrastructure Ltd with 25%, PT Bosowa Trading with 22%, and the remaining shares owned by public.
“Price negotiation had been held last week. At the time, the price stood at Rp140 that was equivalent with transacted price in the market. The Meta-shares price soars recently,” he said.

Disclosure: No position at the stock mentioned above.

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Petrosea posts US$29 mio net income

Mining contractor PT Petrosea Tbk (PTRO) today reports US$29.04 million net income, a 572.96% jump from US$6,14 million net loss for the first 9 months ended September 2009.
In the financial statement submitted to Indonesia Stock Exchange (IDX) today, the net income was underpinned by net others income of US$1.43 million from other charges of US$38.51 million.
However, at the operational line, Petrosea's operating income slashed 23.24% to US$24.70 million from US$32.19 million due lower gross income.
The company posted a 14.02% drop in gross income to US$37.59 million from US$43.72 million on the back of higher cost of goods revenue of 11.54%.
In reversal, revenue made a slight rise of 3.07% to US$135.91 million from US$131.86 million.

Disclosure: No position at the stock mentioned above.

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Intraco Penta plans Rp1 trio rights issue

PT Intranco Penta Tbk (INTA) intends to hold rights issue more than Rp1 trillion in the second or third quarter of 2011. The company will use the proceed to acquire coal company in the first half of 2011.
"We are eyeing 2-3 coal companies." Intraco has secured US$120 million contract from PT Harsco Minerals, Kutai, East Kalimantan.
Coal production is estimated to rise 50% in 2011 from 600,000 tons in 2010, while capital expenditure is expected about US$50 million. Intraco Penta today entered into 3 year US$38.1 million loan agreement with PT Bank Mandiri.

Disclosure: No position at the stock mentioned above.

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Indosiar 9M net income surges 389%

Television operator PT Indosiar Karya Media Tbk booked Rp27 billion net income the third quarter of 2010 or a 389% growth of Rp9 billion in the same quarter of last year. Then, until the end of 2010, the media company still targets for Rp30 billion-Rp40 billion incomes.
Director of Indosiar Harry Pramono confirmed that the increase was contributed by 2% revenue soar to Rp607 billion from Rp596 billion.
“The income gain is donated by the drop of operating expenses for its program and broadcasting. As our strategy in composition management of running program has created an efficiency in program and broadcasting,” he said today.
The increase, as he continued, also gave positive impact for the company’s gross income by 32% to Rp326 billion in September 2010 from Rp247 billion in September 2009.
Furthermore, the company’s general and administrative expenses in the period of third quarter 2010 also climbed 5% to Rp173 billion from Rp165 billion in the same period of 2009. While, EBITDA (earning before interest, tax, depreciation, and amortization) rose 28% to Rp190 billion from Rp148 billion last year.
Per period of the third quarter 2010, the total asset slumped 16% to Rp484 billion from Rp574 billion in the same period of last year and so did the company’s total liabilities and equities.

Disclosure: No position at the stock mentioned above.  

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UNTR expects 656 mio bcm in 2010

Heavy equipment distributor and coal miner PT United Tractors Tbk (UNTR) estimates its mining contracting business might reach 77 million tons coal production and 656 million bank cubic meter (bcm) in 2010.
In a public expose material submitted to Indonesia Stock Exchange (IDX), the company expects coal production and overburden removal to rise 10% next year.
In the construction machinery business, Komatsu sales volume is estimated to reach 5,400 units this year and increase 10% in 2011.
United Tractors, via its subsidiary Dasa Eka Jasatama (DEJ), expects 2.5 million tons coal sales volume, adding with 477,000 tons from Tuah Turangga Agung.
In 2011, DEJ is expected to maintain its current sales volume, including 1.5 million tons from Tuah Turangga. 

Disclosure: No position at the stock mentioned above.
 
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Bukit Asam to pay Rp66.75 dividend

The state-owned coal miner PT Tambang Batubara Bukit Asam Tbk (PTBA) plans to distribute Rp153.80 billion interim dividend or Rp66.75 per share.
In an official statement filed to Indonesia Stock Exchange (IDX), the dividend will be paid on December 29 2010.
Bukit Asam posted Rp1.39 trillion net income at the end of September 2010. Total equity reached Rp5.91 trillion.

Disclosure: No position at the stock mentioned above.
 
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Midi Utama to jack up sales 70% in 2011

PT Midi Utama Indonesia Tbk seeks increase in sales on outlet expansion and development of distribution centers.
The retail company expects teh sales to go up by 60%-70% to IDR2.56 trillion-IDR2.89 trillion next year from as compared to estimated IDR1.6 trillion-IDR1.7 trillion this year.
President Director Midi Utama Rullyanto said the company plans outlet expansion and establishment of distribution centers benefiting from the IPO's proceeds.
“This year’s net income is estimated to reach IDR10 billion. We also project that the next year’s earnings may be higher compared with income of current year,” he said after a share listing in Indonesia Stock Exchange (IDX).
Midi’s revenue from January to September this year has reached IDR1.08 trillion. The retail company that operates Alfa Midi and Alfa Express outlets became the 20th company listing its shares in IDX this year. The MIDI-coded shares set off for its first trading today. Midi has gained IDR118.90 billion from disposing 15% shares or 432.35 million shares. 

About 90% of the IPO's proceeds will be used to develop its outlets in Jakarta, Bogor, Depok, Tangerang and Bekasi as well as other locations spread throughout West Java, East Java, Bali and Makassar.

Meanwhile, 10% of the IPO proceeds will be allocated to finance the development of distribution centers in Serpong, Bekasi and Makassar. 

Disclosure: No position at the stock mentioned above.

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Mitra Bahtera eyeing US$200 mio IPO

PT Mitra Bahtera SegaraSejati, a coal transporting company, plans to hold its initial public offering (IPO) next year with US$200 million proceed.
Two underwriters, according to a person familiar with this action, are mandated for organizing the IPO.
“Mandiri Securities and OSK Nusadana Securities will help in the IPO. If I’m not mistaken, it will be around 15% [of shares to be released],” the person said yesterday.
Director of Company's Assessment in Indonesia Stock Exchange Eddy Sugito confirmed the plan.
“They have disclosed the plan to the market authority. As far as I know, the underwriters are Mandiri Sekuritas and OSK Nusadana.”
Mitra Bahtera focuses on transporting coal, but it has additional facilities such as fuel storage and maintenance.

Disclosure: No position at the stock mentioned above. 
 
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META plans to invest Rp4 trillion in 2011

Toll road operator PT Nusantara Infrastructure Tbk (META) plans to invest Rp3 trillion-Rp4 trillion in 2011.
M. Ramdani Basri, Nusantara Infrastructure President Director, said the source of financing will be generated from internal cash and loan.
"If they still requires financing, it is open for bond issuance or bank loan," he said. In the next 5 years, META expects to merge or acquire up to Rp40 trillion.
Eagle Infrastructure Fund Limited, Hong Kong-based company, has declared that it bought 22.37% holding in META from Infrastructure Management Co Pte Ltd, general partner of Infrastructure Growth Fund LP, at Rp140 per share or Rp462 billion.
In line with the acquisition, Rajawali Group also purchased 23.6% holding or 3.2 billion shares in META. Rajawali also intends to enlarge shares ownership.  

Disclosure: No position at the stock mentioned above. 

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J.P.Morgan targets Indika at Rp5,000

J.P.Morgan initiates on PT Indika Energy Tbk (INDY) with an OW rating and a Jun-11 PT of Rp5,000, which implies 31% potential upside. 

"We see Indika as one of the most attractively priced Indonesian coal companies (at 11.8x FY11E P/E, vs. peers’ 16.5x) with a promising growth profile. Strong earnings growth in FY10E (50.4%) and FY11E (54.1%) and the planned spin-off of Petrosea in FY11E will drive the share price’s outperformance vs. the JCI in the next 6-12 months," said a company research report published by J.P.Morgan on November 26 2010.
The research revealed several investment drivers such as rising global coal prices and coal volumes at
Kideco Jaya Agung (Indonesia’s third-largest coal miner, in which INDY holds a 46% state), increased liquidity in the shares could cause multiple rerating, teliability in achieving its production targets. 

Petrosea new contracts, strong operations growth, and possible re-listing and attractive valuations compared to peers could be investment drives as well.

INDY has announced its plans to spin off at least 18.6% of Petrosea in order to fulfill the Bapepam’s 20% listing requirement. The signing of new contracts at Petrosea and Tripatra in FY11E could be additional
catalysts.

INDY and Kideco have a track record and reputation of meeting its production targets. Since FY05, Kideco has achieved its annual production target every single year. "We believe that INDY/Kideco stands out among the major coal companies, and will achieve its FY10 production targets, in an environment in which most
major companies risk missing production guidance due to heavy rains." 

"Our price target is derived using a combination of SOTP, DCF, average P/E, and average EV/EBITDA
multiples. We assume an average coal price of US$101/ton in FY11, and our DCF valuation is based on a real coal price of US$90/ton (WACC of 14%, g of 5.5%)." 

Key risks include lack of a controlling interest in Kideco, which raises possible business control risks, operating risks at Tripatra and Petrosea, and risk to consensus earnings forecasts.

 
Disclosure: No position at the stock mentioned above.  

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Rajawali & Eagle Fund control META

Eagle Infrastructure Fund Limited, Hong Kong-based company, has declared that it bought 22.37% holding in toll road operator
PT Nusantara Infrastructure Tbk (META) from Emerging Infrastructure Management Co Pte Ltd, general partner of Infrastructure Growth Fund LP, at Rp140 per share or Rp462 billion.

In line with the acquisition, Rajawali Group also purchased 23.6% holding or 3.2 billion shares in META. Rajawali also intends to enlarge shares ownership.

Disclosure: No position at the stock mentioned above.

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Indika to get 16% earning from MBSS

Integrated energy company PT Indika Energy Tbk (INDY) is estimated to obtain approximately 16% additional earning from PT Mitra Bahtera SegaraSejati (MBSS), Indonesia's second largest coal transport and logistic company).

A source said  MBSS booked 2009 revenue of Rp700 billion followed by lucrative profitability with EBITDA of Rp369 billion (52.7% margin) and net profit of Rp250 billion (35.7% margin).

In a morning note issued by Mandiri Sekuritas today, latest tugs and barges company acquisition done at 7.5x EV/EBITDA. 

"However we view it too expensive. So we prefer more conservative at 6x EV/EBITDA for MBSS. Assuming 15%-20% EBITDA growth in 2011 will potentially  translate additional Rp 200 – 210 per share to its SOTP valuation or 5% - 5.2% from INDY’s  last closing price. Currently we have buy rating on the stock which is traded at PER10F-11F of 19.3x – 12.2x," the note said.  

Indika will conduct a customary due diligence. Indika will have option to acquire 51% holding in MBSS.

MBSS is currently conduct business in one stop fully integrated solutions to the logistical needs of the Indonesia coal industries ranging from shore based barge loading facility to the offshore loading of ocean going to vessels.

MBSS’s top customers are Adaro, Kaltim Prima Coal, Kideco Jaya Agung, Bukit Asam, Arutmin, Berau Coal and Indominco Mandiri. MBSS has tranported more than 25 million tons of coal in 2009

Beside diversifying the company’s revenue stream, the corporate action is in line with the company growth strategy by further fortifying its integrated energy platform

MBSS will benefit greater market share from energy and mineral resources regulation no 17/2010 relates to the apparent extension of the cabotage principle which now include coal exported to ports outside of Indonesia.

Disclosure: No position at the stock mentioned above.

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Darma Henwa falls into operating loss

Coal mining contractor PT Darma Henwa Tbk (DEWA), subsidiary of PT Bumi Resources Tbk via PT Bumi Resources Investment, suffered US$14.89 million operating loss, a 250.86% plunge from US$9.87 million operating profit in the first 9 months ended September 30 2010.

In the financial statement submitted to Indonesia Stock Exchange (IDX) today, the drop was mainly spurred by a 17.85% increase in operating expenses, while revenue slightly rose 0.24% to US$151.05 million from US$150.68 million.

Darma Henwa also fell into net loss of US$13.41 million, a 4,638% drop from US$295,513 net income. 

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Indonesian stocks will still be fluctuating today with tendency to decline. In the list of recommended shares, there are PGAS, INDY, INDF and MEDC as reported by Bisnis.com today:

e-Trading Securities:
Referring to yesterday's movement, Jakarta Composite Index (JCI) may swing around 3,600-3,678. The recommended stocks are PGAS, INDY, INTP, and INCO. Yesterday, the index fell by 0.33% or 11.86 points to arrive at 3,630.63. Foreign investors booked a net sell of IDR128 billion.

Reliance Securities:
Technically, JCI today will tend to move mixed and then strengthen. The index moves between 3,560-3,670, with recommended shares ENRG, BNBR, MEDC, & INDF.
 
Disclosure: No position at the stock mentioned above.

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10 Banks lend US$600 million to BUMA

About 10 Banks joining group of lenders have committed to provide US$600 million loan facilities to PT Bukit Makmur Mandiri Utama (BUMA), Indonesia's second largest coal mining contractor and wholly owned by PT Delta Dunia Makmur Tbk (DOID).

In a formal statement to Indonesia Stock Exchange (IDX) today. the lenders are The Bank of Tokyo-Mitsubishi UFJ Ltd, Singapore Branch, The Bank of Tokyo-Mitsubishi UFJ Ltd, Jakarta Branch, ING Bank N.V., Sumitomo Mitsui Banking Corporation, Intesa Sanpaolo S.p.A, Hong Kong Branch, Morgan Stanley Bank International Limited, Barclays Capital, Bank Mandiri, Indonesia Exim Bank, Bank CIMB Niaga. 

The new facility, which was signed on November 29 2010, is a 5 year term loan facility and will pay lenders a margin of LIBOR + 4.75% to withholding tax lenders and LIBOR + 4.90% to withholding tax neutral lenders. 

The use of proceeds of the facility is to fund the tender offer for and tax call of the outstanding notes, as well as the prepayment of the existing credit facility.

Prime Dig, wholly owned subsidiary of BUMA, expects to carry out a tax call. Pursuant to the tax call, Prime Dig also expects that the noteholders who do not tender their notes in the tender offer will have their notes redeemed at 100% of the principal ammount of the notes plus accrued and unpaid interest following the settlement date.

Disclosure: No position at the stock mentioned above. 

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Bukit Makmur seals US$600 mio loans

Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) today has finally signed agreement of 5 year US$600 million syndicated loan facility from several banks.

A source at one of the lenders said the syndicated loan bears about 7% annual interest rate. "BUMA will use the facility to buyback loans and bonds totaling nearly US$600 million," the source said.

The lenders involving the syndication such as Sumitomo Mitsui Banking Corporation, ING Bank, Bank of Tokyo, and Bank Mandiri.

Morgan Stanley has been mandated by BUMA as buyback arranger.

Referring to BUMA bonds agreement, the company is allowed to redeem the bonds at par when there is change on taxation regulation.

On January, Indonesian Government imposed 20% withholding tax on US$ bonds issuance by Indonesian companies. "BUMA seems to give a sort of sweetener to bond holders," the source said.

Disclosure: No position at the stocks mentioned above.

Indika to buy 51% stake in Mitra Bahtera

Integrated coal company PT Indika Energy Tbk (INDY) might acquire 51% holding in a leading logistic provider PT Mitra Bahtera SegaraSejati (MBSS) from Prasatya family
Several sources familiar with the matter said by acquiring MBSS, Indika will be fully integrated coal mining company.
"Indika that currently controls 46% holding in coal miner PT Kideco Jaya Agung will be fully integrated coal mining company," the sources said.
Retina Rosabai, Indika's Senior Vice President of Investor Relations, declined to comment on the matter.
MBSS is providing coal tugs and barges operators in Indonesia.
MBSS provides one stop fully integrated solutions to the logistical needs of the Indonesian Coal industries ranging from shore based barge loading facility to the offshore loading of the ocean going vessels.
The sources said Indika has entered into option agreement with MBSS's controlling shareholder Prasatya family with rights to buy 51% holding in MBSS during initial public offering (IPO) targetted in January-February 2011.

Disclosure: No position at the stock mentioned above.

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Resource eyeing 3.48 mio tons sales

Thermal coal mining company PT Resource Alam Indonesia Tbk is eyeing 3.48 million tons of coal sales in 2011, a 63% increase from estimated 2.13 million tons in 2010.
Resource Alam's President Director Pintarso Adijanto said the company expects average selling price (ASP) for its coal at least the same with 2010's ASP at US$48 per ton.
The company is planning to produce 3.55 million tons next year.
"We estimated to produce 2.22 million tons coal by the end of 2010 and 2.13 million tons sales. In the next 3-4 years, we target 6 million tons production," he said in a public expose today.
 As of September 2010, Resource Alam produced 1.57 million tons and posted 1.47 million tons sales.
In a notes, CIMB Securities estimated Resources Alam to book Rp160 billion net profit in 2010 and Rp250 billion in 2011, reflecting P/E of 12.8x and 8.2x for 2010 and 2011, respectively (P/E coal sector of 22x for 2010 and 12x for 2011).
By the end of 2010, Resource Alam mined coals from Simpang Pasir block of 145,374 tons, Gunung Pinang of 331,146 tons, Bayur of 25,000 tons, Purwajaya subblock of 750,962 tons, Tegal Anyar subblock of 551,524 tons, and Tanjung Barokah of 423,919 tons.
Resource Alam also gained a contract to supply 500,000 tons of coal to PT Perusahaan Listrik Negara (PLN) to generate electricity for a year.
Pintarso said that the contract was signed after the agreement of supplying 120,000 tons of coal PLN was signed in September. The contract is valid for four months untuk end of this year. “However, I don’t remember the coal prices agreed in both contracts,” he said. 

Disclosure: No position at the stock mentioned above.  

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Indika Energy to acquire Mitra Bahtera

Integrated coal company PT Indika Energy Tbk (INDY) might acquire 51% holding in a leading logistic provider PT Mitra Bahtera SegaraSejati (MBSS).

Several sources familiar with the matter said by acquiring MBSS, Indika will be fully integrated coal mining company.

"Indika controls 46% holding in coal miner PT Kideco Jaya Agung. The acquisition will support coal transportation business," the sources told Insider Stories.

Retina Rosabai, Indika's Vice President of Investor Relations, declined to comment on the matter.

MBSS is providing coal tugs and barges operators in Indonesia. The company provides one stop fully integrated solutions to the logistical needs of the Indonesian Coal industries ranging from shore based barge loading facility to the offshore loading of the ocean going vessels.

The services range from ship management, ship registration harbor assist tugs, LCT, floating cranes, floating terminals, manning services, marine consultancy, agency services, transshipment activities, domestic and international trade & marketing. 

Disclosure: No position at the stock mentioned above.  

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BUMA bonds buyback to be launched

Morgan Stanley schedules to launch bonds and loan buyback for PT Bukit Makmur Mandiri Utama (BUMA), Indonesia's coal mining contractor and also wholly owned by PT Delta Dunia Makmur Tbk (DOID) this week.

"Morgan Stanley might launch the buyback today or tomorrow, using US$600 million syndicated loan obtained from several banks, including Bank Mandiri," a source close to the deal said.

Disclosure: No position at the stock mentioned above.
 
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ELTY requires US$1 bio for Disneyland

Property developer PT Bakrieland Development Tbk (ELTY) is rumored to require US$1 billion financing to build Disneyland theme park at Lido, Sukabumi, West Java.
Bakrieland has also rumored to mandate Barclays Capital as financial adviser in a bid to seek strategic partners.
Bakrieland Corporate Secretary Nuzirman Nurdin, as reported by a local media, said the company is underway to find strategic partners for Disneyland project.
He declined to comment when asked about US$1 billion financing and the appointment of Barclays Capital.

Disclosure: No position at the stock mentioned above.

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Merukh buys Park Regis at US$218 mio

Merukh Enterprises Corporation, controlled by Indonesian tycoon Jusuf Merukh, has acquired 100% holding in hotel and office building Park Regis, Singapore, for about US$218 million from Royal Brothers Group.

"We use bank loan and internally generated cash flow to support the acquisition financing," said Rudy Merukh, President Director and Chief Executive Officer of Merukh, as reported by local newspaper today.

Park Regis Hotel manages 203 rooms from standard and executive class. The hotel is located at the same place with 42,000 meter squares office building.

Merukh Enterprises is also eyeing 66.67% holding in Patra Jasa Hotel currently owned by PT Pertamina and being offered by PT Perusahaan Pengelola Aset, the state-owned company taking care of several assets.

Via its subsidiary PT Lebong Tandai, Merukh has proposed Rp2.85 trillion and Rp118 billion guarantee to buy Patra Jasa Hotel.

Disclosure: No position at the stock mentioned above.  

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Borneo eyeing contract with China Steel

Indonesian coking coal miner PT Borneo Lumbung Energi & Metal Tbk (BORN) is eyeing new contracts for 500,000 tons coal sales both from China Steel Corporation and its affiliates Dragon Steel and group of Japanese steel buyers.

"We hope to get coking coal sales contract from both buyers for about 500,000 tons per annum each," said Borneo Marketing Director Kenneth Raymond Allan said.

For the last three months of this year, Borneo has entered into agreement with China Steel to supply 166,000 tons. Allan said the company expects US$200 per ton of coal sales price could be secured next year. "Following the three months contracts, we will talk about 1 or 2 year contracts with China Steel," he said.

Disclosure: No position at the stock mentioned above. 

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Rajawali aims to enlarge stakes in META

Rajawali Group intends to enlarge shares ownership in toll road operator PT Nusantara Infrastructure Tbk (META) after it purchased 23.6% holding or 3.2 billion shares at Rp448 billion or Rp140 per share.

In the market on Friday, Credit Suisse bought 6.5 billion META shares at Rp140 per share. So far, there is no information which party purchased the remaining stake of 24.4% from Infrastructure Growth Fund.

Previously, Infrastructure Growth Fund held 52.25% stake in META, while Bosowa Trading owns 17.48% stake.

"The stake available is 23.6%. We aim to enlarge holding in META if the other shareholders want to sell the stakes," said Rajawali Managing Director Darjoto Setiawan said.

Nusantara Infrastructure posted Rp132.75 billion revenue and Rp22.25 billion net loss as of September 2010. Operating income reached Rp49.80 billion and book value per share was Rp73.35. With annualized BV per share this year of Rp97.8, the acquisition price reflects 1.43x, which is so cheap.
Toll road business contributed Rp146.73 billion revenue to Nusantara Infrastructure of consolidated revenue of Rp190.50 billion. Nusantara Infrastructure controls operator PT Bintaro Serpong Damai for Jakarta-Serpong toll road.
Rajawali currently manages several businesses in infrastructure, transportation, plantation, mining, retail, and hotel.
In the infrastructure business, Rajawali owns PT Transpacific Railway Infrastructure and PT Nusantara Infrastructure Tbk. Rajawali also controls PT Express Trasindo Utama in the taxi business. In the plantation sector, Rajawali controls PT Tandan Sawita Papua and PT Jaya Mandiri Sukses Group.
Rajawali Group manages holdings in PT International Prima Coal and Archipelago Resources Plc. Rajawali also controls PT Eatertainment International Tbk and PT Metropolitan Ritelmart. In the hotel sector, Rajawali manages Sheraton Bali, Lampung, Bandung, Lombok, Langkawi, Kuala Lumpur, Saint Regis Bali, and Novotel Lombok.

Disclosure: No position at the stock mentioned above. 

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Bakrie 9M net loss widens 737.01%

PT Bakrie & Brothers Tbk (BNBR), a company controlled by Bakrie family focusing on energy, telecommunication, and infrastructure, still suffered a widened net loss by 737.01% to Rp565.99 billion in the first 9 months ended September 30 2010 from a year earlier of Rp67.62 billion.

In the financial statement submitted to Indonesia Stock Exchange (IDX) yesterday, the net loss widening was mainly spurred by a steep jump in interest expenses of 440.89% to Rp1.46 trillion from Rp270.39 billion.

At the operational line, Bakrie's operating profit rose 44.59% to Rp744.47 billion from Rp514.85 billion, despite a higher cost of goods sold of 130.45% to Rp6.13 trillion from Rp2.66 trillion. Net revenue increased 74.11% to Rp9.28 trillion from Rp5.33 trillion.
Debts
Bakrie posted a lower short term debts to Rp2.77 trillion, a 16.82% decrease from Rp3.33 trillion a year earlier. Long term debts slightly increased 3.11% to Rp9.27 trillion from Rp8.99 trillion. 
Of short term debts, Bakrie posted repo of Rp416.92 billion from Rp355 billion. As of September 2010, Bakrie managed repo to PT Recapital Securities, PT HP Capital Resources, PT Sucorinvest Central Gani, PT BinaArtha Parama, PT Bapindo Bumi Sekuritas, PT Sarijaya Permata Sekuritas, PT Jasa Investindo, and Integrated Financial Advisory.
Technical

Watch BNBR after making several rallies. The stock currently makes pennant with resistance of 80. If BNBR could break 80, it had an opportunity to the new level of 105 with previous target prices at 88 and 97. The higher MACD and ADX reflect a robust power to further advance. BNBR is recommended buy, stoploss at Rp73. To read a full article, please go to Galerisaham.com

 

Disclosure: No position at the stock mentioned above. 

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Rajawali confirms META take over deal

Rajawali Group has finally confirmed that the company has acquired 23.6% holdings in PT Nusantara Infrastructure Tbk (META), toll road operator, at Rp448 billion or Rp140 per share.
Darjoto Setiawan, Managing Director Rajawali Group, the company has bought Nusantara Infrastructure from Infrastructure Growth Fund (IGF).
"Yes, 23.6% stake or 3.2 billion from IGF," he said.
Credit Suise Securities bought 6.5 billion stakes or 48% of its total shares in Nusantara at Rp140 per share.
Infrastructure Growth Fund controls 52.25% stake in Nusantara and Bosowa Trading holds 17.48% stake.
Previously Rajawali competed with Astra Group to buy Nusantara Infrastructure.
Ramdani Basri, President Director of Nusantara Infrastructure, hasn't obtained information from shareholders. "We knew about shares crossing in the market, but we haven't obtained any information."

Disclosure: No position at the stock mentioned above. 
 
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Rajawali buys META from Growth Fund

Rajawali Group has finally acquired 23.6% holdings in PT Nusantara Infrastructure Tbk (META), toll road operator, at Rp448 billion or Rp140 per share.
A source said in the negotiation market, Credit Suisse Securities bought 6.5 billion stakes or 48% of its total shares in Nusantara at Rp140 per share.
Infrastructure Growth Fund controls 52.25% stake in Nusantara and Bosowa Trading holds 17.48% stake.
"It seems Rajawali bought Nusantara from Infrastructure Growth. They will bring positive impact to the company," the source said.
Previously Rajawali competed with Astra Group to buy Nusantara Infrastructure.
Ramdani Basri, President Director of Nusantara Infrastructure, hasn't obtained information from shareholders. "We knew about shares crossing in the market, but we haven't obtained any information." 

Disclosure: No position at the stock mentioned above. 

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Borneo surges 17% on trading debut

Indonesian hard coking coal miner PT Borneo Lumbung Energi & Metal Tbk (BORN) today surged 17.1% to Rp1,370 per share during the trading debut from the IPO level at Rp1,170.
Borneo stocks moved in the range of Rp1,300-Rp1,400 and recorded Rp20.7 trillion market capitalization.
The company sold 4.42 billion new shares or 25% stake of its enlarge capital during the IPO, enabling it snaps up Rp5.17 trillion proceed.
Indonesia Stock Exchange President Director Ito Warsito said Borneo is listed at the development board.
Borneo's President Commissiober Sjamsir Siregar said the company's market capitalization is the second biggest among companies listed this year, after PT Indofood CBP Sukses Makmur Tbk (ICBP). 

Disclosure: No position at the stock mentioned above. 

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Island Concepts announces merger

PT Island Concepts Indonesia Tbk (ICON), an accommodation service provider, announced its plan of merger with its affiliation, PT Gama Wahyu Abadi (GWA).
In an official statement published today, the approval of the merger will be discussed in an extraordinary meeting of shareholders on January 11, 2011.
ICON, founded in 2001, works on accommodation service. The company built 10 luxurious one-bedroom villas in Petitenget, Bali in August 2002.
GWA, established in 1994, runs the business in trade, construction, industry, mining, and land transportation.
The merger will be completed once ICON receives an effective notice from Capital Market and Financial Institution Supervisory Agency (Bapepam-LK). The company will announce the scheme of joint business on December 13, 2010. 

Disclosure: No position at the stock mentioned above.

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Tiga Pilar seeks US$90 mio for take over

PT Tiga Pilar Sejahtera Food Tbk (Plc) is preparing US$90 million to acquire 12,000 hectares of plantation areas in Sumatra following the company's plan to bolster revenues from the business.
Financial Director of Tiga Pilar Sejahtera Sjambiri Lioe revealed the company would allocate US$27 million in cash equities to complete the land acquisition, while the rest of the fund would come from banking loan from one foreign bank.
"We cannot yet tell you which land we will acquire. The negotiation is still running. We hope it can be finished by the yearend. For the time being, we can only tell you the loan comes from a foreign bank. Whether the loan is syndicated or not will depend on the bank," he said.
He added the MoU with the relevant parties was expected to be finished this year, while the entire acquisition process was targeted to be fully completed during February-March 2011.
Moreover, the company also planned to acquire a rice mill worth Rp150 billion. The rice mill has a daily production capacity of 200 tons.
"We hope the external acquisition process can be finished by the first semester next year. We are also making internal acquisition to establish a holding plantation company."
Regarding the internal acquisition, Sjambiri admitted the company was awaiting approval from PT Bank Mandiri Tbk as the creditor this week.
Once the state lender gave its approval, he added, Tiga Pilar Sejahtera would have a total plantation area concession size of around 80,000 hectares.
"At the moment, our concession area size is 13,000 hectares, 6,000 hectares of which are planted. After the acquisition, the size will grow to 80,000 hectares, with 39,000 hectares and 40,00 hectares of which are planted." 

Disclosure: No position at the stock mentioned above.  

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Borneo expects US$823 mio revenue

Indonesian coking coal producer PT Borneo Lumbung Energi & Metal Tbk is estimated to record US$823.45 million revenue by the end of 2011 as it could speed up higher production capacity to 5 million tons before end of 2011.
An executive familiar with the matter said assuming with June's average selling price (ASP) at US$191.5 per ton and average production capacity of 4.3 million tons in 2011.
"Referring to IPO prospectus, Borneo eyed 5 million tons by the end of 2011. But, with earlier equipments delivery, Borneo might speed up a higher production," the executive said.
Borneo paves to stages expansion. Firstly, it plans to jack up coal capacity to 3.6 million tons by end of 2010. Secondly, the company aims to enlarge capacity to 5 million tons by end of 2011.
"Borneo spent US$198 million to roll out infrastructure facilities and buy heavy equipments, mainly Komatsu and Liebherr."
Borneo Director Geroad Jusuf said the company is expected to increase production to 5 million ton earlier than the initial target.
"With production speed up, we could reach 4 million ton production capacity on average in 2011," he said.

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

Indonesian stocks are predicted to move mixed today. Bakrie Group shares will also receive attention from analysts. According to several securities companies, the shares worth watching include ANTM, JSMR, SMRA, ENRG, BNBR,UNSP, and ELTY. Here are recommendations from the securities companies as reported by Bisnis.com today:

Trimegah Securities:
 Rebounds in regional and global market on better economic data in the US gave positive sentiment to Jakarta Composite Index (JCI), which also advanced 1.2% yesterday. Foreign investors start to make net buy after recording a net sell in the last few days, driving the index up.
However, traders must be aware that the market tends to move mixed before the end of the year, making high volatility in the index. In the meantime, JCI will move within the range of 3,680-3,722, with recommended shares: ANTM, JSMR, and SMRA.

eTrading Securities:
JCI climbed 43 points, (1.18%) to close at 3,702 yesterday. The index today will confirm a reversal and stay in resistance level around 3,730. Foreign investor will keep making net buy as much as IDR177 billion. The main drivers of the index today is Bakrie Group shares, particularly ENRG. Today the index is predicted to move within the range of 3,630-3,730 with recommended shares are ENRG, BNBR,UNSP and ELTY.

Disclosure: No position at the stock mentioned above. 
 
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Bukit Makmur & bonds buyback

Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), has secured US$600 million syndicated loan from several banks, including PT Bank Mandiri Tbk (BMRI) which aims to lend US$100 million. At what price BUMA's bonds will be purchased? Please login or register to read the remaining story. 

Disclosure: No position at the stock mentioned above.
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Energi Mega delays US$275 mio bonds

Standard & Poor's Ratings Services said today that it had placed its B- corporate credit rating on oil and gas producer PT Energi Mega Persada Tbk. (EMP) on credit watch with negative implications. 

"We also placed our B- issue rating on the proposed senior secured notes issued by EMP International Holdings Pte. Ltd. on credit watch with negative implications. EMP and some of its operating subsidiaries guarantee the notes."

"We placed the rating on EMP on credit watch because the company's proposed issuance of US$275 million senior secured notes is taking longer than we had expected to close," said S&P credit analyst Andrew Wong in a press statement today.

EMP aims to refinance existing bank loans and resolve outstanding covenant compliance issues with the proposed issuance.

"Without the refinancing, covenant breaches are likely to persist, in our view, indicating that the company's credit profile would not be consistent with the existing rating on EMP," said Wong.

We aim to resolve the credit watch when more information regarding issuance of the proposed notes and resolution of existing covenant breaches is available

Disclosure: No position at the stock mentioned above.

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Arpeni Ocean Line surges 5%

The stock of Indonesia’s shipping company, PT Arpeni Pratama Ocean Line (APOL), successfully maintains its gain nearly 5% over the last four days although possibly it might not be able to settle its bonds.
The APOL-coded stocks touched Rp121 in the closing session on 22 November 2010 as today, it has stood at Rp127 or rose 4.95%.
By such level, Arpeni’s market capitalization totaled Rp380.82 billion. Nonetheless, in the information disclosure submitted to Indonesia’s Stock Exchange, Arpeni addressed its doubt to pay the 12th interest of APOL II/2008 bonds maturing on 18 December 2010.
Arpeni said that it will contact the trustee of II bonds to hold a meeting with the shareholders when the period of maturity approaches.
The maturing second interest bonds totaled Rp8.28 billion. The current second bonds valued Rp276 billion with 12% interest per year as the bonds shall mature by 18 March 2013.

Disclosure: No position at the stock mentioned above.  

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Attractive valuation, multifinance stocks

From a valuation perspective, multifinance companies represent the most attractive segment of financial services in Indonesia.
The combination of improving credit metrics, historically low interest rates, tame inflation and robust demand will drive this industry’s valuation to close its gap with banks. Historically, multifinance firms trade at a valuation discount of 58% and 43% on PE and PBV to banks respectively.
"We anticipate this valuation gap closes due to the attractive operating environment fuelled by attractive interest rates, low NPL’s and increasing leverage," said a research on multifinance sector published by CLSA Asia-Pacific Markets recently.
The multifinance industry in Indonesia represents an attractive investment opportunity. The industry represents over 10% of total loans in the nation and is the key driver in providing access to transportation to the public namely via ownership of cars and motorcycles.
Historically low interest rates, improving NPL metrics, tame inflation and robust demand for autos and motorcycles will drive higher profitability metrics.
Segment underutilization of leverage since the Asian financial crisis is coming to an end. This will drive ROE higher.
Multifinance firms were leveraged nearly 10x in 1996 and today are leveraged on average 3.3x.
Motorcycles and autos represent the majority of segment revenues, with ten year unit sale CAGR’s of 21% and 9% respectively.
Since 2005, Indonesian multifinance firms shares have traded at a discount of 58% and 43% price to earning ratio (PE) and price to book value ratio (PBV) to their bank peers.
The attractive industry demographics, low rates and improving NPL’s justifies compression of the valuation gap.
Inexpensive versus regional peers in India and Thailand while offering higher ROE and lower leverage.
Multifinance companies in Indonesia either have a bank that they channel loans to or are stand alone firms. 

Mandala Finance
PT Mandala Multifinance Tbk (MFIN)'s majority shareholder, Alex Hendrawan holds the master license for Yamaha in Lampung and owns a number of Yamaha dealerships in Java.
In addition to the business generated from Hendrawan, Mandala's 152 branches are tapping into rural demand for motorcycles, in areas with less competition. Currently, MFIN is trading at PBV of 1.4x and PE of 6.7x with an ROA and ROE of 4.4% and 22.9% respectively.
Mandala Multifinance was founded in 1983 under the name PT Vidya Notices Leasing Corporation and underwent multiple name changes until 1997 when it became know as Mandala Multifinance.
Mandala’s majority shareholder, Alex Hendrawan holds the master license for Yamaha in Lampung and owns a number of Yamaha dealerships in Java.
Given this relationship, a majority of Mandala’s financing is through Yamaha dealerships, with Honda representing a distant second.
Through its owner, Mandala has direct access to many dealerships in the Java area and in Lampung which help drive customers to the firm.
Moreover, through its 152 branches Mandala is tapping into rural demand for motorcycles, in areas with less competition.
The company does a solid job managing its NPL’s, part of this is because the person responsible for collecting the loan if it were to go NPL also must approve the loan before it is released.
Mandala’s greatest challenge is not having a bank to channel loan production to and to use as a source of lower cost funds.
Currently, Mandala relies solely on bank loans to fund its business, implying a higher cost of funds and the risk that lines can be cut in difficult times.
In addition, as motorcycle buyers are typically sensitive to commodity prices due to their jobs and income, Mandala has a higher risk of sustaining greater losses than peers in a weak economic environment.
New lending through 9M10 totalled Rp3.0 trillion, and is anticipated to increase to near Rp4.0 trillion by year end.
Mandala is offering financing for new and used motorcycles only. Moreover, MFIN employs more leverage than peers, with assets/equity at 6x, but the company can continue to leverage higher, as this figure remains low versus regional peers.
Currently, MFIN is trading at PBV of 1.4x and PE of 6.7x with an ROA and ROE of 4.4% and 22.9% respectively.

Disclosure: No position at the stock mentioned above. 
 
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Indofood takes over 10% Pacsari Ltd

Indonesia's largest instant noodle player PT Indofood Sukses Makmur Tbk bought 10% or 850,000 shares of Pacsari Pte Ltd in the amount of US$10.5 million or IDR94.47 billion.
"The deal financing is derived from the internal cash," said Indofood Director and Corporate Secretary Werianty Setiawan in a information disclosure published on the website of Indonesia Stock Exchange (IDX).
She said that the deal will raise the company's holding in Pacsari to 100%. The INDF-coded stock company made the deal with Grace Shipping Ltd, a company from Bermuda who owns Pacsari's shares. Pacsari is a shipping company established in Singapore in 1998.
According to Werianty, the transaction excludes material transaction and transaction of conflict of interest as stated in the regulation of Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) No.IX.E.1 and IX.E.2.

Disclosure: No position at the stock mentioned above.  

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Japfa secures Rp1 trio loan from BCA

PT Japfa Compfeed Indonesia Tbk secured a Rp1 trillion loan from PT Bank Central Asia Tbk (BCA). The loan consists of Rp750 billion investment credit facility and Rp250 billion working capital credit.
The company made its land and factories as collaterals to get the loan facility whose coordinator is BNP Paribas.
Then, the company’s assets are two fish feed processors in Cirebon and Banyuwangi, also four animal feed mills in Tangerang, Sidoarjo, Lampung, and Sragen.
Furthermore, Japfa also made its machinery equipment and supporting facilities at its animal feed mill in Cirebon as collateral.
In addition, the company made its trade receivables amounting Rp150 billion as well as PT Suri Tani Pemuka’s trade receivables as  collaterals.
“The company will tap the facility on November 30, 2010, which will be followed by a signing of collateral documents on December 8-9 2010,” Christine R. Wibisono, Corporate Secretary of Japfa, stated in an infomation disclosure this afternoon.

Disclosure: No position at the stock mentioned above.

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BRI acquires Bank Agro at Rp109

PT Bank Rakyat Indonesia (BRI) has prepared Rp330.27 billion to acquire 3.03 billion shares of PT Bank Agroniaga Tbk (Bank Agro).
President of BRI Sofyan Basyir informed that the acquisition process on Bank Agro will commence by the end of this year and be realized at least next year.
At their Extraordinary Meeting of Shareholders (RUPS-LB), investors agreed to purchase 3.03 billion shares of Bank Agro at the price of Rp109 per share directly from Pension Fund of Plantation Sector.
After the acquisition, BRI will dominate 76% of the total shares in Bank Agro while 14% will still belong to the pension fund and 10% is owned public.
“We are waiting for the admisitration process to be done. The process might start at the end of 2010 and in early 2011 Bank Agro will belong to us,” he said while attending the RUPS-LB, today.
The acquisition is aimed to accelerate the penetration to agribusiness sector. Bank Agro in post-acquisition period is expected to be able to provide banking products and services focusing on small and medium enterprises (UKM) from agribusiness sector in particular.

Disclosure: No position at the stock mentioned above.  

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Look at 4Q Astra Graphia performance!

Document solution and IT solution provider PT Astra Graphia Tbk (ASGR) might post revenue of Rp650 billion in the fourt quarter (4Q) of this year.
As of September 2010, Astra Graphia posted Rp848.84 billion revenue and Rp75.54 billion net profit respectively.
In a company research report published by Kim Eng Securities currently, management of Astra Graphia raised its full year 2010 net profit target by 15% to Rp115 billion (yoy growth of 72%).
Astra Graphia also revised up its 2010 revenue target by 7% to Rp1.5 trillion (yoy growth of 12%).
"Astra Graphia performance in 4Q 2010 is the highest," said the company's President Director Lukito Dewandaya yesterday.
According to him, the company in July estimated that 2010 targets of net profit and revenue might reach Rp100 billion and Rp1.4 trillion respectively. "But, we have revised up the targets."
Kim Eng research said Astra Graphia also expects its FY2011 to grow by 10%-20% to Rp1.6 trillion-Rp1.8 trillion.
"The management's FY10 profit and revenue targets were above our expectations," Kim Eng said.
It expects to obtain an additional sum of Rp650 billion in revenue. The additional revenue will come from increased sales volume (and rental income) document solution division and IT contract projects, especially from the government, which will be disbursed during this period.
The revenue from the government is expected to be around 30%-40% of the total revenue of 4Q10.
Document solution products with colour printing, which command a higher margin than those with B&W printing, will still be a primary catalyst of revenue growth for the next year.
Astra Graphia's management expects colour printing to grow by 30% y/y. Currently, the colour printing product contributes to 25% of the total sales volume of its document solution products.
"We raise our FY10 net profit and revenue estimates by 28% to Rp115 billion and 7% to Rp1,48 trillion, respectively. Meanwhile, we maintain our revenue growth forecast of 10% for next year. We also raise our target price based on the Gordon Growth Model to IDR1,355 [representing 13.7x 2011 PER) from IDR1,050 and reirate buy," the report said.

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

A room for rebound in the index is opened after a hard hit in the last two days of trading. Read the followings for your trading recommendations today as reported by Bisnis.com today:

e-Trading Securities:

Today, Jakarta Composite Index (JCI) will stay in the range of 3,630-3,730 as relative strength index (RSI) still stands above 50% line. Previously, the index was closed down 19 points (-0.53%) to 3,658. The index rebounded after touching 3,619, creating a harmer formation which indicated a reversal. Selected shares for today's trading are NIKL, CMNP, GZCO and BUVA.

Reliance Securities:

Today, JCI is predicted to rebound and fluctuate in the range of 3,600-3,656. Meanwhile, after staying in a red zone throughout the trading session, the index was closed down 19.4 points (0.53%) to 3,658.8. Foreign investors made IDR544.8 billion net sell yesterday. MEDC, ITMG, BBCA, UNTR and ASII are the recommended shares.

Panin Sekuritas: 

Today, JCI may have opportunity to rebound that is indicated by buying action in yesterday’s second session confirming a selective buying at the market. The range of support-resistant level is at 3,635-3,678. Yesterday, the index stayed in a negative area amid the rebound at regional markets concerning the military conflict in Korean Peninsula, Ireland’s debt crisis, and Chinese monetary tightening.

Trimegah Securities:

Today, JCI will run in the range of 3,633-3,670 with BBCA and TLKM as selected shares. Being closed below 20-days EMA, the index is still potentially dragged down as indicated the dead cross formed in the Stochastic movement. Yesterday, the index extended its correction along with the worsening regional sentiments. 

Disclosure: No position at the stock mentioned above.

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Lautan Luas 9M revenue up 22%

Distributor and manufacturer of basic and specialy chemicals PT Lautan Luas Tbk (LTLS) posted a 22% increase in revenue to US$301 million during the first 9 months ended September 30 2010 from US$248 million.
In an investor newsletter from Lautan Luas, the company also saw a steady growth 4% year on year in gross profit margin to IDR410 billion from IDR393 billlion despire of appreciation of rupiah as a result of increasing in sales volume.
The company experienced an increase in its operating expenses as a result of increase in sales volume.
In return, operating income decreased to Rp90 billion from Rp102 billion. However, the company managed to maintain other operating expenses at the stable level. Net income fell 13% to Rp53 billion from Rp61 billion, sending a flat net margin at 2%. 

Disclosure: No position at the stock mentioned above.

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The next story after TPG take over, DOID

Coal mining contractor PT Delta Dunia Makmur Tbk (DOID) jumped 10.09% to Rp1,200 per share on Friday last week from the previous day of Rp1,090.

In coincidence, executives of Texas Pacific Group (TPG), one of the world's largest private equity, met  Indra Widjaja, owner of Sinarmas Group, on Thursday.

Several sources said they talked about the proposed acquisition on PT Delta Dunia Makmur Tbk (DOID)  from Sinarmas Group and Bakrie Group.

Both existing shareholders are indirectly holding Delta Dunia via Northstar Tambang Persada Pte Ltd which currently own 40% stake in DOID.

"Due diligence on DOID was done well. It seems that TPG teaming up Government of Investment Corporation (GIC) would proceed the acquisition of DOID from Sinarmas and Bakrie Group. The deal is soon to be completed," the sources said.

Delta Dunia is parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA).

Post acquisition, for sure, Bakrie Group and Sinarmas Group won't control DOID. Many have asked who is behind NTP.

TPG & GIC are estimated to propose acquisition price at a maximum of Rp1,150 per share, above the closing level last Friday on Rp1,200.

Strong indication

The sources said the acquisition will be followed with coal contracts. Along with DOID's majority take over, TPG and GIC, upcoming controlling shareholders, ask more coal contractor projects.

The first indication is Bukit Makmur has been awarded 3 year coal mining contract worth US$200 million from PT Arutmin Indonesia, coal miner controlled by PT Bumi Resources Tbk (BUMI), unit of Bakrie Group on November 12 2010.

Delta Dunia, in the official statement on November 15, filed the contract to Indonesia Stock Exchange (IDX).

Under the agreement, BUMA will act as coal mining contractor at Senakin Pit4-7 coal site with main targets of 81 million bank cubic meter overburden remodal and 6.7 million tons coal production. The newly agreement is an extension of the previous 3 year contract with Arutmin signed in 2008.

Based on Citi conference’s material, Bukit Makmur currently manages 12 coal-mining contracts. Of 12 contracts, two contracts with PT Bukit Baiduri Energy and PT Arutmin Indonesia will soon be maturing.

The contract period with Baiduri Energy started from 2001 until 2010, while Delta Dunia’s contract with Arutmin began in 2008 and shall be ended by 2011.

Apart from that, two contracts with Bayan’s Group, Perkasa Inakakerta and Marunda Graha Mineral shall be matured by 2012.

BUMA’s biggest earning contributor last year was Berau Coal with 33% contribution, followed by Adaro with 17% and Kideco Jaya Agung with 14%.

Last year, Berau Coal’s coal production reached 14.3 million tons, Artumin Indonesia posted 19.3 million tons of coal, Adaro produced higher production with 40.6 million tons. Kideo Jaya Agung and Bayan Group booked 24.7 million tons and 12 million tons production respectively.

The sources said in line with DOID's acquisition, BUMA seems to obtain another  5 year new contract from a coal company. "Two contracts will complete DOID's shares acquisition. So, after BUMA obtains contract from Arutmin, the acquisition deal seems to be done as take over and coal contracts are one package deal."

DOID's EPS stood at Rp51.83 as of September 2010 and annualized EPS of Rp61.11 in 2010. Considering the current price at Rp1,200/share, P/E DOID is around 19.63x.

UNTR's EPS was Rp890 as of September 2010 and annualized EPS of Rp1,186.67 in 2010. Considering the current market price at Rp25,650/share, P/E UNTR is 21.61x, which is more expensive than P/E DOID.

Interest saving story

Post acquisition, Delta Dunia will be inundated by several stories. From acquisition, no more Bakrie and Sinarmas, two major coal contracts, and the most interesting is debt refinancing, enabling BUMA to drag down interest charges, which is so expensive.

"DOID and BUMA are in talks with several lenders such as Sumitomo Misui Banking Corporation, Bank Mandiri, Bank of Tokyo, ING Bank, and Bank Exim to secure US$600 million loan. DOID might announce the low interest syndicated loan this week," the sources said.

BUMA is planning to refinance both bank loan and US$ denominated bonds. Referring to DOID financial statement ended September 30 2010, Delta Dunia, via BUMA, consolidated two major long term loans, so-called SMBC loan facility worth US$253.36 million as of September 2010. The facility charges annual interest rate of 4.5% premium over Libor 3 months and 5% margin.

BUMA has initiated the first payment on March 31 2010 and the facility will mature in 2013. BUMA, via Prime Dig, also manages US$315 million 5 year guaranteed senior notes issued in November 2009.

Prime Dig has made the first payment of the notes, charging an annual 11.75% and 20% withholding tax or an effective interest rate of 14.1%, which is so expensive, on May 3 2010 and another payment schedule on November 3 2010.

As of September 2010, DOID paid Rp65.05 billion notes interest. In total, Delta Dunia paid Rp408.22 billion loan interest as of September 30 2010, eroding its earning.

The sources said the newly syndicated loan will charge annual interest rate at about 6%-7%, far below interest rate of Prime Dig's bonds. "In a year, BUMA is estimated to save around US$25 million, lifting net profit."

If TPG and GIC takes over indirectly holding in Delta Dunia, will it generate mandatory tender offer?

This story above has been published at Theinsiderstories on 22 November 2010.

Disclosure: No position at the stock mentioned above. 

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Capitalinc to place shares at Rp1,500

PT Capitalinc Investment Tbk, one of the companies of Recapital Advisors Group, plans to issue new shares with non-preemptive rights as much as 72.87 million shares at Rp1,500 per share, enabling the company to grab Rp109.31 billion.
In an official statement submitted to Indonesia Stock Exchange (IDX), Capitalinc said the company intends to use proceed from the shares sale for notes payement issued in relation to take over of natural resources-based company.
Robin And Alex Macoy Strategic Investments Lte, British Virgin Islands-based company, bought Capitalinc shares during the placement.
President Director of Capitalinc Budi Prihantoro said the company plans to use the fund from the non-preemptive rights to pay off the promissory notes which is a debt of a the company’s new subsidiary engaged in gas sector. Capitalinc also has appointed PT Madani Securities as financial adviser.

 
Disclosure: No position at the stock mentioned above.
 
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TOWR picks Credit Suisse for placement

Indonesia’s publicly listed telco tower provider, PT Sarana Menara Nusantara, is reportedly to hold private placement. The company listed his shares on 8 March 2010.
An executive familiar with such matter said that the operator of base transceiver station (BTS) that affiliated to Djarum Group appointed foreign investment bank, Credit Suisse to arrange such corporate action.
“Sarana Menara has appointed Credit Suisse. Later on, the bank will arrange some details such as the shares proportion to be released, who will become the candidates and the buyers, as well as the stock price,” he said.
The Corporate Secretary of Sarana Menara, Haryo Dewanto was not immediately available when being contacted to his office in Jakarta or Kudus or even responding the email sent by Bisnis Indonesia daily.

Haryo replaced Arif Pradana as the company’s corporate secretary since 1 September 2010. Before such change, Arif said that his company will increase the number of towers from around 3,600 units to 5,000 units.
Sarana Menara recorded such a fantastic stock movement as it soared 534.15% during this fiscal year, from the early listing price at IDR1,050 to IDR12,000 per share in yesterday’s closing.

Disclosure: No position at the stock mentioned above.
 
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BUMA signs US$600 mio loan Thursday

PT Bank Mandiri Tbk along with four foreign banks serve as the mandated lead arranger of PT Bukit Makmur Mandiri Utama (BUMA), totaling US$600 million. Such amount of fund shall be used to refinance loan and bond.

BUMA is Indonesia's largest coal mining contractor and wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID).
Those four foreign banks participating in such corporate action are Morgan Stanley, Sumitomo Mitsui Banking Corporation, ING Bank and Bank of Tokyo.
Morgan Stanley will also become the arranger of refinancing and buy back of dollar-denominated bonds belonging to the subsidiary of PT Delta Dunia Makmur.
An executive familiar with the matter said that the total loan facilities are equally divided amongst those five banks.
They plan to sign the memorandum of understanding this week. “Each of the banks shall obtain US$500 million. Hopefully, we will sign such agreement this Thursday,” he said yesterday evening as reported by Bisnis Indonesia daily today.
The source also added that Indonesia Exim Bank (LPEI) is also reported to take part on such syndication though LPEI will penetrate through one of those foreign banks or directly conduct a deal with the consumers.“LPEI will not involve in the negotiation as only those five banks take part on it. Yet, possibly LPEI will penetrate through one of those banks or directly through costumer [BUMA],” the sources said.
Managing Director LPEI Dwi Wahyudi juga enggan memberikan komentar. “Saya lagi rapat. Pak Arifin saja,” katanya.(luz)
On the different occasion, Managing Director of LPEI, Dwi Wahyudi also declined to comment. “I am in the middle of a meeting, just call Mr. Arifin,” he said.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Indonesian shares will have other correction today as condition of global and regional markets is non conducive.
Jakarta Composite Index (JCI) will see more selling pressures after weakening by 1.68% (63.03 points) to 3,678.19 yesterday.

Please monitor shares like BBRI, BUMI, BNBR, and BMRI in today’s trading. Followings is the recommendations as reported by Bisnis.com today:

Trimegah Securities:
JCI is predicted to move in the range of 3,644-3,692 today, with selected shares, like BBRI, HEXA, and MYOR. Furthermore, the index tends to continue correction, after it was dragged down 1.7% (63.03 points) to 3,678.19. The index was influenced by investors’ expectation for global economy worsening, especially for Europe and China.

Reliance Securities:
Considering high uncertainty at global level, JCI is projected to expand its correction and moves in the range of 3,633-3,690. We recommend shares like UNSP, BMRI, and SMGR.

e-Trading Securities:
The index will run within the range of 3,663-3,715 today with recommended shares, namely BUMI, BNBR, DOID, HADE, and BNGA. Yesterday foreign investors booked IDR213 billion net sell. Shares staying in positive area were Bakrie Group like BUMI and BNBR also being top values.

Panin Sekuritas:
In next several days, selling pressure is predicted to flow into the market. However, the share’s decrease can be benefited by investors to gain cheap prices. JCI is still on up-trend, and will move in a range of 3,633-3,698. Yesterday, the selling action swept through Asian markets following conflict in the Korea Peninsula.

Disclosure: No position at the stock mentioned above. 

BTPN sets rights issue at Rp7,000

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) determines the price of rights issue I at Rp7,000, enabling the bank to obtain Rp1.32 trillion fresh fund on 21 December.
Based on the prospectus of rights issue I published today, mentioned that BTPN will issue 188.79 million new shares in the rights issue I.
Each holder of five BTPN old shares is entitled to one preemptive right (HMETD) in order to purchase one new shares that issued.
According to plan, BTPN will use the whole proceeds of rights issue I to strengthen the corporate capital and growth in form of credit expansion.
CIMB Securities Indonesia and Danareksa Sekuritas becomes the standby purchaser of shares that is not implemented by BTPN shareholders reaching to 94.39 million shares. 

Disclosure: No position at the stock mentioned above.

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Low Tuck Kwong keeps buying Bayan

It seems something is happening at PT Bayan Resources Tbk (BYAN). Dato' Low Tuck Kwong, controling shareholder in coal miner PT Bayan Resources Tbk (BYAN), keeps buying31,000 shares at Rp12,927 or Rp400.74 billion.
In an official statement to Indonesia Stock Exchange (IDX) today, Tuck Kwong purchased the stocks on November 12 2010 with investment purpose.
Post stocks purchase, Tuck Kwong holds 1.72 billion shares or 51.66% stake in Bayan Resoures.
On November 15, he also declared another purchase of 1.46 million shares at Rp12,264/share. Tuck Kwong has spent Rp17.91 billion for the stocks purchase. He bought Bayan shares during the period of November 4 2010 to November 11 2010 with investment purpose.
Post shares purchase, Tuck Kwong controls 51.66% stake in Bayan Resources.

Disclosure: No position at the stock mentioned above. 

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BNI sets rights issue at Rp3,100

Indonesia’s state lender, PT Bank Negara Indonesia (BNI) finally set the rights issue price of its C-series stocks at Rp3,100 per share.
In the company’s prospectus published today, with the excercise price at Rp3,100, it was stated that BNI shall derive Rp10.45 trillion proceed.
BNI shall utilize 80% of the fresh funds to boost its credit disbursement on corporate, small and medium scale enterprises as well as consumers.
Nearly 15% of such funds shall be allocated to develop the infrastructure of information technology, outlet and ATM.
The remaining 5% will be used to bolster its subsidiaries, including BNI Life, BNI Syariah, BNI Securities and BNI Multifinance.
BNI plans to issue 3.37 billion new C-series stocks at Rp3,100 per share. Each holder of 500,000 old C-series stocks poses 110,473 pre-emptive rights issue.
Every each pre-emptive rights issue grants its shareholder a right to buy one new C-series stock to be issued by BNI.
On the third rights issue, Bahana Securities acts the standby buyer for those C-series stock that does not belong to government at the most 902.51 million shares.
After the rights issue, government of Indonesia still controls 60% shares of BNI while the remaining owned by public.
Government said that it will execute not the entire pre-emptive rights issue as much as 2.47 billion pre-emptive rights issue in such corporate action.
Based on the purchasing agreement signed on 11 November by Indonesia’s SOE and Bahana Securities, it was stated that the pre-emptive rights issue owned by government of Indonesia will be sold to Bahana Securities.
Afterwards, Bahana Securities will offer and sell the stocks generated from the pre-emptive rights issue to the local and foreign investors.

Disclosure: No position at the stock mentioned above.  

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Hatta urges to disclose data on KS

Coordinating Minister for Economic Affairs Hatta Rajasa asks the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) to disclose data on allotment in the IPO of PT Krakatau Steel Tbk (KS).
"Just disclose the data, why should we treat it as confidential? Nothing should be kept secret. Please you write that," he stated in his office yesterday as reported by Bisnis today.

According to him, as long as the information was not considered classified information as regulated in the Freedom for Public Information Law, the data should be transparently exposed to the public to prevent unfounded allegation.
"The public has to be informed. Besides, we have a law that regulates on the freedom to get information. We should prevent speculations that can injure the capital market from growing."
Disclosing any data to the public, explained Hatta, should put into account whether the data were considered classified information or not. If the list of KS shares allotment was not categorized as classified information, it would only be appropriate to expose the data to the public.
"If the data are considered classified information, we certainly have to protect them."
Capital market regulation In response to the demand, Head of the Bapepam-LK A. Fuad Rahmany only said any request for information on customers' securities accounts should refer to the Capital Market Law.
"Everything is regulated in the Capital Market Law. Any party who wants to get the information should refer to the Capital Market Law."
Article 47 clause 1 of Law 8/1995 on Capital Market reads that custodian or affiliate parties are prohibited from exposing information on customers' securities accounts to any party save for several institutions, such as parties appointed in writing by the account holders or their heirs, police, public attorneys, or judges for the purpose of criminal case trials.
In the meantime, Chairperson of the Independent Evaluation Team for Krakatau Steel Privatization Implementation Mas Achmad Daniri revealed the team would submit the evaluation result to the State Ministry for State-owned Enterprises (SOEs) on December 10.
The team would also suggest a code of conduct to clarify the do's and don'ts of SOE privatization. 

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

Jakarta Composite Index (JCI) still has opportunity to extend its rally today even though profit taking will still give pressures to  the index.
Followings are a list of recommendations as reported by Bisnis.com today:

Panin Sekuritas:
Today the index may fluctuate in the range of 3,725-3,772 with profit taking possibly giving some pressures. In addition, shares of cement companies, banking and infrastructure sectors can be put into the basket  today. Yesterday, the index also fluctuated and stayed at a negative area before pushing up itself by 0.43% or 16 points to 3,741.23 in the closing session.

Reliance Securities:
The index is estimated to continue its uptrend movement and test the resistance level at 3,762. Then, if this level is overcome, it may go up to 3,777. The support line will be in a range of 3,741 and 3,720. Today’s selected shares are UNTR, BBCA, UNVR, and AALI.

eTrading Securities:
The market tends to be on bullish track and there is no indication for being overbought. Until yesterday, the foreign investors still recorded IDR403 billion net buy at the regular market. Meanwhile, shares of CPIN, KRAS, SMGR, and MAPI are worth a close watch.

Trimegah Securities:
The index still has room to gain some points. Today, JCI is projected to run in the range of 3,718-3,753 with selected shares are INTP, MYOR, and TLKM. Yesterday, the strengthening index was boosted by positive sentiment globally in response to the approved bailout for Ireland.

Sinarmas Sekuritas:
Theres is a room to further strengthen and move in the range of 3,719-3,762. Sectors the be leading movers are mining stocks, plantation, infrastructure and cement companies with recommended shares like INTP, TINS, ANTM, and LSIP.

Disclosure: No position at the stock mentioned above.

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Bukit Makmur & US$600 mio refinancing

PT Bukit Makmur Mandiri Utama (BUMA), Indonesia's second largest coal mining contractor, is in talks with several lenders to secure US$600 million for refinancing existing high cost debts.

BUMA, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), has mandated a stellar investment bank as lead arranger for bonds and loan buyback. Please login or register to read the remaining story.  

Disclosure: No position at the stock mentioned above. 

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Gozco unit seals Rp375 billion loan

PT Bank Mandiri Tbk disbursed an investment loan facility of Rp375 billion to PT Golden Blossom Sumatra (GBS), Gozco Plantations Group‘s subsidiary.
The loan agreement was signed oday at Plaza Mandiri, today Executive Vice President Agro Based Bank Mandiri Rafjon Yahya, PT GBS President Rudyansyah and PT GBS Director Jamal Rosyidin Hakki and witnessed by Tjandra Mindharta Gozali as owner of Gozco Plantations Group.
GBS will utilize the facility to fund the development of palm oil plantation and the establishment of other supporting facilities on 7,446-hectare land area in Muara Enim District, South Sumatra
In addition to the development of the core farm, Bank Mandiri also distributes financing to develop plasma plantation for GBS partner cooperatives on 5,230-hectare land area with of Rp219.34 billion.
“Plantation sector, particularly palm oil, has plenty rooms for development. Bank Mandiri sees the opportunity and decides to establish strategic partnership with major players in the field, including Gozco Plantations,” said Rafjon Yahya in a written statement this afternoon.
Until September 2010, Bank Mandiri has extended financing to palm oil plantations and its derivative industry and palm oil product marketing up to Rp29.99 trillion. Of which, Rp22.88 trillion went to on-farm sector (palm oil plantations and processing factories).

Disclosure: No position at the stock mentioned above.

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Berlina revenue to rise 12.17% in 2010

PT Pemeringkat Efek Indonesia (Pefindo) estimates that PT Berlina Tbk (BRNA) revenue will rise 12.17% or reach Rp602.5 billion in 2010 and 11.76% compound annual growth rate from 2009 – 2014 period.
In a company report currently published by Pefindo, the rise will be underpinned by expansion of production capacity, improved Berlina sales and net income in 3Q 2010 by 9.8% and 109% Yoy respectively.
Berlina is a plastic packaging manufacturing, which produce blow and injection moulds, plastic containers, plastic components, tooth brushes, blown film, laminated tube and plastic extrusion tube.
Currently, Berlina total production capacity for plastic package products has reached 16,500 metric ton (mt) per year, and 650 million tube per year for laminated and plastic extrusion tube.
The company sells all of its products to third parties, mostly to PT Unilever Tbk (UNVR) and Unilever China – companies engaged in producing fast moving consumer goods (FMCG), which accounted for around 68% of BRNA’s sales as of September 30th, 2010.
As of September 30th, 2010, Berlina majority shareholder is PT Dwi Satrya Utama (51.42%), a national investment company.
Performance of Berlina as one of the plastic packaging producer, is very much influenced by other industry, especially fast moving consumer goods (FMCG) industry, particularly toiletries industry, since around 68% of Berlina sales is in formed of toiletries products for one of the biggest toiletries products in Indonesia, which is UNVR.
FMCG industry performance itself, is influenced by the increased of Indonesia’s population and people purchasing power.
As Indonesia’s population rose to 237.6 million people in 2010, followed by an increase of gross domestic product (GDP) by 6.2% YoY in 1H10, which indicate as an improvement of Indonesia’s people purchasing power, caused the FMCG industry increased by 8% YoY in 1Q10, since Indonesian people now has more confidence to spend more on FMCG products.
From January – August 2010, Berlina has spent around Rp112 billion of Rp140 billion of their capital expenditure budget.
Around 47% of its total capital expenditure will be used to finance new plastic packaging machines, and the rest will be used to built factory, engine maintenance and enhance technology system.

Disclosure: No position at the stock mentioned above.  

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Dynaplast aims to go private

PT Dynaplast Tbk (DYNA) revealed today that the company aims to hold voluntary delisting and go private.
In a formal statement submitted to Indonesia Stock Exchange (IDX) on November 19 2010, IDX starting today has suspended Dynnaplast's stock trading in all markets, awaiting further clarification from the company.
"IDX is seeking explanation from Dynaplast regarding to the matter," the announcement said.
Dynaplast stocks stood at Rp2,250 per share on October 19 2010 and surded 55.57% to Rp3,500 on November 19.

Disclosure: No position at the stock mentioned above.

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The next story after TPG take over, DOID

Coal mining contractor PT Delta Dunia Makmur Tbk (DOID) jumped 10.09% to Rp1,200 per share on Friday last week from the previous day of Rp1,090. 

In coincidence, executives of Texas Pacific Group (TPG), one of the world's largest private equity, met  Indra Widjaja, owner of Sinarmas Group, on Thursday. What did they talk? Please login or register to read the remaining story.

 
Disclosure: No position at the stock mentioned above.

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Pan Brothers to buy Hollit International

PT Pan Brothers (PBRX), a garment producer, will conduct the second rights issue (rights issue II) in January 2011 to raise IDR701.57 billion.
As stated in a rights issue prospectus published today, Pan Brothers will issue 445.44 million new shares with price in the range of IDR1,000-DR1,575 per share.
Each shareholder of Pan Brothers gets a preemptive right to buy one new share in the right issue.
Pan Brothers plans to use 14.34% of the cash from rights issue to invest in enlarging production capacity and 28.57% of the cash to add more capital for its subsidiary, PT Pancaprima Ekabrothers.
In addition, 5.90% fund from rights issue will be utilized to acquire 51% shares of PT Hollit International, a selling agent for garment companies, and to add more capital in Hollit International.
Meanwhile, the other 48.62% fund is allocated to improve working capital and business development of Pan Brothers and its subsidiaries.
Pan Brothers has received notification from several shareholders, i.e. Darwin, PT Ganda Sawit Utama, and PT Trisetijo Manunggal Utama, to take part in the rights issue by buying 53.47 million shares of the total 237.70 million shares.
Trisetijo Manunggal on November 19, 2010 signed the agreement to buy shares in rights issue II. Trisetijo prepares to buy the remaining shares of Pan Brothers, at the least 16.27 million shares.

Disclosure: No position at the stock mentioned above. 

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Bumi Minerals to hold non-preemptive

PT Bumi Resources Tbk (BUMI), Indonesia's largest thermal coal exporter, intends to pay US$600 million debt next year.
Nirwan D. Bakrie, owner of Bakrie Group, said Bumi will get money from non-preemptive rights at its non-coal subsidiary PT Bumi Resources Minerals Tbk.
"If the market condition is intact, we will hold non-preemptive rights at Bumi Minerals and China Investment Corporation [CIC] will absorb the new shares with assumption that BRM can prove gold and copper reserves," he said as reported by Bisnis.com today.
However, if the market is unfavorable, BRM might be partly disposed to strategic investor.
Bumi Resources plans to drg down its debts of US$800 million to US$2.4 billion in 2011. About US$600 million debt to CIC will mature in October 2011.

Disclosure: No position at the stock mentioned above.  

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BSD needs Rp2 trillion for land clearing

Indonesia’s property developer, PT Bumi Serpong Damai Tbk (BSD), requires IDR2 trillion to gradually release 1,232 hectare land, corresponding to the land property development license.
Director of Bumi Serpong Damai, Hermawan Wijaya said that his company poses the development license over 6,000 hectare land based on the decree issued by local government.
“Of the area that we are currently developing, we have to release another 1,200 hectare land. We shall conduct such release gradually as we have released 50 hectare by now,” he said last week.
Next year, as he added, the company expects to release 100-200 hectare of land merely to develop the property and infrastructures located in those areas.
The land license controlled by the company happens to be the company’s effort to strengthen its land bank, making its property development to match the development plan.
On the same occasion, the company corporate secretary, Feniyati Tenggara said that the company posed 3,239 hectare of land bank as per 31 July 2010. Of 3,239 hectare, the company has now developed 1,114 hectare.
Bumi Serpong Damai’s acquisition over PT Duta Pertiwi and the share inclusion in two companies namely PT Sinar Mas Wisesa and PT Sinar Mas Teladan shall increase the company’s land bank.
“After the acquisition, the amount of land bank shall be added by 1,600 hectare since Duta Pertiwi owns some lands that are ready to be developed,” she said. Bumi Serpong Damai held an extraordinary shareholders meeting last Friday.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Indonesian stocks are predicted to continue rising today. However, investors must be aware of profit taking action. The shares worth watching include INDY, INTP, and LSIP. Here are the complete reviews as reported by Bisnis.com today:

Trimegah Securities:
The chance for Jakarta Composite Index (JCI) to extend its gain is getting bigger. Today, the index is predicted to move within the range of 3,705-3,741, with recommended shares including INDY and LSIP.

Last weekend, the index moved within positive territory after hours of trading and ended the session with 1.3% increase to 3,725,05 after breaking the psychological level of 3,700. Consumer goods and commodities became the main drivers for the increases in the index last Friday.

Universal Broker:
Negative sentiments from regional markets will potentially make JCI move mixed within the range of 3,690-3,750 today. If it fails to stay at the support level of 3,690, traders need to anticipate short-term increase. The shares predicted to be target of profit taking action or sell on strength include UNTR, PTBA, and INTP.

Disclosure: No position at the stock mentioned above.

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Indika Energy, unlocking value

CLSA has published a coal report on PT Indika Energy Tbk (INDY) with buy recommendation and target price of Rp4,850 per share.

"Indika is one of our key stock picks in the sector for its attractive valuations and its high earnings growth potential following potential one-off capital gain in 1H11. Stripping out this one-off capital gain, Indika’s earnings would still grow by a healthy 61% yoy. Our SOTP valuation values Indika at Rp4,850, which implies 33% upside and 11-10x CY11-12 P/E, a discount relative to its peers," said analyst Rania Rahmundita in her report published on November 18.

CLSA likes Indika for its very attractive P/E valuations and potential value unlocking exercise of re-listing Petrosea in 1H11. 

This exercise would not only be value-accretive, but also earnings-accretive as it should book a decent amount of capital gain. Hence, it would register stronger earnings growth than peers. The recent divestment by the majority shareholders could also improve the stock liquidity. 

"We reinitiate coverage on Indika Energy with a BUY and target price of Rp4,850. Petrosea re-listing to unlock value Indika must “re-list” Petrosea in JCI and increase the float to at least 20% by Jun 11." 

Not only would this exercise be value-accretive, it would also be earnings-accretive for Indika as it should book a capital gain amounting US$53 million-57 million, based on our valuation for Petrosea at some 10x CY10 P/E. 

This alone already represents 30% of Indika’s FY10 net profit and 33% of the FY11 earnings growth. Additionally, Petrosea will continue to grow healthily by 31%-36% yoy in FY11-12, thanks to new contracts from Kideco.
"Stripping out the potential capital gain from Petrosea re-listing, FY11-12 would see Kideco-driven growth. Kideco growth would form 55% of the company’s net profit growth in FY11, as we expect Kideco to grow in excess of 50% yoy." 

Kideco’s production will grow by 17-15% yoy in FY11-12 respectively, higher than the sector average. Its ASP too will grow by 11-4% in FY11-12, at par with the sector average.
The majority shareholder has recently divested 7% stake in the company, lowering its stake in the company down to 66% and lifting the freefloat to 26.4% from 19% previously. Following this, we expect the stock liquidity, currently the weakest in the sector at only US$7m/day, to improve. 

Disclosure: No position at the stock mentioned above.  

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Vallar & Bakrie, the beneficiary (2)

People in the market always said that PT Berau Coal Energy Tbk (BRAU) was controlled by Bakrie family. But nowadays, it is all getting clearer and more transparent that Bakrie family seems to control 40% holding in Berau Coal Energy.
At Vallar Plc deal, 40% holding in Berau Coal Energy, parent Indonesia's fifth largest coal miner PT Berau Coal, will be swapped with Vallar new shares. The remaining of 35% holding seems belong to Rosan P. Perkasa, Sandiaga Uno, and Elvin Ramli.
Vallar has agreed to acquire 35% stake in Berau Coal Energy for the consideration of US$739 million or Rp540 per share from PT Bukit Mutiara, ultimately controlled by three individual owners Rosan of 73%, Sandiaga Uno of 12%, and Elvin Ramli of 15%.
The acquisition price, Rp540/share,  reflects 24.97x PER by the end of this, which is so expensive compared to estimated 19x PER of coal miner PT Indika Energy Tbk (INDY) by the end of 2010.
Vallar also plans to swap its new shares with 25% stake in PT Bumi Resources Tbk (BUMI), consisting of 14% from PT Bakrie & Brothers Tbk and 11% from PT Bakrie Capital Indonesia.
In total, Vallar has agreed to hold US$1.58 billion cash and shares swap deal with Berau Coal Energy and US$1.45 billion shares swap with Bumi Resources. Who is the ultimate beneficiary from the deals? Please login or register to read the remaining story. 

Disclosure: No position at the stock mentioned above.

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