PGN earning stagnates at Rp6.2 trillion

Net income of a gas distributor and transmitter, PT Perusahaan Gas Negara Tbk (PGN) last year, was reported unchanged at the level of Rp6.2 trillion, even though the operating income climbed by 17.71%.
PGN scooped net income by Rp6.24 trillion in 2010 or a strengthening of 0.16%, from Rp6.23 trillion in 2009. The stagnation of net income was mainly stimulated by other net expenses to go up at Rp972.55 billion, although the other net revenues was booked at Rp571.15 billion in 2010.
The main contribution of other net expenses came from loss on change in net fair value of derivatives by Rp561.59 billion, interest expense by Rp371.63 billion, and loss on foreign exchange by Rp368.69 billion.
Nevertheless, the state-run gas distributor reported higher operating income by 17.71% to Rp9.04 trillion from Rp7.68 trillion leading to higher operating margin to 45.73% from 42.62%.
Meanwhile, gross income of PGN rose by 16.11% to Rp12.54 trillion from Rp10.80 trillion. Then, its revenue also advanced by 9.71% to Rp19.77 trillion from Rp18.02 trillion.

Disclosure: No position at the stock mentioned above.

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Darma Henwa returns in net profit

Indonesia's coal mining contractor PT Darma Henwa Tbk (DEWA) returned to a positive bottom line last year. The company reported to post net income of US$588,128 last year, a 131.83% increase from US$1.85 million net loss in the previous year.
Darma Henwa, which is 28.8% owned by Indonesia's largest thermal coal exporter PT Bumi Resources Tbk (BUMI), booked a 11.39% increase in operating profit to US$5.28 million from US$4.74 million.
Revenue grew 14.21% to US$230.09 million from US$201.47 million. Darma Henwa is awarded contracts at Kaltim Prima Coal's coal mine site Bengalon and Asam Asam. 

Based on Vallar Plc, London-based company which owns 25% shareholding in Bumi, Darma Henwa produced 6 million tons, 6 million tons, and 6.6 million tons of coal in 2008, 2009, and 2010 respectively. The figures represent 11.3% and 9.5% respectively of total coal production of KPC and Arutmin Indonesia in those periods.
In August and September 2010, Bumi Resources experienced a 23-day strike at the Bengalon mine by the employees of Darma Henwa over a dispute regarding payments of holiday bonuses, which is estimated to have caused a loss in coal production of 560,000 tonnes the Bumi Resources could have achieved during this period.

Disclosure: No position at the stock mentioned above.
 
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BUMI FY10 net income jumps 63.39%

PT Bumi Resources Tbk (BUMI), Indonesia's largest thermal coal, reported a steep jump in net income by 63.39% last year supported by higher operating income and revenue.

Based on a financial report published today, BUMI had booked net income to US$311.18 million in 2010 from US$190.45 million in 2009.

Besides driven by jump of operating income, the coal company whose 25% is controlled by Vallar Plc, London-based publicly company, also booked derivative transaction income, income on investment disposal, and net income from association company by US$554.95 million.

However, the interest expense and financial of BUMI also soared 237.97% to US$630.34 million from US$186.51 million.

In a term of operational, the operating income of the coal company grew by 72.15% to US$1.09 billion from US$638.25 billion leading to jump in operating margin to 25% from 17.41%. Meanwhile, Bumi’s gross income stood up by 45.54% to US$1.63 billion from US$1.12 billion. Moreover, the revenue of Bumi also climbed 19.07% to US$4.37 billion from US$3.67 billion.

Disclosure: No position at the stock mentioned above.

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CLSA, UBS advise UNTR rights issue

A distributor of heavy equipment with Komatsu brand as well as a coal mining contractor PT United Tractors Tbk (UNTR) is planning to raise Rp6.07 trillion proceed from the fourth preemptive rights issue scheduled in mid of May.
An investment manager familiar with such corporate action said United Tractors had mandated two financial advisers, namely CLSA Securities and UBS Securities, for the right issue.
Unveiled in a prospectus published today, United Tractors is keen to issue 403.26 million of new shares with offering price at Rp15,050 a share.
Each holder of 33 shares of United Tractors is eligible to have four preemptive rights (HMETD) in return for one new share to issued by the company.
PT Astra International Tbk (ASII), a controlling shareholder of United Tractors with 59.5% stake, committed to benefit its whole rights in the right issue.
In addition, Astra has committed to be a standby buyer for the new shares of United Tractors which may not be absorbed by public as well.
During the rights issue, about 90% of the proceed or equivalent with Rp5.46 trillion will be utilized for financing of several projects of the company and its subsidiaries on coal business sector, including mining contracting (25%-35% of net proceed), coal infrastructure, and mouth mine power plant (15%-25% of net proceed).
Out of the total, 45%-55% will be allocated to acquire coal concession.
While waiting for the project’s realization, the company could use until 35% of net proceed of the rights issue to pay off its revolving loan. The company will use the remaining proceed to finance its working capital and general need of the company as well as its subsidiaries.
Meanwhile, United Tractors reported net revenue to Rp37.32 trillion last year, or a 27.6% growth from Rp29.24 trillion in 2009.
Out of the consolidation revenue, the contribution of construction machine business stood at Rp17.27 trillion, while coal mining contracting was Rp16.93 trillion, and coal mining was about Rp3.12 trillion.
On the other hand, United Tractors fully controls shareholding in PT Pamapersada Nusantara, a coal-mining contractor.
In coal mining business, United Tractors owns a number of subsidiaries, namely PT Dasa Eka Jasatama (DEJ) and PT Tuah Turangga Agung (TTA).
DEJ mines, under control of Pamapersada, operate three affiliated companies as PT Nusantara Citra Jaya Abadi, PT Kadya Caraka Mulya, and PT Ekasatya Yanatama with coal concession of 22,830 hectares in South Kalimantan. Estimated coal reserves is about 14 million tons.
TTA controls coal mining through its subsidiaries, namely PT Telen Orbit Prima and PT Agung Bara Prima. In addition, Orbit Prima has coal reserves of 36 million tons coal, while Agung Bara has consession area of 1,365 hectares with coal reserves of 9.2 million tons.
At end of last year, mine site of DEJ produced 2.6 million tons of coal, while Orbit Prima generated 670,000 tons of coal.

Disclosure: No position at the stock mentioned above.  

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Garuda FY10 earning plunges 48.45%

Indonesian flag carrier PT Garuda Indonesia Tbk booked the declining net income by 48.45% to Rp515.5 billion in the end of 2010 from Rp1 trillion in the end of 2009.
Financial t Director of Garuda Indonesia Elisa Lumbantoruan confirmed that the lower income last year was a half of 2009’s income level stimulated by several investments as procurement of 24 new aircrafts, namely 23 aircrafts of 737-800 Next Generation and 1 aircraft of Airbus A330-200, as well as addition and improvement of human resources capacity.
“We have explained that the year of 2010 is a great time for investment. Last year, we have ordered 24 new aircrafts and that’s first time during our history. Cocnequently, we have additional crews and improve their quality from classic to engine level,” he said today.
In addition, in last year, the airlines provided new additional routes, namely Jakarta-Tokyo, Jakarta-Sydney, Jakarta-Melbourne, Jakarta-Palu, Jakarta-Ambon, Jakarta-Ternate, and routes to Amsterdam and Europe.
Meanwhile, President Director of Garuda Indonesia Emirsyah Satar said the operating revenue stood up by 9.4% to Rp19.53 trillion in the end of 2010 compared to operating revenue in the end of 2009 by Rp17.86 trillion.
In the meantime, the amount of passenger rose to 13 million persons in 2010 from 10.3 million persons in 2009 with lower total passenger-load level by 1.5% to 71.7% from 73.1%.
The GIAA-coded shares was at Rp530 at 12.29 Jakarta time or a 3.64% lower compared to level in the yesterday’s trading with market capitalization by Rp12.23 trillion.

Disclosure: No position at the stock mentioned above.

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Indika posts Rp66 billion operating loss

Energy integrated company PT Indika Energy Tbk (INDY) today reported a 6.5% increase in net income last year, despite higher operating expense.
In a financial statement published today, Indika, parent of energy contractor PT Petrosea Tbk (PTRO), booked Rp773 billion net income last year from Rp726 billion net income in the previous year. The earning last year reached 60.61% of Indika's full year target at US$146.6 million or Rp1.28 trillion.
At the operational line, Indika suffered Rp66 billion operating loss, representing 134% drop from Rp191 billion operating income.
The loss was due to a 58.3% jump in operating expenses to Rp678 billion from Rp428 billion. Cancellation of overland conveyor belt project previously awarded by Adaro Indonesia and delay of Pertamina Gas contract which led to some costs being incurred earlier were the biggest contributors to the higher operating expenses. 

Cost of goods sold also increased 68.9% to Rp3.15 trillion from Rp1.87 trillion. Indika's revenue rose 51.4% to Rp3.76 trillion from Rp2.49 trillion, representing full year contribution of Petrosea last year compared to 6 months contribution in 2009. The company initially targeted Rp4.17 trillion or US$479.4 million revenue in 2010.
Operational performance
Indonesia's third largest coal producer with 50,400 hectares concession in East Kalimantan PT Kideco Jaya Agung, that is 46% owned by Indika, sold 29.08 million tons of coal, a 16.69% increase from 24.92 million tons.
Coal production grew 17.56% to 29.05 million tons from 24.71 million tons, however average selling price slighly increased 4.82% to US$55.19 per ton from US$52.65 per ton.
Kideco spent US$102.5 million capital expenditure (capex) last year. It aims to spend US$185.1 million capex this year with Petrosea and Kideco scheduled to allocate US$103 million and US$55 million capex respectively.

Disclosure: No position at the stock mentioned above.

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Adaro FY10 net income plunges 49%

PT Adaro Energy Tbk posted a 49% plunge in net income to IDR2.2 trillion last year on the back of dropped sales prices and increased cost of goods sold.
President Director of Adaro Garibaldi Thohir said the production can be maintained although the company suffered pressure in term of operational due to rain factor so that the revenue increased by 4.9% to US$2.72 billion last year.
“Although the abnormal rainfall provides bad impact to the operational activity, we once again posted a growth in production and continue to maintain the record of annual production growth during 19 years,” he said in official statement, this morning.
Production volume and sales rose 4% and 6% respectively but the coal's average selling price fell 3% last year. Cost of revenue also rose 7% to IDR17 trillion as resulted by the increased of stripping ratio, distance transport of the further cover layer, and other additional costs due to weather.
The gross income declined by 30% to IDR7.7 trillion due to the increased cost of revenue has exceeded the increased net revenue. The declined net income and the increase of financial cost and goodwill amortization in 2010 have made the coal company’s net income eroded by 49% to IDR2.2 trillion.
Earning per share 2010 recorded as much as IDR69 or declined compared to IDR136.5 in previous year. The earning per share was not included in the mining amortization right (IDR496 billion) and goodwill (IDR490 billion) was IDR99.8 billion.
However, Garibaldi is optimistic that coal prospect will lead to a strong performance and a solid margin of EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2011.
“The acquisition of 25% ownership in IndoMet coal project allows us to diversify the product portfolio with metallurgy coal,” he said.

Disclosure: No position at the stock mentioned above.

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Delta Dunia suffers Rp159 billion net loss

PT Delta Dunia Makmur Tbk (DOID), parent company of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), today reported IDR159 billion net loss last year, unchanged from IDR160 billion net loss in the previous year.

In a company update obtained by Insider Stories today, the net loss was in part of attributable of extraordinary items recorded last year. Delta Dunia recorded net other loss of IDR1 trillion, widened from IDR614 billion. The biggest contributor for the net other loss was loss on long term liabilities redemption of IDR335 billion, impairment loss of IDR264 billion, and others of IDR59 billion.

Despite those items, Delta Dunia's interest expense also surged 117% to IDR542 billion from IDR250 billion. At the operational line, Delta Dunia booked a 16% decrease in operating profit to IDR1.04 trillion from IDR1.24 trillion. Gross profit also slightly fell 9% to IDR1.35 trillion from IDR1.49 trillion. 

The company posted IDR5.79 trillion gross revenue, representing a 9% decrease from IDR6.35 trillion. 

Extraordinary items

Bukit Makmur recorded IDR335 billion or US$37 million in extraordinary expenses associated with the refinancing of a US$325 million high yield bonds due in 2014 and a US$285 million syndicated loan.

The refinancing opportunity arose due to a change in withholding tax regulations that elevated the effective interest expense from a coupon of 11.75% to 14.7%.

Over the remaining life of the bonds, BUMA saved approximately US$80 million in interest expense net of all fees and expenses recorded in 2010.

BUMA also recorded an impairment of IDR190 billion or US$21 million associated with a legacy fuel consumption charges disagreement with PT Berau Coal, which is a major client for BUMA as well.

Delta Dunia has also provisioned IDR73 billion against an investment in a subsidiay that holds undevopped land in Balikpapan, Kalimantan.

The provision is based on an independent appraisal and reflects market value. The property portfolio is immaterial when compared to BUMA and should be considered non-core.

BUMA operational performance

Overburden removal and coal production rose 5.2% and 6.9% respectively last year to 292.2 million bank cubic meter (bcm) and 35 million tons. The prolonged rainy season hampered the industry growth in general. Total heavy equipment capex last year was US$209 million, an increase from US$81.5 million in the previous year.

Disclosure: No position at the stock mentioned above.  

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Bumi Minerals FY10 net income soars

Newly listed non-coal miner PT Bumi Resources Minerals Tbk (BRM) today reported a 3,655.72% jump in net income last year on the back of steep jump in revenue.
In a press statement obtained by Insider Stories today, Bumi Minerals booked Rp764.60 billion net income last year from Rp209.21 million net loss in the previous year.

A steep jump in net profit was due the increased profit recorded by Bumi Minerals' associated company PT Newmont Nusa Tenggara (NNT).

Revenue skyrocketed 730.59% to Rp148.51 billion from Rp17.89 billion. The company also posted a 113% increase in EBITDA to Rp120 billion from its 1H 2010 results. This was mainly driven from the fees generated by its 100%-owned subsidiary dubbed Bumi Resources Japan Company Limited (BRJ).

"We are happy to report our strong 2010 financial result to our shareholders. The IPO proceed not only successfully deleveraged our balance sheet, but it also allows us to monetize our existing assets," Bumi Minerals CEO Kenneth Farrell said.

Currently, the main revenue and cash flow drivers come from our investments in BRJ and NNT. NNT's copper and gold production showed 10% and 31% increase in 2010 from the previous year. In the next 24 months or 2 years, Bumi Minerals commences the first commercial productions from Bumi Mauritania S.A. (iron ore) and PT Dairi Prima Minerals (zinc and lead).  
Operating risk

In Vallar Plc prospectus page 39, there is risk relating to the operations of Bumi Resources Group, especially Bumi Minerals.

The Bumi Resources Group is considering various other funding alternatives for the BRM group. There can be no assurance that BRM and its subsidiaries will be able to finance the exploration, development and operations of their mining activities without credit support from Bumi Resources or subsidiaries of the Group outside the BRM group.
The Group could also lose part or all of its investments in BRM’s businesses if it fails to successfully develop them into revenue generating units.BRM will need substantial additional financing to build the infrastructure and to satisfy the other requirements necessary to develop its projects to the production phase.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Jakarta Composite Index is expected to gain further today, after strengthening by 1.38% to 3,640.98. Here are stock recommendations provided by brokerages as quoted by Bisnis.com today:
 

e-Trading Securities:

The JCI today to move between 3,590-3,681. The recommended shares are HRUM, ASII, and UNTR. Foreign investors booked a net buy of IDR223 billion bringing the index to swell 1.38% or 49 points to 3,640.98 yesterday with most bought stocks such as BBNI, INDF, TLKM, ASII, and BMRI.

Panin Sekuritas: 

The brokerage estimates the index to move around 3,625-3,670 today as investors will still focus on earnings reports and inflation data. The securities company has suggested to buy on shares like CTRA, SGRO, BMRI, and BBKP.

Reliance Securities: 

It is also confirmed a technical potential for the index to strengthen today after breaking 3,610. The index is predicted to move between 3,610-3,680, and it recommends 'buy' on shares like ASII, UNTR, UNVR, and sell BUMI.

Sinarmas Sekuritas: 

The JCI may move between 3,517-3,675 today with recommended shares like BBNI, UNTR, TLKM, and GGRM. Investors are suggested to anticipate profit taking.

Disclosure: No position at the stock mentioned above.

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Multistrada mandates HSBC as adviser

One of radial-car tire producer, PT Multistrada Arah Sarana Tbk (MASA), finally appointed HongKong and Shanghai Banking Corporation Limited (HSBC) as its financial adviser for a period of 12 months.

Even Goh, Head of Investor Relations of Multistrada, confirmed HSBC in the near future will review the tire producer strategically.

“HSBC will provide several best options for the company. The options are on looking for strategic partners, expanding business, and escalating output,” he said when called by Bisnis, this afternoon. According to him, the company expects several options within of next 1-2 months following the appointment of HSBC.

“Totally, the options are estimated to advance a value of company and shareholder,” Even said. He confirmed that before appointing HSBC, Multistrada had selected several foreign investment banks such as ING and Macquarie Securities.

However, the mandate went to HSBC because of its division in Hong Kong focusing on automotive industry including tire business. “Therefore, we are totally sure for HSBC to be more competent in providing input,” he said.

The appointment is also in line with Multistrada's business which is focusing in the export market. Today, as he said, Multistrada, producer of Achilles, Strada, and Corsa tire, is still undervalued.

Another tire maker PT Gajah Tunggal Tbk (GJTL) has lower price to earning ratio than Multistrada. However, in a term of financial structure, as he said, Multistrada is healthier and has higher margin. In the end of 2010, Multistrada booked sales of IDR2.01 trillion or a 18.64% growth from IDR1.68 trillion in 2009. And now, the tire producer targets for sale to IDR3.15 trillion this year. 

Meanwhile, last year’s net income climbed 0.69% to IDR176.08 billion from IDR174.86 billion. Then, Multistrada’s operating income grew by 11.32% to IDR256.96 billion from IDR230.82 billion. On the other hand, its operating margin fell to 12.80% from 13.65%.

Disclosure: No position at the stock mentioned above.

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Intiland FY10 net income soars 12 folds

Property developer PT Intiland Development Tbk booked its net income by IDR350.5 billion for 2010 period of a higher of 12 times from IDR25.6 billion in 2009.
President Director and Chief Executive Officer (CEO) of Intiland Lennard Ho Kian Guan confirmed that the increasing net income was stimulated by higher revenue throughout 2010 by 118% to IDR842.7 billion from IDR386.8 billion in 2009.
Highest contribution came from residential sale, including both home and apartment, by 86.4% or IDR728.1 billion. Then, the sale value of residential sector jumped 171% compared to 2009’s sale value.
“In a term of operational, its operating income was 3 folds higher to IDR258.1 billion from IDR61.3 billion in 2009. Throughout 2010, the management has executed well several key strategies of business growth for corporate transformation process,” he said in an official statement, this afternoon.
The strategies, as he added, included boosting sale of inventories having criteria of mature, non-core, and low yield, as well as realizing aggressive expansion strategy by increasing land supply and by extending new projects.
Moreover, the company had a great performance on profitability that was indicated from soar of net income against revenue by 41.6% in 2010 from 6.6% in 2009.
This year, the management targets to have robust growth. “In the future, the company’s growth will be substantial. We focus on key strategies to be one of giant developers in Indonesia,” Lennard said.
Considering on the midday’s session today, the price of DILD-coded shares stood at IDR330 per unit with market capitalization at IDR3.42 trillion.

Disclosure: No position at the stock mentioned above.  

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Gozco suffers 21.33% drop in net income

Palm oil producer PT Gozco Plantations Tbk (GZCO) today reported a 21.33% decrease in net income last year as financial charges increased.

In a financial statement published today, Gozco posted IDR160.79 billion net income last year from IDR204.39 billion. Financial charges surged 207.91% to IDR71.25 billion from IDR23.14 billion, while net income from associated companies increased to IDR97.83 billion from IDR58.59 billion. 

Despite the net income decrease, Gozco's operating profit rose 24.28% to IDR150.97 billion from IDR121.48 billion, sending a higher operating margin to 33.22% from 29.78%. Gross profit frew 30.97% to IDR192.46 billion from IDR146.95 billion.

Gozco booked IDR454.52 billion net sales, representing a 11.43% increase from IDR407.91 billion. The company intially estimated to post IDR150 billion net income in 2010. In fact, it has surpassed the target. Gozco is eyeing IDR180 billion net income this year, a 11.95% increase from realization last year.

Disclosure: No position at the stock mentioned above.

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Indopoly FY10 net sales rises 32%

PT Indopoly Swakarsa Industry Tbk (IPOL), one of the leading manufacturer of flexible packaging film in Indonesia,  reported an increase in net sales last year by 32% to Rp1.63 trillion from Rp1.23 trillion in 2009.
In an official statement submitted to Indonesia Stock Exchange (IDX), Indopoly's gross profit reached Rp440 billion, representing 65% increase from Rp266 billion.
The company reported operating profit and net profit of Rp278 billion and Rp170 billion respectively, an increase of 160% and 82% respectively, from position in the previous year.
The significant rise in sales and gross profit in 2010 were due to a combination of several positive factors such as full year sales from second BOPP line that has been completed and has started operating since July 2009, better product mix, and improved production efficiency.
Indopoly's gross margin rose by 5% to 27% from 22%. Increase in operating income is supported by management’s ability to maintain steady level of expenses leading the company’s operating margin and net profit margin to more than 17% and 10%, respectively.
Indopoly is a leading manufacturer of flexible packaging film in Indonesia. Indopoly, an affiliated company of Salim Group, currently serves more than 150 leading customers worldwide with production from its three factories in Cikampek, Purwakarta, West Java, Indonesia, Kunming city in the province of Yunnan (Yunnan Kunlene Film Industries), and in Suzhou, Jiangsu province (Suzhou Kunlene Film Industries) in China. 

Disclosure: No position at the stock mentioned above.

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Indovision names 4 IPO underwriters

PT MNC Sky Vision, operator of pay TV dubbed Indovision, has mandated UBS Securities, Morgan Stanley Securities, Danareksa Sekuritas, and MNC Securities as joint lead underwriters for initial public offering (IPO).

MNC Group is keen to sell up to 30% shareholding in MNC Sky Vision and hope to seize up to US$500 million from the IPO.

"We are planning to hold the IPO in the second half of this year. The proceed will be used to support expansion of Indovision business," said MNC Group President and CEO Harry Tanoesoedibjo.

Besides the IPO, MNC Sky Vision has unveiled 5-year US$165 million bonds bearing an annual interest rate of 12.75% in February, arranged by Standard Chartered Securities. MNC is eyeing total subscribers of 1 million from 850,000 subscribers last year.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

After Indonesian stock index retreated yesterday, Jakarta Composite Index (JCI) is estimated to tend continue further correction today. Stocks to watch: ITMG, BMRI, UNVR, and INCO. Here are stock recommendations provided by Bisnis Indonesia today:

e-Trading Securities:
The JCI today is predicted to move at the range of 3,542-3,631 with stocks focus on ITMG, BMRI, and MYOR. The index may continue its further correction after it abated 0.31% or 11 points to 3,591.51. Foreign investors booked a IDR94.7 billion net selling yesterday with the most oversold stocks such as ASII, UNTR, BJBR, SMGR, and UNVR.

Sinarmas Sekuritas:
The index technically may move in mixed way with downtrend possibility to the range of 3,561-3,610 today. Regional stock markets as well as unpublished financial performance of pubicly listed companies may continue to affect the JCI movement. Stocks that shall be watched: BMRI, UNVR, SMCB, and INCO.  

Disclosure: No position at the stock mentioned above.

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Watch Delta Dunia FY10 bottom line!

An intention of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) to write-off Rp186.67 billion of receivable on fuel cost will drag down earning of PT Delta Dunia Makmur Tbk (DOID) last year.

Still, BUMA, a wholly owned subsidiary of Delta Dunia, is estimated to book other charges derived by several transactions. Will other charges put a pressure on Delta Dunia earning? Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above.
 
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Moody's may upgrade Davomas rating

Moody's Investors Service has today placed PT Davomas Abadi Tbk's (Davomas) Caa3 corporate family rating on review for possible upgrade.
"The potential acquisition of 51.9% stake in Davomas by PT Uniflora Prima ((P)B2/stable) and the planned full redemption of Davomas' senior secured notes due 2011 and 2014 are positive for the rating," said Ken Chan, a Moody's Vice President, in a press statement obtained by Bisnis today.
According to Chan, the successful completion of the potential transaction should materially improve Davomas credit profile.
"Moreover, Davomas has been gradually ramping up its production lines since the middle of last year, subsequent to the production halt in the financial crisis."
In its review, Moody's will focus on the eventual capital structure of Davomas post-completion of the transaction, and the sustainability of its operating performance.

Disclosure: No position at the stock mentioned above.  

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Uniflora Prima buys Davomas at Rp108

PT Uniflora Prima has entered into conditional sale and purchase of shares agreement with five sellers to acquire 51.86% shareholding in cocoa butter and power producer PT Davomas Abadi Tbk (DAVO) at consideration price of US$77 million or Rp108 per share.
Johanas Herkiamto, President Director of Uniflora Prima, in an official statement filed to Indonesia Stock Exchange (IDX) today, said the company will settle the payment after it completes all term and conditions of the CSPA.
By the proposed acquisition, Uniflora is underway to hold a backdoor listing transaction into Indonesian stock market.
Uniflora aims to buy 6.43 billion shares or 51.86% in Davomas from Hassocks Enterprises Limited, Caterpillar Associates Limited, Krigler Holdings Limited, Polar Cap Investments Limited, and Templeton Assets Limited.
The proposed acquisition will improve production capacity of Uniflora and make it a leading cocoa producer in Indonesia.
Davomas's production facilities is located in Tangerang, Banteng, or 20 km of West Jakarta. Davomas has intalled production capacity of 70,000 tons of cocoa butter and 70,000 tons of cocoa powder, consisting of 20,000 tons of deodorized butter cocoa and 20,000 tons of alkalized powder cocoa.
Considering to the regulation, Uniflora Prima is obliged to hold a tender offer for the remaining shares of Davomas. Davomas today jumped 12.68% to Rp80 per share.
Uniflora Prima is one of the biggest cocoa processor in Indonesia. On the land of 16 ha, Uniflora produces cocoa products with the capacity of more than 100,000 tonnes annually.
All the products are exported to many big companies around the world such as Europe and United States. Uniflora also has the latest advanced technology to create the high quality products. Uniflora is maintained by many experts who already have a great experience in commodity industry.
In a press statement today, Moody's Investors Service has today assigned a provisional B2 corporate family rating to Uniflora Prima. At the same time, a provisional B2 senior secured bond rating has been assigned to the proposed senior secured notes issued by Uniflora  Prima International Pte Ltd, an entity wholly-owned and guaranteed by Uniflora. The outlook on both ratings is stable.
This is the first time Moody's has assigned ratings to Uniflora or Uniflora Prima International Pte Ltd. The provisional status of the  ratings will be removed upon completion of the bond issuance and the acquisition of the stake in Davomas(Caa3).
Uniflora plans to acquire majority stake in Davomas, with proceeds from a  mandatory convertible bond of US$77 million, which will be automatically  converted into shares of Uniflora upon issuance of the proposed senior secured notes.
The proceeds from the bond issue will be used to fund expansion at Uniflora, a mandatory tender offer for the rest of Davomas' shares,  with any unutilized amount used for the repayment of a US$33 million
subordinated shareholder loan provided to Davomas for working capital purposes, pursuant to its debt restructuring exercise in 2009, the  full redemption of Davomas' senior secured notes due 2011 and 2014, and  working capital and general corporate purposes.

Disclosure: No position at the stock mentioned above.

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Kalbe Farma FY10 net income up 38.46%

Indonesian giant pharmaceutical maker PT Kalbe Farma Tbk (KLBF) today reported a 38.46% increase in earning last year on the back of higher net sales.
In an official financial statement submitted to Indonesia Stock Exchange (IDX) today, Kalbe Farma posted IDR1.29 trillion net income last year from IDR929 billion in the previous year.
Income from operations increased 14.01% to IDR1.79 trillion from IDR1.57 trillion. However, Kalbe Farma's operating margin was flat at the level of 17%.
Gross profit rose 14.01% to IDR5.17 trillion from IDR4.51 trillion. Net sales increased 12.54% to IDR10.23 trillion from IDR9.09 trillion. The largest contributor for the net sales was distribution and packaging business with IDR3.21 trillion revenue.
Prescription pharmaceutical, consumer health, and nutritionals segments contributed revenue of IDR2.21 trillion, IDR1.73 trillion, and IDR1.94 trillion respectively.
PT Gira Sole Prima owns 10.17% shareholding in Kalbe Farma, PT Santa Seha Sanadi owns 9.62%, and PT Diptanala Bahana holds 9.49% stake.
PT Lucasta Murni Cemerlang, PT Ladang Ira Panen, PT Bina Artha Charisma, and public shareholders own 9.47%, 9.22%, 8.67%, and 43.36% respectively.

Disclosure: No position at the stock mentioned above.

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WIKA grabs project from Adaro Indonesia

One of Indonesia's largest thermal coal PT Adaro Indonesia has finally mandated PT Wijaya Karya Tbk (WIKA) as a contractor to install and manage overburden crushing and conveying system with a total contract of US$175 million.
Adaro Corporate Secretary Devindra Ratzarwin, in an official statement submitted to Indonesia Stock Exchange (IDX) today, said Adaro Indonesia, a wholly owned subsidiary of PT Adaro Energy Tbk (ADRO), entered into agreement with Wijaya Karya on March 25 2011.
By installing the system, Adaro expects it will improve efficiency regarding to the manage overburden removal as well as maintain its annual production growth.
In parallel with the appointment, Adaro Indonesia also signed an agreement of equipment procurement with FLSmidth Spokane Inc.
Previously, Adaro Indonesia aimed to build overland conveyor belt. The company had also appointed PT Tripatra Engineers & Construction for the project.
However, Adaro had dropped the project of overland conveyor belt. "We don't have any constraint to build overland conveyor belt. But, we see that the project could benefit us," Devindra said in October last year.

Disclosure: No position at the stock mentioned above.  

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Krakatau Steel result, miss the target!

PT Krakatau Steel Tbk (KRAS), Indonesia's largest steel maker, today reported a 114.83% jump in net income last year despite a 12.12% drop in net revenue.

In an official financial statement published today, KRAS booked Rp1.06 trillion net income last year from Rp494.67 billion in the previous year.

Income from operations skyrocketed 3,727.79% to Rp992.93 billion from Rp25.94 billion, sending a steep operating margin to 6.68% from 0.15%. Gross profit increased 87.39% to Rp2.23 trillion from Rp1.19 trillion.

KRAS's net sales dropped 12.12% to Rp14.86 trillion from Rp16.91 trillion, while the state-owned steel manufacturer narrowed its cost of goods revenue 19.77% to Rp12.62 trillion from Rp15.73 trillion. Without succeeding to drag down the cost, the company may be difficult to make a hefty growth last year.

Did Krakatau Steel make good and disappointed performance last year?

Below the target

During the first 9 months ended September 30 2010, Krakatau Steel booked Rp11.88 trillion revenue and Rp1.05 trillion net profit. Considering to the third quarter result, the company only booked additional revenue and net income of Rp2.98 trillion and Rp12 billion respectively in Q4 2010. The question is why Krakatau Steel only posted Rp12 billion net income in the last quarter?  

Krakatau Steel's 2010 performance is also below the target set by its IPO underwriter PT Mandiri Sekuritas.

Based on the research, Mandiri Sekuritas estimated that Krakatau Steel could post Rp17.69 trillion revenue and Rp1.37 trillion by the end of 2010. It means the state-owned steel producer needs to add Rp5.81 trillion additional revenue to meet the target, which is impossible.

Krakatau Steel also needs Rp320 billion additional net profit to reach Rp1.37 trillion target this year. It is impossible for the company could fulfill the target.

Mandiri Sekuritas estimates that Krakatau Steel could post Rp25.22 trillion revenue and Rp1.38 trillion net profit in 2011. The company needs strong efforts to lift up its consolidated revenue by 42.56% to fulfill the target. Is it possible? I have written a story of KRAS which is impossible to meet the target on November 7 2010. Please login to read a full version of Watch Krakatau Steel 3Q net profit (1)!

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Stock recommendations today

Jakarta Composite Index (JCI) is predicted to move mixed today after slipping 0.12% to 3,602.86 yesterday. For today's trading, the recommended shares are  BORN, GGRM, PGAS, and TLKM. Here are stock recommendations as provided by Bisnis Indonesia daily:

Panin Sekuritas: 

The pressures over the Indonesian stocks to ease today. The index tends to move mixed in the range of 3,591-3,620. Trading opportunities are widely opened at sectors like banking, property and cement. The securities company recommends 'buy' on BJBR, BORN, INTP, and GGRM.
 

e-Trading Securities: 

The stock index to move between 3,549-3,637. Investors are suggested to monitor shares like BDMN, AALI, and INTP. Yesterday, the foreign investors booked net buy of IDR178 billion with most interested shares like BBRI, PGAS, INDF, BBNI, and BJBR.

Sinarmas Sekuritas: 

Jakarta Composite Index (JCI) to move mixed with tendency to weaken to 3,572-3,628 today. The recommended shares include ADRO, AALI, BBCA, and TLKM. The market will closely watch teh political crisis in Libya and Japanese nuclear power. Besides, the commodity prices which tend to weaken will provide sentimen to the index.

Disclosure: No position at the stock mentioned above.
 
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Indika secures US$65 mio loan

EPC contractor and coal mining company PT Indika Energy Tbk (INDY) has secured up to US$65 million of 1-year loan facility from UBS AG, Singapore Branch.
Indika Energy Corporate Secretary Dedy Happy Hardi said the facility, which will mature on April 29 2012, will be used by Indika to support its business activities. Indika signed the facility agreement with UBS on March 23 2011. 
Indika, which is controlled by Agus Lasmono Sudwikatmono, has also obtained an approval from 87.52% of its subsidiary's bond holders to change identure.
Indika's subsidiary dubbed Indo Integrated Energy B.V. issued US$250 million bonds with annual interest rate of 8.50%. The bond, which matures in 2012, will be refinanced by Indika using a proposed US$300 million bonds to be issued in April this year.

Indika has appointed four managers to handle the issuance, namely Citi, Goldman Sachs, Standard Chartered Bank, and UBS Securities.
  
Disclosure: No position at the stock mentioned above.

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Wow..BUMA to write-off Rp186.67 bio

Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA) will write-off Rp186.67 billion of fuel receivable which shall be obtained from its major client coal miner PT Berau Coal.

In an official statement signed by Director Thomas K. Husted at PT Delta Dunia Makmir Tbk (DOID) and sent to Indonesia Stock Exchange late today, BUMA and its client coal miner PT Berau Coal, a wholly owned subsidiary of PT Berau Coal Energy Tbk (BRAU), BUMA and Berau Coal has agreed to settle a different view on fuel cost occured in 2009.

In total, BUMA recorded a fuel receivable of US$24.36 million and Rp161.46 billion from Berau Coal.

However, referring to the agreement, Berau will pay 50% of each fuel cost. It means Berau will pay US$12.18 million and Rp80.68 billion or a total of Rp186.67 billion to BUMA.

BUMA, a wholly owned subsidiary of Delta Dunia, will write-off the remaining after it complies the transaction with Bapepam-LK regulations No.IX.E.2. about Materal Transaction and Change on Main Business.         

The impact

As of September 2010, Delta Dunia posted Rp361.93 billion net income or an annualized net income of Rp469.24 billion in 2010. By writing-off Rp186.67 billion, such transaction may sharply drag down Delta Dunia's bottom line to approximately of Rp282.57 billion.

A source said with financial charges of just secured of syndicated loans shall be burdened, Delta Dunia's net income might lower. "Financial charges occurred during the bonds buyback was not cheap," the source said.  

Major client

For BUMA, Berau Coal is major client. Based on a presentation of Delta Dunia's management in November last year, BUMA has three long term contracts with Berau Coal at three different coal mine sites. At Lati coal mine, BUMA secures contract with period of 1998-2018. At Binungan coal mine and Suaran Port, BUMA secures two contracts with period of 2003-2018 respectively.

But, In December, BUMA was awarded by Berau Coal of 5-year contract at Pit East 2 of Berau's Lati mine site with a total production target of 226.8 million bcm and 20,7 million tons with projected value of US$400 million-US$500 million.
The potential write-off may drag down Delta Dunia's stock price. It inched up 1.75% to Rp1,160 per share today.

Disclosure: No position at the stock mentioned above.

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Elang Mahkota FY10 net income surges

PT Elang Mahkota Teknologi Tbk (Emtek), parent company of PT Surya Citra Media Tbk (SCMA), reported a 165.33% jump in net income last year as revenue reached a higher level than in the previous year.
In an official financial statement submitted to Indonesia Stock Exchange (IDX) today, net income rose to Rp429.19 billion from Rp161.76 billion.
Income from operations increased 62.37% to Rp799.44 billion from Rp492.36 billion. Emtek posted Rp1.33 trillion, a 29.13% rise from Rp1.03 trillion. Revenue grew 18.37% to Rp3.35 trillion from Rp2.83 trillion.
Two biggest contributors to the company's consolidated revenue were net advertising and sale of goods.  
Net advertising contributed Rp1.97 trillion to the consolidated revenue and sale of goods contributed Rp1.07 trillion.
The Northern Trust Company S/A owned 31.68% shareholding in Elang Mahkota, Eddy Kusnadi Sariaatmadja owns 20.75% stake, Susanto Suwarto holds 13.81%, Piet Yaury owns 11.61%, Fofo Sariaatmadja controls 5.81%, and public shareholders hold 10%.

Disclosure: No position at the stock mentioned above.

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Astra Agro 2M CPO sales rises 11.7%

CPO sales volume of palm oil producer PT Astra Agro Lestari Tbk (AALI) as of February 2011 reached 175,390 tons, a 11.7% increase compared to the same period last year, totalling 157,014 tons.
In an investor bulletin submitted to Indonesia Stock Exchange (IDX), of the total volume of CPO sales during this period, 93% were absorbed by domestic market while the remaining was exported.
The average CPO selling price as of February rose by 33.2%, from Rp6,456/kg in the same period last year to Rp8,600/kg, Meanwhile, the total sales volume of kernel reached 20,922 tons with the average selling price of Rp6,395/kg, an increase of 118.5% compared to Rp2,927/kg in the same period last year.
Palm oil production as of February 2011 reached 174,596 tons, a 23.7% increase compared to the same period last year.
The increase was mainly propelled by the rise in nucleus and plasma's fresh fruit bunch (FFB) production.
During this period, FFB production rose 18.4% to 641,053 tons from 541,366 tons. Astra Agro is controlled by PT Astra International Tbk (ASII) as parent company of several various businesses.

Disclosure: No position at the stock mentioned above.

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Indo Tambang eyes US$2.25 bio revenue

Coal miner PT Indo Tambangraya Megah Tbk (ITMG) expects to reach revenue up to US$2.25 billion this year, a 40.63% increase from US$1.6 billion last year. Sales volumn is targeted to increase to 25 million tons from 22 million tons.

"We estimate our average selling price this year is about US$85-US$90 per ton," said Indo Tambang's President Director Somyot Ruchirawat today.

The company is eyeing an opportunity to acquire up to three coal mines in Kalimantan. Several mines are greenfield and one has commercially produced. Indo Tambang will use internally generated cash flow to support the acquisition.

The company was agreed to distribute a total dividend of Rp1,202 per share which will paid on May 6 2011. Previously, Indo Tambang paid an interim dividend of Rp795 per share in June last year. The company will distribute the remaining dividend of Rp407 per share.

"In total, about 75% of Indo Tambang's net income will be distributed as dividend. We posted US$204 million net income last year," said Indo Tambang's Finance Director Edward Manurung.

Disclosure: No position at the stock mentioned above.  

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Ciputra Group FY10 result performance

Three property developers under Ciputra Group posted net income growths, while one company booked a slight decrease in net income last year.

PT Ciputra Development Tbk (CTRA) posted a 89.22% increase in net income to IDR257.96 billion last year from IDR136.33 billion in the previous year.

PT Ciputra Property Tbk (CTRP) booked a 2,571.05% jump in net income to IDR91.35 billion from IDR3.42 billion, while PT Ciputra Surya Tbk (CTRS) made a 52.63% increase in net income to IDR87.18 billion from IDR57.12 billion.

A contractor PT Jaya Konstruksi Manggala Pratama Tbk (JKON) posted a slight decrease in net income of 8.42% to IDR115.36 billion from IDR125.97 billion.

Operating profit of Ciputra Development and Ciputra Surya rose 20.43% and 66.69% respectively to IDR341.82 billion and IDR105.43 billion from IDR283.84 billion and IDR63.25 billion respectively.

Ciputra Property and Jaya Konstruksi's operating profits lowered 2.52% and 5.59% respectively to IDR108.62 billion and IDR180.26 billion from IDR111.43 billion and IDR190.94 billion. Operating margins of Ciputra Development, Ciputra Property, and Jaya Konstruksi slightly decreased to 20.19%, 30.54%, and 6.71% from 21.30%, 33,03%, and 7.07% respectively. Operating margin of Ciputra Surya increased to 17.77% from 16.16%.

In term of revenue growth, CTRA, CTRP, and CTRA experienced growth of 27.07%, 5,41%, and 51.56% respectively to IDR1.69 trillion, IDR355.67 billion, and IDR593.30 billion from IDR1.33 trillion, IDR337.41 billion, and IDR391.45 billion. But, Jaya Konstruksi's revenue slightly fell 0.48% to IDR2.68 trillion from IDR2.69 trillion.

Disclosure: No position at the stock mentioned above.  

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FIF launches Rp2 trio bonds

PT Federal International Finance (FIF), a wholly owned leasing company of PT Astra International Tbk (ASII), is keen to raise Rp2 trillion of rupiah denominated bonds scheduled on April 28 2011.

In an official bonds prospectus published today, FIF will use the bonds proceed as working capital, especially to support motorbike leasing.

Six lead underwriters, PT Kresna Graha Sekurindo Tbk, PT Indo Premier Securities, PT Mandiri Sekuritas, PT Danareksa Sekuritas, PT HSBC Securuties Indonesia, and PT NISP Sekuritas are arranging the bonds issuance.

According to the prospectus, the bonds are consisting of three series, A, B, and C. A Series will mature in 370 days, B series will due in 24 months, and 36 months for C series.

FIF posted Rp4.74 trillion revenue and Rp1.17 trillion net income or Rp4,192 per share. Astra International controls 99.99% shareholding in FIF and PT Arya Kharisma owns the remaining stake.

Disclosure: No position at the stock mentioned above. 

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Intraco Penta net income soars 121%

Heavy equipment distributor PT Intraco Penta Tbk (INTA) today reported a 121.72% jump in net income last year, mostly underpinned by net income from associated companies.

In a financial statement published today, Intraco posted Rp83.08 billion last year from Rp37.47 billion in the previous year. Net income from associated companies recorded Rp84.53 billion, double from Rp41.57 billion.

Operating profit surged 71.57% to Rp151.79 billion from Rp88.47 billion, sending a slight increase of operating margin to 8.28% from 7.49%. Operating revenue soared 55.08% to Rp1.83 trillion from Rp1.18 trillion.

Disclosure: No position at the stock mentioned above.

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Wijaya Karya FY10 revenue drops

The state-owned contractor PT Wijaya Karya Tbk (WIKA) reported a 50.6% jump in net profit to Rp284.91 billion last year from Rp189.22 billion in the previous year.

In a financial statement published today, the company sold assets last year, enabling it to seal Rp30 billion. As a result, the proceed lifted up WIKA's net profit.

In 2010, WIKA sold 60% shareholding in unit company of solar water heater to a strategic partner. The disposal was in line with an intention to focus on the company's core business. However, WIKA's net revenue drops 8.6% to Rp6.02 trillion from Rp6.59 trillion. The company sealed new contracts of Rp10.22 trillion with Rp20.83 trillion order book.

Disclosure: No position at the stock mentioned above.

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Mitrabahtera downsizes IPO to 10.2%

Indonesian coal tug and barge operator PT Mitrabahtera Segara Sejati Tbk (MBSS), a company that is soon to be majority owned by PT Indika Energi Tbk (INDY), today reported a 18.60% downsize of its initial public offering (IPO) to 175 million shares or 10.2% of its enlarged capital paid in with the IPO price at Rp1,600 per share.

Referring to the price, Mitrabahtera may secure Rp280 billion proceed, a drop from the previous plan of Rp344 billion.

Previously, Mitrabahtera came with initiative to raise Rp344 billion proceed by selling 215 million shares or 12.3% stake. The company is scheduled to list initial shares at Indonesia Stock Exchange on April 6 2011. 

In an additional prospectus published today, PT OSK Nusadana Securities Indonesia and PT Mandiri Sekuritas are lead underwriter for the IPO. During the underwriting agreement, OSK Nusadana and Mandiri Sekuritas are both committed to underwrite 87.20 million shares or Rp139.52 billion respectively. PT Amantara Securities, PT Andalan Artha Advisindo, PT Lautandhana Securindo, PT Minna Padi Investama, PT NC Securities, and PT NISP Sekuritas have committed to underwrite 100,000 shares each.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Jakarta Composite Index (JCI) is expected to have potential to strengthen today, after the profit taking led the index closed down by 0.13% to 3,607.11 in the last week's trading. Among the recommended shares for today's trading are BLTA, BMRI, BJBR, and ASII, as quoted by Bisnis.com today:

Sinarmas Sekuritas: 

The index technically will tend to appreciate in limited space and move around 3,585-3,634 today. US economic data released will give sentiment to the index's movement. It recommends 'buy' on shares like BLTA, BSDE, BJBR, and BBRI.
 

e-Trading Securities: 

The brokerage saw the index to potentially move between 3,568-3,647. The securities company recommends 'buy' on shares like BMRI, ASII, and BLTA. On the weekend, JCI was closed down by 0.31% or four points to 3,607.11, amind stronger regional market.

Disclosure: No position at the stock mentioned above.

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Harum Energy FY10 earning up 7.23%

Thermal coal producer PT Harum Energy Tbk (HRUM), controlled by Indonesian businessman Kiki Barki through his son Lawrence Barki, posted a slight increase in net income of 7.23% last year as it obtained contributions of net income from two associated companies.   

At the operational line, Harum Energy didn't show any shinny performance. Income from operations slightly decreased 6.56%, while revenue retreated 2.39%. 

In the financial statement submitted to Indonesia Stock Exchange last week, Harum posted Rp822.94 billion net income last year from Rp767.47 billion in 2009.

Of the earning, the company recorded Rp131.91 billion net income from two associated companies namely coal miner PT Santan Batubara and PT Lotus Coalindo Marine.

Income from operations fell 6.56% to Rp1.14 trillion from Rp1.22 trillion, sending its operating margin lowered to 25.39% from 26.52%. Harum Energy's gross profit was also in a slight decline to Rp1.58 trillion from Rp1.66 trillion. Revenue recorded Rp4.49 trillion, a slight decrease of 2.39% from Rp4.60 trillion.

Associated companies 

Harum Energy booked Rp131.91 billion net income contributions from Santan Batubara, with 50% shareholding, and Lotus Coalindo. PT Petrosea Tbk (PTRO), wholly owned subsidiary of PT Indika Energy Tbk (INDY) owns 50% shareholding in Santan Batubara.

Santan batubara contributed Rp125.41 billion net income to both Harum Energy and Petrosea, while Lotus Coalindo contributed Rp6.49 billion net income to Harum Energy.

PT Karunia Bara Perkasa controls 79.72% shareholding in Harum Energy and PT Bara Sejahtera Abadi owns 0.09% shareholding in Harum Energy. Kiki Barki and his son Lawrence Barki are controlling shareholders in Karunia Perkasa and Bara Abadi.

Disclosure: No position at the stock mentioned above.

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Indosat FY10 earning plunges 56.8%

Indonesia's second largest cellular operator PT Indosat Tbk (ISAT) suffered a steep plunge in earning last year of 56.8% on the back of net other charges surge of 143.8%.
In a press statement filed to Indonesia Stock Exchange (IDX) on Friday, Indosat reported Rp647.2 billion net income last year from Rp1.49 trillion in the previous year. Net other charges widened 143.8% to Rp2.39 trillion from Rp981 billion.
EBITDA slightly increased 9.7% to Rp9.63 trillion from Rp8.77 trillion. Indosat's operating profit slightly rose 4.6% to Rp16.32 trillion from Rp15.61 trillion.
Operating revenue grew 5.2% to Rp19.79 trillion from Rp18.82 trillion. Cellular business contributed Rp16.03 trillion revenue from Rp14.30 trillion, while non-cellular posted Rp3.77 trillion revenue, a 16.7% drop from Rp4.52 trillion.
Indosat spent Rp6.54 trillion capital expenditure, shrank 38.9% from Rp10.69 trillion.Cellular subscribers increased 34.3% to 44.3 million from 33 million subscribers, while cellular ARPU slightly drop 7.8% to Rp34,712 from Rp37,664. The operator added 1,755 units of new base transceiver stations (BTS) last year in a bid to support business expansion. Indosat also made early payment on several loan facilities such as Rp1.3 trillion facility to Bank Central Asia, Rp400 billion to DBS, and Rp900 billion to Bank Mandiri.
Indosat also paid US$234 million dollar denominated bonds and Rp640 billion rupiah denominated bonds and made early settlement on US$109 million bonds due in 2012.  

Disclosure: No position at the stock mentioned above.

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Telkom & story of shares buyback

Indonesia's largest telecommunication operator PT Telekomunikasi Indonesia Tbk (Telkom) is estimated to book net profit of Rp11.4 trillion last year, a slight increase from Rp11.3 trillion in the previous year.

During a month ago, Telkom dropped to the lowest level at Rp6,600 per share. But, the stocks have rebounded to Rp7.150 on last Friday.
Will Telkom propose a buyback program in the next shareholders' meeting and how much money it will spend for the buyback?  Please login or register to read the remaining story. 

Disclosure: No position at the stock mentioned above.

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Bakrieland FY10 earning rises 35.1%

Property developer PT Bakrieland Development Tbk (ELTY), one of Bakrie Group's subsidiaries, today reported a 35.1% increase in net income last year on the back of higher revenue.

In an official statement today, Bakrieland booked Rp178.7 billion net income last year from Rp132.3 billion in the previous year.

Adding to that, income from operations augmented 44.9% to Rp241.7 billion from Rp166.8 billion, while gross profit increased 34.4% to Rp669.3 billion from Rp498.1 billion. Operating margin reached 17.7% from 15.8%, representing a 12.8% higher.

Revenue was Rp1.37 trillion, reflecting a 29.1% rise from Rp1.06 trillion. The company's revenue was underpinned by its business segment dubbed City Property with 35.1% contribution. Landed residential segment counted 29.5% of its consolidated revenue, while hotel and resort and toll road segments contributed 29.2% and 6,2% respectively.

Disclosure: No position at the stock mentioned above.

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Semen Bosowa seeks Rp600 bio IPO

One of Indonesian cement manufacturer PT Semen Bosowa, owned by Bosowa Group which is controlled by Indonesian businessman Aksa Mahmud, plans to enroll the stock market via initial public offering (IPO) in the fourth quarter of this year.
Semen Bosowa is seeking to raise at least Rp600 billion proceed from IPO. The manufacturer aims to establish new cement plants with capacity of 2 million-2.5 million tons annually.
Bosowa Group CEO Erin Aksa said the new factories will require a total investment of Rp3 trillion. "Besides IPO proceed, the project will be bankrolled by internally generated cash flow and bank loan facility," Aksa told Insider Stories.
The ground breaking of the plants is expected by end of this year and initiate commercially production in 2015 or 2016. At that time, capacity production of Semen Bosowa will be ramped up to 5 million tons per annum from current output of 2.5 million tons.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Indonesian stock benchmark is estimated to advance today after it climbed 1.55% to a higher level of 3,611.64. Stocks to watch: PTBA, BMRI, and JSMR. Here are recommendations provided by stock brokerages as quoted by Bisnis.com today:

e-Trading Securities:
Jakarta Composite Index (JCI) may move at the range of 3,556-3,651. Stocks to watch: BMRI, PTBA, and JSMR. The index could continue to further advance, but investors shall consider the profit taking. The JCI lifted up 1.55% or 55.41 points to 3,611.64.

Sinarmas Sekuritas:
The index is technically predicted to strengthen at the range of 3,580-3,642 today. Stocks to watch: ASRI, BMRI, JSMR, and BBNI. Japanese manufacturer are resuming operations and better macro economy may spur positive sentiments to the index.


Disclosure: No position at the stock mentioned above.

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Resource Alam earning soars 418%

Thermal coal producer PT Resource Alam Indonesia Tbk (KKGI), part of Rain Group, posted a 418.84% jump in net income last year as a result of a steep jump in net sales.
In a financial statement published today, Resource Alam booked Rp166.03 billion net income or Rp166 per share last year from Rp32 billion or Rp128 per share in the previous year.
Operating profit surged 390.75% to Rp220.74 billion from Rp44.98 billion, while gross profit augmented 233.24% to Rp476.84 billion from Rp143.09 billion.
Resource Alam's net sales soared 138.39% to Rp969.35 billion from Rp406.62 billion.
The company 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.
Resource Alam 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.
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.
 
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GJTL FY10 sales outstrips US$1 bio

Indonesia's largest tire maker PT Gajah Tunggal Tbk (GJTL) increased net sales in 2010 to IDR9.85 trillion, up 24.2% from IDR7.94 trillion in 2009. 

Sales volumes in all business segment rose significantly as the domestic market experienced strong growth and the export market normalized after the global automotive crisis. 

In a press statement obtained by Insider Stories today, the launch of new products, such as the Champiro Eco, an Euro 2012 Eco Compliant tire, and Savero Komodo Extreme for Off Road travel and sports, proved to be very well received by the markets.

Gross profit inched up 12.4% to IDR1.94 trillion even as the 2010 gross margin at 19.7% was slightly lower than 23% in 2009, but still strong on a historical basis. Margins came under pressure in 4Q10 as natural rubber and other raw materials increased in pricing.

On the operating level, EBITDA reached US$181 million from US$142 million in the previous year as the expansion programs in the radial and motorcycle tire segments start to commence commercial production. 

Net income decreased slightly to IDR831 billion from IDR905 billion in 2009, due to a lower gain of a IDR487 billion in foreign exchange related to our US$ denominated bonds over the previous year.

Disclosure: No position at the stock mentioned above.  

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Tower Bersama FY10 earning up 35%

Telecommunication tower provider PT Tower Bersama Infrastructure Tbk (TBIG) today reported a 35.76% jump in net income last year as a result of soaring revenue.
In an official financial statement published today, Tower Bersama, controlled by Indonesian private equity Saratoga Capital, posted IDR326.73 billion last year from IDR240.66 billion in the previous year.
Income from operation also skyrocketed 95.52% to IDR486.29 billion from IDR248.71 billion. However, the company's operating margin slightly lowered to 72.43% from 72.85%.
With 72.43% operating margin, the newly listed Tower Bersama is one of the most profitable publicly listed companies at Indonesia Stock Exchange.
A 76.37% increase in operating expenses haven't eroded Tower Bersama's gross profit which made a 92.35% surge to IDR573.16 billion from IDR297.97 billion.
Tower Bersama posted a 96.66% rise in revenue to IDR671.36 billion from IDR341.38 billion. However, the growth of cost of goods revenue was 126.19%, higher than the revenue growth.

Disclosure: No position at the stock mentioned above.

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Borneo Energi FY10 net income soars

Coking coal producer PT Borneo Lumbung Energi Tbk (BORN) booked a skyrocket net income by 499.72% from net loss position in 2009.
The achievement was amid to significant growth on operating income by 1,272.26% due to the surging coking coal price and bigger production volume in 2010.
Borneo Energi successfully booked IDR348.85 billion net profit from IDR99.78 billion net loss in 2009.
Coking coal is one of materials for steel process.
In line with the advancing net profit, Borneo operating income skyrocket 2,012.04% to IDR1.01 trillion from IDR49.32 billion. Their operating margin rose 36.73% from 24.59%.
Gross profit surged 1,526.25% to IDR1.50 trillion from IDR92.34 billion. Operating income increased 1,272.26% to IDR2.75 trillion from IDR200.52 billion. The revenue is in line with the target set some time ago.
This realization is beyond CIMB Securities estimation in which Borneo was predicted to book IDR2.56 trillion revenue in 2010. However, it is smaller that IDR2.96 trillion as predicted by Morgan Stanley Securities.
For 2010, Borneo is estimated to record 1.65 million tons sales volume with average selling price at US$185 per ton.
Based on latest research by Mandiri Sekuritas, Borneo Energi is projecting coking coal average selling price at US$240-US$275 per ton in Q I/2011.
Borneo seals 3 years exclusive marketing agreements with Glencore for 2 million tons per year with 4.5% fee. In 2011, Borneo plans to enlarge production to 3.8 million tons where 2 million tons has contracted with a buyer from China.
About 99% of Borneo Lumbung Energy shares owned by PT Republik Energi Metal where 99% of its shares is under controlled of PT Republik Komoditi management.

Disclosure: No position at the stock mentioned above.
 
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Mitra Adiperkasa sets IDR350 bio capex

PT Mitra Adiperkasa Tbk sets IDR350 billion capital expenditure (capex) for the expansion of its outlets. The retail company seeks to establish more than 1,000 outlets in the end of the year from the current amount reaching 870 outlets.
The Corporate Secretary of Mitra Adiperkasa Fetty Kwartati said that such expansion includes the establishment of new outlets in several new cities such as Jayapura, Palu, Ambon, and Eastern Indonesia.
“In order to strengthen our brand portfolio, we have also added several new brands such as Payless ShoeSource, Bershka and Stradivarius, belonging to Inditex Group or the owner of Zara brand,” he said yesterday.

Disclosure: No position at the stock mentioned above.
 
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BCA FY10 net income soars 25.12%

PT Bank Central Asia Tbk (BCA) in 2010 booked audited-net income to IDR8.52 trillion or a higher of 25.12% from IDR6.81 trillion in the previous year.
The soar of income was stimulated by non-operating revenue although margin of net interest rate eroded. Moreover, the income of the lender owned by Djarum Group was higher than publication data of Bank Indonesia per December 2010 by 23.45% to IDR8.37 trillion from IDR6.78 trillion in the last year.
As reported by Bisnis Indonesia today, the interest revenue of BCA fell by IDR2.31 trillion to IDR20.56 trillion compared to the previous year’s interest revenue standing at IDR22.87 trillion.

Disclosure: No position at the stock mentioned above. 

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Stock recommendations today

Indonesian stock benchmark is estimated to swing today. Jakarta Composite Index (JCI) may continue to strengthen after yesterday ended at 1.09% higher level to 5,556.23 than the previous day. Stocks to watch: ADRO, INTP, TLKM, and AALI. Here are stock recommendations today as provided by Bisnis.com:

Reliance Securities:
The JCI is technically to swing with uptrend possibility today. The index may move at the range of 3,530-3,570 with stocks to watch: ADRO, HRUM, and UNTR.

e-Trading Securities:
The index is estimated to move at the range of 3,494-3,609. Stocks to watch are ADRO, INTP, and UNTR. The JCI inched up 1.09% or 38 points to 3,556.23 with 5.7 million lots of trading volume amounting to IDR4.1 trillion.

Sinarmas Sekuritas:
The JCI is predicted to advance and may move at the range of 3,530-3,588. Stocks to watch: AALI, INTP, TLKM, and UNTR. The more the companies to announce their financial performance, the more they will provide sentiments to the index. Regional stock markets movement which is affected by Middle East and Japan situations also give another sentiments to Indonesian stock benchmark.

Disclosure: No position at the stock mentioned above.

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Sari Roti to distribute IDR24.64 dividend

The Sari Roti-brand bread producer, PT Nippon Indosari Corpindo Tbk plans to divide IDR24.64 per share of cash dividend or 25% of the 2010’s net income as much as IDR100 billion.

Operating Director of Nippon Indosari Yusuf Hadi said that in 2010, Nippon Indosari recorded 26% sales gain to IDR612 billion.

“The management proposes 25% profit sharing from 2010’s net income during the extraordinary meeting of shareholders,” he said after such meeting today. 

The listed bread producer also constructed two factories outside Java, in Palembang and Makassar along with one factory in Cibitung. 

“We estimate that one factory may contribute IDR70 billion-IDR80 billion, then we multiply it by three factories. Thus, in total we may generate IDR240 billion,” he said. 

The fund to finance such construction was derived from the internal cash and banking loan. “We still seek the fund. One thing for sure, we cancel the bonds issuance as we have withdrawn the request letter to the Capital Market and Financial Institution Supervisory Agency,” he said. 

In the meantime the remaining proceed of the initial public offering was spent to construct one new factory in Cibitung, West Java last year, totaling IDR140 billion. 

Yusuf said that the new factory shall be built in 2 hectare area. This year, Nippon Indosari has also completed the construction of two factories in Semarang, Central Java and Medan, North Sumatra. The company allocated IDR70.44 billion or 37.50% of the IPO’s proceed to finance such construction.

Disclosure: No position at the stock mentioned above.

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Nippon Indosari FY10 net sales up 26%

Bread maker PT Nippon Indosari Corpindo Tbk (ROTI) recorded a 26% increase in net sales for the year ended 2010
amounted to IDR612.19 billion last from from IDR485.92 billion in the previous year.
In a financial statement submitted to Indonesia Stock Exchange last night, based on the types of product sold, sweet bread accounted for the largest contribution of Company sales.
The total contribution of sweet bread to total sales in 2010 and 2009 was 58% and 56%, respectively, while white bread figures were 41% and 44%, respectively.
Indosari's gross profit during 2010 amounted to IDR289.02 billion, growing 30% from IDR222.09 billion. This was attributed to an increase in net sales of 26%, which more than off-set the rise in cost of goods sold of
22%.
The company’s income from operations rose 42% to IDR125.69 billion from IDR88.29 billion, in tandem with the increased value of its sales.
Indosari posted IDR99.78 billion net income, a 75% increase from IDR57.11 billion. The increase in net income was due to growth of net sales which was 26% higher compared to the previous year.
Nippon Indosari, affiliated company of Salim Group, is 34% controlled by Bonlight Investments Limited, British Virgin Islands and Treasure East Investment Limited respectively. Sojitz Corporation, Japan, and Shikishima Baking Co Ltd, Japan own 8.5% respectively, and public investors hold 15% stake.

Disclosure: No position at the stock mentioned above.

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Mitra Adiperkasa FY10 profit up 22.61%

Starbucks Coffee license holder PT Mitra Adiperkasa Tbk (MAPI) today reported a 22.61% increase in net income as a result of higher net revenue.
In a financial statement published today, the retailed posted IDR201.07 billion net income last year from IDR163.99 billion in the previous year.
Adding to that, operating profit rose 45.94% to IDR449.09 billion from IDR307.72 billion. However, its operating margin slightly increased to 9.53% from 7.48%.
Gross profit advanced 15.53% to IDR2.38 trillion from IDR2.06 trillion.
Mitra Adiperkasa booked IDR4.71 trillion net revenue, a 13.66% increase from IDR4.11 trillion. But, its cost of goods revenue rose 15.53%, higher than the revenue growth, to IDR2.33 trillion from IDR2.05 trillion.
Mitra Adiperkasa manages four main business such as department stores, specialty stores, food and beverage, and others.
In the department stores segment, Mitra Adiperkasa manages Sogo, Seibu, Debenhams, Lotus/Java.
In the specialty stories, consisting sports, fashion and lifestyle, and chilren, MAPI manages famed brands such as Zara, Next, OshJOsh B'Gosh, Kipling, and others. Licenses of Starbucks Coffee and Burger King are run by Mitra Adiperkasa.

Disclosure: No position at the stock mentioned above.

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Abdul Salam joins Bank Ganesha

Former Director of Finance PT Bank Rakyat Indonesia Tbk Abdul Salam has joined PT Bank Ganesha as the President Director. The man who once had career in Bank Indonesia moved to Bank Ganesha late last year.
Abdul Salam confirmed that he has been at the No. 1 position in Bank Ganesha since December 2010. “I want to try new challenges,” he told Bisnis Indonesia newspaper when attending the gathering of Indonesian Banking Association last week.
The annual meeting of shareholders of BRI in May 2010 decided to appoint former Director BNI, Achmad Baiquni, replacing Abdul Salam. In addition, the shareholders also appointed Djarot Kusumayakti to replace Sudaryanto Sudargo.

Disclosure: No position at the stock mentioned above.  

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UOB-Kay Hian holds 16.5% Bank Capital

UOB–Kay Hian Securities, a top securities company South East Asia, acquired 16.64% PT Bank Capital Indonesia Tbk which previously owned by Danny Nugroho.
The acquisition which is done by United Overseas Bank (UOB) Limited is revealed on the 2010 financial report of Bank Capital, where there is a massive change in shareholder structure. However, the spending fund of the transaction has not yet known.
As it is known, Danny Nugroho released 21.7%. Yet, the businessman from Solo, Central Java is still the major shareholder of Bank Capital.
Since, besides holding individual shares, he also acquires shares through two foreign companies, namely Zen Gem Investments Limited with 14.34% and Inigo Investment Ltd with 15.44%, thus the total shares which owned by Danny is 29.78%.
While, other shareholder are Mount-8 Holdings Offshore LTD with 19.86%, TFI (X) TRA Ordinary I with 11.21% and public with 22.32%.
Does UOB-Kay Hian acquire Bank Capital or just temporary holding Bank Capital shares for repurchase agreement (repo)?

Disclosure: No position at the stock mentioned above.  

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Indosiar FY10 net income abates 2.6%

PT Indosiar Karya Media Tbk (IDKM) in an information disclosure to Indonesia Stock Exchange announced that its net income in 2010 fell 2.6% to IDR8.29 billion, compared to IDR8.51 billion in 2009.
The report on performance also mentioned that the company’s profit last year shrank as net income plunged 12.21% to IDR749 billion from IDR853 billion in the previous year.
Meanwhile, the company coded as IDKM succeeded in reducing debts by 20.73% to IDR320.68 billion, from IDR404.57 billion.
“The financial position of the company and subsidiary in the current year is improving because of decline in costs of programs and broadcasting, as well as interest expenses. It is reflected in decreasing losses in cumulative balance to IDR484.88 billion,” Director Indosiar Santoso Tandio said.

Disclosure: No position at the stock mentioned above.

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Antam FY10 net income soars 178%

One of Indonesia’s largest nickel and gold producer, PT Aneka Tambang Tbk (Antam) packed 231.31% operating income jump last year.

In the financial statement being published today, such jump was backed by the declining cost of goods sold as much as 22.64%.

As a matter of fact, the net sale of the state run company was relatively stagnant as it only grew by 0.34% to IDR8.74 trillion in 2010 compared to IDR8.71 trillion in 2009. Antam’s cost of goods sold slipped by 22.64% to IDR5.81 trillion compared to IDR7.51 trillion.

As a result, the company’s gross profit soared by 147.06% from IDR1.19 trillion to IDR2.94 trillion. Antam whose share is still controlled by government also recorded gross margin jump from 13.66% to 33.64%.

The company’s operating margin fantastically soared from 6.74% to 22.31%. In the bottom line, Antam’s net income soared by 178.56% to IDR1.68 trillion or IDR176.77 per share from IDR604.31 billion or IDR63.46 per share.

Disclosure: No position at the stock mentioned above.

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Agung Podomoro FY10 profit up 588%

Property developer PT Agung Podomoro Land Tbk (APLN), newly listed company, recorded a 1,085.37% jump in operating profit last year as sales and operating revenue surged.
In a financial statement published today, the company posted IDR293.38 billion operating profit last year from IDR24.75 billion in the previous year.
Gross profit surged 112% to IDR611.55 billion from IDR287.93 billion.
Sales and operating revenue augmented 126.49% to IDR1.94 trillion from IDR855.95 billion. However, cost of goods revenue also jumped 133.65% to IDR1.33 trillion from IDR568.02 billion.
At the bottom line, the company's net income surged 588.72% to IDR241.88 billion from IDR35.12 billion as it recorded profit from association companies of IDR47.92 billion.
In a morning note published my Mandiri Sekuritas recently, Agung Podomoro has set an ambitious IDR5.5 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.
"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.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

Indonesian stock benchmark today is predicted to be mixed. Stocks to alert for transactions are SMGR, BMRI, and ADRO. Here are recommendations provided by two stock brokerages:

e-Trading Securities:
Jakarta Composite Index (JCI) today may move at the range of 3,458-3,547. Stocks to watch: BBCA, SMGR, and BBRI. The index yesterdat ended at 0.03% lower level or 1 points to 3,516.72 with Rp3.2 trillion value and 4 million lots trading volume, while regional stock markers gained.

Sinarmas Sekuritas:
The JCI technically may move in mixed at the range of 3,500-3.540. Regional stock markets is predicted to provide sentiments to the index. Stocks to watch: BMRI, SMGR, ADRO, and KLBF.

Disclosure: No position at the stock mentioned above.

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CVC returns to Lippo, ties First Media

One of world's largest private equity CVC Capital Partners Asia Pacific III LP, via its subsidiary dubbed Asia Link Holdings Limited, is poided to put Rp2.35 trillion investment in PT First Media Tbk (KBLV) Group.
In an official press statement submitted to Indonesia Stock Exchange today, First Media President Director Hengkie Liwanto said First Media and its subsidiaries have entered into an investment agreement and shareholders agreement with Asia Link on March 21 2011, following a recommendation of First Media's financial advisor Bank of America Merrill Lynch.
Referring to the agreement, CVC will indirectly have a 49% shareholding in PT Link Net, subsidiary of First Media. The controlling shareholder remains First Media with 51% stake.
First Media hopes that the strategic alliance with CVC is expected to fulfill the market demand for network and broadening internet coverage services.
In return, CVC has rights to put its executives at board of directors or board of commissioners in Link Net.
CVC Capital's proposed investment in Link Net is following the previous alliance with Lippo Group, controlled by Riady family, in PT Matahari Department Store Tbk (LPPF).
Mid last year saw an establishment of joint venture company dubbed PT Meadow Indonesia between PT Matahari Putra Prima Tbk (MPPA) and CVC Capital with 20% and 80% shareholdings respectively. Meadow Indonesia is controlling shareholder in Matahari Department Store.

Disclosure: No position at the stock mentioned above.

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Semen Gresik FY10 revenue falls 0.35%

Indonesia's largest cement maker PT Semen Gresik Tbk (SMGR) posted a slight drop in revenue last year of 0.35%, while net income slightly increased 9.01%.

In an official publication of 2010's financial statement today, Semen Gresik posted IDR14.34 trillion revenue in 2010 from IDR14.39 trillion in the previous year. Cost of goods revenue abated 1.05% to IDR7.53 trillion from IDR7.61 trillion.

As a result, the company was able to post a slight increase in gross profit of 0.59% to IDR6.81 trillion from IDR6.77 trillion.

Semen Gresik, majority owned by Indonesian government, draged down its operating expenses of 4.53% to IDR2.32 trillion from IDR2.43 trillion, enabling the company to boost operating profit to IDR4.49 trillion from IDR4.34 trillion.

In return, operating margin augmented to 31.31% from 23.14%. At the bottom line, it posted a 9.01% increase to IDR3.63 trillion from IDR3.33 trillion. 

Disclosure: No position at the stock mentioned above.

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Chandra Asri operating profit drops 40%

The producer of ethylene, propylene, and polypropylene, PT Chandra Asri Petrochemical Tbk (TPIA) booked a 40.64% decline in operating income due to the increase in cost of revenues.
In the company’s financial report published today, Chandra Asri, a petrochemical company which is controlled by a businessman Prajogo Pangestu through PT Barito Pacific (BRPT), recorded Rp464.82 billion operating income last year compared to Rp782.99 in 2009.
Gross income of the company in 2010 also declined by 35.25% to Rp608.93 billion compared to Rp904.44 billion in 2009.
Meanwhile, during 2010, the net revenue of Chandra Asri grew by 9.07% to be Rp5.18 trillion compared with Rp4.74 trillion.
However, Chandra Asri’s cost of revenue jumped 20.58% to reach Rp4.57 trillion compared with the realization in 2009 which was only Rp3.79 trillion.
As the decline in operating income, the net income of Chandra Asri decreased by 27.87% to Rp248.29 billion or Rp478 per share compared to Rp482.88 billion or Rp663 per share.
Chandra Asri Petrochemical is a merger company between PT Tri Polyta Indonesia and PT Chandra Asri Petrochemical that happened last year.

Disclosure: No position at the stock mentioned above.  

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Mayapada Hospital IPO at Rp115-Rp130

PT Sejahteraraya Anugrahjaya Tbk, the management of Mayapada Hospital, sets stock price in the range of Rp115-Rp130 per unit for its initial public offering, with nominal value of Rp100 per unit.
Given the price range, Sejahteraraya will generate Rp90 billion to Rp100 billion from releasing 750 million shares in the IPO, equal to 13.5% of the company total shares. The company will start trading on April 11, 2011.
Independent Director Mayapada Hospital Sugiman Chandra Rahardja revealed that the company will use the proceeds of IPO to build an 11-story hospital on 40,000-square meter land with capacity of 300 beds in Lebak Bulus, South Jakarta.
“The new hospital will operate under the management of Mayapada’s subsidiary, PT Nirmala Kencana Mas. The piling has been completed, and it is expected that the construction finishes by the end of 2013 and in 2013 it can start operating,” he said in a public expose at Auditorium Mayapada Hospital, Tangerang yesterday.

Disclosure: No position at the stock mentioned above.  

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Matahari Department revenue up 560%

One of Indonesia's largest retailer PT Matahari Department Store Tbk (LPPF), once namely PT Pacific Utama Tbk, recorded 560.66% net revenue jump last year after being injected by the asset of Matahari Department Store.
In the 2010’s financial statement being published today, it was stated that Matahari’s revenue reached Rp4.09 trillion compared to Rp619.37 billion in 2009.
As a result, the company’s gross profit soared by 587.41% to Rp1.63 trillion compared to Rp363.06 billion. Its operating income also surged by 5,931.15% to Rp1.09 trillion compared to Rp18.75 billion of operating loss.
Last year, Matahari recorded Rp624.54 billion of net income or Rp214 per share. It soared by 3,519.92% compared to Rp18.31 billion of operating loss or Rp12 per share.
PT Multipolar Tbk (MPPL) belonging to Lippo Group or Riady’s controlling PT Matahari Putra Prima Tbk (MPPA) shifted the asset of Matahari Department Store to LPPF. Lippo Group partners with an investment management company, CVC Capital Partners to further develop the fashion retail company by establishing a joint venture company, namely Meadow Indonesia.
Nearly 80% shares of Meadow Indonesia is controlled by CVC while the remaining is managed by Matahari Putra Prima. Meadow also controls the shares of Matahari Department Store.

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Indonesian stock index today is predicted to have an opportunity to gain. Stocks to watch: TLKM, INCO, and PGAS. Here are fully recommendations provided by several brokerages as quoted by Bisnis.com today:

Reliance Securities:
Jakarta Composite Index (JCI) is technically to further strengthen today. The JCI is predicted to move at the range of 3,500 as the support level, while the first level of resistance is at 3,530, and the second level at 3,570. Stocks to watch: ASII, BNLI, and TLKM.

e-Trading Securities:
The JCI is predicted to move at the range of 3,469-3,553. Stocks to watch: PGAS, BISI, and INCO. The index technically may continue its strength to rise. The JCI was closed higher 0.71% or 24 points to 3,518.85 with transaction value at IDR3.3 trillion and volume at 6 million lots.

Sinarmas Sekuritas:
The index is estimated to further increase and move at the range of 3,501-3,532 today. Stocks to watch: PGAS, INDF, INCO, and SMCB. The global stock movement will provide sentiments to the index. The market is still concerning on nulear crisis in Jepang and Libia military movement. 

Disclosure: No position at the stock mentioned above.

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Spinnaker sells Agri Resources to UNSP

PT Bakrie Sumatera Plantations Tbk (UNSP), crude palm oil and rubber producer, enlarges the ownership in its subsidiary, i.e. Agri International Resources Pte Ltd.
In Bakrie Plantations’ financial report recently submitted to Indonesia Stock Exchange mentioned that the company has purchased 75 shares from Agri Resources worth US$17.86 million by purchasing the shares three times from Spinnaker Glonal Emerging Markets Fund Limited in January to March 2011.
On January 24, Bakrie Plantations purchased 17 shares, 18 shares, and 40 shares of Agri Resources on February 8 and March 1 respectively.
The company is currently controlling 780 shares in Agri Resources or equivalent with 85.34% shares.
In mid-March this year, Spinnaker as one of investment companies together with Lim Asia Multi-Strategy Fund Inc, Highview Point Master Fund Ltd and Millenium Global High Yield Fund Limited participated US$77.34 million equity-linked notes issued by Bakrie Plantations.
Bakrie Plantations used the proceeds to enlarge its shares in Agri Resources, a Singapore-based company which was established in 1997. Currently, Bakrie Plantations’ ownership increases to 58.86% from 36.54%.
Meanwhile, the subsidiary of Bakrie Plantations namely PT Grahadura Leidong Prima also extends the loan tenor of US$15 million toward Raiffeisen Bank International AG to August 12, 2011.
Bakrie Plantations is controlled by Bakrie family.
Grahadura also gained an increase of loan limits up to US$20 million.
At the end of 2010, Bakrie Plantations posted 218.71% net income due to the increase of net sales and income from the write-off of debt interest. The company’s net income reached Rp805.63 billion in 2010 compared to Rp252.78 billion in 2009.
The income from interest write-off reached Rp525.98 billion. Bakrie Plantations’ operating income soared 80.72% to Rp479.32 billion from Rp847.97 billion.
The company’s net sales increased by 29.20% to Rp3 trillion from Rp2,33 trillion. The net sales biggest contributor was palm oil and derivates as much as Rp2.69 trillion and also from rubber with Rp979.75 billion.

Disclosure: No position at the stock mentioned above.

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