Antam FY10 revenue flat at Rp8.7 trio

One of Indonesia's largest ferronickel miner PT Aneka Tambang Tbk (Antam) posted Rp8.72 trillion revenue in 2010 in line with higher nickel sales, flat from Rp8.71 trillion in 2009.
In a press statement obtained by Insider Stories tonight, the largest contributor for Antam's FY10 sales revenue remained ferronickel of Rp3.65 trillion in 2010, a 70% increase from Rp2.15 trillion in 2009.
Antam's 4Q10 sales revenue reached Rp2.99 trillion, an increase from Rp1.42 trillion in 3Q10.
The company booked 18,253 ton Ni of ferronical sales volume last year, a 29% rise from 14,191 ton Ni in the previous year. Gold sales volume fell 49% to 6,561 kg last year from 12,893 kg in the previous year. Silver and bauxite sales volume plunged 52% and 57% respectively to 41,522 kg and 191,615 wmt from 87,187kg and 445,662 wmt. 

Disclosure: No position at the stock mentioned above.  

Print This Article

XL Axiata FY10 operating profit up 109%

Indonesia's third biggest cellular operator PT XL Axiata Tbk (EXCL), controlled by Malaysian Axiata, today reported a 109.76% jump in operating profit last year as revenue rose 27.35%.
In 2010's financial statement submitted to Indonesia Stock Exchange (IDX) today, XL Axiata posted Rp5.16 trillion operating profit last year from Rp2.46 trillion.
In return, the operator's operating margin surged to 29.55% in 2010 from 17.94% in 2009.
XL Axiata's operating expense increased 9.34% to Rp12.29 trillion in 2010 from Rp11.24 trillion in 2009. Revenue grew 27.35% to Rp17.46 trillion in 2010 from Rp13.71 trillion in 2009.
The operator posted a 69% increase in net profit to Rp2.89 trillion or Rp340 per share last year from Rp1.71 trillion or Rp237 per share in 2009.
Mandiri Sekuritas, in a morning notes today, said XL Axiata FY10 result, with revenue up to Rp17.5 trillion, is in line with its estimate. Meanwhile, bottom line was stronger than expected with net income surged to Rp2.9 trillion.
"This is above our estimate due to better than expected cost efficiency."
All segments showed robust growth with voice, SMS, and data grew by 20%, 29%, and 85% year on year (yoy), respectively.
Subscribers base continued to grow to 40.4 million (+28% yoy), while ARPU declined slightly to Rp34,000 (-6% yoy) due to intensive ‘Rp 0’ tariff promo in late 2010 and also striking international roaming tariff cut.
"We like XL Axiata and still believe they will continue to outperform this year although not as better as 2010 as Indonesian cellular market experiences stagnancy. For FY11F, EXCL expected 11-12% subscriber growth."
At Rp5,200, EXCL is currently traded at PER 11F 11.7x, PBV 11F 3.0x. "We still maintain our buy recommendation on EXCL at target price of Rp7,300."
 

Disclosure: No position at the stock mentioned above.

Print This Article

John Callaghan resigns from Hero

CEO and President Director John Callaghan at one of Indonesia's retailer PT Hero Supermarket Tbk (HERO) has been resigned from his position.
In an official statement filed to Indonesia Stock Exchange, Callaghan said he has decided to return to his country and thus has to leave Hero Supermarket,
"I therefore rendered my resignation as CEO and president director of Hero with effective from March 31 2011," he said in his statement.
Hero President Commissioner Ipung Kurnia, in a statement to IDX today, said John Callaghan will remain in his position until March 31 2011.
Adding to that, Hero has also announced the appointment of Philippe Broianigo to replace John Callaghan. Broianigo is currently the Group's Project Development Director of Dairy Farm International Group.
John Callaghan played a significant role in turning arond Hero Supermarket for the past three and half years. "We would like to thank him for his contribution to the company's success," Ipung said.
The resignation of John Callaghan and appointment of Broianigo as President Director will be tabled for shareholders' approval in annual general meeting to be held in due course.

Disclosure: No position at the stock mentioned above.  

Print This Article

Fitch: Asia Pacific bank outlook stable

Fitch Ratings said that the ratings outlook for banks in the Asia-Pacific region is stable, in a report published today. The stable outlook reflects the agency's expectations that healthy, albeit slightly slower growth for the region in 2011, would support banks' credit profiles, as would the banks' generally defensive qualities should there be any change in global economic momentum.
Where Fitch has somewhat cautious views are on the banks in China and Vietnam, notwithstanding the broader sector rating Outlook for the former currently being Stable.
This is because their moderating profitability and relentless growth are pressuring capital, thereby weakening their credit profiles; a challenge which is reflected in their low Individual Ratings.
Global investors' interest in Asia-Pacific economies and markets is evident from the sizeable capital inflows, which are raising the risks of inflation and asset bubbles.
Some central banks have already begun tightening monetary and credit conditions in the face of mounting inflationary pressure.
However, a commodities-inflation shock which is more severe than Fitch expects, and/or policy mis-steps that see authorities fall 'behind the curve' of local inflation expectations, could lead to sharper monetary tightening and a downside risk for Fitch's growth forecasts.
Key risks common to the region and its banks are a relapse in the global recovery, and/or a sharp slowdown in China.
In addition to hurting trade, these developments would likely weaken the sentiment-sensitive property sector, and in turn negatively affect banks, given their real estate loan exposures.
Such risk appears highest in Australia, China, Hong Kong and Singapore, where home prices have risen appreciably in recent years, although low interest rates and unemployment levels are mitigating factors for now.
While such adverse conditions would hurt banks' performance, Fitch does not expect widespread negative rating actions to ensue, in light of their generally healthy underlying profitability, provision coverage and high capital ratios.
These factors have helped most of them to emerge from the recent global crisis with their capital bases largely unscathed, enabling them to pursue growth and exhibit good performance.
Some banking systems have seen remarkable growth, such as in China, India, Indonesia and Vietnam.
Fitch believes new capital would help to support the credit profiles of some banks in these high growth systems.
A few banks with weaker deposit franchises in these systems may also face funding pressure, although this is not a concern for most other Asia-Pacific banks, which are largely deposit-funded and do not have excessive loan-to-deposit ratios.
Meanwhile, wholesale funded banks in Australia, New Zealand and South Korea are strengthening their liquidity positions, although lower liquidity in global markets, possibly due to European sovereign debt concerns, remains a threat.
Basel III is unlikely to be too onerous for most Asia-Pacific banks due to their reasonable core capital buffers, modest reliance on hybrid capital, and generally healthy liquidity.
Still, higher buffers are desirable as they support flexibility for growth and instill investor confidence to facilitate future access to funding and capital. 

Disclosure: No position at the stock mentioned above.  

Print This Article

Summit Finance gets US$200 mio loan

PT Summit Oto Finance has sealed US$200 million loan facility to underpin its expansion program. As quoted by Bisnis Indonesia today, Summit Finance has secured US$25 million loan from International Finance Corporation (IFC), subsidiary of World Bank.

Adding to that, IFC is also helping Summit Finance to mobilize another US$175 million loan facility. Summit Finance Corporate Secretary Saiful Ichlas declined to comment about the loan facility.

In July last year, Summit Finance secured US$75 million loan from IFC, consisting of two tranches loan US$50 million and US$25 million. The loan was used to support loan channeling for motorbike.

Disclosure: No position at the stock mentioned above.

Print This Article

BTEL to pay US$32.70 mio debt

Code division multiple access (CDMA) based cellular operator PT Bakrie Telecom Tbk (BTEL) is planning to pay US$32.70 million debt to Credit Suisse AG, Singapore branch, using proceed of US$130 million bond issuance.

In a prospectus published today, Bakrie Telecom will use the proceed to pay debt and purchase of telecommunication equipments of US$50 million, US$7.50 million to support interest reserve account, and the remaining is intended to support working capital and additional BTS. Credit Suisse and Morgan Stanley are lead arrangers for the bond issuance.

Disclosure: No position at the stock mentioned above.  

Print This Article

Stock recommendations today

Jakarta Stock Index (JCI) is still difficult to move away from the market pressures as investors are anticipating corporate earnings reports. Yet, a number of consumer and commodity stocks are worth a close watch. Here are stock recommendations provided by brokerages as quoted by Bisnis Indonesia today:

Erdikha Sekuritas:

The JCI is predicted to move between 3,462-3,514 with the recommended shares like SGRO, MPPA, and TINS. Last week, the index lost –27.01 points (-0.77%). All sectors went down except infrastructure and miscellaneous industry 0.14% and 0.08%.

eTrading Securities: 

The index is to move between 3,451–3,549  with recommended shares like ASII, BUMI and SMGR. Last week JCI weakened 27 points (-0.76%) 3,487.61 following the decline in some banking and commodity stocks.

Foreign net sell reached Rp308 billion at regular market, mostly hitting mining and banking stocks. JCI today, according eTrading, will tend to move mixed amid selling pressures which may lead the index book thin gain.

Disclosure: No position at the stock mentioned above.

Print This Article

Bukit Makmur & director resignation

After three reputable financial investors indirectly acquired all shareholding in Northstar Tambang Persada, a 40% stake holder in PT Delta Dunia Makmur Tbk (DOID), one strategic director in Delta Dunia's wholly owned subsidiary has proposed a resignation. Who is he? and why does he propose a resignation when Delta Dunia just changed its company logo?  Please login or register to read the remaining story.    

Disclosure: No position at the stock mentioned above.

Print This Article

Exploitasi Energi, a PLN proxy

Exploitasi Energi Indonesia (CNKO) has successfully completed its first 2x7 MW BOO (build, operate, own) coal-fired power plant in West Kalimantan.
In a company focus published by Mandiri Sekuritas on January 26 2011, CNKO has additional two 2x7 MW power plants under construction whose completion is expected in 2012. Aside from power plants, CNKO is also coal contractor for PLN, with 2.5 million tons annual contract. CNKO is currently owned by the family of Andri Cahyadi with 52% ownership through various entities.
CNKO trades at 1.0x 9M10 P/BV, with FY10F and FY11PER of 9.4x and 4.1x respectively, according to the company’s estimates.
Supplying PLN

CNKO currently has two contracts with PLN and its subsidiaries. The first contract is for 4 million tons for 4 years (5,000 kcal) with Indonesia Power valid until 2012, and the second contract is with PLN for 7.5 million tons for 5 years (4,200 kcal). 

Around
700,000 ton of coal annually is mined from its own mine which has mineable resources of 11 million tons, and the remaining will be supplied from its partners in which
CNKO is the mine operator. CNKO estimated a net margin of US$10/ton from its own mine (assuming average selling price of Rp670k/ton for 4800 kcal), and US$6- 7/ton margin from its coal trading business.
Owning a jetty

CNKO also owns a jetty with loading capacity of 3 million tons annually. The jetty is operated by Pamapersada subsidiary and now is under contract with Arutmin. CNKO earns Rp5,000/ton of toll fee, net of cost.
Owning and operating power plants. CNKO will be paid a levelized fee of Rp367/kwh for 25 years with the first 5 years at Rp500-600/kwh. PLN will guarantee the coal sourcing and CNKO will be paid for its plant operation. Investment cost for 2x7 MW was US$16 million and IRR of the project is 15%. CNKO is currently building 2x7 MW power plants in Rengat and Tembilahan, Sumatera.
Future growth

Growth will be provided by the power plants expansion and increase in coal trading business. Under its affiliates, CNKO has also obtained coal supply contract for PLN (amount undisclosed) and operating 2 sets of tug and barges with additional 8 sets to be available by end 2011. 

The company estimates net profit of 2010, 2011, and 2012 at Rp70.5 billion, Rp161.8 billion, and Rp391.8 billion, respectively.

Disclosure: No position at the stock mentioned above. 

Print This Article

Bukopin FY10 net income rises 28%

PT Bank Bukopin Tbk (BBKP) is estimated to reach Rp463.36 billion net income last year, a 28% from the position a year earlier. Credit channeling last year was Rp31 trillion.

Bukopin Finance Director Tri Joko Prihanto, as quoted by Bisnis Indonesia yesterday, said the profit before tax rose 28% to Rp665.6 billion last year from Rp520 billion in the previous year. 

Bank Bukopin's net interest income reached Rp3.5 trillion last year and non interest income reached Rp600 billion.  "Non interest income rose 30% last year from Rp410 billion in 2009," he said.

Disclosure: No position at the stock mentioned above.  

Print This Article

BRI plans to issue Rp3 trio sub-debt

The state-owned lender PT Bank Rakyat Indonesia Tbk (BRI) plans to issue Rp3 trillion subordinated bond this year in a bid to jack up its capital, preventing it from further decline during a credit expansion of above 20%. 

BRI Finance Director Ahmad Baiquni said the bank's capital is still adequate to underpin its credit expansion this year.

"But, if we have to reach more than 20% growth and obliged to distribute 30% dividend, we think BRI requires additional capital," he said as quoted by Bisnis Indonesia yesterday.

Adding to that, rights issue is impossible as Indonesian government, as controlling shareholder in BRI, has determined not to sell more than 40% shares to public. The government, through Ministry of State-Owned Enterprises, currently controls 57% shareholding in BRI. In return, the capital enlargement might be accomplished via tier 2 such as issuing subordinated bond. He is pessimist that BRI could launch the sub-debt in the first half of this year because it needs to audit its financial statement.

BRI President Director Sofyan Basir said the bank might reach a 15% increase in net profit last year of Rp7.31 trillion. It means BRI may post Rp8.5 trillion net profit.

 
Disclosure: No position at the stock mentioned above.

Print This Article

BUMI pays US$300 million bond

Indonesia's largest thermal coal exporter PT Bumi Resources Tbk (BUMI), owned by Bakrie family, reported to pay US$300 million bond issued by its subsidiary Enercoal Resources Pte Ltd.

As reported by local medias yesterday, the early payment was part of Bumi's strategy to reduce its total debt this year.

Bumi used proceed of non-preemptive rights to settle the bond. Last year, the company shrank its debt of US$500 million. It targets to drag down another US$1 billion debt this year.

Disclosure: No position at the stock mentioned above.

Print This Article

Lonsum agreed to hold 1:5 stock split

Palm oil producer PT PP London Sumatra Indonesia Tbk (Lonsum) has been approved by its shareholders to hold a 1:5 stock split during an extraordinary of shareholder's general meeting in last Friday. This corporate action is intended to boost the stock liquidity. 

"The ratio is 1:5. Lonsum's stocks price will be adjusted following such corporate action," said Lonsum's President Director Benny Tjoeng yesterday. 

If Lonsum's market price is around Rp11,000 per share, the stock's price will be traded at Rp2,200 per share after the split. The company's nominal stock will be divided from Rp500 to Rp100 per share, changing its total capital paid in to 6.82 billion shares.    

Disclosure: No position at the stock mentioned above.

Print This Article

Hexindo 3Q10 net income soars 42.22%

PT Hexindo Adi Perkasa (HEXA), distributor of Hitachi heavy equipment, John Deere construction equipment, and Rotobec today repored a 42.22% jump in net income in thirs quarter of 2010 (3Q10).
As mentioned in the financial statement filed to Indonesia Stock Exchange (IDX) today, Hexindo posted US$30.15 million net income in 3Q10 ended December 30 2010 from IDR21.20 million a year earlier as net revenue surged 56.49%.
Operating income also rose 20.77% to US$38.49 million in 3Q10 from US$29.66 million in 3Q09. However, operating expenses increased 23.86% to US$26.37 million from US$21.29 million.
As a result, Hexindo's operating margin slightly fell to 10.71% from 12.91%. Gross profit increased 27.30% to US$64.86 million from US$50.95 million. Hexindo Perkasa booked US$359.28 million net revenue in 3Q10, a 56.49% rise from US$229.58 million.

Disclosure: No position at the stock mentioned above.

Print This Article

BNI secures US$150 million loan

The state lender PT Bank Negara Indonesia Tbk (BNI) has secured US$150 million loan facility from United States bank of Export and Import aiming to underpin trading financing of both Indonesia and United States.
Such loan agreement happens to be the follow up of the previous commitment as it will be signed by the directors of BNI and US’s Export bank in US’s embassy today.
BNI Corporate Director Krishna Suprapto confirmed the loan facility granted by the US-based financial institution as it was the part of US’s supports for the local entrepreneurs particularly in terms of working capital.
“Yes, we are going to sign the agreement today, valuing US$150 million,” he said after a working meeting with the House’s Commission VI on the problematic debtors in the disastrous area yesterday.
 

Disclosure: No position at the stock mentioned above.

Print This Article

WOM Finance launches IDR1 trio bond

PT Wahana Ottomitra Multiartha Tbk (WOM Finance) today unveils its plan to raise Rp1 trillion from bond issuance.
In the bond prospectus published today, the bond, which is consisting of four series A, B, C, and D, will be used by the company to support consumer's financing.
A and B series of bond will mature in 4 and 2 years, while C and D series will due in 3 and 4 years. Four lead underwriters PT Danareksa Sekuritas, PT DBS Vickers Securities Indonesia, PT NISP Sekuritas, and PT OSK Nusadana Securities Indonesia will underwrite the bond.
At end of September last year, WOM Finance recorded Rp1.12 trillion, a slight increase from Rp1.04 trillion in September 2009.
Net income surged to Rp128.11 billion in September last year from Rp32.15 billion in the previous year.

Disclosure: No position at the stock mentioned above.

Print This Article

MNC Sky Vision aims to hold IPO

PT MNC Sky Vision, subsidiary of PT Global Mediacom Tbk owned by Harry Tanoesudibyo, plans to hold initial public offering (IPO) plan this year.
In its official statement to Indonesian Stock Indonesia (IDX) yesterday, the company that engaged in pay television industry will raise public fund to support its expansion plan.
MNC’s pay television networks that mostly known as Indovision and Top TV has successfully dominated the market more than 78% in Indonesia.
At the end of 2010, the subscribers of Indovision and Top TV has reached more than 800.000 subscribers and projected to continue increasing in line with the low penetration of networked TVs within the country up to now.
The company believes its listing in the IDX can be conducted this year, although it hasn’t yet appointed the underwriter for the IPO plan.
If the IPO plan is realized then the MNC business groups that will be traded in the market are PT Bhakti Investama Tbk, PT Media Nusantara Citra Tbk and PT Global Mediacom Tbk.

Disclosure: No position at the stock mentioned above. 

Print This Article

Multipolar FY10 operating profit drops

PT Multipolar Tbk (MLPL), controlling shareholder of Indonesian ritailer PT Matahari Putra Prima Tbk (MPPA), suffered a 97.08% drop in operating profit last year as net sales and gross profit tumbled.
In 2010's financial statement published today, Multipolar posted Rp15.89 billion operating profit from Rp545.11 billion in 2009.
Multipolar's net sales fell 12.39% to Rp9.45 trillion last year from Rp10.89 trillion in the previous year.
As a result, gross profit tumbled 40.87% to Rp2.17 trillion in 2010 from Rp3.67 trillion in 2009. However, Multipolar's net income sky rocketed 2,457.25% to Rp2,83 trillion from Rp110.69 billion as one-time extraordinary income from Matahari's shares sale. 

Disclosure: No position at the stock mentioned above.  

Print This Article

Antam acquires Sarolangun coal mining

Nickel and gold miner PT Aneka Tambang Tbk (Antam) via its subsidiary PT Indonesia Coal Resources (ICR) yesterday reported to acquire coal mining Sarolangun located in Jambi, Sumatra, at Rp92.5 billion deal.
In an official statement submitted to Indonesia Stock Exchange last night, the acquisition is the first path for Antam to expand business into coal sector.
Sarolangun coal mining started its commercial production in June last year with 200,000 tons output.
ICR plans to jack up Sarolangun's production volume to 500,000 tons by 2011. Sarolangun has coal reserves of 8.25 million tons with quality of 5,300-5,500 kcal/kg.

Disclosure: No position at the stock mentioned above.  

Print This Article

Stock recommendations today

The strengthening of Jakarta Composite Index (JCI) yesterday encouraged traders to accumulate stocks as foreign investors recorded a Rp711 billion net buy. However, viewing profit taking action, the correction possibility may happen today. Stocks to watch: ASII, BNGA, BMRI, ISAT, INDF, UNVR, and TINS. Here are stock recommendations provided by local brokerages as quoted by Bisnis Indonesia daily.

e-Trading Securities:
Indonesian stock benchmark today is estimated to move at the range of 3,453-3,570 after gaining 12.9 points or 0.37% to 3,514 with foreign investors in Rp711 billion net buy. Recommended stocks ASII, BMRI, and BNGA.

Sinarmas Sekuritas:
The JCI today may be mixed at the range of 3,481-3,558. Buy activities of foreign investors on top banking stocks still underpin the JCI. Several stocks such as BMRI, INDF, ISAT, and TINS could be bought if their prices move to a lower level.

Erdika Sekuritas:
The index today is estimated to move at the range of 3,491-3,544 after recording daily transaction value of Rp6.04 trillion yesterday. Profit taking emerged in the second session. Recommended stocks are INDF, UNVR, and TINS.

Disclosure: No position at the stock mentioned above.

Print This Article

Garuda stocks overwhelm market

When PT Krakatau Steel Tbk entered the primary market, the steel market stocks immediately 'disappeared, but now the market is flooded with stocks of PT Garuda Indonesia Tbk. 

M. Reza, Head of Research at PT Erdhika Sekuritas, said that the IPO stocks of Garuda floods the market, since the Ministry of State-Owned Enterprise (SOE) decided to allocate 57% subscription shares in fixed allotment.

“Of the total subscription of Garuda, Erdhika gets 57% allotment. The market will be flooded with Garuda stocks. After listing, will Garuda fly high? Will it last? Since the investors sell in the first day,” he said.

In the grey market, the premium 10% offered in the initial public offering (IPO) of Garuda at Rp750 has decreased to 3%.

Reza thought that bigger allocation for local investors is a strategy of investment managers and the government, considering that foreign investors are not too attracted to the shares of Garuda in IPO. “It may be a strategy, so the portion for local investors is bigger,” he said. 

Too expensive 

According to him, the initial price of Garuda at IDR750 is considered too expensive. The price reflects the estimated price to earning ratio (P/E) 2010 at 60 times. “Airlines, like British Airways has P/E 2010 around 27 times and the average P/E of airline industry is not more than 17 folds,” he said.

Sanusi, Secretary General of Indonesian Securities Investors Community (MISSI), responds the big allocation in Garuda’s IPO positively.

“In IPO of SOE, local retail investors are supposed to get the same allocation with foreign investors. Don’t let local retail investors only viewers,” he said.

When Krakatau Steel held IPO, Sanusi said he subscribed for 1 million shares but he got allocation of 1 lot or 10 lot.

According to him, Garuda Indonesia business is quite prospective, provided it is well managed. “Whether it may gain or lose after listing, it doesn’t matter. If it loses, investor can cut loss. The most important is that local investors become priority,” he said.

The government reduced the number of Garuda shares to be launched in the IPO from 36.5% or 9.36 billion shares to 6.27 billion shares,covering 4.4 billion new shares and 1.9 billion shares belonging to PT Bank Mandiri Tbk.

Garuda will generate Rp3.3 trillion and Bank Mandiri will gain Rp1.4 trillion. The subscription of Garuda shares reached 1.3 times for the price of Rp750. 

Disclosure: No position at the stock mentioned above.

Print This Article

SSIA spends US$60 mio for Banyan

Property developer PT Surya Semesta Internusa Tbk (SSIA) has spent US$60 million or Rp540 billion to establish Banyan Tree Ungasan Resort at Ungasan village, Kuta, Bali.
In a press statement, the resort, providing 73 villas with premium facilities, has been commercially opened on January 22 2011.
The resort is developed by Surya Semesta's subsidiary PT Sitiagung Makmur. Sitiagung Makmur offers each villa at Rp900,000 to buyers. The villas are managed by PT Ungasan Semesta Resort in cooperation with Singapore-based company dubbed Banyan Tree Hotels and Resorts Ltd.
Sitiagung offers 59 one bedroom type of exclusive villas, 11 villas with two bedroom facilities, and 3 villas with three bedroom facilities.
Besides Banyan Tree Resort, Surya Semesta via PT Suryalaya Anindita International will spend Rp170 billion capital expenditure in 2011 to renovate 5 star hotel Gran Melia.
Surya Semesta targets Rp400 billion revenue from hotel segment, a 15% increase from 2009's position. With the operational of Banyan Ungasan Resort, hotel segment is estimated to contribute Rp440 billion revenue this year.

Disclosure: No position at the stock mentioned above.  

Print This Article

PTPP targets Rp335 billion net profit

PT Pembangunan Perumahan Tbk (PTPP), a state-owned construction and investment company, targets the net profits to grow by 66% to Rp335 billion compared with last year’s estimated net profits.
President Director of Pembangunan Perumahan Musyanif said the target is based on the estimation that construction business will boom in 2011.
The booming construction businesses in 2010 include road and port construction, as well as environmentally friendly projects.
“We are optimistic to get the target. We even estimate to be able to reap a double growth in win contract compared to last year,” he said.
The optimism, as he said, is due to the some big projects which previously to be acquired last year but in fact those projects are postponed in 2011.

Disclosure: No position at the stock mentioned above.  

Print This Article

MNC FY10 net income sky rockets 94%

PT Media Nusantara Citra Tbk (MNC) recorded a 94% jump in net income to Rp748 billion last year from Rp386 billion in the previous year as revenue rose.
In an official press statement submitted to Indonesia Stock Exchange (IDX) last night, MNC posted a 27% growth in consolidated revenue to Rp4.99 trillion last year from Rp3.92 trillion in 2009.
Solid advertising growth has led to the 32% growth in MNC’s advertising revenue as compared to last year’s results.
Revenue from content & value added services grew by 20%. EBITDA in 2010 surged 86% from Rp774 billion in 2009 to IDR1.44 trillion in 2010, resultimh a higher EBITDA
margin to 29% from 20%.
TV ads still dominates MNC’s consolidated revenue by contributing 69% of which RCTI contributed 63% of total revenue from TV ads followed by MNCTV of 22% and Global TV of 15%.
From consolidated EBITDA point of view, TV ads also remains as the main contributor at 83% of which RCTI contributes 76% of EBITDA from total TV ads, 14% from MNC TV and 10% from Global TV.
“We have been enabled to lift up our position as the leading media company in Indonesia and subsequently we also recorded a remarkable performance for the full year 2010. We firmly believe that we will be able to continue of
maintaining an outstanding performance in 2011,” said Hary Tanoesoedibjo, CEO of MNC Group, in the statement.

Disclosure: No position at the stock mentioned above.

Print This Article

Tugu Pratama eyeing Rp750 bio IPO

Indonesia's largest oil and gas PT Pertamina (Persero) expects its subsidiary PT Tugu Pratama Indonesia to bag Rp750 billion in the upcoming IPO.
Finance Director of Pertamina Mohamad Afdal Bahaudin yesterday officially informed the corporate action plan.
The insurance company, Tugu Pratama since 3 years ago has set up a plan to go public but it never been realized until now.
Pertamina is the major shareholder in Tugu Pratama by acquiring 65% shares, while PT Sakti Laksana Prima has 17.60%, Siti Taskiyah owns 12.15% and the remaining of 5.25% controls by Mohamad Satya Permadi. According to the general meeting of shareholder in June 2010, the IPO will be realized in the first quarter of 2011.

Disclosure: No position at the stock mentioned above.  

Print This Article

Enseval launches Rp300 bio rights issue

Trading and distribution company PT Enseval Putra Megatrading (EMPT) is raising Rp300.04 billion by issuing new shares with preemptive rights of 428.64 million shares or 15.8% of its enlarged capital.
In the rights issue prospectus published today, Enseval Megatrading, with majority shareholding controlled by one of Indonesia's largest pharmaceutical maker PT Kalbe Farma Tbk (KLBF), schedules the rights issue in March this year after obtaining approval from its shareholders set during extraordinary of general shareholder meeting on March 2.
Each holder of 1,000 existing shares will obtain 188 preemptive rights in which one rights can buy one new share to be issued by Enseval at the exercise price of Rp7000 per share.
Enseval Megatrading plans to use the proceed to increase and expand distribution chains, including warehousing and branch offices throughout Indonesia.
Kalbe Farma has provided a full commitment to exercise unsubsribed rights. Currently Kalbe Farma controls 83.75% shareholding in Enseval Megatrading, HSBC Fund Services Clients A/C500 holds 10.93%, and public shareholders own 5.32%.
Post rights issue, Kalbe Farma will control 83.75% (if all public shareholders exercise their rights), HSBC Fund owns 10.93%, and public holders own 5.32%.

Disclosure: No position at the stock mentioned above.  

Print This Article

Bakrie Telecom sells US$140 mio bond

CDMA-based operator PT Bakrie Telecom Tbk (BTEL) grabbed US$140 million from 5-year bond issuance. Bakrie Telecom Director of Corporate Service Rakhmat Junaidi said the company offered 9.463% interests, much lower than previous bond issuance of 11.5%.
“Morgan Stanley and Credit Suisse as our underwriters informed that we are oversubscribed 7 times or equivalent to US$1 billion,” as he said to press, yesterday.
The bond, he continued, was offered to international investors in Asia, Europe and U.S. investor allocation were 49% from Asia, 38% from Europe and 13% from U.S.
Junaidi said the company was really pleased with the bond result.
“It showed how international markets confidence is high toward our operating performance and BTEL financial. This is evidenced by our earlier bond issuance that was traded at a premium price.”
The proceeds of this corporate act will be used to pay company debt and to support company’s aggressive move in the world of CDMA broadband technology.

 

Disclosure: No position at the stock mentioned above.

Print This Article

Stock recommendations today

The movement of Jakarta Composite Index (JCI) today is hopefully still affected by positive sentiment of regional and global stock markets after sell-off engulfing coal-based stocks yesterday, following the downward of oil price.

However, profit taking may emerge after the JCI gained in the last two consecutive trading days. Stocks to watch: ICBP, ROTI, PGAS, UNVR, INTP, KLBF, BBTN, and LPKR. Here are stock recommendations for today as quoted by Bisnis Indonesia daily:

Sinarmas Sekuritas:
The JCI today is expected to move at the range of 3,458-3,545 with uptrend opportunity. The stock market will be influenced by the result meeting of US central bank board of governor. Investors speculate that the meeting may indicate an economy stability which will impact the global market. Stocks to watch: INTP, BBTN, ICBP, and ROTI,

e-Trading Securities:
The JCI today is estimated to move at the range of 3,470-3,590, while profit taking may hamper the rally. The JCI yesterday declined 1.97% to 3,501.72 after it inched up 1.97% to 3,501.72. Recommended stocks: PGAS, UNVR, and INTP.

Erdikha Sekuritas:
The JCI is technically still in the upward trend at the range of 3,444-3,560 after foreign investors booked a net sell of IDR530 billion, especially in the banking sector. Recommended stocks: KLBF, BBTN, and LPKR.

Disclosure: No position at the stock mentioned above.

Print This Article

KKGI eyeing Rp413 bio net profit

Thermal coal miner PT Resource Alam Indonesia Tbk (KKGI), Rain Group, is eyeing to produce 3.5 million tons of coal in 2011, up 58% year on year. In 2010, the company has sold 2.2 million tons of coal.

In an analyst meeting as reported by Mandiri Sekuritas in a morning notes today, KKGI expects Rp1.89 trillion revenue this year, a 95.4% increase from 2010 and net profit of Rp413 billion in 2011, a 138.9% rise from last year, assuming average coal selling price of US$59.8 per ton or 24.3% increase YoY. 

KKGI posted 2010's unaudited revenue of Rp969 billion, a 133.8% increase from 2009, while net profit is estimated to reach Rp173 billion or a 440.4% increase YoY. About 95.4% of its coal was exported with China and India as the main destination, counting for 87.9% of its total sales.

Resource Alam plans to announce one coal asset acquisition within this year. Beside that, KKGI also consider to diversify its business to other mining business like iron ore, bauxite and manganese that have similar model to coal mine.
Total capital expenditure in 2011 is expected around Rp90 billion, where Rp40 billion allocated to its contractor and Rp50 billion is equity portion especially for buying new heavy equipment, and expand its transportation infrastructure.

KKGI has locked 1.7 million tons of coal volume in 1 year contract with average selling price of US$61 per ton FOB vessel, while allocates around 1 million tons to spot market. And the remaining 800,000 tons is allocated to domestic market, supplying to PLN. Around 500,000 tons coal for PLN is priced at US$ 47/ton FOB barge.

Disclosure: No position at the stock mentioned above.

Print This Article

PTBA to supply coal for power plants

PT Tambang Batubara Bukit Asam Tbk (PTBA) is aiming to be the coal supplier of two South Sumatra power plants of 2x300MW and 2x150MW. This is expected to be completed in 2011. 

Tender process is still ongoing. 1000MW needs around 3 million tons of coal, therefore if realized, Bukit Asam could add another 2.7 million tons of coal sales. 

The company is targeting coal production volume of 17 million tons in 2011. In a notes published by Mandiri Sekuritas today, the brokerage estimates FY11 production may reach 15.7 million tons. At Rp20,100, PTBA is trading at PER11F and PER12F of 11.9x, and 10.8x, respectively. 

"Since our last report, the share price has falling 12.5%, and despite PLN plea for lower domestic coal price, we think it is unfair to pass on the burden of PLN inability to raise tariff to its supplier.  We are currently using US$105 per ton benchmark coal price for our assumptions (currently US$133.45 per ton), therefore our forecast has sufficient cushion for a possible lower than market price for domestic coal supply," the notes said.

Disclosure: No position at the stock mentioned above.

Print This Article

Noodle price hike & Indofood revenue

Indonesia's largest instant noodle maker PT Indofood CBP Sukses Makmur Tbk (ICBP) has increased Rp100 per pack of instant noodle since Monday this week. The price hike has been applied to four main noodle products. What is the impact for PT Indofood Sukses Makmur Tbk (INDF)? Please login or register to read the remaining story.  

Disclosure: No position at the stock mentioned above.

Print This Article

Multistrada rebounds 3.57% on ASP hike

Tire maker PT Multistrada Arah Sarana Tbk (MASA) today rebounds 3.57% to Rp290 per share after suffering a consecutive drop of 8.19% in a week trading. The rebound is following the information that Multistrada plans to jack up tires average selling price (ASP).
"Tires price must be increased this year, along with the price hike of raw materials such as natural rubber," said J. Sukarman, Multistrada Corporate Secretary, as quoted by Kontan today.

Multistrada, the producer of Achilles, Corsa and Strada brand tire, aim to jack up the selling price of its tire for the export market by 11%-15% on 1 February 2011.
Head of Investors Relations Multistrada, Even Go said that such hike is merely a strategy to anticipate the hike of raw materials such as natural rubber, synthetic rubber and steel wire.
“The selling prices for car and motorcycle tire in the domestic market rose by 11%-15% since the first week of January while part of the tire product in the export market augmented by 7.5% since November 2010,” he said recently.
According to him the price jump in the market export was conducted gradually, highly depending to the customers.
At the moment, 75% product of Multistrada is sold in the export market while the remaining is marketed through local market.
“By such jump, we expect to maintain the gross margin at 22% as in 2009 and in 2010 where we almost hit the level of 22%,” he said. The hike is applicable for 13 inches-24 inches tires.
Multistrada is currently bolstering its production capacity as it recorded 17,500 units and 8,000 units of production capacity for car and motorcycle in early December 2010.
After the first phase of expansion completed, the car tire production shall soar by 28.57% to 22,500 tires per day in the first half of 2011, compared to 16,000 tires per day.
After the second phase of the expansion completed, the production capacity of car tire may surge to 28.500 units in the end of the year.
“Besides raising the sale price, we also impose the mixed product management since every product size poses different margin. We also establish a particular allocation for our product,” said Even.

Disclosure: No position at the stock mentioned above.  

Print This Article

Sulfindo Adiusaha delays bond sale

PT Sulfindo Adiusaha, an Indonesian company which makes chlorine and chemicals, delayed a planned sale of dollar bonds.
A source said the company decided to postpone its sale while alternative structures are being discussed, the person said, without elaborating.
Sulfindo has mandated Barclays Plc and Standard Chartered Plc to help sell five-year fixed-rate dollar bonds, another person familiar with the matter said on Jan. 10. Meetings with investors were held in Asia, Europe and the U.S. earlier this month, that person said. 

Standard & Poor's Ratings Services today assigned its B long-term corporate credit rating to Sulfindo. The outlook is stable.
The rating agency also assigned its B issue rating to the proposed senior secured notes to be issued by Sulfindo Netherlands B.V. Sulfindo and some of its operating subsidiaries guarantee the notes, which mature in 2016.

"The rating on Sulfindo reflects the company's highly leveraged financial risk profile and exposure to the cyclical chlor-alkali industry, which results in volatile prices in its end-products," said Standard & Poor's credit analyst Wee Khim Loy. 

"The rating also factored in the company's large investment requirement, execution risk from its power plant project, and single-site concentration risk, even though the manufacturing facilities are separated by public roads."

Disclosure: No position at the stock mentioned above.  

Print This Article

BTN aims to raise Rp2.75 trio financing

Housing-focused lender PT Bank Tabungan Negara Tbk (BTN) is considering three sources of financing worth Rp2.75 trillion-Rp4.25 trillion to support its credit expansion plan this year.
BTN’s President Director Iqbal Latanro said that the financings include Rp1.5 trillion-Rp2 trillion bonds issuance, maturing 5-10 years, asset securitization through collective investment contract of asset-backed securities(KIK EBA), valuing Rp750 billion-Rp1.25 trillion and Rp500 billion-Rp1 trillion medium term notes (MTN).
He said that such financing aims to back BTN’s credit disbursement that is expected to grow by 23%-27% compared to the amount in the end of 2009, reaching Rp40.73 trillion.
“In order to support our credit expansion, we would like to issue bonds, asset securitization, and MTN. The later one is a new thing for our company. We expect to realize it as soon as possible," he said.
Besides issuing those three instruments, the Indonesia’s lender is currently reviewing a rights issue plan in 2013 or 2014. Such corporate action aims to maintain the capital adequacy ratio (CAR) above 12%. At the moment BTN posted 16%-17% CAR.

 
Disclosure: No position at the stock mentioned above.

Print This Article

Delta Dunia FY10 coal output rises 7.34%

Indonesia's second biggest coal contractor PT Delta Dunia Makmur Tbk (DOID) enabled to post a 7.34% and 5.08% growths both in coal production and overburden removal last year compared to the previous year.
As announced by Delta Dunia yesterday, the company, which was indirectly acquired by Texas Pacific Group, Government of Singapore Investment Corporation (GIC), and Chinese sovereign wealth fund China Investment Corporation (CIC), booked 35.1 million tons of coal production in 2010 from 32.7 million tons in 2009.   
Overburden removal slightly increased 5.08% to 291.9 million bank cubic meter (bcm) last year from 277.8 million bcm in the previous year.
In December last year, Delta Dunia, parent company of PT Bukit Makmur Mandiri Utama, made 3.2 million tons of coal production, unchanged from November's production.
However, overburden removal in December last year made a slight increase to 27.3 million bcm from 26.5 million bcm in November last year.
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.
The third quarter of 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.

Print This Article

Stock recommendations today

An opportunity for Jakarta Composite Index to continue its rebound is still affordable. This was in line with accumulative buy from foreign investor yesterday of IDR322 billion net buy.
However, the JCI adverse should be anticipated by investor as  volume yesterday was below average daily transaction, signaling bearish trend is not over yet. Stocks to watch: ASII, INDF, BMRI, ADRO, UNTR, PTBA. Here are stock recommendations provided by several brokerages as reported by Bisnis Indonesia today:

Sinarmas Sekuritas:

The JCI today may move in positive trend at the range of 3,371-3,470, extending a limited upward after making a higher level yesterday. The strengthening of JCI and commodities price will be restricted by US dollar appreciation. Stocks to watch: ASII, INDF, and BMRI.

e-Trading Securities:
Indonesian stocks benchmark are estimated to move at the range of 3,342-3,442 after gaining 2.62% to 3,433.91. Foreign investors booked a IDR332 billion net buy position. ASII, AALI, and ADRO may be considered.

Erdikha Sekuritas:
The stock gauge is estimated to be in the range of 3,372-3,471 after strengthening, underpinned by all sectoral indexes with the most hike experirnced by miscelenous industry. Recommended stocks are AALI, UNTR, and PTBA.

Disclosure: No position at the stock mentioned above.

Print This Article

Garuda downsizes IPO to Rp4.7 trio

PT Garuda Indonesia Tbk has finally downsized the IPO size nearly 50% to Rp4.7 trillion proceed from the initial target of Rp7.02 trillion with the final price of Rp750 per share. Garuda will bag Rp3.2 trillion cash from the IPO and PT Bank Mandiri will obtain about Rp1.4 trillion.
Initially, Garuda plans to sell 9.36 billion shares or 36.5% shareholding at the price range of Rp750-Rp1,100 per share.
A source said as the market demand is weak, Garuda and Government have finally decided the IPO size to 6.27 billion shares or 24.4% from 9.36 billion shares or 36.5% stake.The final price is reflecting 74.04x annualized of price to earning ratio (P/E) last year, which is so expensive.

Disclosure: No position at the stock mentioned above.

Print This Article

Garuda Indonesia IPO set at Rp750

PT Garuda Indonesia Tbk has set a final price of initial public offering (IPO) at Rp750 per share.The IPO price is the lowest level of the price range at Rp750-Rp1,100 per share. However, Garuda has finally downsized the IPO size

The final price is reflecting 74.04x annualized of price to earning ratio (P/E) last year, which is so expensive.

In 2011 and 2012, Mandiri Sekuritas, one of Garuda IPO's underwriters, estimated Garuda Indonesia might post Rp761 billion and Rp1.01 trillion net profit respectively. 

With a total 25.66 billion shares, earning per share in 2011 and 2012 are estimated to reach Rp29.65 and Rp39.63 respectively. Referring to the final of Rp750, estimated P/Es for 2011 and 2012 are 25.29x-18.92x P/E. Is it too expensive for the newly IPO?

Another Garuda's shareholder PT Bank Mandiri Tbk (BMRI) will bag Rp1.45 trillion from the shares sale.In total, Garuda IPO is expected to raise Rp7.02 trillion-Rp10.29 trillion by selling 9.36 billion shares or 36.5% shareholding to public investors. Garuda plans to use the proceed for capital expenditure. A source said the lowest level reflects the market demand for Garuda is weak.

Disclosure: No position at the stock mentioned above.

Print This Article

Govt. places Bank Mandiri at Rp5,250

One of Indonesia’s largest banks, PT Bank Mandiri Tbk (BMRI) and Ministry of State-Owned Enterprises have determined the rights issue at Rp5,000 per share, a 11.50% discount from today's market closing at Rp5,650 per share. Demand for the shares is estimated to obtain 3.5%-3.6% oversubscribe.

Referring to the price, Bank Mandiri will enable to snap up Rp11.70 trillion cash from the rights issue of B series shares. The bank aims to issue 2.34 billion shares or 11.14% shares of its enlarged capital.

Each holder of 8,985 shares has 1,000 preemptive rights to buy a new share that will be issued by the lender.
On the other hand, PT Mandiri Sekuritas and PT Danareksa Sekuritas act as the right issue’s underwriters as well as standby buyers for 778.69 million shares that weren’t owned by the government’s portion.

The government has also decided to place Bank Mandiri shares at Rp5,250 per share. It will not exercise 1.56 billion preemptive rights. Based on a purchase agreement signed on December 23 2010, the rights will be transferred to Danareksa and Mandiri Sekuritas. Furthermore, they will sell and offer the rights to foreign and domestic investors.
According to the plan, Bank Mandiri will allocate the fund of right issue to strengthen its capital structure that support its business development and credit growth in the future. 

Disclosure: No position at the stock mentioned above.


Print This Article

Fitch upgrades Fajar Surya to B+

Global rating agency Fitch Ratings has today upgraded Indonesia-based PT Fajar Surya Wisesa Tbk's (FASW) long-term foreign currency and local currency issuer default ratings (IDRs) to B+ from B. 

At the same time, Fitch has upgraded FASW's national long-term rating to A(idn) from A-(idn). 

The outlooks on these Ratings are Stable. The senior unsecured rating of Fajar's US$100 million senior notes due in 2011 has also been upgraded to B+ from B; the recovery rating remains at RR4.

The upgrade reflects Fitch's expectation of a continued improvement in Fajar's credit metrics from FY11 onwards, following the on schedule completion of its paper machine 5 (PM-5) expansion supported by healthy domestic demand for containerboard and boxboard. 

PM-5 increased Fajar's production capacity by 40% to 1m metric tonnes per annum in December 2010. However, given the robust demand for Fajar's products, plant utilisation levels are not expected to weaken much over the short- to medium-term; the company has been operating at full capacity in the past few years. The company's ratings are also supported by its position as one of the largest non-integrated producers of industrial paper in Indonesia, its long standing relationships with its main customers and its low cost production base.

The recovery in domestic demand and international paper prices since mid 2009 has allowed Fajar to increase its average selling prices by about 20% compared to FY09. 

This has consequently enabled it to increase its EBITDA to Rp520 billion in the nine months to September 2010 (FY09: Rp570 billion), an annualized improvement of 22%. Fajar's financial leverage as measured by net adjusted net debt to EBITDAR increased to 2.6x at September 2010 (FYE09: 2.3x), due to the Rp564 billion of capex that was mostly spent on the PM-5 expansion in this period. 

However, Fitch expects Fajar's leverage to decline starting FY11, with higher EBITDA generation supported by the new capacity and as its capital expenditure requirements fall over the medium-term.

Fajar's liquidity remains adequate. It had undrawn credit facilities of about Rp1.8 trillion which is sufficient to cover its short term debt maturities of Rp260 billion up to September 2011 and the US$ notes due in October 2011. In addition, it had cash reserves of Rp89 billion at September 2010.

Disclosure: No position at the stock mentioned above.

Print This Article

Buana Listya Tama to hold 40% IPO

Very large carrier operator PT Buana Listya Tama, wholly owned subsidiary of PT Berlian Laju Tanker Tbk (BLTA), will dispose up to 40% stake during initial public offering (IPO) scheduled in April this year.
The company expects to grab US$150 million proceed from the IPO.
A source close to the deal said Buana Listya Tama may mandate Danatama Makmur, J.P.Morgan Securities, Deutsche Bank, and Standard Chartered Securities.
Kevin Wong, Berlian Tanker's CFO, declined to explain about Buana Tama IPO. "We can't talk about our plans. We will explain when we are allowed," he told Insider Stories yesterday.
PT Pelayaran Tonasa Lines is also expected to hold IPO soon.
Sattar Taba, President Director of PT Semen Tonasa, the IPO of Tonasa Lines, affiliated company of Semen Tonasa, wholly owned subsidiary of PT Semen Gresik Tbk (SMGR), may improve efficiency.
"Tonasa Lines may soon go public. We need to put down the cost," he said without saying a certain time table as quoted by a local media.

Disclosure: No position at the stock mentioned above.

Print This Article

Price hike to lift up Indofood CBP income

PT Indofood CBP Sukses Makmur Tbk (ICBP)'s FY 2011 forecast net income has been upgraded by Mandiri Sekuritas by 30.9% from the previous estimates.

"Our recent observation has just revealed that ICBP’s noodle ASP has increased by some 7%-8%, or equivalent to around 11% yoy," said Mandiri Sekuritas in a company focus published yesterday.

Mandiri Sekuritas views that the company’s decision to increase its average selling price (ASP) higher than it usually did since 2009 reflected its confidence on easing competition.

"However, we choose to wait and see whether the company could maintain its sales volume. Therefore, we upgraded the stock by only one notch to neutral while observing competitors’ responses. The stock is currently trading at PER11-12F of 13.8x-12.4x."

Werianty Setiawan, Director of ICBP, on last Friday confirmed that the price hike of four main noodle brands has been applied since Monday this week.

Fostering profitability

"Our recent observation on retailers shows that ICBP’s instant noodle ASP has increased by some 7%-8% on average," the report said.

Note that this ASP increase will fully take into effect in 2011 as it happened in the beginning of this year, unlike previous ASP increase that occured late in 4Q10. Therefore, even though the ASP increased by only 7%-8% from the previous ASP, the effective increase is around 11%yoy, assuming the company maintains the new ASP throughout this year.

"Because our previous assumption on ASP increase was lower [only 5.0%yoy], this above-expectation ASP increase could translate to an additional net income of Rp443 billion or 30.9% above our previous estimates."

An interesting point here is the recent ASP adjustment was higher than the company usually did since 2009. In Mandiri's view, it reflects the company’s higher confidence level regarding easing industry competition landscape. However, at the end, the company’s 1Q11 sales volume prove whether the company could sustain its sales volume.

Disclosure: No position at the stock mentioned above.  

Print This Article

Agung Podomoro pays Rp119 bio debt

Property land PT Agung Podomoro Land Tbk (APLN) has paid its debt of Rp119 billion to PT Bank Negara Indonesia Tbk (BNI) after it settled debts to JPMorgan Chase Bank and Bank Permata.

Agung Podomoro's Corporate Secretary Prisca Andriessen, as quoted Kontan daily, said the loan from BNI was a syndicated bank loans. Besides BNI, two other banks CIMB Niaga and Bank Internasional Indonesia becomes member of the syndication. 

The total loan channeled to Agung Podomoro was Rp1 trillion. The property developer has also obtained Rp350 billion loan from BNI.  In December 2010, APLN settled its debt of Rp88 billion to Bank Permata, US$20 million to JPMorgan Chase Bank.

Disclosure: No position at the stock mentioned above.  

Print This Article

BTN FY10 net profit rises 65%

PT Bank Tabungan Negara Tbk (BTN) today reports that it has outstripped 2010's net profit target to rise 63%-65% to Rp809 billion from Rp490.73 billion in the previous year.
BTN President Director Iqbal Latanro said the credit chanelling surged 27%-30% to Rp51.73 trillion last year from the previous year of Rp40.73 trillion.
Net interest margin in 2010 rose above 5.4%-5.7% from 4.65% in 2009.
BTN expects to reach 40% increase in net profit this year, while credit growth may rise 25%-27%. Capital adequacy ratio is expected to stay at 12%.  

Disclosure: No position at the stock mentioned above. 

Print This Article

Semen Gresik eyes Rp4 trio net profit

Indonesia's largest cement maker PT Semen Gresik Tbk (SMGR) targets net income of Rp4 trillion in 2011 or increase within a range of 10%-15%, compared to the same period which may range between Rp3.46 trillion and Rp3.63 trillion.
President Director of Semen Gresik Dwi Sutjipto said although the company’s revenue were relatively stagnant in 2010, the company has conducted an efficiency program thus the net profits increased between 5% and 10% compared with Rp3.3 trillion in 2009.
He believes the increase on profit target in this year is mainly supported by the increase in production and the completion of two new plants at the end of this year in Tuban and Tonasa with a total production capacity of 5 million tons.

Disclosure: No position at the stock mentioned above. 

Print This Article

BTEL picks CS, Morgan Stanley for bond

CDMA-based operator PT Bakrie Telecom Tbk (BTEL) has appointed Credit Suisse as the sole global coordinator of the global bond issuance.
Credit Suisse and Morgan Stanley will become the joint bookrunners of the corporate action. In information disclosure submitted to Indonesia Stock Exchange (IDX) yesterday, the management of the company said that the agreement with Credit Suisse and Morgan Stanley have not yet signed.
“Remembering a binding agreement which have not yet signed when this announcement published, then the bond issuance may or may not be happened," he said in the information disclosure to IDX.
The company will give further announcement after the signing of the agreement. Previously, Bakrie Telecom is now reviewing the bond issuance plan of US$200 million. If the bond price is profitable by the company then the figure will be raised.

Disclosure: No position at the stock mentioned above.

Print This Article

BTPN plans to issue Rp1trio bond

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) plans to issue subordinated bond worth Rp1 trillion to balance the long-term funding structure with the short-term.
President Directore BTPN Jerry Ng said the bond issuance will allow the company to prepare liquidity support for the credit expansion.
Besides, as he said, the company will draw down a loan amounted US$70 million from International Finance Corporation (IFC), the subsidiary of World Bank. Whereas, the loan was secured by BTPN in 2009 however it never been draw down until now.
"We prepare the bond issuance valued at Rp1 trillion and also at the same time will draw down a loan amounting US$70 million," he said yesterday.
Director of BTN Anika Faisal said the bond issuance to regulate the balance between long-term and short-term funding.
In this year, the bank set a 24% growth, beyond the average growth of the national banking industry. The credit expansion of BTPN will focus retirees and small medium and micro enterprises as the bank’s market share.
 

Disclosure: No position at the stock mentioned above.
 
Print This Article

Stock recommendations today

Correction engulfing Jakarta Composite Index (JCI) in the last 3 days made the index fell to the lowest level since September 23 2010, prompting investors in wait and see position. Trading volume was also tin as well. 

However, the situation may provide an opportunity for the JCI to rebound today, especially for blue chips which have suffered massive sell-off. Several stocks to watch are BBRI, MEDC, BBTN, INDF, BBTN, AALI, LSIP, and TLKM. Here are recommendations provided by stock brokerages as reported by Bisnis Indonesia today:

e-Trading Securities:
The JCI today is estimated to move at the range of 3,327-3,407. Still, the current economy and monetary situations may influence the market and spur a bargain hunting for several stocks such as BBRI, BBTN, and INDF.

Reliance Securities:
The JCI strives to rebound at the range of 3,333-3,397, spurred by the economic data growth in Europe and expectation on Bank of Japan meeting today. Top picks are BBTN, AALI, LSIP, and TLKM.

Erdika Sekuritas:
After suffering a 0.99% drop to 3,348 with drops egulfing all sectors. The property sector was the most with 2.52% decrease. The JCI is predicted to the range of 3,313-3,588. Recommended stocks are BBTN, MEDC, and TLKM.

Sinar Mas Sekurias:
The JCI is predicted to move at the range of 3,312-3,409, while rebound may occur today. Since January, capital outflow persists from emerging markets to developed markets. After suffering drop in 5 consecutive days, the JCI has possibility to rise. Stocks to watch are BBRI and INTP.
Disclosure: No position at the stock mentioned above. 

Bank Bukopin sets rights issue at Rp520

PT Bank Bukopin Tbk (BBKP) has set the final price of rights issue at Rp520 per share, enabling the bank to grab Rp1.07 trillion cash.
In the rights issue prospectus published today, Bank Bukopin plans to issue 2.05 billion new shares of B series or equals 25% of its enlarged capital.
Each holder of three existing stocks obtains one preemptive rights to buy one new shares. According to the prospectus, about 62% of the rights issue will be used by Bank Bukopin to develop small, medium-scale enterprises, commercial business (28%), and consumer of 10%. 

Disclosure: No position at the stock mentioned above.

Print This Article

Buana Listya Tama sets US$150 mio IPO

Very large carrier operator PT Buana Listya Tama is planning to dispose shares via initial public offering (IPO) with a target proceed of US$120 million.
Buana Listya Tama is wholly owned subsidiary of PT Berlian Laju Tanker Tbk (BLTA). A source close to the deal said Buana Listya Tama may mandate Danatama Makmur, J.P.Morgan Securities, Deutsche Bank, and Standard Chartered Securities.
"Let's wait for the official announcement," said Vicky Ganda Saputra, Director of Investment Banking at Danatama Makmur, without giving further detail information.
Eddy Sugito, Director of Indonesia Stock Exchange, confirmed that Buana Listya Tama plans to go IPO. "We haven't known about the target proceed. Mini expose is scheduled tomorrow."
Buana Tama was established in 2005 as a domestic shipping company under group of Berlian Tanker, one of the world’s largest chemical tanker operators specialized in transporting liquid cargoes.
Buana Tama began its endeavor in the shipping business catering international and domestic routes and built its reputation as a professional shipping company in Indonesia.
The subsidiary started out the business with a range of oil tankers and gas tankers, designed and dedicated to carry crude oil and oil products as well as gas products such as LPG.
It also owns and operates a very large gas carrier, MT Gas Komodo, and also became the first domestic shipping company that operates such vessel in Indonesia.
With years of experience catering numerous local and international clients, mostly global oil and gas majors, Buana Listya Tama has taken the standards of international shipping into domestic waters.
In 2005, the government of Indonesia issued a Presidential Decree which regulated the implementation of Cabotage Principle, and consequently it has resulted in the opening of  significant opportunities in favor of the domestic shipping industry.
This policy endorses the development of the local shipping industry by limiting the participation of foreign owners while at the same time provides wider business opportunities for local shipping companies to grow within domestic market.

Disclosure: No position at the stock mentioned above.

Print This Article

Elnusa launches US$50 mio FRN

Integrated oil and gas services company PT Elnusa Tbk (ELSA) has entered into agreement to launch a US$50 million fixed rate notes (FRN) with annual interest rate of 8.98%.
In an official statement filed to Indonesia Stock Exchange (IDX) today, Elnusa Corporate Secretary Heru Samodra said the notes proceed will be used by Elnusa to fulfill capital expenditure and strengthen working capital.
Elnusa has mandated Oversea-Chinese Banking Corporation Limited and PT Northcliff Indonesia as joint lead managers and Bank of New York Mellon as fiscal agent.
About 90% of the proceed will be used by Elnusa as capital expenditure in a bid to jack up operational capacity and the remaining is aimed to strengthen working capital. Elnusa plans to spend US$100 million capital expenditure (capex), using the notes issuance.

Disclosure: No position at the stock mentioned above.

Print This Article

Astra Group eyeing power plant projects

Group of PT Astra International Tbk (ASII) is joining two tenders of power plants with the capacity of 2x300 MW and 2x150 MW.
Head of Astra Corporate Communications Arief Istanto, as reported by Kontan daily today, said the company has participated tender for power plant projects in Sumatra.
The 2x300 MW power plant is estimated to require financing of US$720 million-US$780 million and 2x150 MW power plant requires US$360 million-US$390 million.
Astra Group is still in talks with other four parties of consortium. Astra aims to be majority share holder.

Disclosure: No position at the stock mentioned above.  

Print This Article

Adhi Karya fails to meet sales target

The state-owned contractor PT Adhi Karya Tbk (ADHI) estimates that it won't meet its sales target last year, but it may reach its net income target.
Adhi Karya Corporate Secretary Kurnadi Gulardo said the company may reach Rp6.05 trillion sales last year, below its initial target of Rp8.6 trillion.
The sales last year fell 21.53% from Rp7.71 trillion in 2009. Adhi Karya's failure to meet its sales target as several contracts have been delayed, engulfing other contractors as well.
"Our sales drop was due to several projects such as toll road and power plant have been delayed. However, we can achieve net income target of Rp185 billion," said Kurnadi.
Adding to that, Adhi Karya is eyeing Rp9.15 trillion sales this year, a 51.23% increase from last year. "We predicted that our sales will steeply surge as carry over several contracts from last year," he said.
The company predicts to achieve Rp203 billion net income in 2011, a 9.72% rise from last year of Rp185 billion. Adhi Karta plans to allocate Rp78 billion capital expenditure this year.

Disclosure: No position at the stock mentioned above.

Print This Article

Astra Sedaya launches Rp1.5 trio bond

Multifinance company PT Astra Sedaya Finance, subsidiary of PT Astra International Tbk (ASII), today launches Rp1.5 trillion bond XII with fixed interest rate.
In the bond IPO prospectus published today, Astra Sedaya plans to unveil the bond on February 28 2011.
Astra Sedaya Finance has mandated five lead underwriters namely PT Indo Premier Securities, PT Mandiri Sekuritas, PT HCBS Securities Indonesia, PT Standard Chartered Securities, and PT OSK Nusadana Securities Indonesia.
The bond is consisting of four series, A, B, C, and D. A and B series bond will mature in 370 days and 24 months, while C and D series will mature in 36 months and 48 months.
According to the prospectus, Astra Sedaya will use the proceed to support financing activities of vehicles.
As of September 2010, Astra Sedaya's net revenue reached Rp.77 trillion. In 2009, the company posted Rp.88 trillion net revenue.
Net income in September 2010 reached Rp74.34 billion, while in 2009, it booked Rp13.71 billion.

Disclosure: No position at the stock mentioned above.  

Print This Article

Garuda Indonesia may downsize IPO

Indonesia’s flag carrier, PT Garuda Indonesia Tbk might downsize shares size being offered on its initial public offering (IPO) from the previous amount of 9.36 billion.
An executive familiar with the discussion of such plan, as reported by Bisnis Indonesia today, said that the option echoed merely due to the relatively expensive IPO’s stock price, causing significant difficulties for the underwriters supposed they have to sell the shares at Rp750-Rp1,100 per unit.
“During the road show, many investors perceived that the stock price is relatively expensive compared to other airlines since Garuda set the stock price at Rp750-Rp1,100 per unit.”
“In order to be fully absorbed, possibly Garuda will cut the share volume being released,” he said last week. With the shares volume and the given stock price, Garuda may derive Rp6.97 trillion-Rp10.23 trillion. The shares volume issued to the market represents 36.48% of the total listed shares, 25.7 billion shares.

Disclosure: No position at the stock mentioned above.

Print This Article

Stock recommendations today

Jakarta Composite Index (JCI) today is estimated to experience a sell-off pressure. Stocks which plunged last week seem attractive to be bought. Here are recommendations provided by local brokerages as reported by Bisnis Indonesia today:

Erdhika Sekuritas:
The JCI will move to the range of 3,308-3,452. Recommended stocks are BMRI, BBRI, and blue chips which dropped last week. The index fell 74.57 points (2.16%) after reaching 3,309.62 at the early session. All sectors suffered drop, especially agriculture and consumer with 3.28% and 3.14%.

eTrading Securities:
The JCI today is predicted to move at the range of 3,313-3,471, while foreign investors still influence the monetary and economy indicators. Top stocks are UNVR, PTBA, and BBCA.
Last week, the JCI lowered 74 points or 2.16% to 3,379,54 after suffering 109 points drop in the first trading session, following the massive drop at iShares MSCI Indonesia index in the US.
Foreign investors recorded IDR1 trillion net sell on Friday last week with dominations of coal mining and banking. The JCI may drop today which is seen in the golden area at 3,280-3,600.

Disclosure: No position at the stock mentioned above.  

Print This Article

Indofood CBP and noodles price hike

For those who love to eat Indomie instant noodle,  you may buy the noodle with a higher price starting tomorrow. The prices hike of raw materials seem the culprit. 

Indonesia's largest instant noodle maker PT Indofood CBP Sukses Makmur Tbk (ICBP) is ready to anticipate the prices hike of raw materials. Are you ready? Please login or register to read the remaining story.    

Disclosure: No position at the stock mentioned above.

Print This Article

2 Investors eyeing Bukit Barisan Block

PT Radiant Utama Interinsco Tbk (RUIS) today said two potential investors are interested to set up strategic alliance to develop oil and gas Bukit Barisan Block.

"Two potential investors have shown their appetite to develop Bukit Barisan Block," said Radiant's Corporate Secretary Coki Lubis as reported by Kontan daily yesterday.

According to him, they are a local investment company and offshore oil and gas company. Adding to that, Radiant Utama is considering two options to facilitate the cooperation such as issuing new shares. The potential investors could be standby buyers for Radiant Utama's rights issue. "The proceed will be utilized to develop Bukit Barisan Block," Coki said.

Radiant Utama bought Bukit Barisan via its subsidiary dubbed PT Radiant Bukit Barisan E&P (RBB) on November 13 2008 after a consortium of RBB and PC (SKR) International Ltd won the tender of South West Bukit Barisan Block, West Sumatra and Riau.

Radiant Utama controls 51% participating interest in the block and the remaining is owned by PC (SKR) International. RUIS requires US$15 million to develop the project. The potential reserves in Bukit Barisan is estimated to reach 120 million barrels of oil and 260 billion cubic feet of gas. RUIS expects to produce oil and gas in 2015, delaying from the initial plan. 

Disclosure: No position at the stock mentioned above.

Print This Article

Indosat FY10 revenue rises 12%

Indonesia's second largest cellular operator PT Indosat Tbk (ISAT) estimated to post a 12% revenue increase to Rp20.6 trillion last year from Rp18.39 trillion a year earlier. The increase was mainly contributed growth in cellular subscribers.

"Indosat's subscribers reached 33 million in 2009, while we could add another 17 million subscribers last year," said Indosat President Director Harry Sasongko.

But, he declined to further explain about the revenue last year. Indosat, subsidiary of Qatar Telecom, is eyeing a 11% growth in subscribers this year.

Disclosure: No position at the stock mentioned above.

Print This Article

United Tractors FY10 remains sturdy

PT United Tractors Tbk (UNTR), heavy equipment distributor, coal miner, and coal contractor, recorded strong volume growth last year in Komatsu sales volume, coal production, and overburden removal.  

In a formal statement today, United Tractors reported a 73.7% rise in Komatsu sales volume to 5,404 units last year from 3,111 units in 2009.

The mining sector was the biggest contributor for Komatsu sales with 3,313 units in 2010 from 1,709 units in 2009. Agriculture sector contributed 1,037 units of sales in 2010 from 674 units, while sales from construction sector rose to 577 units from 455 units. Forestry sector contributed 477 units for Komatsu sales from 273 units.  

However, month on month sales dropped 25.15% to 420 units in December 2010 from 313 units in November.

In line with heavy equipment sales, United Tractor's coal production rose 14.41% to 77.8 million tons from 68 million tons, while overburden removal inched up 8.86% to 650.9 million bank cubic meter (bcm) from 597.9 bcm.

In a notes today, Mandiri Sekuritas said  the FY 2010 heavy equipment sales were in line with the brokerage assumption.

"Komatsu sales volume of 5,404 units represented 99.7% of our FY10 assumption of 5,419 units. Overburden removal of 650.9 bcm reached 99.4% of our FY10 assumption of 655 bcm and coal production reached of 77.8 million tons reached 101% of our FY10 assumption of 77 million tons," Mandiri Sekuritas said.

Mandiri Sekuritas has a buy recommendation on UNTR. "We think that UNTR, being a distributor of heady equipments with strong position in mining and agriculture sectors, should be the beneficiary of booming commodity sector."

Disclosure: No position at the stock mentioned above.

Print This Article

Matahari FY10 operating income falls

Is the bottom line of retailer PT Matahari Putra Prima Tbk (MPPA) last year absolutely dazzling? It is true. Matahari, controlled by Lippo Group that is owned by Riady family, in an audited financial statement last year, posted an extraordinary income of Rp5.73 trillion. 

It was coming from the 90.76 shareholding sale of Matahari Department Store to PT Meadow Indonesia, wholly owned subsidiary of Meadow Asia Company Ltd, which is part of one of the world's largest private equity fund  CVC Capital Partners with a total deal of Rp7.2 trillion.      

In return, consolidated net income of Matahari last year skyrocketed 1,833.29% to Rp5.80 trillion or Rp1,122 per share from Rp300.04 billion in 2009. 

But, the extraordinary income won't emerge this year. Let's take a look at Matahari Putra Prima's operational performance, adversing from the bottom line.   

MPPA's operating income plunged 89.29% to Rp53.96 billion in 2010 from Rp504.27 billion in 2009, dragging down its operating margin to 0.63% from 4.90. The main reason for the steep drop was a 16.93% decrease in net sales.

MPPA posted Rp8.54 trillion net sales in 2010 from Rp10.28 trillion in 2009 as a result of a steep drop in consignment sales to Rp1.38 trillion last year from Rp5.03 trillion in 2009. However, MPPA was only able to lower its cost of sales 0.74% to Rp6.67 trillion from Rp6.72 trillion. Gross profit tumbled 47.75% to Rp1.87 trillion from Rp3.56 trillion, sending a lower gross margin to 21.89% from 34.63%.   

Disclosure: No position at the stock mentioned above.

Print This Article

Garuda to arrange US$120 mio loan

Indonesian flag carrier PT Garuda Indonesia Tbk, the country's biggest airline, is arranging a US$120 million two-year club loan, according to a person familiar with the matter.
Citigroup Inc and UBS AG are arranging the loan, which will pay a margin of 425 basis points more than the London interbank offered rate.
During the IPO, Garuda aims to raise Rp7.02 trillion-Rp10.29 trillion proceed by selling 9.36 billion shares, consisting of 7.43 billion shares of new B series and 1.93 billion shares of old B shares owned by PT Bank Mandiri Tbk (BMRI).
The airlines set the IPO price range of Rp750-Rp1,100 per share. PT Bahana Securities, PT Danareksa Sekuritas, and PT Mandiri Sekuritas are the lead underwriter of the IPO, helped by two international arrangers Citi and UBS Securities.
According to the IPO prospectus, about 80% of the IPO proceed of new shares issuance will be used by Garuda to develop new fleets such as 10 units of B737-800 NG, 10 units of B777, six units of A330-200, five units of narrow body for Citilink, and five units of Sub-100 types. Garuda will utilize 20% of the proceed to support working capital.

Disclosure: No position at the stock mentioned above.

Print This Article

Agung Podomoro targets Rp5.5 trio sales

Property developer PT Agung Podomoro Land Tbk (APLN) has set an ambitious Rp5.5 trillion sales target in 2011, which will be expected mainly from Green Permata, Pos Pengumben, (GP) and Central Park (CP), and also to include the newly acquired GP.

In a morning notes published by Mandiri Sekuritas today, APLN indicates 2010 earnings to in line with Mandiri Sekuritas' expectation and to further acquire several new projects in 2011. Mandiri recommends buy for the stock with target price of Rp430.

"We went visit to APLN’s several main projects yesterday, including Podomoro City, Kuningan City [KC], Green Bay Pluit [GB], Green Lake Sunter [GL]. and the newly acquired Green Permata, Pos Pengumben [GP], and took some highlights as follow," the notes said,

Total marketing sales was booked at Rp2.8 trillion in 2010, coming from its company’s current 12 pipe-line projects, incl. GL, a project which land the company recently acquired in December 2010 using proceed of its IPO. 

The highly expected 2010 chunk sales contributor, Central Park (CP) and KC apartments reportedly booked portion of sales that leaving only 31% and 9% out of total 1,026 and 960 units, respectively. "This is in line with our estimation for KC although slightly below for CP, yet this was offset by the strata-title office sales that remained 25% out of total 44,869m2 NSA." 

Following recent GP 14.3 hectares land acquisition, the company indicated that they are now in a close discussion of 6 new potential projects, which among others a project located in prime area of Jakarta and a 40ha project in outskirt Jakarta. 

Such active expansion that we expect continuously seeing from company going forward having minimal land bank that it holds. 

Furthermore, Trihatma Haliman, the CEO and also company’s founding shareholder, envisaged that he is now seeing APLN to be his only focused business in the future, putting aside the Agung Podomoro Group, where this is in order to show his commitment in ensuring further growth of APLN business being a public company

"APLN is our property top pick. We have buy on the stock, currently trades at an attractively PE11F 13.7x."

Disclosure: No position at the stock mentioned above.

Print This Article

BMRI rights issue seals 2 folds demand

Demand on PT Bank Mandiri Tbk (BMRI)'s rights issue is now more than 2 folds oversuscribe with the indicative price range of Rp4,000-Rp6,150 per share.

Pahala N, Mansyuri, Bank Mandiri's CFO, said the final price will be determined on January 24-25 2011. The subscription period is scheduled from 14 February to 21 February.

Mustafa Abubakar, State-Owned Enterprises Minister, said the rights issue is still going on. The government will monitor the market before determining the final price. He is ready to adjust the price when it is needed.

Disclosure: No position at the stock mentioned above.

Print This Article

Bumi 2010 net profit may rise 50%

Indonesia's largest thermal coal exporter, PT Bumi Resources's Tbk (BUMI) profit may have risen about 50% last year as the company, Indonesia's biggest coal producer, sold more coal at higher prices, said Dileep Srivastava, a Director.
Bumi posted US$190.4 million in net income in 2009, Srivastava said in an e-mailed response to query, without providing last year's figure. 

The unit of PT Bakrie & Brothers sold a "little over" 60 million metric tons last year at an average US$70 a ton compared with 58 million tons at US$63 a ton in 2009, Srivastava said.
Flooding in Australia, the world's biggest coal exporter, drove Newcastle prices to the highest this month in more than two years.
Power station coal price from Newcastle, an Asian benchmark, rose for a seventh week, climbing to US$138.50 a ton on Jan. 14, the highest since September 2008, according to data from Petersfield, England-based IHS McCloskey.
"Assuming reasonable weather conditions, unlike the second half of 2010, Bumi thinks it should be able to increase sales by 10% and price by at least 10% as well," he said.
A local media reported earlier today that Bumi's revenue may have increased 50% this year. Bumi shares fell 1.6% to IDR3,000 rupiah.
The stock has risen 73% in the past 6 months, outpacing a 12% gain in the benchmark Jakarta Composite index. 

Disclosure: No position at the stock mentioned above.  

Print This Article

Nurhaida named as Bapepam-LK Head

Indonesia’s Finance of Ministry appointed Nurhaida to temporarily replace Ahmad Fuad Rahmany as Head of Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) after Fuad was named as the new Director General of Taxation.
During the inauguration ceremony that has just taken place, Minister of Finance, Agus Martowardojo did not state who will replace Fuad. However, after the ceremony, Agus said to the media that Nurhaida will replace Fuad.
“Besides being appointed as the Expert Staff on Financial Services Policy, Regulation and Capital Market, Nurhaida will serve as the acting Head of Bapepam-LK,” he said after the inaugural ceremony this afternoon.
Nurhaida was appointed as the echelon-I along with assignment of 10 other echelon-I officials and 15 echelon-II officers of Finance Ministry.
Prior to his, Nurhaida served as the Head of Transaction and Securities Agency Bureau at Bapepam-LK. Several internal officers that once involved in the selection process as Fuad’s substitution included Bapepam-LK’s secretary, Ngalim Sawega, Head of Insurance Bureau Bapepam-LK, Isa Rachmatarwata, and the Head Investment Management Bureau of Bapepam-LK, Djoko Hendratto. 

Disclosure: No position at the stock mentioned above.

Print This Article

Stock recommendations today

Jakarta Composite Index (JCI) is currently in the consolidation phase. The index movement is wide
at the range of 3,419-3,569. Top picks for today are BMRI, ASII, and ANTM. Here are recommendations as quoted by Bisnis Indonesia daily today:

e-Trading Securities:
The JCI technically is in the consolidation phase by trying to stay at the support level of 3,483. For today's trading, the index is estimated to move at the range of 3,433-3,569 with stocks to watch: BMRI, ASII, and ITMG.
The JCI yesterday declined 80.70 points (2.27%) to the level of 3,454.12 as concern on food shortage, subsidized fuel, the low response in the monetary policy from the government. Mining and agriculture sectors were loss the most. Foreign investors recorded a Rp35 billion net sell yesterday.
 
Erdikha Securities:
The JCI is estimated to move at the range of 3,419-3,512 today.Stocks to watch are ITMG and ANTM.
All sectors declined yesterday, while mining and agriculture were loss the most with 3.8% and 3.2% respectively.

Disclosure: No position at the stock mentioned above.

Print This Article

Delta Dunia 11M coal output up 6.69%

Among coal related companies, PT Delta Dunia Makmur Tbk (DOID), Indonesia's second largest coal mining contractor, might be the biggest losers in nearly three weeks. Delta Dunia stock has plunged 21.69% to today's closing at Rp1,300 per share from Rp1,660 on January 5.       

Despite a steep drop, Delta Dunia, in an announcement today, posted a slight increase in both coal production volume and overburden removal in November last year (11M 2010) 

In 11M 2010, Delta Dunia posted 31.9 million tons of coal production and 264.6 million bank cubic meter (bcm), a 6.69% and 3.64% growths from 29.9 million tons of coal production and 255.3 million bcm in November last year. 

Delta Dunia is parent company of coal mining contractor PT Bukit Makmur Mandiri Utama, previously owned by Indonesian businessman Johan Lensa.

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. The third quarter of 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.

Print This Article

Mayban Offshore disposes stake in BII

Mayban Offshore Corporate Services (Labuan) Sdn Bhd today disclosed a 5 million shares sale in PT Bank Internasional Indonesia Tbk (BII), obtaining Rp3.75 billion cash.
BII Director and Corporate Secretary Rita Mirasari said Mayban Offshore has disposed BII stake from December 30 2010 to January 6 2011 at the price range of Rp704-Rp787 per share.

Disclosure: No position at the stock mentioned above.

Print This Article