Bank Mandiri 1Q net profit increases 89%

The state-controlled lender PT Bank Mandiri Tbk (BMRI) posted a 89% jump in net profit for the first quarter of this year. 

Bank Mandiri President Director Zulkifli Zaini said the bank booked Rp3.78 trillion in 1Q 2011 from Rp2 trillion in 1Q 2010. Net interest margin slightly increased 7.13% to Rp4.96 trillion from Rp4.63 trillion. 

Bank Mandiri's fee-based income soared 145.6% to Rp3.68 trillion from Rp1.50 trillion. Operating profit increased 52.8% to Rp4.13 trillion from Rp2.70 trillion.

Total loans grew 24.7% to Rp251.79 trillion from Rp201.94 trillion, while total assets increased 16.71% to Rp251.79 trillion from Rp201.94 trillion. 

Disclosure: No position at the stock mentioned above. 

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Indosat posts 63% increase in net profit

Indonesia's second largest cellular operator PT Indosat Tbk (ISAT) today reported a 63.3% increase in net profit for the first quarter of this year on higher cellular revenue, lower marketing expenses, forex gain increase.

Indosat, which is currently controlled by Qatar Telecom, posted Rp453.9 billion net profit in 1Q 2011 from Rp278 billion in 1Q 2010.

However, the operator's operating profit fell 10.6% to Rp666.8 billion from Rp746 billion as operating expenses increased 5.6%, mostly driven by higher expenses of employees.

Operating expenses increased 5.6% to Rp4.21 trillion from Rp3.99 trillion. Indosat booked Rp4.88 trillion operating revenue, a 3% growth from Rp4.73 trillion with the only contributor coming from cellular business which slightly made 6.2% increase as Indosat recorded 21.2% growth in subscribers.

Revenue from multimedia, data communication, and internet slightly decreased 7.8% as tight competition spurring tarrif war and fixed line fell 10.2%, contributed by lower revenue from international direct dialing.

Cellular performanceIndosat recorded 45.7 million cellular subscribers in 1Q 2011, a 21.2% increase from 35.7 million subscribers. Average revenue per user of Indosat's GSM products lowered 14.8% to Rp28,800, abating positive impact of higher subscribers.  Indosat manages 18,368 base transceiver stations at end of March 2011.

Disclosure: No position at the stock mentioned above.

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Siam Cement buys Keramika, Kokoh Inti

Ceramic products PT Keramika Indonesia Asosiasi Tbk (KIAS) and PT Kokoh Inti Arebama Tbk (KOIN) skyrocketed 20.69% and 11.18% after Thai leading cement maker Siam Cement Pcl announced takeovers of majority shareholdings in both companies.

Keramika Asosiasi jumped to Rp105 per share and Kokoh Arebama surged to Rp189 per share. 

Siam Cement Pcl, via its subsidiary SCG Building Materials Company Limited, has proposed a takeover deal of 93.47% shareholding in ceramic products PT Keramika Indonesia Asosiasi Tbk (KIAS).  

In tandem, SCG Distribution Company Limited, another subsidiary of Siam Cement, has proposed a majority stake in building material distributor PT Kokoh Inti Arebama Tbk (KOIN).

SCG Building Materials Company Limited has entered into shares sale and purchase agreements regarding to takeover of 93.47% stake or 7.88 million shares in Keramika Asosiasi on April 27 2011.

"The acquisition will boost SCG production capacity to 149 million meter cubic, help steadying its position the largest ceramic products maker," said Vice Presiden Finance and Investmen & CEO The Siam Cement, Chovalit Ekabut, today in a statement file to Thailand Stock Exchange.

Keramika Asosiasi is Indonesia's fifth largest ceramic products maker with 10% market share with 3 production facilities located in West Java and East Java.

Keramika has production capacity of 27 million meters cubic of floor and wall ceramics and 23 million sheets of roof and assessoris ceramics.  

"SCG aims to jack up Keramika Asosiasi capacity to 31 million meters cubic from current position of 4 million meters cubic."

SCG Distribution has entered into shares sale and purchase agreement to buy 70.35% stake or 690 million shares of Kokoh Arebama on April 28 2011.

Disclosure: No position at the stock mentioned above.  

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Krakatau Steel suffers 70% drop in profit

Indonesia's largest steel maker PT Krakatau Steel Tbk (KRAS) today reported a 69.69% plunge in consolidated net profit for the first quarter of this year because of higher cost of goods sold (COGS).
Krakatau posted Rp141.89 billion net profit or Rp9 per share in 1Q 2010 from Rp468.06 billion or Rp30 per share in 1Q 2010.
The company also suffered a 52.39% drop in gross profit to Rp422.26 billion from Rp886.92 billion as a result of higher cost of goods sold than net revenue growth.
Krakatau Steel's COGS was Rp3.81 trillion, a 7.93% increase from Rp3.53 trillion, while its net revenue increased 3.85% to Rp4.24 trillion from Rp4.41 trillion. Majority stake in Krakatau Steel is still controlled by the state. 

Disclosure: No position at the stock mentioned above.

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Bumi 1Q coal sales estimated US$1.22b

Indonesia's coal miners Berau Coal Energy and Bumi Resources are calculated to post US$304.63 million and US$1.22 billion in coal sales in the first quarter of this year.

Berau Coal, Kaltim Prima Coal (KPC), and Arutmin Indonesia today reported a 9% increase, slight decreased of 9.2% and 0.5% respectively in coal production to 4.1 million tons, 8.2 million tons, and 6 million tons respectively in the first quarter of this year, a document provided by Bumi Plc revealed today.

Berau, KPC, and Arutmin posted average selling prices (ASP) of US$74.3 per ton, US$92.8 million per ton, and US$77.1 per ton in 1Q 2011. Referring to the ASP, Berau is calculated to book US$304.63 million in coal sales and US$1.22 billion for KPC and Arutmin.  

PT Berau Coal Energy Tbk, that is 75% owned by London-listed Bumi Plc, previously Vallar Plc, recorded 4.1 million tons coal production in 1Q 2011 from 3.76 million tons. Overburden removal increased 33.3% in 1Q 2011. Berau sales increased 53%.

PT Kaltim Prima Coal, that is 65% owned by PT Bumi Resources Tbk (BUMI), produced 8.2 million tons from 9.03 million tons. Overburden removal was 1% higher in 1Q 2011. 

Bumi is 25% owned by Bumi Plc. PT Arutmin Indonesia, which is 70% owned by Bumi, produced 6 million tons from 6.03 million tons. Arutmin's overburden removal rose 37%. 

Outlook for 2011
Berau Coal is expecting to produce 20.4 million tons in 2011 compared with 17.4 million tons in 2010. Referring to 1Q production figure, Berau reached 20.09% of the target this year. 

KPC and Arutmin are expecting to produce 66 million tons this year from 60.4 million tons last year. At end of 1Q 2011, KPC and Arutmin reached 21.51% of the full year's target. 

Disclosure: No position at the stock mentioned above.

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Lonsum 1Q net profit surges 134.8%

Palm oil producer PT PP London Sumatra Indonesia Tbk (Lonsum) today announced a 134.8% jump in net profit in the first quarter of this year on the back of improvement in sales volume.

Lonsum booked Rp394.2 billion net profit or Rp58 per share in 1Q 2011 from Rp167.9 billion or Rp25 per share in 1Q 2010, sending its net margin to 33.5% from 24.7%. 

Profit from operation rose 121.6% to Rp528 billion from Rp238.2 billion, reflecting a steep margin to 44.9% from 35%.

Gross profit increased 92.4% to Rp624.5 billion from Rp324.6 billion. Lonsum booked Rp1.18 trillion sales, a 72.9% rise from Rp680.2 billion as a result of higher sales volume of palm products and SumBio oil palm seeds as well as higher prices of rubber and palm products.

CPO sales volume grew 38.2% to 95,720 tons from 69,265 tons. However, rubber sales volume dropped 29% to 3,440 tons from 4,843 tons and oil palm seeds increased 68.5% to 5.80 million seeds from 3.4 million seeds. 

Output of Lonsum's fresh fruit bunch recorded 383,012 tons from 314,180 tons in total. 

At end of March 2011, the company's total planted area for nucleus was 99,779 hectares, of which 79% planted with palm oil, 18% rubber, and the balance coming from other crops. 

Palm oil planted area reached 78,452 hectares, rubber of 17,603 hectares, and others of 3,724 hectares. 

Immature area of palm oil planted area reached 9,312 hectares and 69,140 hectares of mature area.

Lonsum is now controlled by Salim Group, which is steered by Indonesian tycoon Anthony Salim via its parent First Pacific Company.  PT Salim Ivomas Pratama controlled 32.21% stake in Lonsum.  
Indofood Sukses Makmur is a controlling shareholder in Indofood Agri Resources Limited with 68.95% shareholding interest. Indofood Sukses Makmur has also a 8.38% direct shareholding in Salim Ivomas Pratama. In turn, IndoAgri controls 90% shareholding in Salim Ivomas Pratama.  

Disclosure: No position at the stock mentioned above.

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Indofood CBP 1Q net profit up 17.27%

Consumer branded products company PT Indofood CBP Sukses Makmur Tbk (ICBP) today reported a 17.27% increase in net profit in the first 3 months of this year on slightly growth in net sales.

Indofood CBP booked Rp466.44 billion net profit or Rp74 per share in 1Q 2011 from Rp397.75 billion or Rp79 per share in 1Q 2010.

Operating profit slightly grew 5.63% to Rp614.84 billion from Rp582.06 billion. Net sales lifted up 8.53% to Rp4.71 trillion from Rp4.34 trillion.

Disclosure: No position at the stock mentioned above.

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Indofood 1Q net profit increases 45%

Indonesia's largest instant noodle maker PT Indofood Sukses Makmur Tbk (INDF) reported a 45.84% increase in net profit in 1Q 2011 as consolidated net sales grew 15.6%.

Indofood posted Rp1.23 trillion net profit in 1Q 2011 from Rp842.72 billion in 1Q 2010. Operating profit recorded Rp1.77 trillion, increased 32.19% from Rp1.34 trillion.

Indofood's gross profit was Rp3.32 trillion, a 18.9% increase from Rp2.79 trillion. Net sales increased 15.6% to Rp10.76 trillion from Rp9.31 trillion.

Indofood's business, branded consumer products (CBP), wheat flour mills Bogasari, agribusiness, and distribution, improved their performances.

CBP business booked a total sales increase of 8.3%, Bogasari of 15.9%, agribusiness of 37.5%, and distribution of 8%.   

Disclosure: No position at the stock mentioned above.

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Bukit Asam posts 108% jump in profit

The state-controlled coal miner PT Bukit Asam Tbk (PTBA) reported a 108.07% jump in net profit during the first 3 months in 2011 on the back of revenue growth.

The company's net profit reached Rp760.92 billion or Rp330 per share in 1Q 2011 compared to Rp365.70 billion or Rp162 per share in 1Q 2010.

Bukit Asam recorded Rp944.64 billion in operating profit, surging 123% from Rp422.92 billion. Gross profit increased 75.94% to Rp1.24 trillion from Rp706.75 billion.

The company posted Rp2.32 trillion in sales, a 30% from Rp1.78 trillion because of higher selling price of coal both in the local and export markets.

Bukit Asam's average selling price (ASP) increased 35% to Rp751,457 per ton compared to a year earlier.

Coal outputThe miner produced a 16% increase in coal production to 3 million tons, while coal sales decreased 4% to 3.1 million tons as sales volume fell. 

The company expects to increase coal sales volume of 23% to 16.8 million tons in 2011. These expectation is in line with the plan of PT KAI, railway transportation operator, to increase its capacity to 13.6 million tons this year. Bukit Asam also plans to boost the output at IPC mine in East Kalimantan.
  

Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Jakarta Composite Index, the index which measures all stocks at Indonesia Stock Exchange (IDX), today is estimated to reverse after it hit overbought area. Several stocks such as BBNI, UNTR, and INCO, shall be considered. Here are stock recommendations as quoted by Bisnis Indonesia daily today:

Reliance Securities:

The JCI technically reached an overbought level. The index may reverse and move at the range of 3,770-3,815. Stocks to watch: BBNI and UNTR with sell recommendation.

Sinarmas Sekuritas:

The index technically may move in a mixed level with uptrend possibility. The quarterly financial report released by companies is showing positive trend. Stocks to watch: BBCA, INCO, ASII, and UNVR.

 
Disclosure: No position at the stock mentioned above.

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BW Plantation 1Q profit rises 68.15%

PT BW Plantation Tbk (BWPT), an Indonesian oil palm plantation company that is controlled by Widodo family, posted a 68.15% increase in net profit to Rp54.11 billion in first quarter 2011 compared to Rp32.20 billion in same period last year.
The company’s financial statement as of March 31, 2011, shows the increased profit was contributed by revenue that reached 55.8% higher to Rp172.54 billion compared to Rp110.76 billion at same period last year.
The company’s gross profit significantly increased 86.6% to Rp124.34 billion in first quarter 2011 compared to same period in 2010 at Rp66.64 billion.

Dividend
The company will distribute dividend at Rp9 per share for book year of 2010 totaled Rp36.54 billion or 10% of the total net profit in 2010 at Rp243.6 billion.
The dividend payout ratio has been approved by the shareholders in the annual general meeting of shareholders held today.
About Rp203.3 billion will be put as retained earnings while the remaining of Rp3.8 billion for reserves, BW Plantation Corporate Secretary Kelik irwantono said.
“The payment time is still being arranged but clearly it will be conducted this year,” he said after the annual meeting. 

Disclosure: No position at the stock mentioned above.
 
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Harum Energy 1Q profit surges 142%

Coal miner PT Harum Energy Tbk (HRUM), which is owned by Indonesian tycoon Kiki Barki, reported a 142.43% surge in net profit for the period of March 2011 as a result of higher revenue.

Harum posted Rp377.34 billion net profit or Rp114.46 per share in 1Q 2011 from Rp155.65 billion or Rp53.63 per share.

Operating profit soared 206.94% to Rp502.31 billion from Rp163.65 billion, while gross profit rose 156.08% to Rp628.90 billion from Rp245.59 billion.

Revenue was Rp1.51 trillion, reflecting a 69.26% increase from Rp894.66 billion. "1Q11 net profit accounted for 19.0% ours and 20.2% consensus relatively inline with expectation, considering the seasonality in which 1Q usually account for 16%-20% of full year result. Last year 1Q10 net profit accounted for 16.3% FY10 net profit," said a note distributed by Mandiri Sekuritas. 

Margins jump 

Gross margin and operating margin increased significantly to 41.5% and 33.2% respectively, mainly driven by higher selling price at US$88.4 (+35.8% yoy, +7.5% qoq) near to our FY11F ASP of US$90.5/ton. 

HRUM booked attractive ASP compare to peers, suggesting better pricing strategy and higher exposure to spot market.

Combined 1Q11 coal production from its unit PT Mahakam Sumber Jaya (MSJ) (1.6 million tons) and Santan Batubara (0.4 million tons) reached 2 million tons (+14.9.% yoy, - 7.8% qoq), which represent 19% FY11 target. 

This is inline considering seasonality and Tambang Batubara Harum mine that is expected to commence production of 0.5 million tons in 4Q11. "Currently we have buy rating on the stock. HRUM is traded at 13.2x adjusted PER11F."

Disclosure: No position at the stock mentioned above.

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Astra International 1Q net income up 41%

Indonesia's largest auto maker PT Astra International Tbk (ASII) reports a 41.62% increase in net profit in the first quarter of this year as net revenue rose.

Astra posted Rp5.07 trillion in net profit or Rp1,063 per share in 1Q 2011 from Rp3.58 trillion or Rp744 per share. Operating profit increased 34% to Rp4.34 trillion from Rp3.25 trillion.

Astra booked Rp38.69 trillion net revenue, reflecting a 30% growth compared to Rp29.69 trillion. "Favourable economic situation, stable inflation rate, and higher commodities prices underpinned Astra Group' performance," said Astra President Director Prijono Sugiarto in a statement obtained today.

Contribution of otomotive division to Astra's consolidated net income rose 28% to Rp2.1 trillion.  Astra Group sold more cars with 27% growth in 1Q 2010 to 125,000 units, counting 56% national market share, a slight declined from 57% a year ago.

The financial division contributed Rp797 billion, a 25% increase, to Astra's net income. Heavy equipment and mining business contributed Rp785 billion, representing a 43% growth. Agribusiness made net income of Rp521 billion to the Astra Group.

Infrastructure and logistic and information technologies contributed Rp221 billion and Rp17 billion.

Astra International is a 50.11% owned by Jardine Cycle & Carriage Ltd, President Commissioner Budi Setiadharma holds 0.02%, Commissioner Anthony John Liddell  Nightingale owns 0.02%, and public holders own 49.85%. 
Disclosure: No position at the stock mentioned above.

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Borneo 1Q net income jumps 4,027%

Indonesia's coking coal miner PT Borneo Lumbung Energi Tbk (BORN) today reported a 4,027.03% jump in net income at end of March this year as a result of operating revenue increase.

Borneo posted Rp425.91 billion net income or Rp24 per share in 1Q 2011 from Rp10.32 billion or Rp8 per share in 1Q 2010, said Borneo in a financial statement filed to Indonesia Stock Exchange today. 

Operating profit rose 204.16% to Rp533.91 billion from Rp175.45 billion. The company's gross profit surged 171.62% to Rp691.39 billion from Rp254.54 billion.
Operating revenue soared 123.77% to Rp1.20 trillion from Rp537.29 billion. Borneo obtained operating revenue from coal sales to stellar global commodities agency Glencore International AG.
The largest contributor for cost of goods revenue was overburden and coal processing of Rp304.37 billion and royalty of Rp149.51 billion.

PT Republik Energi & Metal controls 75% shareholding in Borneo Energi, PT Muara Kencana Abadi owns 0.0001%, and public shareholders hold 24.99%.

Republik Energi is owned by Indonesian businessmen Samin Tan and Suryadinata Sumantri, former partner at accounting giant Deloitte Touche Tohmatsu (DTT).

Disclosure: No position at the stock mentioned above.  

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Trikomsel 1Q net income jumps 95.8%

Cellular products distributor PT Trikomsel Tbk (TRIO) reported a 95.8% jump in net income in the first quarter of this year on the back of higher net revenue.
Trikomsel booked Rp56.05 billion net income or Rp13 per share in 1Q 2011 from Rp28.62 billion or Rp6 per share..
"The net income growth was because net revenue increase as well as higher gross margin," Trikomsel Director Juliana Samudro said in a press statement today.
Operating profit increased  67.2% to Rp107.15 billion from Rp66.19 billion. Trikomsel's EBITDA rose 67.6% to Rp106.24 billion from Rp63.02 billion. Gross profit grew to Rp184.73 billion from Rp142.04 billion. Net revenue increase 14.84% to Rp1.47 trillion from Rp1.28 trillion.
The largest contributor to net revenue was sales of mobile phone of 83.8%, operators' product of 13.6%, and mobile content of 2.6%.
PT Delta Sarana Pradana controls 62.31% shareholding in Trikomsel, Canopys Finance Limited owns 25% stake, Kindarto Kohar holds 1.35%,  Sugiono Wiyono Sugialam owns 1.29%, and public holders 10.05%.

Disclosure: No position at the stock mentioned above.  

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Duta Graha pulls out from House project

Publicly listed constructing company PT Duta Graha Indah Tbk officially pulled out from a Rp1.13 trillion construction project of new the House’s building, even though it had passed prequalification stage including other 4 companies.
“Yesterday, the resignation letter of Duta Graha has been addressed to committee of service and goods procurement for the House’s new building construction,” The House’s Bureau head of Building and Installation Maintenance Sumirat told to reporters, today.
Today, Duta Graha is alleged to bribe case on construction of athletes’ homestead for SEA games in Palembang, South Sumatra.
The measure of Duta Graha to resign from the project is supposed to avoid a polemic that hasn’t been approved yet as well as to create conducive atmosphere for related parties.
Therefore, there are 4 companies that had passed the selection and will go to service and goods process, namely KSO Adhi-Wika, PT PP (Persero), PT Hutama Karya, and PT Waskita Karya.

Disclosure: No position at the stock mentioned above.

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Cipaganti to pick IPO underwriters

PT Cipaganti Global Corporindo is holding a beauty contest to pick potential underwriters helping the company to arrange Rp1 trillion initial public offering of its unit PT Cipaganti Citra Graha in the second half of this year.

The securities companies under consideration are PT Trimegah Sekuritas, PT Ciptadana Securities and state-owned companies Mandiri Sekuritas and Danareksa.

Cipaganti Global President Director Andianto Setiabudi said the plan emerged last year and it was previously expected to happen enter the market in the first half this year.
Incomplete document and market development has delayed the plan until the second semester of the year.
“We have planned to make IPO of Cipaganti Citra Graha in the second half of 2011. It was delayed from the planned schedule in the first half of 2011,” he said today.
Proceeds from the IPO will strengthen the capital of the subsidiary running in transportation and heavy equipment. Andi said that the total share to be offered will be 30% to 40%. The amount keep Cipaganti Global the controlling shareholder of the unit.
“Previously, the holding would go public, but we decided to make IPO for Cipaganti Citra Graha. Then Cipaganti Inti Resources will follow in the first half of 2012,” he revealed.
Cipaganti is ready to conduct IPO bevaus the company is in healthy condition and will keep growing, according to Advisor Financial Cipaganti Group Iwan Purnawan. Given the good performance, the market will welcome the IPO.
“We are currently having a beauty contest of underwriters. There are some targets. But one securities company is too risky, so there will be a consortium,” he affirmed.
Cipaganti Citra Graha initially ran the business of car renting and travel agency. It developed into heavy equipment renting, which based in Borneo. The subsidiary then expanded the network to Java and Sumatera.

Cipaganti Citra Graha owns 500 units of heavy equipment and targets to increase to 1,000 units by 2011, in line with prospective mining sector. Of the target, 65% will come from its business partner Komatsu.

Disclosure: No position at the stock mentioned above.

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Garuda estimates 10% growth revenue

Indonesian flag carrier PT Garuda Indonesia Tbk (GIAA) estimates to post a 10% growth in revenue in the first quarter of this year as the airlines booked passengers more than 10%.  

"When passengers volume increase, our revenue will augment," said Garuda President Director Emirsyah Satar as reported by Kontan daily today.

However, he has yet mentioned the first quarter's revenue and target throughout this year. In 2010, Garuda posted Rp19.53 trillion revenue, a 9.4% increase from a year earlier.

Disclosure: No position at the stock mentioned above.

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Harum eyes Rp2.58 trio coal takeover

PT Harum Energy Tbk (HRUM), that is controlled by Indonesian tycoon Kiki Barki, is poised to spend Rp2.58 trillion for takeover of coal mining companies

"We have to realize acquisition of coal companies this year," said Harum President Director Ray Antonio Gunara as quoted by Kontan daily today.

According to him, Harum is focusing on acquisition of coal mining with 5,000 kcalories. "We aim to buy coal mining in East Kalimantan as the company has rolled out infrastructure for coal mining in these area."

To support the acquisition, the company has Rp1.03 trillion of internally generated cash flow and Rp1.56 trillion loan facility obtained from Bank DBS Ltd Singapore. 

Harum, with coal reserves of 112.6 million tons, targets 10.4 million tons output this year, an increase from 7.4 million tons last year. The company owns three subsidiaries dubbed PT Santan Batubara, a joint venture with subsidiary of PT Indika Energy Tbk, PT Mahakam Sumber Jaya, and PT Tambang Batubara Harum.

"Production from Tambang Batubara Harum may reach 500,000 tons," Ray said.

.

Disclosure: No position at the stock mentioned above.

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Indo US$2.5 bio bond set at 5.1%

Indonesian government has set a US$2.5 billion global bond at 5.1%, a source close to the deal told Insider Stories.

Standard & Poor's Ratings Services yesterday assigned its BB+ senior unsecured long-term foreign currency debt rating to a proposed global unsecured bond issuance by the Republic of Indonesia (foreign currency BB+/Positive/B; local currency BB+/Positive/B; ASEAN scale axBBB+/axA-2).
The bond is expected to have a maturity of 10 years and will constitute part of the country's US$9 billion global medium-term notes program.
The ratings on Indonesia are supported by continuing improvements in the government balance sheet and external liquidity, against a backdrop of resilient economic performance and cautious fiscal management. 

The ratings remain constrained by Indonesia's (1) low per capita income; (2) structural and institutional impediments to higher economic growth; (3) relatively high inflation; and (4) vulnerability, albeit reduced, to external shocks, in part because of its shallow domestic capital markets.
 

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

The Jakarta stocks will make a rebound today, after climbing by 0.79% to 3,804.93. The earnings report for first quarter of the year will give positive sentiment to the index's movement. Here are stock recommendations provided by Bisnis.com today:

Panin Sekuritas: 

Jakarta Composite Index (JCI) may strengthen between 3,789-3,820 today. The shares for trading recommendation are MAPI, BORN, CTRA, and SMGR. The JCI rebounded today as investors anticipated the issuance of earnings reports and dividend payment.

Reliance Securities: 

The index may potentially appreciate in limited range of 3,770-3,815. It suggests the investors to monitor TLKM and BJBR.

e-Trading Securities: 

The brokerage predicts the index to move between 3,773-3,825 with recommended shares like UNTR, BBRI, and ASII. Technically, the index will go up, Sinarmas Sekuritas said, and is predicted to move in the range of 3,784-3,817 today. It recommends 'buy on shares like TLKM, TINS, PTBA, and BMRI. 

Disclosure: No position at the stock mentioned above.  

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Indika prices US$300 mio bonds at 7%

Integrated energy PT Indika Energy Tbk (INDY) just closed the offer of US$300 million bonds and price it at 7% per annum. The demand is more than 10 folds.

A source close to the deal said in total, Indika, through its wholly owned subsidiary, has issued US$300 million bonds, consisting of US$165 million for exchange offer and US$135 million new bonds.

"Indika has drawn positive response from investor, hence obtained more than 10 folds oversubscribed," the source told Insider Stories.
Indika has appointed four managers to handle the issuance, namely Citi, Goldman Sachs, Standard Chartered Bank, and UBS Securities.

"We have come to bond holders with two options. Settlement or the exchange offer with the new bonds," the source said.

Disclosure: No position at the stock mentioned above.

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United Tractors seals US$155 mio loans

Indonesia's largest coal mining contractor PT Pamapersada Nusantara, a wholly owned by PT United Tractors Tbk (UNTR), secured US$155 million loan facilities from three foreign banks.

The loan, which was signed by Pama and Sumitomo Mitsui Banking Corporation Ltd, Singapore, (SMBC) on April 5 2011, is comprising a term facility of US$45 million and revolving facility of US$30 million. 

However, Pamapersada has yet mentioned the facility usage. Pama also obtained loan facility of US$50 million from Mizuho Corporate Bank Ltd, Singapore, on January 12 2011. The facility is consisting US$30 million of term facility and US$20 million revolving facility.

Pama also sealed US$30 million revolving facility from Citibank N.A. on March 21 2011. The term facility will be repayable from 2012 to 2013 of US$5 million per year. 

Disclosure: No position at the stock mentioned above.

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United Tractors 1Q net income up 39.94%

PT United Tractors Tbk (UNTR), Komatsu heavy equipment distributor and coal mining contractor, posted a 39.94% increase in net income at end of March this year on the back of higher net revenue.

The company recorded Rp1.27 trillion net income or Rp390 per share in 1Q 2011 from Rp905.54 billion or Rp273 per share a year earlier. In line with higher net income, operating profit rose 30.77% to Rp1.70 trillion from Rp1.30 trillion.

Gross profit increased 37.65% to Rp2.23 trillion from Rp1.62 trillion. United Tractors's net revenue grew 45.07% to Rp12.65 trillion from Rp8.72 trillion.

The biggest contributor for the company's consolidation revenue was contruction machinery with Rp6.77 trillion, mining contractor with Rp4.48 trillion, and coal mining with Rp1.33 trillion.

PT Astra International Tbk controls 59.50% shareholding in United Tractors and the remaining is owned by public shareholders. 

Disclosure: No position at the stock mentioned above.

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SBI Securities to inject BNI Securities

Indonesia's fourth largest lender by asset PT Bank Negara Indonesia Tbk (BNI) has invited a Japanese securities house dubbed SBI Securities Co Ltd to be a strategic partner in local brokerage PT BNI Securities. The strategic partnership with SBI Securities is aimed to help expanding BNI Securities' business in the future. 

BNI will allow SBI Securities to put a Rp114 billion cash into BNI Securities via rights issue, entitling the Japanese brokerate with 25% shareholding.

BNI President Director Gatot M. Suwondo said the bank will remain a controlling shareholder in BNI Securities, since the Japanese company will own not more than 25% in Indonesia.

“The company will be stay majority in several subsidiaries, including BNI Life, BNI Syariah and BNI Securities. So, it won’t be a problem if we make synergy with SBI Securities as a strategic investor,” he said in a press conference today.

The company chooses SBI Securities for its improved online technology to develop retail business, the area in which BNI Securities will work in the future, as he added.

“BNI Securities yet to get there [retail technology]. So, we need to strengthen. SBI Securities in Japan can control the retail market as number one. We want the same thing in Indonesia,” he explained.

SBI Securities is a subsidiary of SBI Holding Co Ltd, a stellar online trading player in Japan with advanced technology services in many financial services.

Disclosure: No position at the stock mentioned above.

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Kalbe Farma posts 23.3% growth in profit

Indonesia's largest pharmaceutical company PT Kalbe Farma Tbk (KLBF) announced a 23.3% increase in net profit in the first quarter of 2011 because of increase in income before tax and lowered tax expense.

The company posted Rp316 billion net profit in 1Q 2011 from Rp256 billion in 1Q 2010. Earning per share rose 23.2% to Rp34 from Rp27.

"Kalbe has been consisten in implementing its strategies to improve production cost productivity and marketing expense effectiveness," said Kalbe Finance Director Vidjongtius said in a press statement obtained by Insider Stories today. Operating profit increased 7.9% to Rp417 billion from Rp387 billion, sending Kalbe's operating margin stayed at a stable level of 17.7%. Net profit also grew 7.5% to Rp2.35 trillion from Rp2.19 trillion.

Prescription division posted Rp605 billion in sales, contributing a 28.5% to Kalbe's consolidated net sales. Consumer health division booked Rp428 billion in sales, contributed 18.2% to the company's consolidated net sales.

Nutritionals division posted Rp449 billion in sales, counted 22.9% of Kalbe's net sales. Logistic and distribution contributed 30.4% of the company's net sales.

Disclosure: No position at the stock mentioned above.

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BNI posts 22% growth in net income

Indonesia's fourth largest bank by asset PT Bank Negara Indonesia Tbk (BNI) today reported a 22% in net income during the first 3 months of this year on lowered provision.

In a press statement obtained by Bisnis today, BNI posted Rp1.25 trillion net income in 1Q 2011 from Rp1.03 trillion. The bank's provision decreased 4.7% to Rp694 billion from Rp728 billion. BNI's operating income slightly increased 2.4% to Rp4.38 trillion from Rp4.27 trillion.

Net interest income was stagnant at the level of Rp2.89 trillion, while non-interest income increased 7.8% to Rp1.48 trillion from Rp1.38 trillion. BNI's credit chanelling grew 16.6% to Rp138.65 trillion from Rp118.86 trillion.

Disclosure: No position at the stock mentioned above.

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AUTO to pay Rp592/share dividend

Automotive spare parts maker PT Astra Otoparts Tbk (AUTO) today was approved by annual of shareholders general meeting to distribute 40% total dividend or Rp592 per share of its net profit last year.

An investor who attended the meeting said Astra Otoparts has distributed Rp158 per share interim dividend in November last year. The remaining dividend of Rp434 per share will be distributed on June 10 2011.

The company reported a slight decrease in net income of 6.81% in the first quarter of this year (1Q2011) because of higher operating expenses.

The company posted Rp259 billion net income in 1Q 2011 from Rp278 billion in the previous year, a presentation material submitted by Astra Otoparts to Indonesia Stock Exchange revealed today.

However, net revenue grew 20.6% to Rp1.82 trillion from Rp1.51 trillion. The company's assets rose 23% to Rp6.2 trillion from Rp5 trillion as a result of the increase in its current assets of 9.1% to Rp2.6 trillion from Rp2.4 trillion.

Non-current assets increased 35.9% to Rp2.6 tillion from Rp929.6 billion. 

The company is also planning to hold a stock split with 1:5 ratio. The corporate action will be proposed during annual of shareholders general meeting (AGM) scheduled on April 27 2011. 

Disclosure: No position at the stock mentioned above.

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Mitra Adiperkasa 1Q net profit up 45%

Indonesia's leading lifestyle retailer PT Mitra Adiperkasa Tbk (MAPI) today announced a 45% jump in net profit in the first quarter of this year as higher sales and operating profit.

Net profit grew 45% to Rp44 billion from Rp30 billion in the first quarter of last year. Operating profit increased 56% to Rp82 billion from Rp53 billion. Net  revenue after cost of consignment sales increased 21% to Rp1.27 trillion from Rp1.05 trillion. 

"We had a good first quarter. Our results truly demonstrate the power of our brands and our three-fold strategy of focusing on our existing brands, maximizing their potential and targeting at the middle upper income group, said Fetty Kwartati, Corporate Secretary of MAPI, in a press statement today.

At end March 2011, Mitra Adiperkasa had a total of 887 stores in 25 cities throughout Indonesia with total retail footage of 425,721 sqm.

Disclosure: No position at the stock mentioned above.

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Harum to pay Rp244/share dividend

Indonesian coal miner PT Harum Energy Tbk (HRUM) today was agreed by annual of shareholders general meeting to distribute 80% of its net income last year as dividend or Rp244 per share or Rp659 billion.
"It is right Rp244 per share [dividend]," said Harum President Director Ray A. Gunara to Insider Stories today.

Harum posted Rp822.94 billion net income last year from Rp767.47 billion in 2009. 

In a note distributed by Mandiri Sekuritas today, the dividend payout ratio is above the brokerage expectations, using assumption of 40% payout ratio or Rp330 billion cash dividend for FY2010.

"We currently have buy rating on the stock. Harum is traded at 13.1x adjusted PER11F," the note said.

As mentioned in the financial statement, Harum 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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BTEL reviews to buy 4G telco company

CDMA-based cellular operator PT Bakrie Telecom Tbk (BTEL) is considering to acquire a the fourth generation-based (4G) telecommunication company in a bid to expand its business.

"We expect to complete the acquisition in May 2011," said Bakrie Telecom's Corporate Services Director Rakhmat Junaidi as quoted by Kontan daily today.

However, he declined to mention the name of the target company. He clarified that Bakrie Telecom is not looking to buy Internux, winner of WiMax project tender.

Disclosure: No position at the stock mentioned above.

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Jaya Agra to sell 30% stake in IPO

Diversified plantation company PT Jaya Agra Wattie Tbk today officially announced a proposed initial public offering (IPO) of 1.13 billion shares or 30% of its enlarged capital on May 30 2011. Of the IPO size, Jaya Agra will allocate 10% for its management and employees. 

Jaya Agra plans to use 90% of the IPO proceed to underpin planting programs of rubber, palm oil, and the construction of refineries and other facilities in its subsidiaries through shares participation.

The company will utilize the remaining proceed for new land acquisition, working capital, and capital expenditure.

Jaya Agra has mandated PT Mandiri Sekuritas and PT OSK Nusadana Securities Indonesia as the lead underwriters.

The owners

Post the IPO, Jaya Agra is owned by SKA with 21%, ALS with 9.02%, Utama Hadi Surya with 19.99%, Dwijaya Hadi Surya with 19.99%, public shareholders with 27%, and the company's management and employees with 3%.

Hadi Surya (Ong King Kie), born in Surabaya, founded tanker company PT Berlian Laju Tanker Tbk (BLTA) in 1981 with only two vessels namely Anjasmoro and Brotojoyo. Hadi Surya is now acting as President Commissioner of Berlian Tanker since 2000. Hadi Surya also has other businesses such as oil contractor PT Nusa Bumi Bhakti

Currently Jaya Agra manages and control 15 plantations across Java and Kalimantan. With the increasing growth of the company, Jaya Agra Wattie seeks continuously to add to it’s existing land size by obtaining new land areas or by acquiring existing plantation.

Performance & Dividend

Jaya Agra posted Rp413.43 billion revenue, Rp149.39 billion operating profit, and Rp80.11 billion net income last year.

In the last 5 years, revenue has continually grown 21.63%, 12.79%, 80.48%, 22.60%, and 11.83% respectively ((2006-2010).  

The largest revenue contributors for Jaya Agra in 2010 were rubber (Rp247.09 billion with volume of 8.39 million kg), CPO (Rp137.38 billion with volume of 19.76 million kg), palm oil seed (Rp14.53 billion with volume of 4.03 million)

Operating profit also increased 7.86%, 26.31%, 147.98%, -1.20%, and 63.34% respectively. Net income grew 0.42%, 35.31%, 172.51%, 56.29%, and 84.18% respectively.

Jaya Agra has a policy of dividend payout ratio of a maximum 30% per year. The company plans to distribute dividend next year, using some of its net profit in 2011.

Disclosure: No position at the stock mentioned above.

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Telkom & Cambodian mobile takeover

Indonesia's largest telecommunication operator PT Telekomunikasi Indonesia Tbk (Telkom) is targeting 1%-9% growth in revenue this year, a similar with realized growth in revenue of 6.24% last year. 

To reach the target, the operator is poised to roll out base transceiver stations (BTS), extend network, and boost data-based services.

"Telkom is still dependent on voice and data-based services as revenue's main driver," said Telkom President Director Rinaldi Firmansyah. 

The company is allocating Rp15 trillion-Rp17 trillion capital expenditure this year, of which will be financed by

internally generating cash flow and loan facility. Telkom is striving to acquire 51% shareholding in a Cambodian mobile operator this year as well. How is the takeover progress? Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above.  


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Govt. bond offered at 5.125% yield

Standard & Poor's Ratings Services yesterday assigned its BB+ senior unsecured long-term foreign currency debt rating to a proposed global unsecured bond issuance by the Republic of Indonesia (foreign currency BB+/Positive/B; local currency BB+/Positive/B; ASEAN scale axBBB+/axA-2).
The bond is expected to have a maturity of 10 years and will constitute part of the country's US$9 billion global medium-term notes program.
The ratings on Indonesia are supported by continuing improvements in the government balance sheet and external liquidity, against a backdrop of resilient economic performance and cautious fiscal management. The ratings remain constrained by Indonesia's (1) low per capita income; (2) structural and institutional impediments to higher economic growth; (3) relatively high inflation; and (4) vulnerability, albeit reduced, to external shocks, in part because of its shallow domestic capital markets.
A source close to the deal said the bond is expected to offer yield of 5.125%. "Starting from yesterday, the government has offered the bond and expected to close today," the source said. 

Positive outlook

The positive outlook on Indonesia's sovereign ratings reflects the likelihood of an upgrade if inflation is tamed while balance sheet improvements continue, likely in combination with successful implementation of parts of the administrations' fiscal, administrative, and structural reform agenda.
We may raise the sovereign ratings if inflation pressure diminishes, the external debt burden declines, the sovereign's balance sheet improves, or reforms such as subsidy rationalization suggest that fiscal and external vulnerabilities are further reduced. Conversely, a stalling of reforms or the absence of timely and adequate policy responses to renewed fiscal or external pressures would result in the ratings stabilizing or weakening.

Disclosure: No position at the stock mentioned above.

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Stock recommendations today

The index is to move mixed according to the global market dynamic as investors will still anticipate teh decisions taken US Federal Reserves on interest rates and stimulus package. Here are stock recommendations provided by Bisnis.com today:

Reliance Securities: 
Jakarta Composite Index (JCI) may technically fall after it was closed under MA3 and by considering RSI indicator showing that JCI enters weakening momentum. It will move between 3,740 – 3,780 with recomended shares to sell like MAPI, ASGR, and UNTR.

eTrading Securities: 
The index is predicted index to move between 3,733 – 3,802 with shares to buy including AALI, PTBA, and JSMR.

Panin Sekuritas: 
The earnings reports from listed companies in first quarter to be catalyst for the market in newxtfew trading days. The support-resistance level today is between 3,742-3,789 and recommended shares are INDF, AKRA, SMGR.

Sinarmas Sekuritas: 
The JCI may technically weaken to the range of 3,751-3,795. metalprice which tends to fall in first three months this year and anticipation against earnings reports will be underlying sentiment for the index. The recommended shares are PGAS, BNGA, BLTA, and AALI.

Disclosure: No position at the stock mentioned above.  

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Japfa sells So Good for US$100 mio

PT Japfa Comfeed Indonesia Tbk (JPFA) is considering to dispose PT So Good Food, a maker of sausage under brand name Sozzis and So Nice for consideration price of US$100 million.
So Good will be sold to Jalfa's sister company Jupiter Foods Pte Ltd and Annona Pte Ltd, a prospectus revealed.
Both buyers are controlled by Malvolia Pte Ltd, Japfa's controlling shareholder with 58.32% shareholding.
The shares sale and purchase agreement will put into effect on May 31 2011. 

The takeover price reflects 17x of So Good's price to earning ratio last year. The deal is higher than 2010's value of So Good at US$93.91 million.
Japfa directy owns a 0.08% stake in So Good. However, the company owns 99.92% stake in So Good via PT Ciomas Adisatwa.

Disclosure: No position at the stock mentioned above.  

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Astra Agro bags US$27.33 million

Palm oil producer PT Astra Agro Lestari Tbk (AALI) has obtained a cash payment of US$16 million and bonds certificate of US$11.33 million or US$27.33 million in total from the shares sale of its subsidiary PT Surya Panen Subur.   

The shares sale was agreed on 27 October 2010 after considering that the total planted area did not meet the  economic scale to be managed by the company’s group of business. Surya Panen’s initial investment to acquire the plantation was Rp161 billion, afterward Surya Panen invested additional net investment in total of Rp242,49 billion for its development. 

Astra Agro received bonds certificate from issued by PT Agro Maju Raya. The bonds take into effect on 27 October 2010 and will be matured on the 10th anniversary or on 27 October 2020. The bonds are bearing interest at fixed rate of 3.24% per annum and shall be paid on each anniversary of the Bond. 

The principal amount of the bonds shall be  repaid under installment basis on every interest payment date.

Previously, in June 2010, Astra Agro sold some of its dormant subsidiaries to a third party, considering the area could not be obtained. Total disposal value was Rp61 million and the net asset value was Rp3,76 billion.

Adaro Energy's subsidiaryIn relation to the settlement agreement of overlapping plantation area of certain subsidiaries in 2008, an acceleration of all assets handed-over had been done in December 2010 to PT Alam Tri Abadi, subsidiary of PT Adaro Energy Tbk, which initially should be handed-over in 2012. 

Relating to the acceleration of this hand-over, the subsidiaries received an additional compensation amounting to Rp64.50 billion.

Disclosure: No position at the stock mentioned above.

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Astra Agro1Q net income jumps 140%

Palm oil producer PT Astra Agro Lestari Tbk (AALI), a subsidiary controlled by PT Astra International Tbk (ASII), today reported a shiny first quarterly performance. The company's net income jumped 140.04% in 1Q 2011 as a result of robust growth in net sales.

Astra Agro's net income reached Rp682.23 billion or Rp415.33 per share in 1Q 2011 from Rp284.21 billion or Rp172.71 per share in 1Q 2010.

Operating profit soared 110.41% to Rp918.79 billion from Rp436.67 billion, while gross profit surged 91.69% to Rp1.08 trillion from Rp561.37 billion as well.

Astra Agro booked Rp2.76 trillion in net sales, a 69.32% increase from Rp1.63 trillion. The sales to PT Wilmar Nabati Indonesia reached 22.11% of Astra Agro net sales, while PT Smart Tbk and PT Sari Dumai Sejati contributed 8.30% and 5.09.
Immature area
Astra Agro's total planted area reached 263,608 hectares in 1Q 201 from 264,792 hectares in 1Q 2010

immature area of the company decreased to 43,026 hectares or 16.32% of the total planted area at end of March this year (1Q 2011) from 56,903 hectares or 21.49% of the total planted area a year earlier.
Mature area of Astra Agro increased to 220,582 hectares or 83.67% of the total planted area from 207,889 hectares or 78,51%.

Disclosure: No position at the stock mentioned above.  

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ENRG 1Q turns to Rp14.31 bio profit

Oil and gas producer PT Energi Mega Persada Tbk (ENRG), part of Bakrie Group, turned to net profit of Rp14.31 billion or Rp0.35 erning per share in the firt quarter of this year as the company realized higher selling prices and production rate.

Energi Mega was still in net loss of Rp21.73 billion or Rp0.54 loss per share in the first quarter of last year, a press statement obtained by Insider Stories said today.

EBITDA soared 374% to Rp194 billion from Rp75.20 billion. The company's net sales rose 63.91% to Rp421.56 billion from Rp257.08 billion.

Iman Agustino, Energi Mega CEO, said the company's financial improvement are mostly due to increased pricing and production rate.

"Our Kangean PSC blocks' Pagerungan oil field in East Java and Bentu PSC gas block in Riau, Sumatra, have commenced first productions late in the first quarter of 2011," Agustino said.

Disclosure: No position at the stock mentioned above.

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United Tractors 1Q coal sales up 34.4%

Coal sales volume of PT United Tractors Tbk (UNTR) in the first quarter of this year reached 1 million tons, a 34.4% increase from 744,000 tons a year earlier as its unit PT Tuah Turangga Agung could produce more coal.

In 1Q 2011, coal sales volume of Tuah Turangga with concession in Kapuas, Central Kalimantan, reached 271,000 tons, said United Tractors Corporate Secretary Sara K. Loebis as quoted by Indonesia Finance Today daily.

Coal and production of PT Dasa Eka Jasatama, another subsidiary of UNTR, reached 731,000 tons, a slight decrease of 1.7% from  744,000 tons. "Production of Dasa Eka slightly lowered as heavy rainfall," said Sara.

Disclosure: No position at the stock mentioned above.

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Indo Tambang 1Q sales slightly up 2%

PT Indo Tambangraya Megah Tbk (ITMG) that is controlled by Thai Banpu Plc may post US$416 million in coal sales in the first quarter of this year, a slight increase of 2% from US$407.5 million a year earlier.

"We have yet closed our book. But, coal sales at end of March 2011 has reached 5.2 million tons with average selling price of US$80 per ton," said Indo Tambang Finance Director Edward Manurung as quoted by Investor Daily today.

Coal sales volume in 1Q 2011 fell 14.7% to 5.2 million tons from 6.1 million tons in 1Q 2010. However, average price increased 19.4% to US$80 per ton from US$67 per ton.

Disclosure: No position at the stock mentioned above.  

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Resource Alam considers coal takeover

Indonesian's tenth largest coal miner in term of coal concession, PT Resource Alam Indonesia Tbk (KKGI), is considering to acquire several coalmines in a bid to make exponential growth.
The coal company is eyeing several mines with middle rank coal to acquire in East Borneo, said to Head of Investor Relations Resource Alam Eric Tirtana.
“There are a lot of mines we can acquire because we seek for small scale ones. Finding 3 million ton more coal is relatively easy, we are unlike big players that seek for tens of million ton coal assets,” he said as quoted by Bisnis Indonesia daily.
The company currently manages Rp210.03 billion that can be allocated to support the plan, but there is also possibility to get more funds from loan.

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

Indonesian stock benchmark is estimated to swing today after it abated 0.33% to 3,788.54, spurred by profit taking.
Investor may watch several stocks such as SMCB, BBNI, BUMI, and GGRM. Here are stock recommendation as quoted by Bisnis.com today:

Reliance Securities:
The movement of Jakarta Composite Index (JCI) technically may swing with downtrend possibility. The index may move to a range of 3,780-3,815. Stocks to watchL SMCB, HRUM, and BBNI with sell recommendation.

Panin Sekuritas:
The JCI today may move in consolidation phase at a range of 3,769-3,801. Several stocks to watch INDR, INDF, GGRM, and CPIN. The quarterly result of publicly listed companies will draw attention from investor. Commodities price is forecasted to swing, which is line with tension in Middle East.

e-Trading Securities:
The JCI may move at a range of 3,742-3,813 today. Several stocks could be watched such as ITMG, BUMI, and ANTM. The index yesterday retreated 0.33% or 12 points to the level of 3,788.54 with transaction of 6.5 million lots valuing IDR2.6 trillion. Foreign investor recorded a Rp145 billion net buying.

Sinarmas Sekuritas:
The index today technically may tend to be mixed at a range of 3,774-3,815. The regional markets movement will provide sentiments to the JCI. Stocks to watch: ASRI, INCO, MYOR, and BBNI. 

Disclosure: No position at the stock mentioned above.

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MAPI, pricey takeover for Krispy Kreme

Giant retailer with hundreds of licenses PT Mitra Adiperkasa Tbk (MAPI) last week launched Denim Destination-The Ultimate Denim Heaven, a special concenp store inside Debenhams Department Store, Senayan City.

The launch of Denim Destination is aimed to tap demand for stellar premium brand Denim in the middle-up size consumers.

"Denim Destination is created for Denim lovers. They can find variety of range of Denim products," said Fetty Kwartati, Mitra Adiperkasa Corporate Secretary in a press statement submitted to Indonesia Stock Exchange last week.

At end of February, MAPI operated 870 stores in 25 cities in Indonesia. In department store segment, MAPI is holder of British-based Debenhams. In food and beverage, MAPI is holding licenses of  Burger King, Cold Stone, and Starbucks. But, hey...where is Krispy Kreme doughnuts?

Krispy Kreme doughnuts is a US-based doughnut which penetrated Indonesia's market on August 30 2006. The entrance was initiated by the opening of Krispy Kreme's the first outlet was opened at Pondok Indah Mall 2.  

Under a license agreement agreed on July 20 2006 between Krispy Kreme Doughnut Corporation, North Carolina, US, and PT Premier Doughnuts Indonesia, a sister company of MAPI. Nowadays, Krispy Kreme manages 9 outlets which are in Pondok Indah Mall 2, Senayan City, Plaza Senayan, Grand Indonesia,

Kelapa Gading Mall, Pejaten, Soekarno Hatta airport terminal 1A, 1B, dan 2F.

In Indonesia, Krispy Kreme offers varieties of doughnuts, including the signature Original Glazed doughnut and several others that are iced, glazed, and filled with cream.

Under the license agreement, which is guaranteed by MAPI, Premier Doughnuts shall pay royalty and other fees and should purchase the essential materials from Krispy Kreme or from suppliers approved by Krispy Kreme.

However, on October 6 2010, MAPI and PT Premier Capital Investment, a wholly owned subsidiary, acquired 80,000 shares in Premier Doughnuts Indonesia, Krispy Kreme license holder,  at Rp75 billion from PT Lumbung Nusantara and PT Resource Java. Who are the sellers?

You could not find anything about Lumbung Nusantara and Resource Java via Google search. Who are they?

In a company research published by CLSA on March 29, MAPI generated Rp725 billion operating cashflow last year, but shows only Rp24 billion net increase in cash. The company used the money to invest in fixed assets, acquire Krispy Kreme, and debt repayments,

MAPI acquired Premier Doughnuts at Rp75 billion. The purchase price was set at 10x EBITDA, relatively high, remembering that MAPI only trades at 6x EBITDA. Fair value of net assets acquire is Rp33 billion, while the remaining of Rp42 billion is goodwill.

"We are less keen on Krispy Kreme's pricey acquisition. Though Krispy Kreme has a good brand name in the US, its presence was overshadowed by a local doughnut company Jco when the doughnut craze was first started in 2006," said the report.

JCo currently has near to 100 outlets while Krispy Kreme manages 10 outlets on smaller scale.

"We would expect no impact from Krispy Kreme's takeover to earnings, but will adjust up this year's capex estimates to accomodate management plan to open 10 more Krispy Kreme stories," CLSA said.

2010 Performance

MAPI posted a 22.61% increase in net income to Rp201.07 billion or Rp121 per share last year from Rp163.99 billion or Rp99 per share in the previous year.

Operating income rose 45.94% to Rp449.09 billion from Rp307.72 billion. Operating margin improved to 9.53% from 7.48%.Gross profit increased 15.53% to Rp2.37 trillion from Rp2.06 trillion. Net revenue grew 14.59% to Rp4.71 trillion from Rp4.11 trillion.

At end of 2010, PT Satya Mulia Gema Gemilang controls 58.83% shareholding in MAPI and public shareholders own 51.17% stake.

Satya Mulia Gemilang is also a 24.83% stake holder in PT Polychem Indonesia Tbk (ADMG), a polyester products maker. Polychem is also 28.91% owned by Indonesia's largest tire maker PT Gajah Tunggal Tbk (GJTL). Satya Mulia was 99.99% controlled by PT Mitralestari Adiperkasa and F.X. Boyke Gozali owned 0.01%. Previously, Boyke Gozali was MAPI's Vice President Commissioner.

On last Friday, MAPI gained 2.65% to Rp2,900 per share, reflecting 23.96x price to earning ratio.

Disclosure: No position at the stock mentioned above.

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Samudera Line 1Q turns to profit

Singapore-listed company Samudera Shipping Line Lte today turned to US$152,000 net profit for the period ended March 2011 as revenue increased 23.8%.

Samudera Line, a 65.14%-owned subsidiary of Indonesia-listed PT Samudera Indonesia Tbk (SMDR), posted US$152,000 net profit in 1Q 2011 from US$1.43 million net loss a year earlier. Samudera Line also posted US$370,000 operating profit from US$1.43 million operating loss.

Gross profit surged 136.1% to US$4.31 million from US$1.83 million. Samudera Line's revenue increased 23.8% to US$102.69 million from US$82.93 million.

Samudera Indonesia is 57.98% owned by PT Samudera Indonesia Tangguh, PT Ngrumat Bondo Utomo owns 9.52%, and public shareholders own 32.10% stake. Masli Mulia (president director) holds 0.40% stake in Samudera Indonesia, Director Asmari Herry Prayitno holds 0.0003%, and Commissioner Aloysius Soebagjo Windoe owns 0.06%.

Disclosure: No position at the stock mentioned above.  

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Pelangi Canindo FY10 net income drops

Can maker PT Pelangi Indah Canindo Tbk today reported a slight decrease of 4.74% in net income last year because net revenue lowered 3.43%.
Pelangi Indah, which was established in 1983, posted Rp12.06 billion net income or Rp21.22 per share last year from Rp12.66 billion or Rp22.27 per share a year earlier.
In line with net income decrease, the company's operating profit decreased 2.37% to Rp53.08 billion from Rp54.37 billion.
Gross profit also slightly shrank 8.35% to Rp80.47 billion from Rp87.80 billion. Net revenue retreated 3.43% to Rp586.32 billion from Rp607.17 billion.
Hammond Holdings Limited owns 76.16% shareholding in Pelangi Indah, PT Citrajaya Perkasamulia and PT Saranamulia Mahardhika hold 12.15% and 5.70%, and three individual shareholders namely Tjiptadi, Ko Dandy, and So Helen Susilowati hold 0.04%, 0.03%, and 0.01% respectively, while public holders own 5.91%.

Disclosure: No position at the stock mentioned above.

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Total 1Q eyeing 14.81% growth in profit

Publicly listed construction company PT Total Bangun Persada Tbk (TOTL) is eyeing a 14.81% growth in net profit this year as revenue estimated to increase.
Total Persada has set a higher net profit guideline this year to Rp93 billion from Rp81 billion last year. Total Persada is estimated to reach Rp1.70 trillion revenue in 2011 from Rp1.54 trillion last year. Adding to that, the new contract is estimated to increase to Rp1.80 trillion this year from Rp1.55 trillion.
Total Persada is eyeing Rp4 trillion contracts such as residential, office building, educational building, utility, hospital, and shopping centers.
PT Total Inti Persada owns 56.50 shareholding in Total Bangun Persada, Djadjang Tanuwidjaja owns 8.62%, Pinarto Sutanto owns 1.83%, Komajaya holds 0.73%, and public shareholders own the remaining.

Disclosure: No position at the stock mentioned above.  

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AKR 1Q sales surges 79% to Rp4.35 trio

Indonesia’s leading bulk logistics and distributor of petroleum and basic chemical distributor PT AKR Corporindo Tbk (AKRA) today reported a 2,480% jump in net profit to Rp1.81 trillion in the quarter ended March 31, 2011 from Rp70 billion in the same period last year. 

Net profit without extraordinary gains rose 82% to Rp128 billion during from Rp70 billion, a press statement obtained by Insider Stories.

The company booked extra ordinary gains of Rp1.69 trillion on sale of investment in manufacturing subsidiary, PT Sorini Agro Asia Corporindo Tbk. The divestment raised over Rp2.20 trillion for the company and the sales of Sorini shares was completed on January 28, 2011. 

Sales revenue rose 79% to Rp4.35 trillion from Rp2.43 trillion, driven by significant increase in petroleum sales. Petroleum revenues increased 149%. Sales revenues growth was driven by increased sales of Petroleum products in Indonesia which resulted in the sales revenue increasing 149% to Rp3.46 trillion from Rp1.39 trillion. 

This revenue growth was driven by increase in supply of High speed diesel and other refined products to mining industry in Eastern part of Indonesia along with increase in demand from other industrial sectors

Basic chemicals sales also reported 31% growth to Rp584 billion with increasing demand for basic raw materials which is the raw material for production of various industrial and consumer goods. 

Demand for logistics services including stevedoring, port handling in Indonesia and China registered 83% increase in sales revenue.

AKR's gross profit slightly decreased 2% to Rp221 billion from Rp225 billion. Operating profit increased 10% to Rp123 billion from Rp112 billion.

Disclosure: No position at the stock mentioned above.  

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Indika new bonds & investor appetite

Indo Integrated Energy B.V., a wholly owned subsidiary of PT Indika Energy Tbk, has commenced a series of related financing transactions designed to extend the maturity of a portion of Indika's indebtedness.

Indika is also seeking a strategy to improve the terms of the company's indebtedness to enable greater flexibility necessary to develop and scale its activities in the Indonesian energy sector. 

Such  transactions included an offer to exchange up to US$165.0 million of the Issuer’s outstanding 8.50% senior notes due 2012 for new securities, a consent solicitation relating to all outstanding 2012 notes, and a consent solicitation relating to all outstanding US$230 million 9.75% senior notes due 2016 of Indo Integrated Energy II B.V. How is investor' appetite on the exchange offer? Please login or register to read the remaining story.   

Disclosure: No position at the stock mentioned above.

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TAF to launch up to Rp1.5 trio bonds

Indonesia leasing company PT Totoya Astra Financial Services (TAF), a joint venture between PT Astra International Tbk (ASII) and Japanese Toyota Financial Services Corporation, plans to issue three tranches of up to Rp1.5 trillion bonds in May or June this year.

"We have submitted the bonds documents to Bapepam-LK and expected to launch it in May or June," PT Trimegah Securities Tbk Director Karman Pamurahardjo told Insider Stories today.

Previously, Buntoro Muljono, TAF President Director, said the bonds proceed will be used by the company to support financing. 

However, he declined to provide further explanation regarding to the plan. TAF has appointed Indo Premier Securities, HSBC Securities, and Trimegah Securities as joint lead underwriters. Astra International owns 50% shareholding in TAF and the remaining is owned by Toyota Financial Services.

Disclosure: No position at the stock mentioned above.

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Astra Graphia 1Q net income up 22.22%

IT and document solution company PT Astra Graphia Tbk (ASGR) today reported a 22.22% increase in unaudited net income at end of March 2011 as net sales improved.

Astra Graphia, controlled by auto maker PT Astra International Tbk (ASII), posted Rp22 billion net income in 1Q2011 from Rp18 billion a year earlier.
Operating profit slightly increased 8% to Rp27 billion from Rp25 billion. Gross profit also grew 9.89% to Rp100 billion from Rp91 billion.
Astra Graphia's net sales increased 7.88% to Rp315 billion from Rp292 billion. Short term loan narrowed to zero from Rp61.9 billion, while total liabilities reduced 4% to Rp332.6 billion from Rp494.1 billion. Astra International controls 76.87% shareholding in Astra Graphia and public holders own the remaining stake.

Disclosure: No position at the stock mentioned above.

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Holcim 1Q sales reaches 1.79 mio tons

Indonesia's third largest cement maker PT Holcim Indonesia Tbk (SMCB) recorded 1.79 million tons of cement sales volume at end of March 2011

Holcim Corporate Communication Budi Primawan said to jack up the cement sales, the company has set two franchises with the establishment of PT Holcim Beton and Solusi Rumah.

Holcim Beton Derek Williamson said the company plans to target set five outlets of franchise in Bali, 15 outlets in Java and Bali.

Holcim Indonesia has determined to distribute Rp23 per share dividend or 21.3% of its net income last year of Rp828.42 billion. The dividend will be distributed in May.

Holcim President Director Eamon J. Ginley said revenue will be boosted by domestic sales volume and asphalt business. "We estimate 2011's sales volume to rise 6%," Ginley said after annual of shareholders general meeting today.

Holcim is now seeking an external financing in a bid to support establishment of cement factory in Tuban, East Java, with total investment of US$450 million.

The new factory will have production capacity of 1.7 million tons. "We will construct the factory with internally generated cash flow and bank loan facility." 

Disclosure: No position at the stock mentioned above.

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Adaro pulls out from railway project

One of Indonesian's largest thermal coal miner PT Adar Energy Tbk (ADRO) has dropped its plan from a tender of railway project in Central Kalimantan because of the project uncertainty.

So far, the railway project is uncertain. "We decided to exit," said Adaro Director Andre J. Mamuaya as quoted by Kontan daily today.

Previously, Adaro Energy had proposed its plan to participate the US$2.2 billion railway project with public private partnership scheme. The company is also waiting the certainty of power plant project in South Kalimantan

Disclosure: No position at the stock mentioned above.

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Losing money won't deter Elnusa

Integrated oil and gas services company PT Elnusa Tbk (ELSA) provides its guarantee that its expansion program will not be deterred by the depletion of its cash after a Rp111 billion deposit at Bank Mega's Jababeka branch was illegally redeemed by Elnusa Finance Director Santun Nainggolan. 

The deposit at Bank Mega so far is not intended to bankroll Elnusa's operational activities and expansion program.

"The deposit is purely a cash reserve," said Elnusa Human Resources Director Lucy Sycilia as quoted by Kontan daily today.

She assured that the company still has deposits at seven different banks. "Our cash flow won't be deterred."

Elnusa has spent US$100.2 million cash for capital expenditure this year. 

However, Lucy revealed that Elnusa is striving to seek cash for reserve as security. So far, the company provides a ready cash as much as the operational cash in 3 consecutive months.

Disclosure: No position at the stock mentioned above. 

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Dynaplast 1Q net income jumps 109%

The leading rigid plastic manufacturer PT Dynaplast Tbk (DYNA) is reported to experience a 109% jump in net income to Rp35 billion at end of March this year from Rp17 billion a year earlier because of higher sales.

In a presentation material, as quoted by Bisnis Indonesia daily today, Dynaplast net sales increased 19% to Rp430 billion from Rp361 billion.

Gross profit inched up 24% to Rp83 billion from Rp67 billion, while operating profit increased 28% to Rp45 billion from Rp35 billion. Dynaplast' EBITDA rose 22% to Rp73 billion from Rp59 billion.

Disclosure: No position at the stock mentioned above.

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Trada to seal US$105 million loan

A global energy marine transporter PT Trada Maritime Tbk (TRAM) is optimistic to secure a loan facility commitment of US$90 million-US$105 million from Bank Mandiri and Bank of China Ltd (ICBC). The facility will be used by Trada to fulfill the need for capital expenditure this year.

The loan facility counts 75% of Trada's total capital expenditure which has been set at US$120 million-US$140 million, Trada Finance Director Adrian E. Sjamsul said as quoted by Bisnis Indonesia daily today.

Trada enlarges the capex of 26.31%-47.36% from realized last year of US$95 million. "The capex will be utilized to buy seven units of tanker and panamax fleet," he said. 

The company posted Rp105.92 billion net income last year, a 5.98% increase from Rp99.94 billion in the previous year.

Disclosure: No position at the stock mentioned above.

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Hambali Mitra sets tender for DYNA

PT Hambali Dina Mitra, a controlling shareholder in PT Dynaplast Tbk (DYNA), the leading rigid plastic manufacturing company in Indonesia, is poised to hold a tender offer in a bid to buy Dynaplast shares which are now held by public investor for the proposed price of Rp4,500 per share.
Hambali Mitra, which currently controls 40.09% shareholding in Dynaplast, is committed to buy 104.65 million shares or representing 33.25% of the company's equity from public shareholders, including 27.41 million shares or8.71% stake from UOB Kay Hian Pte Ltd.
The proposed price is 20% higher than the average price of Dynaplast at Indonesia Stock Exchange during 90 trading days before go private announcement on March 25 2011.
Besides Hambali Mitra, a company focusing its business in services, management, and administration, Dynaplast is also controlled by Dynapack Asia Pte Ltd, Singapore.
Hambali Mitra, founded in April 2001, is 90.85% controlled by Dynapack Asia Pte Ltd with ultimate shareholders of Hambali family and 9.05% owned by Australasia Investment Pte Ltd. Catherine Hambali and Emmeline Hambali are President Commissioner and Commissioner of Hambali Mitra, while Tirtadjaja Hambali acts as President Director.

 
Disclosure: No position at the stock mentioned above.  

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Stock recommendations today

Jakarta Composite Index, Indonesia's benchmark index, may test its new level at 3,800 today. Yet, profit taking shall be anticipated as the index has already gone too far. Here are stock recommendations as quoted by Bisnis.com today:
 

Sinarmas Sekuritas: 

Technically the index will tend to strengthen in the range of 3,786-3,821 today. The securities company recommends 'buy' on stocks like JSMR, BBNI, BUMI, and SMCB.

Erdikha Sekuritas:

The JCI starts to enter overbought area, thus the investors need to anticipate such profit taking in short run. The index may move between 3,760-3,830, with recommended shares to buy including BORN and SMCB. Last week, the index was closed up by 0.17%or 6.32 points to 3,801.08. The stronger industrial and trading stocks sustained the index, leading it to break new record at above 3,800.

e-Trading Securities:

The JCI today may move at the range of 3,771-3,824. Several stocks such as BORN, BBNI, and INDY shall be watched by investor.

Disclosure: No position at the stock mentioned above.

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Bank Victoria sells shares to Emirates

PT Bank Victoria International Tbk (BVIC) has sold 414.58 million shares or 10% of its outstanding shares to Singapore-based Emirates Tarian Asset Management Pte Ltd at Rp142 per share.
Bank Victoria has obtained Rp58.87 billion from the private placement. The proceed will be used to strengthen the bank's capital structure in a bid to develop business.
The placement price was higher than Rp141.4 per share, the average price during 25 trading days before Bank Victoria announced the proposed plan of non-preemptive rights.
Post the placement, the bank's common stock increased to 2.73 billion shares from 2.32 billion shares. On last Friday, BVIC gained 2.68% to Rp153 per share from Rp149.

Bank Victoria is part of Victoria Group, a group in which the majority shares is controlled by Tanojo family, through Wakijo Tanojo's youngest daughter Suzanna. 

Wakijo Tanojo is one of founders of Surabaya-based Wings Group (PT Sayap Mas Utama) with Katuari and Harjo Sutanto.  Victoria Sekuritas is the controlling shareholder of Bank Victoria International. Victoria Sekuritas is owned by Suzanna Tanojo and Christien Tanojo through PT Gratamulia Pratama.
  

Disclosure: No position at the stock mentioned above.  

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Cipaganti Inti eyes Rp1 trio IPO

Coal mining company PT Cipaganti Inti Resources decided to delay its proposed initial public offering (IPO) from an initial plan in the first half to the second half of this year as the market situation is less favorable. 

Cipaganti,  with 1,300 hectares of coal concession in East Kalimantan, plans to float 40% stake in the primary market with a target proceed of Rp500 billion-Rp1 trillion.

"The IPO proceed will be used by the company to develop the heavy equipment business and mining," said Cipaganti Group President Director Andianto Setiabudi as reported by Kontan daily today.

Cipaganti Resources, which has started a commercial production, has 3 million tons of coal reserves with calorie of 5,500 kcal-5,800 kcal.  

Disclosure: No position at the stock mentioned above.

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Astra Agro immature area narrows

Immature area of palm oil producer PT Astra Agro Lestari Tbk (AALI) decreased to 43,026 hectares or 16.32% of the total planted area at end of March this year (1Q 2011) from 56,903 hectares or 21.49% of the total planted area a year earlier.
Mature area of Astra Agro increased to 220,582 hectares or 83.67% of the total planted area from 207,889 hectares or 78,51%.
Astra Agro's total planted area reached 263,608 hectares in 1Q 2011 from 264,792 hectares in 1Q 2010, said a presentation material filed to Indonesia Stock Exchange. New planting reached 328 hectares, reducing from 756 hectares.
The company recorded a 27.3% increase in CPO sales volume in 1Q 2011 as fresh fruit bunch (FFB) rose.
The CPO sales volume reached 284,249 tons in 1Q 2011 from 223,308 tons in a year earlier.
Of the total CPO sales volume in 1Q 2011, 95.7% or 272,161 tons were sold to the local market and 4.3% or 12,088 tons to the export market.
The CPO average selling price of the company was Rp8,278/kg, a rise of 26.5% from Rp6,544/kg. The sales volume of the other products, such as kernel and PKO in 1Q 2011 went up by 12.7% and 50% respectively. FFB output increased 20.6% to 1.02 million tons from 841,893 tons.

Disclosure: No position at the stock mentioned above.

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Global Land seeks Rp1.5 trio financing

Property developer PT Global Land Tbk (KPIG), affiliated of PT Global Mediacom Tbk (Bhakti Group), is seeking Rp1.53 trillion financing to develop several projects this year.

The company aims to use a combination of internally generated cash flow with external financing facilities, said Global Land Director Daniel Yuwono, as quoted by Bisnis Indonesia today.

For this year, the company plans to construct four projects of office building in Jakarta with a total investment of Rp1.53 trillion. 

The company needs Rp35 billion to establish building of Seputar Indonesia, Rp200 billion for MNC Financial Building, Rp300 billion for MNC News Centre, and Rp1 trillion for office building and RCTI studio.

The company is in discussions with three banks in a bid to obtain the financing facilities.
Global Land is also planning to roll out a theme park with total investment of Rp6 trillion in Java. The company is seeking 200 hectares of area.

Disclosure: No position at the stock mentioned above.


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Adira seals Rp1 trio loan from Panin

PT Adira Dinamika Multifinance Tbk (Adira Finance), owned by PT Bank Danamon Tbk (BDMN), has secured Rp1 trillion loan facility from PT Bank Pan Indonesia Tbk (Bank Panin) at end of last year. The loan facility will be used by Adira to support financing expansion targeted to reach Rp28.75 trillion throughout 2011.

Adira has obtained the facility at the same time when PT Bank Jabar Banten Tbk also sealed loan facility of Rp250 billion.

"We are underway to seal another loan facility of Rp500 billion from a local bank," said Adira Finance Director I Dewa Made Susila as reported by Bisnis Indonesia today. Adira is also underway to extend loan facility period of Rp75 billion from Bank Central Asia

Disclosure: No position at the stock mentioned above.
 
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Pindo Deli FY10 income surges 161%

Pulp and paper producer PT Pindo Deli Pulp and Paper Mills posted a 160.99% jump in net income last year, while its sister company, pulp and paper producer PT Lontar Papyrus Pulp & Paper Industry was still in net loss.

Pindo Deli and Lontar Papyrus are both controlled by Sinarmas Group, owned by Indonesian tycoon Widjaja family.

Pindo Deli posted US$85.63 million net income or US$0.019 net income per share last year from US$32.81 million or US$0.008 per share in the previous year.

Operating profit increased 46.53% to US$181.99 million from US$124.20 million, while gross profit rose 36.07% to US$328.27 million from US$241.24 million. Pindo Deli's net sales rose 25.19% to US$1.59 billion from US$1.27 billion.   

Lontar Papyrus

Lontar Papyrus's net loss narrowed 110.09% to US$8.75 million or US$8.70 net loss per share from US$86.72 million or US$101.45 per share.

However, the company turned to post US$28.52 million operating profit from US$37.82 million operating loss. Gross profit surged 33,613% to US$65.40 million from US$194,000. Net sales increased 39.51% to US$473.40 million from US$339.34 million.

Disclosure: No position at the stock mentioned above.

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Serasi Autoraya to sell Rp1 trio bonds

An integrated transportation services company PT Serasi Autoraya has mandated lead underwriters, PT Mandiri Sekuritas, PT Indo Premier Securities, PT Victoria Sekuritas, and to sale Rp1 trilllion bonds.

Local raing agency dubbed PT Pefindo has affirmed the ratings for the proposed bond for a maximum amount of IDR1 trillion at idA+ with outlook stable.

Serasi Autoraya provides an integrated transportation services both for corporate and retail segments. These include car and motorcycle rental, used car trading, taxi, logistic services, and shipping services.

At end of February 2011, Serasi Autoraya operated 25,093 units of cars and 5,012 units of motorcycles for rental service, 367 taxi units, and four vessels. The company is also supported by 33 branches, 53 rental outlets, 14 service points, and 359 workshops throughout Indonesia.

The company also has 15 retail stores of used car and 10 logistic branches. The company is wholly owned by PT Astra International Tbk, one of the largest and most diversified corporations in Indonesia.

Disclosure: No position at the stock mentioned above.
 
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Indah Kiat FY10 turns to US$13m profit

Indonesian pulp and paper producer PT Indah Kiat Pulp & Paper Tbk (INKP), a company which is nearly twice larger than its affiliated PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), turned to net profit of US$13.03 million last year from a huge loss of US$158.48 million in the previous year.

Operating profit soared 4,485.06% to US$190.75 million from US$4.35 million operating loss. Gross profit jumped 150.26% to US$439.24 million from US$175.51 million. Indah Kiat's net sales increased 41.80% to US$2.51 billion from US$1.77 billion.

Sinarmas Group, controlled by Indonesian tycoon Widjaja family, owns 52.72% shareholding in Indah Kiat via PT Purinusa Ekapersada and public holders own the remaining stake.

Disclosure: No position at the stock mentioned above.  

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Straits Asia sets 11.5 mio tons output

Singapore-listed Straits Asia Resources Limited plans to jack up its coal output target of 8.5% to 11.5 million tons in 2011 from 10.5 million tons last year.

Straits Asia CEO Martin Purvis, in his presentation material, said in line with the higher output target, average selling price (ASP) has been set at US$80-US$85 per ton, a 16.76% increase from US$72.8 per ton last year.

However, capital expenditure is estimates to lower 18.58% to US$92 million this year from US$113 million last year.

In the first quarter of this year, Straits Asia, with its two mine sites dubbed Jembayan and Sebuku in Kalimantan, produced 2.8 million tons of coal with the ASP of US$82.2 per ton. In return, the company booked 1Q's net profit of US$41.4 million.

In 2010, the company, which is 45.39% owned by Thai company PTT Asia Pacific Mining Pty Ltd, booked US$736.5 million revenue, US$139.3 million operating profit, and US$88.2 million net income.   

Disclosure: No position at the stock mentioned above.
 
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Tjiwi Kimia FY10 operating profit drops

Pulp and paper producer PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), part of Sinarmas Group which is controlled by Widjaja family, reported a 34.06% decrease in operating profit last year as operating expenses surged.

The company posted US$79.02 million in operating profit last year from US$119.83 million a year earlier. Operating expenses reached US$142.47 million from US$108.20 million. Gross profit slightly decreased 2.87% to US$221.49 million from US$228.03 million.

Tjiwi Kimia's net sales hrew 14.53% to US$1.34 billion from US$1.17 billion, while net income surged 47.14% to US$46.57 million or US$0.035 per share from US$31.65 million or US$0.024 per share on the back of narrowing interest expense.

Sinarmas Group, via PT Purinusa Ekapersada, controls 60% shareholding in Tjiwi Kimia and public shareholders own the remaining stake. 

Disclosure: No position at the stock mentioned above. 

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