ABM Investama eyeing IPO in October

Indonesia Stock Exchange (IDX) now has two listed companies of heavy equipment distributor, PT United Tractors Tbk (UNTR) with its stellar brand Komatsu and PT Hexindo Adi Perkasa Tbk (HEXA) with Hitachi.

An affiliated company of authorized dealer of famed brand in the market of heavy equipment, Caterpillar, is now trying to tap the money via initial public offering (IPO).

A source close to the deal said PT ABM Investama, a sub-holding company of PT Tiara Marga Trakindo (TMT Group), is considering to hold IPO in October or November this year.

"ABM Investama is considering the IPO. It may mandate Macquarie Securities and Mandiri Sekuritas. The IPO size and volume have not been decided yet," the source said.

Adding to that, it also depends on the market situation. TMP Group, a parent company of PT Trakindo Utama, is founded on August 16 2000. Up to now, about 14 companies are under control of TMT Group.

Trakindo Utama, an authorized dealer for Caterpillar heavy equipment products in Indonesia, was established in 1970 by A.H.K Hamami. The company was mandated as the authorized dealer for Caterpillar in 1971 and manages more than 60 branches throughout the country from Sumatra and Papua.

There are three sub-holding companies under TMT Group, Trakindo, PT ABM Investama, and PT TMT.

Under ABM Investama, there are six companies with main businesses in mining and energy. They are PT Cipta Kridatama, a mining contractor, PT Cipta Krida Bahari (CKB Logistics), a logistic company, PT Alfa Trans Raya, a shipping company and also subsidiary of CKB Logistics, PT Sumberdaya Sewatama, a genset rental company, PT Sanggar Sarana Baja, a steel maker, and PT Tunas Inti Abadi, a mining company.

PT TMT controls six companies such as PT Chakra Jawara, a Iveco truck dealer, PT Chitra Paratama, a dealer of Michelin tire for truck and heavy equipments, PT Tri Swardana Utama, a dealer of Mercedes Benz truck, PT Mitra Solusi Telematika, an IT company, and PT Chandra Sakti Utama Leasing.

Note: The story above has been privately published at The Insider Stories on February 6 2011.

Disclosure: No position at the stock mentioned above. 

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IDX rejects Sierad Produce reverse stock

Indonesia Stock Exchange (IDX) has rejected a proposed reverse stock plan of PT Sierad Produce Tbk (SIPD) since the authority saw the corporate action has not yet needed by the company.
“We see there is no urgency for Sieard to hold reverse stock and also its track record has been one of our considerations to ban the plan, one of them is reverse stock plan has been done by the company before,” said Director of Listing of Indonesia Stock Exchange (IDX) Eddy Sugito this afternoon. He also said that the company has submitted the plan to the market authority.
The reverse stock previously would modify the nominal of A-series stock which was Rp395 to Rp3,950, then also change B-series stock from Rp395 to Rp3,950 and C-series stocks from Rp100 to Rp1,000.
Eddy also said that IDX saw the action has negative implications to the company share which is now under execution, since the company announced the reverse stock plan in the end of last January.
Based on the data of PT Sierad Produce (SIPD-coded stock), the price of the stock has been corrected to drop to Rp50, its lowest level in the stock market, from the level of Rp64 on January 27. Now, the stock was at the level of Rp54. The stock price has managed to its peak at the level of Rp83 on November 22.
The nominal price of the company had been reversed in 2004 with the same ratio. The company also had restructured its converted bonds and long-term debt by issuing C-series stocks in 2005.
In the end of 2009, the company executed reorganization quasi and declined the share value of series A and B stocks from Rp5,000 and Rp3,000 to Rp395.
Eddy also said that any listed company that has announced reverse stock plan, generally will have negatively responds from investors since it will absorb liquidity in the market due to the fewer number of shares in the capital market.
According to him, the company has not submitted any interest to add its capital with preemptive rights after the reverse stock held.
“The talk did not lead to that way [rights issue].”
Corporate Secretary of Sierad Elies Lestari did not answer the phone call and did not also reply short message when trying to find confirmation on the cancellation of the corporate action plan. However, last month, Elies postponed of extraordinary general meeting of shareholders.

Disclosure: No position at the stock mentioned above.  

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Antam FY10 net income jumps 175%

Nickel and gold miner PT Aneka Tambang Tbk (Antam) today reported a 175% jump in net income last year as ferronickel sales rose and lowering cost of goods sold.
In an official statement submitted to Indonesia Stock Exchange (IDX) today, net income rose to Rp1.66 trillion last year from Rp604.31 billion a year earlier.
"The performance last year reflected a steep jump in ferronickel sales and commodities price hike," said Antam President Director Alwin Syah Loebis in a press statement today.
Unaudited sales slightly increased 0.34% to Rp8.74 trillion from Rp8.71 trillion. Production volume of ferronickel soared 49% to 18,688 tons nickel in ferronickel (TNi) last year. Sales volume rose 29% to 18,254 tons TNi, while average selling price jumped 49% to US$10.12 per pound.
Gold production enlarged 6% to 2,776 kg last year, in line with the operational of gold mine Cibaliung. Gold sales volume fell 49% to 6,561 kg, dragging down revenue from gold to Rp2.35 trillion, despite average selling price increase by 26% to US$1,277 per toz.
Antam's gross profit surged 144% to Rp2.92 trillion from Rp1.19 trillion. Operating profit skyrocketed 238% to Rp1.98 trillion from Rp587.52 billion, lifting up its margin to 23% from 7%.
Antam recorded cash and cash equivalent of Rp4.31 trillion, ballooned 55% from Rp2.77 trillion.

Disclosure: No position at the stock mentioned above.

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When BCA outstrips Telkom

PT Bank Central Asia Tbk (BBCA) today finally outstripped market capitalization of PT Telekomunikasi Indonesia Tbk (Telkom), dragging down Telkom to the third largest companies at Indonesia Stock Exchange (IDX).
After beating Telkom, BCA is today becoming publicly listed bank with the largest market capitalization of Rp155.33 trillion, sending the bank to the second position after PT Astra International Tbk (ASII) as the company with the largest market capitalization of Rp210.72 trillion.
Astra has weighting of 7.18%, followed by BCA with 5.24% weighting.
Telkom, the third largest company with market capitalization of Rp150.19 trillion, has 5.11% weighting at IDX. PT Bank Mandiri Tbk (BMRI), the fourth largest, has 4.56% weighting with market capitalization of Rp135.33 trillion, followed by PT Unilever Indonesia Tbk (UNVR) with Rp123.61 trillion or 4.21% weighting.
Jeffrosenberg Tan, Head of Research PT Sinar Mas Sekuritas, said banking sector has been growing faster than telecommunication industry.
"Telecommunication sector is very tight. I think BCA's new position may keep sustaining," he said.
If Telkom is still depending on current business without any innovative products, sooner or later, Bank Mandiri will surpass Telkom.

Disclosure: No position at the stock mentioned above.  

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Fitch revises outlook on 7 Indo banks

Fitch Ratings has revised the outlook to positive from stable for the long-term issuer default ratings (IDRs) of seven Indonesian banks.
They are PT Bank Mandiri (Persero) Tbk (Mandiri), PT Bank Rakyat Indonesia (Persero) Tbk (BRI), PT Bank Negara Indonesia (Persero) Tbk (BNI), PT Bank Central Asia Tbk (BCA), PT Bank CIMB Niaga Tbk (CIMB Niaga), PT Bank OCBC NISP Tbk (OCBC NISP), and PT Bank Internasional Indonesia Tbk (BII).
Concurrently, the agency has revised the Support Rating Floor of Mandiri, BRI, and BNI to BB+ from BB. A full list of rating actions is included at the end of this release.
The outlook revision follows Fitch's recent change in the Outlook of Indonesia's Long-Term IDRs of BB+ to positive from stable.
While Fitch has already factored in a high propensity of state support for Mandiri, BRI, and BNI in their support rating of 3 due to their systemic importance to the Indonesian economy and their government ownership status, the agency expects that the government's ability to provide support - if needed - to gradually improve.
This is reflected in the revision of the three banks' support rating floor, which now matches the BB+ LT IDRs of the sovereign.
This, together with the sovereign IDRs on a positive outlook, underpins the corresponding revision of the outlook of the three banks to positive.
Separately, the positive outlook on BCA reflects Fitch's expectations that the bank's already strong performance will likely benefit from the improved economic conditions in Indonesia.
The agency notes BCA's consistently above-average financial performance, even during the economic downturn in 2008/2009.
Meanwhile, the positive outlook on CIMB Niaga, OCBC NISP, and BII reflects Fitch's expectation that the banks will be upgraded in the event of a sovereign rating upgrade.
The banks' ratings are driven by strong support from their foreign parent banks, which are rated higher than Indonesia's sovereign rating.
Broadly, Fitch expects the Indonesian banks to continue exhibiting robust profitability in 2011 as strong loan demand and manageable credit costs should counterbalance the pressure on margins from competition and, potentially, higher funding cost.
The agency also expects the banks' capital ratios to ease but remain satisfactory for protection against loss, on expected favourable economic conditions.
Plans to reduce dividend payouts and inject new capital, if needed, should also somewhat mitigate the downward pressure on capital ratios arising from moderating but still fast loan growth and from implementation of Basel II operational risk in 2011.
The ratings of foreign-owned banks in Indonesia may also benefit if there is further evidence that their fast loan growth and earnings can be sustained without comprising asset quality, capital, and liquidity.

Disclosure: No position at the stock mentioned above.

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Flexi-Esia merger may be dropped

Indonesian largest telecommunication company PT Telekomunikasi Indonesia (Persero) Tbk (Telkom) may drop a proposed merger of its unit Flexi and Esia, owned by PT Bakrie Telecom Tbk (BTEL).
"Talks on merger currently is put on hold after board of commissioner has urged Telkom to review such corporate action," said Telkom President Director Rinaldi Firmansyah said today.
He said that in this year the company will allocate capital expenditure of Rp17 trillion. If the acquisition plan is still under consideration, then the allocation of capital expenditure can reach to Rp20 trillion.
"We plan to spend Rp1 trillion to support acquisition. One of them is an expansion to Kamboja by acquiring a company in the country. Besides, we will also develop new wave business,” he said.
Telkom estimated revenue over 2010 may slightly increase between 2%-4% from the previous year.
Rinaldi said the slight increase of revenue is mainly supported by revenue from cellular business which also predicted to increase.
“The condition may increase Telkom’s revenue between 2% and 4%. For the net income, we can not inform it now,” he said.
According Rinaldi, until now the company is still auditing and financial report is expected to be finish in the near time.
During 2009, the revenue of Telkom (TLKM-coded stock) was Rp64.6 trillion. Referring to the data, the company as of 2010 will be able to book between Rp65.89 trillion and Rp67.18 trillion.
One of the businesses that will be developed by Telkom is IP TV, or interactive television show with high resolution. The service is targeted to Telkom’s internet consumers with minimum bandwidth of 6 Mbps.
“For this need, in the early stage we allocate required funds Rp50 billion. In the first stage, we will eyes on our consumers who are living in Jakarta,” said Rinaldi.

Disclosure: No position at the stock mentioned above.

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PTBA, Pama to establish power plants

Indonesia's coal mining contractor PT Pamapersada Nusantara (Pama) and PT Tambang Batubara Bukit Asam Tbk (PTBA) plans to set a partnership to establish power plant owned by PT Perusahaan Listrik Negara (PLN).

PTBA will obtain 55% shareholding, Pamapersadana plans to get 30%, and the remaining will be taken by Indian Lanko.

As quoted by  Kontan daily, the establishment of the power plant requires US$1.17 billion of investment. The power plant in Riau has capacity of 2x300 MW with total investment of US$720 million-US$780 million and another 2x150 MW plant needs US$360 million-US$390 million.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Securities companies predicts the mixed sentiment to influence the share trading at Indonesia Stock Exchange today. Several brokerages provided their recommendations as quoted by Bisnis Indonesia today:

Panin Sekuritas: 

The Fitch Ratings' upgrade on Indonesia's outlook and the stagnant BI rate have been the positive catalysts for the Jakarta Composite Index (JCI). Panin predicted the index to move between 3,420-3,460 today.

Sinarmas Sekuritas:

On mixed sentiment, the brokerage estimated the index to run between 3,421-3,462 with recommended shares like BUMI, SDRO, ICBP, and BJBR.
 

e-Trading Securities: 

It saw the index technically tend to move sideways as indicated from relatively thin market although it books active transaction volume. The securities company estimates the JCI to move between 3,416-3,500 with recommended shares like PGAS, BUMI and MNCN. 

Erdikha Sekuritas: 

The brokerage recommended buy on shares like BMRI, BBRI and GGRM as the index may move between 3,420-3,480. 

Disclosure: No position at the stock mentioned above.

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Bakrieland gets US$150 mio from APLN

PT Bakrieland Development Tbk (ELTY), controlled by Bakrie family, may obtain about US$150 million or Rp1.32 trillion cash from 8 hectares sale of land bank in Rasuna Epicentrum to newly listed company PT Agung Podomoro Land Tbk (APLN).     

A source familiar with the matter said talks between Bakrieland and Agung Podomoro on land bank sale have been commenced. "It seems the land bank sale will be announced soon, hopefully in March." Agung Podomoro has mandated Deutsche Bank to seek the financing for Agung Podomoro. 

Based on Bakrieland's presentation material, Rasuna Epicentrum is consisting of 53.5 hectares of development area, 16.3 hectares of land bank, and 17 hectares of fully developed apartment towers.

As of September last year, Bakrieland posted Rp1.12 trillion of cash from Rp624.89 billion. With total equity of Rp7.94 trillion and liabilities of Rp6.62 trillion, its debt to equity ratio was 0.83x.

 

Disclosure: No position at the stock mentioned above.
 
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Delta Dunia & new commissioner

Three months after securing US$600 million of credit facility from several lenders such as Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation, PT Bukit Makmur Mandiri Utama (BUMA), a wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), is currently in talks with about 12 lenders for a new loan facility.

For sure, BUMA, backed-up with three stellar indirect shareholders, Texas Pacific Group, Government of Singapore's Investment Corporation, and Chinese sovereign wealth company China Investment Corporation (CIC), is coming to 12-15 lenders to seal the new loan with soft covenants. 

"BUMA intends to refinance the existing loan facility of US$600 million with another loan with saggy covenants," the source close to the matter told Insider Stories recently. How much financing BUMA needs? Who is the new commissioner? Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above.

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Pamapersada seals US$50 mio loan

PT Pamapersada Nusantara, Indonesia's largest coal mining contractor and wholly owned subsidiary of PT United Tractors Tbk (UNTR), secured US$50 million bilateral loan facility on January 12 2011 from Mizuho Corporate Bank Ltd, Singapore.
In UNTR's financial statement, the facility is consisting of term facility of US$30 million and revolving loan of US$20 million. 

Last month, Pamapersada entered into interest rate swap with notional ammounts of US$5.85 million with PT Bank DBS Indonesia and US$6,1 million with PT ANZ Panin Bank to translate the floating interest rate into fixed rate for finance lease liabilities to PT Komatsu Astra Finance.

United Tractors recorded Rp190.82 billion of short term debt and other debts of Rp767.49 billion. In total, UNTR booked Rp958.31 billion debts.

Disclosure: No position at the stock mentioned above.

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GGRM to distribute Rp400 dividend

One of Indonesia's largest cigarette maker PT Gudang Garam Tbk (GGRM) today announces that the company plans to distribute Rp400 per share interim dividend from 2010's financial statement.

In an official announcement today, Gudang Garam's board of directors has obtained approval from board of commissioners on the proposed interim dividend which will put into effect on February 25 2011.Based on the schedule, Gudang Garam will distribute the dividend on April 6 2011.

Disclosure: No position at the stock mentioned above.
 
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BTPN FY10 net income surges 99%

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) today announced a 99% jump in net income last year to Rp836.8 billion from Rp420.4 billion in the previous year.

In a press statement obtained by Insider Stories today, BTPN's assets rose 34.5% to Rp34.5 trillion from Rp22.3 trillion.

In line with asset growth, the bank's credit rose 38% to Rp25.5 trillion from Rp18.47 trillion. Capital adequacy ratio was 23.40% at end of last year.

In May 2010, BTPN raised Rp1.3 trillion from bond issuance, followed by Rp1.1 trillion secondly issuance in December.

Disclosure: No position at the stock mentioned above.

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3 Indo coal mining contrators, target

Among three Indonesian's coal mining contractors, PT Saptaindra Sejati (SIS), a wholly owned subsidiary of PT Adaro Energy Tbk (ADRO), posted the highest growth in overburden removal with 11% increase last year, while PT Pamapersada Nusantara and PT Bukit Makmur Mandiri Utama (BUMA) posted 9% and 5.08% growth.        

Pamapersada is a wholly owned subsidiary of PT United Tractors Tbk (UNTR) and BUMA is also a wholly owned unit of PT Delta Dunia Makmur Tbk (DOID).

In term of volume, Pamapersada remained the largest coal mining contractor with 651.5 million bcm overburden, while BUMA made 291.9 million bcm, less than half of what Pama did and SIS posted 128.08 million bcm.

Pamapersada mined 77.9 million tons of coal, a 15% increase from 68 million tons in 2009, while two competitors BUMA dan SIS posted a 7.34% and a flat growth to 35.1 million tons and 16.58 million tons. How about this year? Why SIS has boldness to set aggressively target?

    
Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above.

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Indo listed palm oil companies

Palm oil producer PT Astra Agro Lestari Tbk (AALI), in term of planted area, is 3 and 5 folds larger than PT PP London Sumatra Indonesia Tbk (LSIP) and PT BW Plantation Tbk (BWPT). But, BW Plantation is a palm oil company with the highest profitability.    

Find out the just released of FY 2010 financial statement at Indonesia Stock Exchange (IDX). BW Plantation recorded the highest both gross margin and operating margin last year, followed by London Sumatra, and Astra Agro.

It is simple. Look at their immature areas. BWPT last year managed 52,060 hectares of palm oil planted area, where mature area counted 15,270 hectares or 29.33% and 70.67% or 36,790 hectares were immature area. 

Of palm oil area of 80,372 hectares, LSIP's mature area counted 68,583 hectares or 85.13% and 11,789 hectares or 14.66% were immature. In Astra Agro, based on a public expose material published in March last year, with 264,800 hectares, mature area took 207,900 hectares or 78.51% and the remaining of 56,900 hectares or 21.49% were immature. The larger immature area means the faster the company will grow.

Financial performance 

BW Plantation's net income last year recorded Rp244.73 billion, a 46.1% increase from Rp167.47 billion in the previous year. London Sumatra also made the same increase in its bottom line. LSIP posted Rp1.03 trillion, about 4 folds larger than BW Plantation's bottom line, a 46.1% rise from Rp707.5 billion in 2009. Compared to them, Astra Agro posted the smallest growth in bottom line. AALI booked Rp2.02 trillion net income, 2 folds larger than LSIP, a 21.69% increase from Rp1.66 trillion.

At the operational line, BW Plantation, with the largest of immature area, posted a 43% increase in operating profit to Rp370.14 billion from Rp258.86 billion, sending a steep jump in operating margin to 51.9% from 44.3%. The highest operating margin reflects BWPT's ability to maintain its cost efficiency. 

Gross profit grew 27.1% to Rp463.85 billion from Rp365.02 billion,  sending gross margin surpassing 65% from 62.5%. Sales rose 22.09% to Rp712.59 billion from Rp584.11 billion

London Sumatra booked 37.47% increase in operating profit to Rp1.39 trillion from Rp1.02 trillion. Its operating margin rose to 39% from 31.8%.

Gross profit increased 27.4% to Rp1.77 trillion from Rp1.39 trillion, enabling LSIP to boost gross margin to 49.3% from 43.5%. Sales improved 12.3% to Rp3.59 trillion from Rp3.19 trillion.  

Astra Agro's operating profit improved 14.56% to Rp2.99 trillion from Rp2.61 trillion. But, the company failed to maintain its operating margin which fell to 33.82% from 35.18%.

AALI's gross profit advanced 16.45% to Rp3.61 trillion from Rp3.10 trillion. However, gross margin slightly decreased to 40.84% from 41.78%. Sales rose 19.14% to Rp8.84 trillion from Rp7.42 trillion.

In term of profitability, BWPT and LSIP enable to jack up gross and operating margins. Despite growth performance, AALI was unable to maintain its gross and operating margins. 

Disclosure: No position at the stock mentioned above.

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INCO FY10 net earning jumps 156.64%

Nickel producer PT International Nickel Indonesia Tbk (INCO) today reported a 156.64% jump in net earning last year as sales increased 67.73% as well as higher average realized price.

In an official statement submitted to Indonesia Stock Exchange (IDX) today, INCO's net earning rose to US$438.36 million last year from US$170.42 million in the previous year.

Operating profit surged 157.19% to US$596.37 million from US$231.88 million, reflecting a hefty margin which rose to 46.72% from 30.47%. Gross margin jumped 154.84% to US$624.08 million from US$244.89 million.

Inco posted a 67.73% rise in sales to US$1.27 billion from US$760.95 million. Total nickel matte delivered in 2010 was 77,035 metric tons, a 13.7% higher than 67,782 metric tons nickel matte delivered in 2009. The average realized price was US$16,568 per metric ton, a 47.6% higher than US$11,227 per metric ton.

Disclosure: No position at the stock mentioned above.  

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Berlian Tanker removed from credit watch

Standard & Poor's Ratings Services said today that it has affirmed its B- corporate credit rating on PT Berlian Laju Tanker Tbk (BLTA) and removed it from credit watch, where it was placed with negative implications on August 26, 2010. The outlook is stable. 

"We also affirmed and removed from credit watch the CCC issue ratings on the US$400 million senior unsecured notes due 2014 and the US$125 million 5-year convertible bonds due 2012 (outstanding of US$0.1 million as at Sept. 30, 2010), both issued by BLT Finance B.V., a wholly-owned subsidiary of BLTA."

S&P also removed the ratings from credit watch after Berlian Tanker signed a US$685 million, 5-year secured syndicated loan. 

The loan refinances US$593 million of the Indonesia-based shipping company's existing debt, reducing debt installments by US$167 million over the next 3 years. 

"The loan will also finance most of BLTA's committed capital expenditure for 2011 and replace some tight covenants that were the reason for the company's CreditWatch listing," said Standard & Poor's credit analyst Manuel Guerena in a press statement.

The rating on BLTA reflects the following weaknesses: The company's aggressive financial profile, evident from a high operating-lease-adjusted ratio of debt to annualized EBITDA of about 7.7x as at Sept. 30, 2010. "While the ratio is better than in 2009, we do not expect it to improve significantly in the next few quarters, given the supply-demand balance in the shipping sector and the bunker-raising costs."

The competitive, capital-intensive and cyclical nature of the shipping industry. S&P expects revenues and margins to remain under pressure in the next few years.

The following factors, however, support the rating such as good competitive position. The recent economic slowdown affected the chemical tanker segment less than other shipping sectors. In addition, BLTA's stainless steel, double-haul IMO II and III parcel tankers are in a good position, given the phasing out of single-hull vessels, as required by the International Maritime Organization.

Earnings stability and downside protection through contracts of affreightment and charters. These deals provide little more than 50% of BLTA's revenues.

Favorable local cabotage regulation for all intra-Indonesian seaborne transportation, which is to be carried by Indonesian-controlled -and flagged vessels.

BLTA's liquidity position is adequate. Cash and short-term investments were US$161 million as of Sept. 30, 2010. "In addition, we expect BLTA's annual funds from operations to exceed US$200 million during 2010. The new loan will refinance most of BLT's short-term debt and its offshore bank loans. The company's additional sale and lease-back contracts should finance its remaining capital expenditure commitments."

As at September 30, 2010, Berlian Tanker managed 95 tankers, representing 2.2 million deadweight tonnage, with a weighted average age of 7.5 years. 

The company's key businesses are operation of chemical and oil tankers, which provide about 74% and 19% of BLTA's revenues, respectively.

Disclosure: No position at the stock mentioned above.  

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IndoAgri FY10 profit after tax falls 7.2%

Indofood Agri Resources Ltd (IndoAgri) posted Rp1.91 trillion net profit after tax last year, a 7.2% decrease from Rp2.05 trillion in the previous year.
In an official statement today, profit from operations including biological assets gain fell 8.3% to Rp2.99 trillion from Rp3.26 trillion.
IndoAgri, a SGX listed vertically integrated agribusiness group and manufacturer of edible oils and fats, booked a 16.3% in gross profit to Rp3.75 trillion from Rp3.23 trillion, sending a slight increase in gross margin to 39.5% from 35.7%.
Gross profit hike was contributed by higher selling prices of palm products and rubber as well as higher sales volume of palm seeds. Revenue slightly rose 4.9% to Rp9.48 trillion from Rp9.04 trillion.
IndoAgri CEO and Executive Director Mark Wakeford said in 2010, the company planted 15,041 hectares of new oil palm and 3,630 hectares of sugar cane, increasing total planted area to 242,107 hectares from 227,721 hectares in 2009.
Planted oil palm reached 205,064 hectares, excluding plasma area, last year from 193,613 hectares.
Mature area was 155,400 hectares, an increase of 22,840 hectares from 132,560 hectares, while immature area reached 49,664 hectares, reduced 11,389 hectares from 61,053 hectares.
CPO production fell 3% to 740,000 tons last year from 763,000 tons, while fresh fruit bunch (FFB) slightly decreased 3% to 3.30 million tons from 3.39 million tons.

Disclosure: No position at the stock mentioned above.  

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Lonsum FY10 margins keep rising

Palm oil producer PT PP London Sumatra Indonesia Tbk (Lonsum) recorded a 46.1% increase in net income last year as sales rose 12.3%.
In a consolidated financial statement submitted to Indonesia Stock Exchange (IDX) last night, Lonsum posted Rp1.03 trillion net income or Rp151 per share last year from Rp707.5 billion or Rp105 per share.
Operating profit soared 37.4% to Rp1.39 trillion from Rp1.02 trillion, reflecting higher margin to 39% from 31.8%.
Gross profit also surged 27.4% to Rp1.77 trillion from Rp1.39 trillion. As a result, gross margin improved to 49.3% from 43.5%.
Sales advanced 12.3% to Rp3.59 trillion from Rp3.19 trillion due to higher commodities prices, mainly rubber and palm products, as well as higher sales volume of SumBio oil palm seeds.
CPO sales volume in 2010 decreased 5.8% to 352,437 tons compared to 374,134 tons in the previous year.
About 83% of the total CPO sales volume was sold to parent company, PT Salim Ivomas Pratama, which aims to set an IPO in June this year, increased from 41%.
Palm kernel products sales volume slumped 3.3% to 90,723 tons  from 93,796 tons. Rubber sales volume fell 17.2% to 18,318 tons from 22,110 tons.
At end of December 2010, the total planted area for Nucleus is 101,705 ha, of which 79% is oil palm, 17% is rubber, with the balance coming from other crops. Planting program for Oil Palm was 1,815 ha, of which 1,090 ha was new planting and 725 ha was replanting.

Disclosure: No position at the stock mentioned above.

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Mitrabahtera IPO, owners, & dividend

Indonesian coal tugs and barges operator PT Mitrabahtera Segara Sejati Tbk (MBSS) today launches an initial public offering (IPO) of 215 million new shares or 12.3% of enlarged capital paid in. The company expects to list its shares at Indonesia Stock Exchange (IDX) on April 4 2011.

Referring to the IPO prospectus published today, Mitrabahtera has mandated two lead underwriters, PT OSK Nusadana Securities Indonesia and PT Mandiri Sekuritas for the IPO.

MBSS will use all the IPO proceed to underpin some financing of 20-30 additional new tug boats and barges or crane in 2011 and 2012. The operator also intends to use bank loan facility to support the financing.

MBSS plans to buy tug boats with capacity of 1,200 horse power (HP)-2,800 HP, barges with capacity of 270 feet-365 feet, and floating crane with capacity of 20,000 tons-45,000 tons a day.

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.

The owners

Ingrid Ade Sundari Prasatya and Patricia Pratiwi Suwati Prasatya are both controlling share holders in MBSS with 15.4% shareholding each. PT Patin Resources also controls 56.2% stake in MBSS.

MBSS enrolled Indonesian logistics markets as a family company led by Francesca Hadinata and Bing Prasatya in 1993. As of September 30 2010, MBSS owns  51 tug boats, 47 barges, and 4 floating cranes. The company is underway to construct a new floating crane scheduled to be commercially operated in February this year. Patricia Prasatya, with support of Jon Vassella, is in charge of the day-to-day running of the company and business development.  

On June 14 2010, MBSS entered into an investment agreement with Accion Capital Management Pte Ltd (ACM) for convertible loan with principal amount of US$5 million in which ACM acts as investor agent and Accion Asia Growth Fund as newly investor.

Under the agreement, when MBSS has listed shares at IDX, each investor must convert the loan into new shares of MBSS with condition the market capitalization is above US$300 million or Rp2.66 trillion (assuming US$1 equals Rp8,865).

If MBSS's market capitalization is below US$300 million, investors will not obliged to convert the loan into new shares until July 8 2013. With US$300 million capitalization, MBSS's per share equals Rp1,485. By selling 12.5% new shares via IPO, MBSS is targeting about Rp327 billion cash.

Patin Resources, Ingrid Prasatya, and Patricia Prasatya, acting as sellers, entered into an option agreement with PT Indika Energy Tbk (INDY), controlled by Indonesian billionaire Agus Lasmono Sudwikatmono, son of Indonesian tycoon Sudwikatmono who just passed away, and Wiwoho Basuki Tjokronegoro, on November 26 2010.

Pursuant to the agreement, Indika and its affiliates have option to acquire 51% shareholding in MBSS from the sellers after the IPO. The option agreement is valid until 180 days since MBSS lists shares at IDX scheduled on April 4 2011.

Post IPO, exercising of convertible loan and option agreements, Ingrid Prasatya and Patricia Prasatya will be no longer shareholder in MBSS. Patin Resources owns 34.5%, public shareholders holds 10.8%, employees and managements with 1.2%, convertible loan holders with 2.4%, and Indika controls 51%. 

September result

MBSS posted Rp552.97 billion revenue as of September last year and Rp685.99 billion for the year of 2009. Gross profit reached Rp224.04 billion and the year of 2009 saw Rp309.57 billion. 

Operating profit was Rp178.37 billion in September last year (operating margin at 32.34%) and the year of 2009 was Rp238.05 billion (operating margin at 34.70%). Net profit stood at Rp157.82 billion and Rp243.75 billion in 2009.

Dividend policy

Something sounds interesting here. Check the dividend policy at the page 2 bottom in the prospectus. MBSS plans to distribute cash dividend of maximum at 50% of its net profit after tax starting in 2011 and onwards. In 2009, MBSS recorded Rp243.75 billion net profit. Assuming half of the profit will be distributed as cash dividend to shareholders, each shareholder may obtain Rp68.08 per share. Is it attractive?

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Technically, the Jakarta Composite Index (JCI) will still consolidate today, as market shows mixed sentiment. Four brokerages provided their recommendations for stock trading today as quoted by Bisnis Indonesia.

Panin Sekuritas: 

Today, we predicted the index to weaken in limited space and move between 3,413-3,345.

e-Trading Securities: 

The JCI today is predicted to move between 3,372-3,514 with recommended shares like UNSP, ITMG, and BBRI.

Erdhika Sekuritas:

The index may move around 3,417-3,468 today after weakening to some points. It recommended buy on shares like BDMN, ELTY, and BISI.

Sinarmas Sekuritas:
The JCI intends to move lower at the range of 3,393-3,456. The oil price hike surpassing US$100 per barrel could hamper economic growth. Besides, the inflation hike this month could spur negative sentiment on the JCI. We recommended buy on weakness on BDMN and PGAS.

Disclosure: No position at the stock mentioned above.

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Astra Intert. FY10 net income surges 43%

Indonesia largest automotive player PT Astra International Tbk (ASII) today reportd a 43.13% increase in net income last year as revenue reached higher level.
In a consolidated financial statement submitted to Indonesia Stock Exchange (IDX) today, Astra's net income reached Rp14.37 trillion last year from Rp10.04 trillion a year earlier.
Operating profit rose 15.43% to Rp14.73 trillion from Rp12.76 trillion. However, Astra's operating margin lowered to 11.33% from 12.95% because of higher cost.
Gross profit increased 18.32% to Rp26.87 trillion from Rp22.77 trillion. Cost of goods revenue surged 36.11% to Rp103.12 trillion from Rp75.76 trillion. Astra posted a 31.93% increase in revenue to Rp129.99 trillion from Rp98.53 trillion.

Disclosure: No position at the stock mentioned above.

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United Tractors FY10 net income up 1.3%

Indonesian leading heavy equipment distributor and largest coal mining contractor PT United Tractors Tbk (UNTR) today reported a slight increase in net income last year.
However, United Tractors' operating profit slightly decreased 2.09% to Rp5.16 trillion last year from Rp5.27 trillion a year earlier, sending its operating marging lowered to 13.8% from 18%.
In a press statement obtained by Insider Stories, UNTR's net income slightly increased 1.31% to Rp3.87 trillion from Rp3.82 trillion. Gross profit climbed 1.95% to Rp6.80 trillion from Rp6.67 trillion. Revenue last year rose 27.6% to Rp37.32 trillion from Rp29.24 trillion.
The increase in net revenue was achieved due to sharp increase in heavy equipment sales contributed by construction machinery business unit that contributed 46.3% to UNTR's consolidated revenue, and increased production of coal generated by the subsidiary in mining contracting, PT Pamapersada Nusantara (Pama) which contributed 45.4%.
The remaining 8.3% came from the mining business unit which is run by DEJ mines (Dasa Eka Jasatama) and PT Tuah Turangga Agung. 
Operational performance
United Tractors enabled to jack up sales volume of Komatsu heavy equipment 74% to 5,404 units last year from 3,111 units in the previous year.
UNTR Corporate Secretary Sara Loebis said the company targets to increase 10% of its heavy equipment sales this year to 5,944.4 units.
The company maintained its position as market leader in heavy equipment with 46% market share (based on internal market research) last year.
Out of the total Komatsu sales volume, the largest portion of sales went to mining sector, namely by 61%, followed by plantation which contributed 19%, then construction and forestry sectors, respectively at 11% and 9%.
Furthermore, revenue from spare parts sales and maintenance services showed a growth of 14% compared to the same period last year.
In the coal contrating business, Pamapersada reached a 15% increase in coal production to 77.9 million tons from 68 million tons.
Overburden removal enlarged 9% to 651.5 million bank cubic meter (bcm) from 597.9 million bcm. According to Sara, Pamapersada is eyeing 8% and 12% rise in both coal production and overburden removal to 84.13 million tons and 729.68 million bcm in 2011.
In the coal mining, United Tractors last year sold 3.05 million tons from 2.40 million tons. This year, coal sales is expected to increase to 4 million tons.

Disclosure: No position at the stock mentioned above.

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Jababeka unit signs PPA with PLN

PT Bekasi Power, a wholy owned subsidiary of PT Jababeka Tbk (KIJA), has entered into purchase power agreement (PPA) with PT Perusahaan Listrik Negara (PLN) today.
Jababeka Vice President Director Budianto Liman, in an official statement submitted to Indonesia Stock exchange (IDX) today, said PLN is acting as 100% off-taker of electricity generated by gas and steam-fire power plants (full combined cycle) with 1x125.8 MW capacity owned by Bekasi Power in 20 years.
The commercial date of the power plans is scheduled in the last quarter of this year, generating revenue contribution of US$85 million a year to Jababeka with EBITDA margin above 30%. KIJA-coded stock today skyrocketed 29.81% to Rp135 per share. 

Disclosure: No position at the stock mentioned above.

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SCMA becomes surviving company

PT Surya Citra Media Tbk (SCMA) will become a surviving company during the merger plan between PT Indosiar Karya Media Tbk, PT Elang Mahkota Teknologi Tbk, and SCMA. The merger is expected to be completed by June 2011.
President Director of Indosiar Karya Media Handoko said that the subsidiary of Elang Mahkota Teknologi, Surya Citra Media (the operator of Indonesia’s private channel, SCTV), shall become the holding company of Indosiar Karya Media supposes such merger takes place.
“We expect to tap this corporate action at the very least in the end of June 2011. If the structure is merger, there is a strong indication that Surya Citra Media shall serve as the surviving company,” he said in an information disclosure to Indonesia’s Stock Exchange today.
Handoko added that this corporate action may be canceled if this merger will not grant any commercial benefits or earn any necessary licenses from the related institutions.
Such information disclosure took place after IDX temporarily suspended the stock trading of those three listed companies in the regular market. The stock prices of those three companies continue to rise after it announced the merger plan.
 

Disclosure: No position at the stock mentioned above.  

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Astra Graphia FY10 profit jumps 76.86%

IT solution and document solution company PT Astra Graphia Tbk (ASGR) posted a 76.86% jump in net income last year as revenue increased.
In a consolidated financial statement submitted to Indonesia Stock Exchange (IDX) today, Astra Graphia's net income reached Rp118.41 billion or Rp87.79 per share last year from Rp66.95 billion or Rp49.64 per share in the previous year.
Operating profit increased 40.29% to Rp158.33 billion last year from Rp112.86 billion, sending a higher operating margin to 10.11% from 8.45%.
Gross profit grew 18.87% to Rp456.95 billion from Rp384.41 billion. Operating revenue advanced 16.42% to Rp1.56 trillion from Rp1.34 trillion.

Disclosure: No position at the stock mentioned above.  

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Indo Tambang FY10 net income drops

Coal miner PT Indo Tambangraya Megah Tbk (ITMG), controlled by Thailand-based company Banpu Plc, suffered a 39.16% drop in net income to US$204.15 million last year from US$335.55 million because of higher costs.

In a consolidated financial statement filed to Indonesia Stock Exchange (IDX), Indo Tambang operating profit also plunged 16.73% to US$362.91 million from US$435.82 million as operating expenses enlarged 32.77% to US$178.69 million from US$134.59 million.

Indo Tambang's gross profit slumped 5.05% to US$541.59 million from US$570.40 million. Cost of goods sold inched up 20.11%. The miner posted a 10.59% increase in net sales to US$1.67 billion last year from US$1.51 billion in 2009.

Disclosure: No position at the stock mentioned above.  

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Astra Agro FY10 margins slightly fall

Despite rising bottom line, palm oil producer PT Astra Agro Lestari Tbk (AALI) in fact has suffered drop in both operating and gross margin last year.
In a consolidated financial statement submitted to Indonesia Stock Exchange (IDX) today, Astra Agro posted Rp2.01 trillion net income or Rp1,280.70 per share last year, a 21.69% increase from Rp1.66 trillion or Rp1,054.55 per share in the previous year.
Operating profit rose 14.56% to Rp2.99 trillion from Rp2.61 trillion. However, operating margin slightly declined to 33.82% from 35.18% as higer cost of goods sales (COGS) and operating expenses.
Astra Agro's operating expenses enlarged 24.22% to Rp610.64 billion from Rp491.57 billion, while COGS increased 21.06% to Rp5.23 trillion from Rp4.32 trillion.
However, the company enabled to lift up its gross margin by 16.45% to Rp3.61 trillion from Rp3.10 trillion. But, its gross margin fell to 40.84% from 41.78%. Net sales grew 19.14% to Rp8.84 trillion from Rp7.42 trillion.

Disclosure: No position at the stock mentioned above.

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Jababeka to sign JOA with PLN

Bekasi Power, a subsidiary of PT Jababeka Tbk(KIJA), will sign a joint operation agreement (JOA) today, with regards to the long-delayed power plant project. The JOA will have a tenor of 20 years.
PLN will be the 100% off-taker of the 130MW gas fired power plant capacity. In the mean time, BP will have an option to buy back electricity from PLN to ensure supply to the industrial tenants within Jababeka Industrial Estate. Scheduled COD of the power plant is December 2011.
In an investor digest published by Mandiri Sekuritas today, the power plant deal with PLN is the main catalyst for KIJA that people has been expecting since early of 2010.
KIJA would potentially obtain some US$80 million of annual power revenues (US$28 million of EBITDA), which expected to contribute 75% of total revenue onwards. Our 2011F valuation stands KIJA at Rp455/share.
"We call buy with target price Rp133/share that we may revise higher, reducing discount that we put earlier due to the lingering deal. The stock currently trades at a very attractive 77% discount to our RNAV11F and PE11F 6.1x." Jababeka surges 17.31% to Rp122 per share this morning.

Disclosure: No position at the stock mentioned above.  

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Watch Garuda IPO lead underwriters!

Indonesia Stock Exchange (IDX) is closely monitoring net adjusted working capital (MKBD) of three IPO's lead underwriters of PT Garuda Indonesia (Persero) Tbk (GIAA) as Indonesian flag carrier steeply plunged from the IPO level at Rp750.

Referring to IDX daily data, working capital of PT Bahana Securities yesterday steeply shrank 73.14% to Rp54.15 billion when GIAA reached Rp530 from Rp201.64 billion before the first day listing. 

PT Danareksa Sekuritas also suffered a 52.84% drop in working capital to Rp223.34 billion yesterday from Rp473.57 billion before GIAA was trading its debut at Rp750.

PT Mandiri Sekuritas, wholly owned subsidiary of PT Bank Mandiri Tbk (BMRI) which also previous share holder of Garuda, experienced a 28.18% fall in working capital to Rp119.26 billion from Rp166.07 billion.

Based on the regulation of Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), a securities house must maintain a minimum safety level of net adjusted working capital at Rp25 billion.

"If a brokerage's working capital below Rp25 billion, IDX won't allow the brokerage to facilitate trading," said IDX Director Wan Wei Yong as quoted by Bisnis Indonesia today.

According to him, if a brokerage intends to boost its working capital, it must increase number of current assets such as portfolios or cash and cash equivalents or reduce total liabilities.

Bahana Securities President Director Eko Yuliantoro declined to comment, while President Director Marciano Herman at Danareksa admitted that one of the factors for the decrease is Garuda's stocks. Mandiri Sekuritas Managing Director Kartika Wirjoatmojo didn't reply calling on his cellular last night.

The problem is oil price keeps hiking to surpassing US$100 per barrel, dragging down stock market. Under current situation, will Garuda stocks revive? The higher Garuda stocks the safer lead underwriters.

Disclosure: No position at the stock mentioned above.

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Astra Otoparts FY10 net income soars

Automotive spare part maker PT Astra Otoparts Tbk (AUTO), majority owned by PT Astra International Tbk (ASII), today reported a 48.54% increase in net income last year as revenue rose 18.78%.

In a consolidated financial statement published today, Astra Otoparts posted Rp1.14 trillion net income or Rp1,480 per share last year from Rp768.27 billion or Rp996 per share in the previous year.

AUTO also obtained income from several associated companies and jointly controlled entities of Rp761.16 billion from Rp509.77 billion. 

Operating profit also rose 36.46% to Rp573.12 billion from Rp419.99 billion, reflecting a higher operating margin to 9.16% from 7.97%. Adding to that, gross profit also climbed 21.50% to Rp1.15 trillion from Rp948.62 billion. AUTO's net revenue advanced 18.78% to Rp6.26 trillion from Rp5.27 trillion.

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Indonesian stocks may fluctuate today, leaving the Jakarta Composite Index (JCI) to move range bound. Here are recommendations provided by several brokerages as quoted by Bisnis.com today:

Panin Sekuritas:

The index is projected to swing around its support-resistance level at 3,454-3,500.

e-Trading Securities:

The brokerage predicted the index to move in the range of 3,388-3,526 with recommended shares like BBCA, ADRO, and PTBA.

Erdhika Sekuritas: 

It also recommended buy for PTBA, ITMG, and ADHI, as the index is predicted to move between 3,444-3,496.

Reliance Securities: 

The brokerage recommended buy for stocks like PGAS and TBLA, and sell for stocks like PTPP and UNSP. Technically, the securities company saw possibility for the index to fluctuate between 3,430-3,500.

Disclosure: No position at the stock mentioned above.

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Saptaindra boosts OB & coal production

Coal contractor PT Saptaindra Sejati (SIS), wholly owned subsidiary of PT Adaro Energy Tbk (ADRO), has aggresively set target of overburden removal (OB) and coal production to rise 48.34% and 50.78% respectively this year.
SIS Finance Director Christina Hiu said the coal contractor aims to reach 190 million bank cubic meter (bcm) of overburden removal this year from 128.08 million bcm.
"For coal production, we set 24 million tons-25 million tons this year from 16.58 million tons last year," she told Insider Stories today.

According to her, in line with the target, Saptaindra plans to jack up overburden removal and coal production volume in existing contracts, including its affiliated coal miner PT Adaro Indonesia, which is also subsidiary of Adaro Energy.
Adding to that, Saptaindra also sets a higher of capital expenditure (capex) this year to US$150 million. "We will use the capex to buy heavy equipments and working capital."
Saptaindra, she said, plans to use part of a US$400 million of bank loan facility to underpin the capex and working capital.
"We will use US$220 million of the facility to pay our existing debt and the remaining is intended to fulfill the capex and working capital," Christina said. 
SIS just secured US$400 million loan facility on February 18 2011. Mandated lead arranges for the 7 year loan are PT Bank Mandiri Tbk, Singapore branch, HSBC, Oversea-Chinese Banking Corporation Ltd, PT Bank UOB Buana, DBS Bank Ltd, Sumitomo Mitsui banking Corporation, The Bank of Tokyo-Mitsubishi UFJ Ltd, Jakarta branch, PT ANZ Panin Bank, Credit Agricole Corporate and Investment Bank, and Standard Chartered Bank.
Lead arrangers for the loan are Chinatrust Commercoal Bank Co Ltd, Singapore branch, Societe Generale, Singapore branch.
Facility and security agents for the loan are HSBC and Bank DBS Indonesia. The loan, charging Libor+applicable margin, is guaranteed by Adaro Energy.
2010 Performance
SIS posted a 11% increase in overburden removal last year to 128.08 million bcm. In an official statement recently published Adaro Energy, Saptaindra recorded 114.99 million bcm of overburden removal in 2009.
Howewer, coal mined was to be flat at 16 million tons. SIS mined 16.58 million tons of coal in 2010 from 16.37 million tons.
In the fourth quarter of 2010, SIS recorded a 10% increase in overburden removal to 36.19 million bcm from 33.02 million bcm a year earlier.
Coal production slumped 42% to 3.14 million tons in 4Q10 from 5.45 million tons a year earlier. In 4Q10, SIS’s performance was affected by long periods of wet weather conditions at Adaro’s mines and other customers’ mines.
SIS handled 25% of Adaro Indonesia's coal production, PT Pamapersada Nusantara, Indonesia's largest coal contractor, was responsible for 39% of Adaro Indonesia’s coal.
PT Bukit Makmur Mandiri Utama, wholly owned subsidiary of PT Delta Dunia Makmur Tbk (DOID), and PT Rahman Abdijaya were responsible for 19% and 14% respectively.
PT Rante Mutiara Insani assisted in the development of the Envirocoal-Wara pit and contributed 2% of Adaro Indonesia’s coal production.

 
Disclosure: No position at the stock mentioned above.

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Intraco Penta FY10 profit jumps 121%

Indonesia’s heavy equipment distributor, PT Intraco Penta Tbk (INTA) recorded a 70% revenue rise or amounting Rp1.9 trillion compared to 2009's figure.
Intraco’s Finance Director Fred L Manibog said that the profit growth soared by 121% following such revenue jump. Intraco posted Rp83 billion profit in 2010, a 121.33% increase from Rp37.5 billion a year earlier.
Fred said that at the moment, Intraco recorded Rp473.1 billion total equity or 22% rebound compared to the same period in 2009. Intraco’s asset surged by 33%, reaching IDR1.48 trillion compared to the previous year.

Disclosure: No position at the stock mentioned above.  

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Berlian Tanker to pay US$170 mio orders

One of Indonesian giants oil and gas shipping company PT Berlian Laju Tanker Tbk (BLTA) sets US$165 million-US$170 million to complete their gradual payment of the order of 7 chemical and gas tankers by 2012.
Belian Tanker Director of Finance Kevin Wong stated half of the ordered tankers will be delivered in the middle of the year and will be used to support their current 96 unit fleets.
“We require US$120 million to pay off the 3 ships that will be delivered in the middle of this year. For next year, we need another US$45 million-US$50 million,” as he said, today.
About US$70 million of the total payment will use loan facility from a consortium of 6 Singaporean banks in the amount of US$685 million. A US$593 million loan from it is allocated for international refinancing that will be mature this year.

Disclosure: No position at the stock mentioned above.

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Indoexchange tender offer set in March

Malaysian company Equatorex Sdn Bhd sets a tender offer for 80.12 million shares or 29.69% of total capital paid in PT Indoexchange Tbk during a period of March 17-March 23 2011.

In an official statement submitted to Indonesia Stock Exchange (IDX) today, Equatorex intends to buy the remaining shares owned by public  holders at Rp130 per share, representing Rp10.42 billion. 

About 70.31% stake or 189.74 million shareholding in Indoexchange, a company providing Internet, technology information services, seaport, transportation, and logistic advisory, was acquired by Equatorex from Integrax Berhad. In return, Equatorex has been controlling shareholder in Indoexchange since February 11 2011, enabling Equatorex to set the tender offfer. 

The tender offer price is higher than Indoexchange's average price during 90 trading days before the takeover announcement.

Disclosure: No position at the stock mentioned above.  

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Pam Lyonnaise FY10 net income drops

Water producer PT Pam Lyonnaise Jaya posted Rp216.13 billion net income last year, a 2.81% decrease from Rp222.38 billion a year earlier.
In the financial statement published today, the company's bottom line shrank as a result of higher cost of goods revenue as well as operating expenses.
Pam Lyonnaise's operating profit fell 8.47% to Rp331.96 billion last year from Rp362.69 billion.
Gross profit also decreased 4.92% to Rp521.40 billion from Rp548.37 billion. However, operating revenue inched up 6.05% to Rp1.04 trillion from Rp974.19 billion. 

Disclosure: No position at the stock mentioned above. 

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UNTR sets US$400 mio capex

Komatsu distributor PT United Tractors Tbk (UNTR), parent of Indonesia's largest coal mining contractor PT Pamapersada Nusantara, intends to set US$400 million of capital expenditure (capex) this year. The financing is coming from internally generated cash flow and loan.

United Tractors President Director Joko Pranoto said the company is eyeing a 10% higher in heavy equipment sales volume this year than 5,000 units last year. In addition, revenue is estimated to rise approximately of 10% this year from last year's figure.

Coal production is set to increase 10% from 75 million tons last year, while Pamapersada, with its own coal mining company, expects to produce 3.5 million tons of coal this year from 2.5 million tons last year.

For mining contracting, Joko explained the company aims to expand to non-coal business such as nickel. "We can acquire other company as well this year."

He also admitted that UNTR is involving several tenders of mouth mine power plant projects in Sumatra with 2x300 MW capacity worth US$720 million-US$780 million of investment as well as 2x150 MW with US$360 million-US$390 million of investment.

Disclosure: No position at the stock mentioned above.

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Matahari to pay debt Rp2.41 trio

PT Matahari Putra Prima Tbk (MPPA) plans to made early payment of Rp2.41 trillion of bank loan and bonds. As quoted by Kontan today, Matahari, subsidiary of PT Multipolar Tbk (MLPL), will settle Rp639.73 billion bank loan and US$200 million bond.

Referring to Matahari's financial report, the retailer partly owned by Lippo Group, schedules to pay the debt in 2011 and 2012. "All debts have been settled," said Matahari Corporate Secretary Danny Kojongian said. 

MPPA has bagged Rp5.8 trillion cash from shares sale of its unit PT Matahari Department Store. Post debt payment, MPPA still manages rupiah denominated bond which will mature in 2014.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

The index will see another shock as blue chips will still be under pressure. Here are several recommendations provided by Bisnis Indonesia today:

e-Trading Securities: 

The JCI is predicted to move between 3,53-3,548 today and recommended buying BMRI, BDMN, and INCO.

Panin Sekuritas: 

On the other hand saw possibility for the index to weaken in limited space as pressures will again hit the bluechip shares. The support-resistance levels today are 3,392-3,469.

Erdhika Sekuritas: 

The JCI is estimated to move between 3,426-3,487. Recommended stocks: PGAS, INDF, and BMRI.

 

Sinarmas Sekuritas:
The JCI today tends to lower at the range of 3,384-3,465. The Politican tension in Middle East, spurring the oil price hike, negatively influenced the JCI. We recommended buy on weakness on AALI and PGAS.  

Disclosure: No position at the stock mentioned above.  

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AKR to distribute Rp135/share dividend

Distributor of energy products PT AKR Corporindo Tbk (AKRA) will distribute Rp135 per share dividend, harvesting from shares sale of its subsidiary PT Sorini Agro Asia Corporindo Tbk to Cargill Foods Indonesia.
AKR Corporindo President Director Haryanto Adikoesoemo said the company will distribute a total dividend of Rp512 billion, scheduled on March 29.
The dividend, according to him, is representing 30.5% of special income from Sorini sale. "The dividend announcement reflects our hefty financial position and conviction on prospect of the long term growth," he said in an official statement filed to Indonesia Stock Exchange (IDX) today.
Cargill Foods aims to set a tender offer for the remaining shares of Sorini Agro owned by public share holders at Rp3,500. To do so, Cargill has prepared Rp478.97 billion cash.
Cargill Foods, subsidiary of the US-based Cargill Inc, has offered to buy the remaining shares of Sorini at the higher price than average price at Rp2,783 in the last 90 days before it announced the takeover on December 15.
The tender offer is a mandatory action by Cargill Foods, following a 85.01% stake acquisition in Sorini worth IDR2.2 trillion from AKR Corporindo and UOB Kay Hian Private Ltd-Client.
AKR is a distributor of energy products, including refined petroleum products in Indonesia. AKR supplies non-subsidized petroleum products, like high speed diesel, fuel oil and industrial oil, to many customers, in mining, industrial, power, and bunker sectors.

Disclosure: No position at the stock mentioned above.
 
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Berlian Tanker outlook revised to stable

Fitch Ratings has revised Indonesia-based PT Berlian Laju Tanker Tbk's (BLTA) outlook to stable from negative. Its long-term foreign and Local currency issuer default ratings (IDR) have been affirmed at B-, respectively.
At the same time, the agency has upgraded Berlian Tanker Finance B.V.'s US$400 million senior unsecured notes due 2014 to CCC from CC and revised the recovery rating to RR5 from RR6. The notes are guaranteed by Berlian Tanker.
"The revision of outlook to Stable reflects the significant improvement to Berlian Tanker's liquidity profile due to its successful debt refinancing, which reduces its debt servicing requirement, and a material reduction of its capex for 2011 and 2012," said Buddhika Piyasena, Director in Fitch's Asia-Pacific Corporates team.
Berlian Tanker announced that it has refinanced US$593 million of offshore US$ bank debt with a new credit facility of US$685 million.
The refinancing package reduces Berlian Tanker's debt amortising burden by US$166 million for 2011-2013.
This is a significant reduction given BLT's weak liquidity profile prior to the refinancing. In addition, the company has substantially reduced the outlay for newbuilds to US$122 million from US$240 million in 2011 and to US$52 million from US$80 million in 2012.
Berlian Tanker has US$70 million from the new financing package to fund the majority of its capex in 2011.
Fitch expects that Berlian Tanker will use a mix of debt and sale-and-lease back to fund the remaining capex through 2012.
In assessing Berlian Tanker's liquidity, Fitch also factors in the company's cash reserves of US$160 million at end-September 2010 and its stabilising operating cash generation. In the nine months to September 2010, Berlian Tanker generated an EBITDA of US$189 million.
However, Berlian Tanker faces some refinancing risks in 2012 and, possibly, in 2013. It has US$120 million equivalent of Indonesian rupiah bonds falling due in May and July of 2012, while holders of the US$125 million convertible bond issued in 2010 have an option to put the notes to the company in 2013.
In addition, Berlian Tanker has US$400 million notes falling due in 2014. Although the improved liquidity profile makes it easier for Berlian Tanker to access funding, Fitch notes that the non-availability of unencumbered assets limits its refinancing options.
These refinancing risks and BLT's still weak liquidity make a positive rating action unlikely over the short-to-medium term.
On the other hand, the ratings could come under pressure from a deterioration in Berlian Tanker's liquidity due to weaker-than-expected operating cash generation, the company not being able to adequately address its refinancing needs in a timely manner and/or an unexpected increase in capex.
The revision of the recovery rating on the US$ notes reflects improved recovery prospects following the increased value of Berlian Tanker ships in 2010 due to stabilisation of the shipping market.
However, the 'RR5' rating indicates that recovery prospects given default for BLT's unsecured notes are still below average.

Disclosure: No position at the stock mentioned above.
 
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Astra Agro Jan. CPO sales up 4.4%

Palm oil producer PT Astra Agro Lestari Tbk (AALI), controlled by conglomerate Astra Group, posted 94,991 tons of CPO sales volume in January this year, a 4.4% rise from 90,954 tons a year earlier.
In an investor bulletin submitted to Indonesia Stock Exchange (IDX) today, local market counted 88,423 tons and 6,568 tons was coming from export market.
Kernel sales volume reached 12,640 tons, a 13.7% increase from 11,113 tons in January last year.
During this period, average selling price of CPO rose 35.7% to IDR8,695 per kilogram from IDR6,408 per kg, while kernel and PKO were traded at IDR6,136 per kg and IDR14,746 per kg respectively.
The company produced 333,582 tons of fresh fruit bunch (FFB) in January 2011, a 10.9% from 300,724 tons a year earlier.
The FFB output increase was mainly underpinned by the growth in Sumatra and Kalimantan areas of 11.8% and 27.9% respectively.
As a result, CPO production reached 92,116 tons, a 17.3% increase from 78,524 tons a year ago. Kernel output also rose 14.7% to 19,235 tons from 16,768 tons.
The largest contributor for FFB production was still Sumatra area of 44.4%, followed by Kalimantan and Sulawesi areas of 38.9% and 16.7% respectively.
BW Plantation
Middle-size palm oil producer PT BW Plantation Tbk (BWPT), controlled by Widodo family, reportdly a hefty production of both fresh fruit bunch FFB) and crude palm oil in January of this year.
BW Plantation's FFB surged 68.90% to 38,708 tons in January 2011 from 22,917 tons a year ago. In line with FFB output increase, CPO production also rose 69.01% to 8,868 tons from 5,247 tons. Palm kernel soared 64.54% to 1,471 tons from 894 tons.
However, January's FFB slightly declined 9.57% from 42,806 tons in December last year. CPO also retreated 13,39% from 10,239 tons in December last year.

 
Disclosure: No position at the stock mentioned above.
 
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Saptaindra Sejati seals US$400 mio loan

Coal mining contractor PT Saptaindra Sejati (SIS), a wholly owned subsidiary of coal miner PT Adaro Energy Tbk (ADRO), has secured US$400 million loan facility on February 18 2011.
In an official statement submitted to Indonesia Stock Exchange (IDX) today, SIS will use the loan facility to pay all its debt and fulfill capital expenditure (capex).
Mandated lead arranges for the 7 year loan are PT Bank Mandiri Tbk, Singapore branch, HSBC, Oversea-Chinese Banking Corporation Ltd, PT Bank UOB Buana, DBS Bank Ltd, Sumitomo Mitsui banking Corporation, The Bank of Tokyo-Mitsubishi UFJ Ltd, Jakarta branch, PT ANZ Panin Bank, Credit Agricole Corporate and Investment Bank, and Standard Chartered Bank.
Lead arrangers for the loan are Chinatrust Commercoal Bank Co Ltd, Singapore branch, Societe Generale, Singapore branch.
Facility and security agents for the loan are HSBC and Bank DBS Indonesia. The loan, charging Libor+applicable margin, is guaranteed by Adaro Energy.

Disclosure: No position at the stock mentioned above.
 
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Government and Bukopin rights issue

Indonesian government via Ministry of State-Owned Enterprises has missed exercise period in rights issue of PT Bank Bukopin Tbk (BBKP), decaying a potential of Rp41.6 billion capital gain.

As reported by Bisnis Indonesia today, it was different from the situation when the ministry bagged Rp1 trillion of cash by exercising preemptive rights and placed the new shares to investor during rights issue of PT Bank Mandiri Tbk (BMRI) and PT Bank Negara Indonesia Tbk (BBNI).   

A source said the ministry forgot to exercise its preemptive during Bukopin's rights issue. One thing for sure, PT Bahana Securities, has reminded the ministry to exercise the preemptive rights. In fact, there was no action from the ministry.

Prior to the rights issue, the ministry held 16.88% shareholding or 1.04 billion shares in Bank Bukopin. After it passed the rights, the government's share has been diluted to 14.14%.

Kopelindo, Yabinstra, and Kopkaindo had agreed to exercise preemptive rights of 1.19 billion and sold it to PT CIMB Securities.   

Based on data published by Indonesian Central Securities Depository, CIMB Securities has been recorded as holder of 14.49% stake or 1.18 billion shares in Bank Bukopin since February 10 2011.  

According to Bukopin Finance Director Tri Joko Prihanto said Kopelindo, Yabinstra, and Kopkaindo bagged Rp40 per share from the rights issue.

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Stock recommendations today

Jakarta Composite Index (JCI) is predicted to move mixed. The prediction moves from weak to strong with banking shares as recommended stocks. Here are recommendations as quoted by Bisnis.com today:

Reliance Securities:

The JCI technically will tend to weaken today. It will move in the range of 3,460-3,520 with recommended shares like ASII, INTP, ELTY, and BMRI.

Erdikha Sekuritas: 

The JCI on the other hand sees possibility for the index to strengthen in limited space today. The index, it said, will move to 3,536 which is its resistance. The securities company projects the index to swing between 3,470-3,536 with recommended shares like ADRO, INDF and KLBF.  

e-Trading Securities: 

The JCI is predicted to move between 3,467-3,553 with recommended shares like BBCA, GGRM and ADRO.

Disclosure: No position at the stock mentioned above.

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Salim Ivomas expects IPO in June

PT Salim Ivomas Pratama, a 90%-owned subsidiary of Singapore-listed Indofood Agri Resources Ltd (IndoAgro), is eyeing to list its primary shares at Indonesia Stock Exchange (IDX) in June this year, which is in line with the initial plan.

A source close to the matter said IndoAgri and its parent, PT Indofood Sukses Makmur Tbk (INDF), few days ago announced a proposed listing of Salim Ivomas Pratama at IDX after IndoAgri obtained an approval from Singapore Stock Exchange. 

"After IndoAgro sealed an approval, Salim Ivomas Pratama's proposed listing was announced," the source said.

Kim Eng Securities, Mandiri Sekuritas, and Deutsche Securities may help and arrange the IPO with a target size of US$240 million-US$280 million.

Indofood Sukses Makmur is a controlling shareholder in IndoAgri with 68.95% shareholding interest. INDF has also a 8.38% direct shareholding in Salim Ivomas Pratama. In turn, IndoAgri controls 90% shareholding in Salim Ivomas Pratama.

Salim Ivomas is group manufacturer owned by IndoAgri. The group is consisting of three categories of palm oil-based liquid cooking oil dubbed branded consumer pack, branded semi-consumer pack, and unbranded industrial type.

Branded consumer pack cooking oil is targeted at consumers in retail outlets and are sold in packages of up to five litres. Branded semi-consumer pack cooking oil is sold in containers of 15 kilograms to 18 kilograms and is generally targeted at merchants which resell the cooking oil to end-users. 

Unbranded type cooking oil is sold mainly to PT ISM Group and other industrial users for their manufacturing purposes. With the exception of industrial cooking oil, all products are sold under brand names.

The group’s consumer brands for cooking oil include Bimoli, Bimoli Spesial, Delima, Happy Salad Oil, and Mahakam. 

Approximately 95% of the group’s domestic cooking oil sales value of consumer and semi-consumer packs for FY2008 was under the Bimoli and Bimoli Spesial brand names.

Disclosure: No position at the stock mentioned above. 

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Astra International & FY10 result

Automotive maker PT Astra International Tbk (ASII) sets US$1.3 billion of capital expenditure (capex) in a bid to support organic and non-organic growth. According to Astra President Director Prijono Sugiharto, the company is looking at several possibilities of investment in coal, palm oil, and infrastructure sectors. How about performance last year? Please login or register to read the remaining story.    

Disclosure: No position at the stock mentioned above.

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Delta Dunia Jan. overburden up 33.68%

Indonesia second largest coal contractor PT Delta Dunia Makmur Tbk (DOID), parent of PT Bukit Makmur Mandiri Utama (BUMA), today reported  montly coal production at 2.6 million tons in January this year. It was flat from a year ago.
In an official statement published today, January's coal production was a 18.75% decrease from December's position at 3.2 million tons.
In term of overburden removal, Delta Dunia posted 25.8 million bank cubic meter (bcm) last month, a 33.68% from 19.3 million bcm a year earlier. However, the overburden removal last month was a 5.49% lower than December's level at 27.3 million bcm.  

Disclosure: No position at the stock mentioned above.

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Astra International sets US$1.3 bio capex

Automotive maker PT Astra International Tbk (ASII) sets US$1.3 billion of capital expenditure (capex) in a bid to support organic and non-organic growth.
According to Astra President Director Prijono Sugiharto, the company is looking at several possibilities of investment in coal, palm oil, and infrastructure sectors.
When asked about upcoming acquisition which may be realized in the first quarter, he said Astra will announce the takeovers. "We still have one or two potential takeovers in the pipe line. When we win, we will announce the acquisitions."
He declined to comment about possibility of PT Astratel Nusantara to buy oil and gas block majority owned by PT Radiant Utama Interinsco Tbk (RUIS). 
Regarding on car and motorbike sales, Prijanto estimated that sales may increase 5%-10%. But it may be flat after taxes and fuel price hike.

Disclosure: No position at the stock mentioned above.

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Multistrada considers rights issue

PT Multistrada Arah Sarana Tbk (MASA), Indonesia’s tire producer, plans to hold right issue merely to increase its working capital as much as US$50 million-US$100 million to establish a new subsidiary focusing on the management of industrial plantation.
Multistrada requires the factory of such industrial plantation with the production capacity of 5,000 tons. However, the company will choose the type of financing either from rights issue, banking loan and internal source. The company plans to develop a factory in Sumatra, Central Tapanuli, Kalimantan, and Sulawesi.
President Director of Multistrada Pieter Tanuri said that the 2011’s capex as much as US$160 million excluded the financing of the business expansion in Central Tapanuli. “
"Thus, Multistrada plans to hold a right issue and conduct cooperation with the banking institution,” he said after the extraordinary meeting of shareholders yesterday.
The option to conduct right issue shall be used to back the financing as it must earn the approval of all the shareholders in the extraordinary general meeting of shareholders (EGM) in April 2011.
“The Director will unveil all the company’s needs and all the decision depends on the EGM,” he explained without detailing out the source of funds.
Pieter said that Multisrada estimates to acquire at least 30,000 hectares of rubber plantation area from local farmers. Such acquisition will be completed at least in the first half of 2011.
Multistrada shall use the new name, yet, he declined to mention it. “One thing for sure, it will relate to Agro,” he said.
Multistrada expects such expansion to fulfill annual needs of rubber as much as 24,000 tons for the tire production in 2011 within the target of tire production realization reaching 8 million.
Multistrada’s need over rubber soared by 100% from 2010 that only amounted 12,000 tons, along with the production realization of 5.5 million tires. “Of such production needs, the company plans to directly supply the rubber from its own plantation area as much as 70% or nearly 21,000-28,000 hectare,” he said.
Such plans aims besides to cut the access of the middle man, but also to make the farmers more prosper. For example the rubber price amongst farmer only reaches Rp34,000 per kg of processed rubber, while the rubber price in Singapore has risen Rp65,00 per kg of processed rubber.
Pieter further explained that the plan to develop its business by construction raw materials factory in Central Tapanuli has earned the approval of at least 99.4% of 70% investors attending the extraordinary of general meeting (EGM).
The agenda of the EGM includes the plan to build processing factory and the additional directors.
The new directors consisted of Wayah Surya Wiroto, former Fourth Rector of Bina Nusantara and Andreas Handoyo Utama, former employee of PT Astra Daihatsu Motor. Wayah has the duty to lead the internal training centre in 10 hectares area.

Disclosure: No position at the stock mentioned above.

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Berlian Tanker seals US$685 mio loan

PT Berlian Laju Tanker Tbk (BLTA) has secured US$685 million loan from five banks merely to fulfill its financing needs, including debt refinancing.
The management of Berlian Tanker during the information disclosure in Singapore’s Stock Exchange revealed that those five banks are DnB NOR Bank ASA, Nordea Bank AB, Standard Chartered Plc, ING Groep NV, NIBC Bank NV, and BNP Paribas SA.
“The company provides collateral in the form of 43 vessels maturing in five years,” said Berlian Laju’s management.
At the moment, Berlian Laju’s liability is still relatively high, reaching US$2 billion as it will come due by 2017.
When being confirmed, Berlian Laju’s Corporate Secretary, Kevin Wong declined to clarify.
Berlian Laju Tanker allocated US$108 million of capital expenditure to fulfill its working capital needs and finance its investment in 2010 until 2012.

Disclosure: No position at the stock mentioned above.  

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Tower Bersama assigned BB rating

Fitch Ratings has assigned Indonesia's PT Tower Bersama Infrastructure Tbk (TBI) long-term foreign and local currency issuer default ratings (IDRs) of BB. The outlook is stable.
TBI's ratings reflect the strong credit quality of its tenants, with around 60% of its revenues and EBITDA derived from the leading four Indonesian telcos, PT Telekomunikasi Indonesia Tbk (Telkom, BB+/stable), PT Telekomunikasi Selular (Telkomsel, BBB-/stable), PT Indosat Tbk (Indosat, BBB-/stable), and PT XL Axiata Tbk (XL, BB/stable).
Fitch notes TBI's management policy to ensure that over 60% of its revenues continue to originate from the top-four telcos over the long term, and to only construct new tower sites after obtaining a long-term lease commitment from a telecom operator.
TBI is the second-largest independent tower company in Indonesia, in terms of telecom sites and tenancy. The company's cash flow has strong visibility and stability due to its long-term agreements (eight to 10 years) with all Indonesian telcos (10 operators), which involve tight exit conditions and in-built escalation clauses (linked to the country's inflation rate).
While the average remaining life of TBI's contracts is 6.5 years (as of end-December 2010), contract maturities are well-spread out (2012-2021), with no more than 25% of contracts expiring in any single year, except for 2018.
TBI is well placed to grow over the medium term, considering its track record, robust order book, financial flexibility and the agency's expectations of strong demand for tower sites from telcos on the back of increasing 2G capacity and higher 3G popularity.

Disclosure: No position at the stock mentioned above.
 
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Indosiar, Surya Citra, & Emtek to merge

PT Indosiar Karya Media Tbk (IDKM), PT Elang Mahkota Teknologi Tbk (Emtek), and PT Surya Citra Media Tbk (SCMA) plan to merge.
In an official statement submitted to Indonesia Stock Exchange (IDX) today, IDKM's President Director Handoko said Indosiar's board of commissioner has supported the proposed merger on February 18 2011.
"Board of commissioner has supported the merger as long as it is in line with the regulation," Handoko said.
IDKM, parent of Indosiar TV, is controlled by Salim family via PT Prima Visualindo with 27.24% stake. Citibank Singapore holds 8.5%, PT Dinamika Usaha Jaya holds 5.09%, and public investors own 59.17%.
Both Elang Mahkota and Surya Citra Media, parent of Surya Citra Televisi, are controlled by Sariaatmadja family.
Many thought that the proposed merger between three companies are following shares sale of palm oil plantation PT PP London Sumatra Indonesia Tbk (Lonsum) to Salim Group few years ago. In return, Salim family allows Indosiar to be consolidated by Sariaatmadja family.

Disclosure: No position at the stock mentioned above.

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TOWR FY10 net income falls 83.03%

Telecommunication tower provider PT Sarana Menara Nusantara Tbk (TOWR), Djarum Group affiliated, suffered a 83.03% drop in net income last year as higher financial charges as well as a steep plunge of foreign exchange gain.
In 2010's financial statement submitted to Indonesia Stock Exchange (IDX) today, TOWR's net income reached Rp100.01 billion or Rp99 per share last year from Rp589.49 billion or Rp601 per share in the previous year.
Financial charges surged 52.46% to Rp787.94 billion from Rp516.82 billion, while foreign exchange gain shrank 65% to Rp186.54 billion from Rp533.01 billion.
At the operational line, Sarana Menara was still in positive. Operating profit increased 16.19% to Rp720.02 billion from Rp619.64 billion. However, operating margin fell to 53.10% from 57.24% as cost of goods sold (COGS) elevated.
Gross profit climbed 22.69% to Rp881.36 billion from Rp718.39 billion. COGS enlarged 31.84% to Rp66.99 billion from Rp50.81 billion.Sarana Menara posted Rp1.36 trillion revenue, a 25.92% from Rp1.08 trillion.
Huge debt
Sarana Menara recorded huge debt. It posted Rp4.66 trillion of total bank loan. About Rp328.09 billion will mature in 1 year.
In contrast, the company's equity last year was Rp1.23 trillion, reflecting debt to equity ratio of 3.79x, which is so high.
Despite a massive debt, Sarana Menara's cash and cash equivalent was so tiny. It booked to Rp354.58 billion of cash from Rp473.84 billion.
Sarana Menara, parent of PT Profesional Telekomunikasi Indonesia (Protelindo) and affiliated of Djarum Group as well, was sold by its controlling shareholders PT Tricipta Mandhala Gemilang  (TMG) and PT Caturguwiratna Sumapala (CGS) via a private placement in mid December, arranged by Credit Suisse and CLSA. By selling the stake, TMG and CGS bagged Rp4.7 trillion cash.
Martin Basuki Hartono is President Commissioner at Sarana Menara. Martin Basuki is son of Robert Budi Hartono (first generation of Djarum family with  Michael Bambang Hartono). Martin Basuki has two brothers Victor Hartono and Arman Budi Hartono.

Disclosure: No position at the stock mentioned above.

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BNI to sell 25% stake in BNI Securities

A Japanese investor is now conducting a due diligence on PT BNI Securities, a wholly owned brokerage house of PT Bank Negara Indonesia Tbk (BNI). The Japanese investor is interested to acquire 25% shareholding in BNI Securities.

A source close to the deal said the due diligence is expected to complete at end of March. "If terms and conditions are agreed by both parties, the shares sale will be completed at end of March," the source said.

According to the source, it is not Daiwa Securities nor Nomura Securities. "Their name is not familiar in Indonesia."

BNI President Director Gatot M. Suwondo confirmed that the bank plans to sell 25% stake in BNI Securities in a bid to strengthen capital.. "Yes, divestment is underway," Gatot said as quoted by Bisnis Indonesia.

However, he declined to name the Japanese investor. "We will announce their name later."

Disclosure: No position at the stock mentioned above.

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LPEI to issue US$150 mio subdebt

Lembaga Pembiayaan Ekspor Indonesia (LPEI), a company providing financing for export activities, aims to issue US$150 million of subordinated bond in a bid to fulfill foreign exchange financing.

Prior to the US$-denominated subordinated bond, LPEI will launch Rp2 trillion-Rp3 trillion bond in the first half of this year. The proceed will be used to meet export financing. In total, the notes issuance will reach Rp4.5 trillion-Rp5 trillion.

LPEI Executive Director I Made Gde Erata, as reported by Bisnis Indonesia, said the company is waiting for the audit result of its financial statement and rating from rating agencies. "We have appointed Fitch Rating and Standard & Poor's to rate our notes."

According to him, LPEI targets a 35% increase of loan channeling to Rp21 trillion this year from Rp5.5 trillion. About 40% of the total channeling will be fulfilled by foreign exchange financing.

Disclosure: No position at the stock mentioned above.

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Sampoerna Agro FY10 CPO sales up

Palm oil producer PT Sampoerna Agro Tbk (SGRO) estimates to post a slight growth in CPO sales volume last year. The company  posted a 4% increase in CPO sales volume to 274,726 tons last year from 264,160 tons in the previous year.

As quoted by Kontan today, Sampoerna Agro is optimist that its financial performance last year may improve last year as average selling price rose as well.

Sampoerna Agro's Head of Investor Relations Michael Kesuma said CPO ASP last year rose 7% to RM2,748 per ton. However, he declined to further explain of revenue and net profit last year.

The company plans to enlarge its planted area to 10,000 hectares or 50,000 hectares within 5 years. Sampoerna Agro currently manages 100,000 hectares of plantation area, including core and plasma.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Indonesia stock benchmark today may face correction after last week ended at 1.95% higher level to 3,501.50, underpinned by miscellaneous industry. Here is stock recommendations provided by two brokerages as quoted by Bisnis Indonesia daily:

eTrading Securities: 

MA5 is seen at the cross level with MA20. In contrast, in term of transaction volume, MA20 may cut MA5 with upward trend, reflecting a possible correction may engulf Jakarta Composite Index (JCI) today. Support and resistance levels are at the range of 3,429-3,550 with stocks to watch: GGRM, ASII, and BMRI.

Erdikha Sekuritas:

The JCI last week ended at 1.95% higher level to 3,501.50. The index had climbed since early trading, supported by miscellaneous industry and consumer goods with contributions of 3,39% and 3.34% respectively. Transaction value on last Friday reached Rp6.3 trillion. Net buy position of foreign investors was more than Rp550 billion. The JCI today is estimated to move at the range of 3,455-3,554. Recommended stocks are SMCB, AALI, and BMRI.

Disclosure: No position at the stock mentioned above.

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