Harum Energy earning up 70% in 1H

PT Harum Energy Tbk (HRUM), coal miner that is controlled by Indonesian businessman Kiki Barki, reported Rp743.02 billion in net profit for the first half of this year, a 70.02% increase from Rp437.01 billion a year earlier.

The increase was a result of growth in revenue driven coal sales volume and average selling price. However, Harum's foreign exchange loss surged 2,221.76% to Rp55.49 billion from Rp2.39 billion.

Operating profit was Rp960.87 billion in 1H 2011, a 94.99% jump from Rp492.79 billion in 1H 2010. Gross profit also rose 83% to Rp1.22 trillion from Rp669.01 billion. Harum posted Rp2.98 trillion in revenue, increased 42.58% from Rp2.09 trillion.

Disclosure: No position at the stock mentioned above.

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MIRA disposes Apexindo to Tuscany

PT Mitra International Resources Tbk (MIRA) finally disposes 93.35% shareholding in Sabre Systems International Pte Ltd, losing its precious assets of drilling company PT Apexindo Pratama Duta Tbk, to Tuscany Investment Group Pte Ltd at US$40 million.

Corporate Secretary Imaculata Tri Marianti at Mitra Resources today said the company entered into a sale and purchase agreement on June 28 2011 with Tuscany. 

Referring to the agreement, Tuscany has agreed to acquire shareholding in Sabre System, parent of Apexindo, and a total debt of US659.86 million from Sabre and Mira International Holding.

She said the sale would drag down Mitra Resources' debt and be expected to return its equity into positive. In return, the company's assets would shrink. Mitra Resources owns 93.35% shareholding in Sabre System, which controls 100% stake in Mira International Holding. Mira Internatinal owns 98.14% stake in Apexindo.

Disclosure: No position at the stock mentioned above.

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Indika posts 25.14% rise in 1H profit

PT Indika Energy Tbk (INDY), an integrated energy company that owns 46% shareholding in coal miner PT Kideco Jaya Agung, reported a 25.14% increase in net profit for the first 6 months of this year because higher profit contribution from associated companies. 

Indika booked Rp584.59 billion net profit 1H 2011 from Rp467.16 billion in 1H 2010. Profit from associated companies rose 32.62% to Rp956.49 billion from Rp721.23 billion.

Gross profit increased to Rp361.83 billion from Rp353.33 billion. Indika's consolidated revenue rose climbed 12.43% to Rp1.99 trillion from Rp1.77 trillion. The biggest contributor remained contract and services business with Rp1.83 trillion and the remaining of Rp159.42 billion came from coal mining business.

Loan from Citibank

Besides securing US$130 million loan facilities from Standard Chartered Bank and UBS AG consisting of US$65 million each in March, Indika also sealed another US$50 million facility from Citibank N.A. Indonesia on March 9 2011.

The facility, which will mature on April 29 2011, charges annual interest of 3% premium over Libor. Indika previously used the facility to acquire coal tug boat operator PT Mitrabahtera Segara Sejati Tbk (MBSS).

Disclosure: No position at the stock mentioned above.

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Delta Dunia 1H profit plunges 91.34%

PT Delta Dunia Makmur Tbk (DOID), parent of Indonesia's second largest coal mining contractor PT Bukit Makmur Mandiri Utama (BUMA), suffered a 91.34% plunge in net profit in the first half of this year as a result of higher cost of goods sold and transaction costs and bank charges.

Delta Dunia posted Rp17.85 billion net profit in 1H 2011 from Rp206.19 billion 1H 2010. The company's operating profit dropped 45.38% to Rp252.29 billion from Rp461.86 billion.

In line with the drop, gross profit also fell 23.23% to Rp453,54 billion from Rp590.75 billion as cost of goods sold increased 28.91% to Rp2.72 trillion from Rp2.11 trillion.

Delta Dunia, that is 40% owned by Northstar Tambang Persada, posted a 17.78% increase in revenue to Rp3.18 trillion from Rp2.70 trillion.

 

Disclosure: No position at the stock mentioned above.

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Intraco Penta 1H net profit jumps 96.5%

The heavy equipment solution provider, PT Intraco Penta Tbk (INTA) reported a 96.5% increase in net profit for the first 6 months of this year.

The company posted Rp61.3 billion in net profit in 1H 2011 from Rp31.2 billion in 1H 2010. "Based on the business sector, a steep rise in net profit was mainly generated by the revenue from mining sector [74%], while the rest was from various sectors," said President Director Petrus Halim at Intraco Penta, in a press statement today. 

The robust growth of the mining sector has brought a boost in sales of heavy equipment, driving Intraco's operating profit. INTA heavy equipment sales for Volvo, Bobcat, SDLG, Mahindra, and Ingersoll Rand brand, reached 737 units or 120% increase from 335 units. Total sales in June coupled with orders on hand reached 1,175 units or over 90% of the 2011 target of 1,293 units. That number has even exceeded the total sales in 2010amounted to 835 units. 

"Growth in sales of heavy equipment INTA has managed to increase operating income to Rp1.36 trillion from Rp868.8 billion, an increase of approximately 56.1%," he said. 

INTA’s revenue is based on the contribution of subsidiaries respectively PT Intan Baruprana Finance of 3%, PT Terra Factor Indonesia (consolidated with PT Karya Lestari) of 8%, and PT Columbia Chrome Indonesia of 3%.

Disclosure: No position at the stock mentioned above.

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XL Axiata 1H operating profit down 3.2%

PT XL Axiata Tbk (EXCL), Indonesia's third largest cellular operator, reported a slight decrease in operating profit of 3.2% in the first half of this year. In return, operating margin was slashed.

XL Axiata booked Rp2.40 trillion operating profit in 1H 2011 from Rp2.48 trillion, resulting a lowered operating margin to 26.2% from 29.3%.

However, XL Axiata's revenue slightly increased 6.7% to Rp9.04 trillion from Rp8.47 trillion, while net profit rose 15% to Rp1.52 trillion from Rp1.32 trillion. The operator's subscribers grew 10.5% to 39 million from 35 million.

"XL 1H 2011 revenue is below our and consensus estimate. Although, voice revenue down to Rp4.2 trillion (-7%yoy), data VAS revenue surges to Rp1.5 trillion (+47%yoy)," said Mandiri Sekuritas in a note today. 

Disclosure: No position at the stock mentioned above.  

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Bayan Resources 1H profit skyrockets

Coal miner PT Bayan Resources Tbk (BYAN), that is controlled by Dato' Low Tuck Kwong, reported a steep jump in net profit of 503.25% in the first half of this year as revenue rose.
Bayan booked Rp971.90 billion net profit in 1H 2011 or Rp292 earning per share from Rp161.11 billion in 1H 2010 or Rp48 earning per share.

Gross profit surged 188.84% to Rp1.97 trillion from Rp682.88 billion, while revenue rose 68.07% to Rp6.37 trillion from Rp3.79 trillion.

 

Disclosure: No position at the stock mentioned above.

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Adaro Energy 1H coal sales up 10%

Coal miner PT Adaro Energy Tbk (ADRO) today reported a 10% increase in coal sales volume in the first half of this year. The miner reached 24.02 million tons in coal sales in 1H 2011 from 21.75 million tons in 1H 2010.

Adaro's production output slightly increased 5% to 22.81 million tons from 21.62 million tons. 

"We are on track to achieve  our production  target of 46 million tons-48 million tonnes as  first half  coal production  increased 5%," said Adaro's management in an official statement published today.

The company reached a 32% in overburden removal to 140.68 million bank cubic meter from 106.66 bcm

Coal contracting 

PT Saptaindra Sejati (SIS), a wholly owned subsidiary of Adaro Energy focusing in coal contracting business, reported a 26% increase in overburden removal to 76.59 million bcm from 60.81 million bcm.

Coal production rose 12% to 10.48 million tons from 9.32 million tons. Regarding to acquisition of coal deposits, Adaro is currently considering three to four targets in Indonesia.  

Disclosure: No position at the stock mentioned above.  

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Wow, Energi Mega operating profit jumps

Oil and gas producer PT Energi Mega Persada Tbk (ENRG), that is controlled by Bakrie family, is primping. After it turned into profit, Energi Mega enabled to steeply boost its operating profit.

In the financial statement published today, Energi Mega, whose shares have been pledged by Thai-based conglomerate Reignwood International Investment (Group) Company Limited, to Siam Bank, returned to net profit of Rp34.70 billion or Rp0.86 earning per share for the first half of this year from Rp75.39 billion net loss a year earlier. 

The net profit was mainly contributed by higher net sales and lower operating expenses. As a result, operating profit skyrocketed 970.96% to Rp275.56 billion from Rp25.73 billion. Energi Mega's net sales rose 59.28% to Rp865.56 billion from Rp543.42 billion.

Disclosure: No position at the stock mentioned above.

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Telkom 1H net profit retreats 1.49%

Indonesia's largest telecommunication operator PT Telekomunikasi Indonesia Tbk (Telkom) today reported a 1.49% decrease in net profit for the first 6 months of this year as a result of higher operating expenses. 

Telkom booked Rp5.94 trillion in net profit or Rp302.05 earning per share in 1H 2011 from Rp6.03 trillion in 1H 2010 or Rp306.67 earning per share.

Operating profit fell 3.70% to Rp10.92 trillion from Rp11.34 trillion on the back of higher operating expenses of 5.19% to Rp23.53 trillion from Rp22.37 trillion. The operator posted a 3.7% decrease in EBITDA to Rp18.07 trillion from Rp18.76 trillion. Telkom's operating revenue slightly increased 2.22% to Rp34.46 trillion from Rp33.71 trillion.

Operational performance

Despite a slight decrease in net profit, cellular subscribers rose 15.8% to 102.30 million from 88.32 million. Flexi's subscribers increased 17.9% to 18.74 million from 15.90 million, while wireline made a 0.3% increase in subscribers to 8.42 million from 8.4 million.

Disclosure: No position at the stock mentioned above.

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Astra International 1H profit up 33.39%

PT Astra International Tbk (ASII), Indonesia’s mammoth auto maker and distributor that reigns 55% vehicle market, reported a 33.39% net profit for the first 6 months of this year on the back of higher price of commodities, robust auto sales, and steady inflation rate.

The company posted Rp8.59 trillion net profit in 1H 2011 from Rp6.44 trillion, reflecting Rp2,121 earning per share from Rp1,591.

Operating profit increased 26.54% to Rp8.44 trillion from Rp6.67 trillion, boosting its operating margin to 11.07% from 10.84%. Gross profit rose 26.14% to Rp15.15 trillion from Rp12.01 trillion. Astra's consolidated revenue rose to Rp76.26 trillion, up 23.98% from Rp61.51 trillion. Analyst consensus this year estimates that Astra International may post Rp149.59 trillion revenue, Rp17.51 trillion operating profit, and Rp16.37 trillion net profit.
Referring to the first half result, the company gas reached 50.98% of 2011's full year revenue, 48.20% of operating revenue, and 52.47% of 2011's net profit.

Auto contribution remains

Auto business remains the biggest motor for Astra's consolidated revenue with Rp38.05 trillion, counting nearly 50% of its total revenue. 

Robust heavy equipment sales as well as mining contracting contributed the second largest to Astra's revenue with Rp25.62 trillion or 33.59%. Financial services, agribusiness, infrastructure, and technology information contributed revenue of Rp5.57 trillion, Rp5.29 trillion, Rp2.38 trillion, and Rp648 billion respectively.

Disclosure: No position at the stock mentioned above.

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Still, Garuda suffers operating loss!

Indonesian flag airlines PT Garuda Indonesia Tbk (GIAA) reported Rp340.79 billion operating loss for the first 6 months of this year, narrowed 26.47% from Rp463.46 billion a year earlier.

In the financial statement published today, Garuda's operating loss was contributed by an increase of 40.63% in operating expenses to Rp11.56 trillion in 1H 2011 from Rp8.22 trillion.

However, the airlines' operating revenue rose 44.59% to Rp11.22 trillion from Rp7.76 trillion. Due to operating loss, Garuda suffered a Rp187.31 billion net loss, a 436.34% from net profit of Rp55.69 billion.

 

Disclosure: No position at the stock mentioned above.  

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Borneo 1H net profit skyrockets 3,904%

Indonesia's largest coking coal miner PT Borneo Lumbung Energi & Metal Tbk (BORN), that is controlled by single majority shareholder Indonesian businessman Samin Tan, today reported a 3,904% jump in net profit for the first 6 months of this year.

Borneo Energi posted Rp826.8 billion net profit in 1H 2011 from Rp20.65 billion in 1H 2010. Gross profit surged to Rp1.65 trillion from Rp509.08 billion. Borneo Energi's revenue skyrocketed to Rp2.98 trillion from Rp1.07 trillion.   

Borneo Energi manages and operated two subsidiaries, PT Asmin Koalindo Tuhup (AKT), the only hard coking coal miner in Indonesia, and PT Borneo Mining Services (BMS), equipment rental to AKT.

AKT owns two coking coal mining blocks in Kalimantan, dubbed Kohong and Telakon with 21,630 hectares area.
Based on the IPO prospectus, Kohong is estimated to have 69.2 million tons hard coking coal reserves and 280.7 million tons resources. Telakon is estimated to own 98.1 million tons resources.
Borneo Lumbung Energi's production capacity is 3.6 million tons of hard coking coal by the end of 2010 and increased to 5 million tons in 2011.

Disclosure: No position at the stock mentioned above.  

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Stock recommendation today

Jakarta Composite Index (JCI) is predicted to weaken in today’s trading after it fell 0.68% to 4,145.83 yesterday. The stocks that should be more closely watched include ADRO, BJBR, and BHIT. Here are stock recommendations as quoted by Bisnis.com today:

Sinarmas Sekuritas:

Based on a technical analysis, the index tends to weaken within the range of 4,115-4,150 today. Stocks recommended for investors include ADRO, MAPI, BBKP, and BJBR.

e-Trading Securities:

In today’s trading, the index has potential to see a correction and to move within the 4,108-4,174 range. ENRG and BHIT are among the stocks worth paying more attention to watch. 

Yesterday, the index closed down 0.68%, or 28.29 points, to 4,145.83 with 12 million lots of shares in transaction volume, valuing at IDR5.7 trillion. Out of total stocks traded on Indonesia Stock Exchange, 109 stocks strengthened, 131 stocks weakened, 87 remained unchanged, and the remaining 126 stocks weren’t traded at all.

Disclosure: No position at the stock mentioned above.

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Semen Gresik, look at operating margin!

The state-controlled cement producer PT Semen Gresik Tbk (SMGR), Indonesia's largest cement company, today reported a 14.72% increase in net profit for the first 6 months of this year as a result of higher revenue.

Semen Gresik booked Rp1.87 trillion net profit in 1H 2011 from Rp1.63 trillion. Operating profit increased 10.73% to Rp2.27 trillion from Rp2.05 trillion. However, operating margin slightly fell to 29.83% from 30.78% as a result of higher selling expenses of 17.89% to Rp687.72 billion from Rp584.31 billion.

Semen Gresik's gross profit climbed 10.44% to Rp3.49 trillion from Rp3.16 trillion. Revenue increased 14.26% to Rp7.61 trillion from Rp6.61 trillion.

Disclosure: No position at the stock mentioned above.

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Borneo chief expects stable coal price

Coking coal prices should remain near current levels for the rest of this year despite expectations of a slowdown in demand from China, said Samin Tan, chief executive of  PT Borneo Lumbung Energi & Metal Tbk (BORN), Indonesia's largest coking coal miner. 

The recently listed company—which mines the coal used to make steel on Indonesia's island of Kalimantan—expects to get an average price of around US$250 per ton of its coal this year. That is well above the US$185 it made last year but down from a peak of more than $300 hit earlier this year. 

"China has continued to raise the interest rate," Mr. Tan said in an interview as quoted by Wall Street Journal.

Coal prices have reacted, he said, because "that sends to signal to the market that the Chinese economy is cooling down." Despite that, he said he thinks demand will still prove to be strong enough to keep prices from falling much more. 

While China is its biggest customer, the concerns there aren't derailing Borneo Lumbung's expansion plans. Mr. Tan said the company is already on track to expand its production this year by 88% to 3.6 million tons. "We hope we are going to surpass that target," he said. 

The company's aggressive plans demonstrate optimism that demand for coking coal and other commodities will continue to grow even as China's economic expansion starts to slow. 

Borneo Lumbung, which listed its shares in Indonesia in November, recorded earnings before interest, tax, depreciation and amortization of Rp1.319 trillion (US$154.8 million) as it produced roughly two million tons of coal last year. This year it should be able to take home an Ebitda of as much as US$500 million, Mr. Tan predicted.

"Borneo's average selling prices, production and expansion plans are on track, which should set the stage for its long-term growth as a coking-coal player," said Erindra Krisnawan, analyst at CIMB Securities in Jakarta, in a report this week. 

While the global expansion of the coal industry means Borneo Lumbung often has to wait two years or more for delivery of the huge trucks and other equipment needed to get coal out of the ground, Mr. Tan said the company is on track to expand its capacity to five million tons by the beginning of next year and 15 million tons in 2016.

Borneo has enough reserves to last far into the future. It expects that as early as this month it will be able to expand its confirmed minable reserves to 100 million tons from the current 70 million tons, said Mr. Tan. The company still has a huge area to look for coal in its Kalimantan field and expects to find more, he said, and also has more than US$400 million in cash to expand through acquisitions if needed.

Disclosure: No position at the stock mentioned above.

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Bukit Makmur vs Pamapersada

PT Delta Dunia Makmur Tbk (DOID), parent of PT Bukit Makmur Mandiri Utama (BUMA), Indonesia's second largest coal mining contractor, reported a 14.59% increase in overburden removal for the first 6 months of this year. However, its coal output was unchanged.

Delta Dunia posted 155.5 million bank cubic meter (bcm) of overburden removal in 1H 2011 from 135.7 million bcm in 1H 2010. Coal production was flat at 16.5 million tons in 1H 2011.

How about its competitor, PT Pamapersada Nusantara, a wholly owned subsidiary of PT United Tractors Tbk?

Pamapersada's coal output made a slight increase of 5.84% to 39.9 million tons from 37.7 million tons. Overburden removal rose 15.95% to 364.9 million bcm from 314.7 million bcm.

With flat coal output and nearly 15% growth in overburden, Delta Dunia is indicated to post a weak earning in the second quarter of this year (2Q2011), mainly due to margin compression driven by a jump in depreciation cost, spare part-maintenance cost, and accounting changes in salary and bonus payment from cash basis into accrual basis. 

"In addition, there would be one-off refinancing cost of US$16 million-US$17 million," said a morning notes issued by PT Mandiri Sekuritas last week.
Overall, it potentially reduces Mandiri Sekuritas's FY11 forecast operating margin by 2%-3% or equivalent to Rp130 billion-Rp200 billion earning, compared to the brokerage's previous FY11F net profit forecast of Rp454 billion. 

Disclosure: No position at the stock mentioned above.

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Jasa Marga 1H net profit up 16.05%

Toll road operator PT Jasa Marga Tbk (JSMR) today reported a 16.05% increase in net profit for the first 6 months of this year on the back of higher operating revenue.

The state-controlled toll road operator booked Rp751.58 billion net profit in 1H 2011 from Rp647.64 billion in 1H 2010.

Operating profit increased 12.84% to Rp1.23 trillion from Rp1.09 trillion. However, the company's operating margin slightly increased to 52.12% from 51.90%. Jasa Marga's operating revenue grew 12.38% to Rp2.36 trillion from Rp2.10 trillion.

Disclosure: No position at the stock mentioned above.  

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KIJA seeks US$310 million financing

Property developer PT Jababeka Tbk (KIJA) is seeking US$310 million financing to underpin its business expansion and refinance debt this year.

Jababeka President Director Setyono Djuandi Darmono, as quoted by Bisnis Indonesia today, said the financing is consisting of US$160 million for land acquisition, US$110 million to develop infrastructure facilities in industrial estate, Cikarang, and US$40 million to refinance debt to CIMB Niaga.

"We are exploring options of bond issuance, rights issue, and combination of both," he said.

To develop infrastructure facilities, he said Jababeka needs financing to accomplish power plant of Bekasi Power and Cikarang Dry Port. The company is scouting 400 hectares of land acquisition.

Jababeka has officially mandated PT Danareksa Sekuritas as financial adviser for the actions, including rights issue.

Disclosure: No position at the stock mentioned above.

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United Tractors 1H net profit soars 34.6%

PT United Tractors Tbk (UNTR) booked a 34.6% increase in net profit to Rp2.54 trillion for the first 6 months of this year from Rp1.89 trillion a year earlier. 

The increase was a result of increased of commodity price and heavy equipment sales. United Tractors posted Rp25.62 trillion net revenue in 1H 2011, a 42% increase from Rp18.08 trillion in 1H 2010. 

The increase in net revenue was contributed by the heavy equipment distribution business unit that contributed 51.0% to UNTR's consolidated revenue, PT Pamapersada Nusantara, the company’s subsidiary in mining contracting which contributed 38.3%.

The remaining of 10.6% came from the mining business unit which is run by PT Prima Multi Mineral (PPM/formerly called DEJ mines) and PT Tuah Turangga Agung.

The significant growth of net revenue was accompanied by growth of consolidated gross profit that grew 33% to reach Rp4.44 trillion from Rp3.34 trillion. 

The favorable economic condition and increased commodity price have driven the market of heavy equipment to continue growing. 

Operational performance

Until June 2011, Komatsu sales volume reached 4,333 units or up 59% compared the same period last year. Komatsu still succeeds to lead the domestic market with 51% market share (based on internal market research). 

Out of the total Komatsu sales volume, the largest portion of sales went to mining sector, namely by 68%, followed by plantation which contributed 16%, then construction and forestry sectors by 10% and 6%, respectively.  

Furthermore, revenue from spare parts sales and maintenance services showed a growth of 14% to Rp2.36 trillion from Rp2.07 trillion.

On the mining contracting business, better weather conditions allowed Pama to achieve 6% increase in coal production and 16% in overburden removal or from 37.7 million tons of coal and 314.7 million bcm overburden removal to 39.9 million tons and 364.9 million bcm. 

On coal mining business, United Tractors recorded an increase in coal sales volume from 1.28 million tons to 2.20 million tons.

On 13 June 2011, the company has distributed the final dividend for the book year 2010, in total amount of Rp1.0 trillion, or Rp270 per share, while the interim dividend has been distributed on 12 November 2010 amounting to Rp160 per share.

Disclosure: No position at the stock mentioned above.

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Fitch revises Indosat outlook to positive

Fitch Ratings has revised the outlook on Indonesia-based PT Indosat Tbk's (Indosat) long term local currency issuer default rating (IDR) to positive from stable. 

Indosat's long-term foreign and local curreny IDRs have been affirmed at BBB- respectively. The outlook on the FC IDR is Stable. The agency has also affirmed Indosat's senior unsecured rating at BBB-. The outlook change reflects the improvement of Indosat's credit profile during FY10 and Fitch's expectations for the improvement to continue in FY11. During FY10 Indosat recorded a 5.2% and 9.7% y-o-y increase in its revenue and EBITDA, respectively, and improved its EBITDA margins by 200bps to 48.6%. 

Net debt adjusted for lease equivalent debt fell to IDR27.3trn from Rp29.6 trillion during the same period, taking the company's leverage ratio (lease-adjusted net debt to funds flow from operations) lower to 2.4x from 3.3x. 

Further deleveraging is likely, as for the first time in 2011 Fitch expects the company to cover capex requirements from its cash flow from operations. 

The agency also expects Indosat will maintain its EBITDA margins for FY11 (excluding one-off costs related to its voluntary separation scheme) given management's focus on profitability and that competition in the wireless industry in Indonesia is likely to remain subdued for the rest of 2011. 

Disclosure: No position at the stock mentioned above.

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Mitra Adiperkasa 1H net income up 58%

A retail company PT Mitra Adiperkasa Tbk posted a 58% increase in net income in the first half of this year (1H 2011) as revenues strengthened.

Mitra Adiperkasa’s net income for the period ended June 30 gained to Rp157.15 billion (US$18.52 million), or Rp95 a share, from Rp99.75 billion, or Rp60 a share, a year earlier. Sales revenue rose 23.78% to Rp2.66 trillion.

Its operating income grew 42% to Rp264.5 billion.

"Our excellent results underscore the strength of Mitra Adiperkasa's business model and brand portfolio as well as the strong purchasing power of our core customers - the middle to upper income group. With strong fundamentals and a solid business strategy that focuses on our core business and consumers, we are well positioned for new business opportunities and growth," said Corporate Secretary Fetty Kwartati in a statement published today.

In the first half of 2011, the company operated a total of 931 stores in 27 major cities in Indonesia. New retail concepts launched in the first half of 2011 include BCBG Maxazria, Stradivarius, Bershka, Travelogue, Max & Co, H.E. by Mango, Pandora and Payless. The company allocated IDR350 billion to fund its capital expenditure, mostly to open new stores throughout Indonesia.

The MAPI-coded stock gained 1.74% or Rp75 to Rp4,375 in Jakarta trading as of 3.37 p.m.
 

Disclosure: No position at the stock mentioned above.
 
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BATR names Stanchart as adviser

PT Bukit Asam Transpacific Railway (BATR), a joint venture company that will build and operate railway project from Tanjung Enim to Lampung, has picked Standard Chartered Bank (Stanchart) as financial advisers to help seeking the financing for US$1.8 billion project.

Sources said BATR, the joint venture company between the state controlled PT Bukit Asam Tbk, Rajawali Group's Transpacific Railway Infrastructure, and China Railway Engineering, has appointed Stanchart last week.

"BATR has also named several Chinese banks to support the project financing," the sources said. 

 However, BATR President Director Rudiantara, one of the most trusted executive of Indonesian mogul Peter Sondakh, owner of Rajawali Group, is unreachable for comment.

The 300 km-railway project is aimed to help Bukit Asam, with abundant thermal coal reserves, to jack-up its sales and production. The project is underway to make engineering design. The design has been proposed to South Sumatra and Lampung regional government for approval which is expected in the third quarter of this year.

Disclosure: No position at the stock mentioned above.

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Sentul City 1H net profit soars 126%

Property developer PT Sentul City Tbk (BKSL) today reported Rp61.17 billion net profit in the first half of this year, a 126.22% jump from Rp27.04 billion a year earlier. Net profit per share reached Rp2.14 from Rp0.57.

Gross profit increased 46.28% to Rp108.51 billion from Rp74.18 billion. Sentul City booked a slight decline of 0.39% in net revenue to Rp168.73 billion from Rp168.40 billion.

The company is underway to hold non-preemptive rights of 2.85 billion new C series shares or 10% of its enlarged capital at Rp117 per share, entitling the company with Rp333.92 billion proceed.

Sentul City will use Rp276.81 billion of the proceed to buy new shares to be issued by PT Aftanesia Raya. About Rp2 billion will be used by Sentul City to acquire existing shares at Aftanesia Raya from two individual non-affiliated shareholders namely Irwansyah and Ridwan Imam and Rp55.11 billion will be used for working capital. Sentul City is seeking approval from its shareholders during extraordinary meeting scheduled on August 3 2011.
Aftanesia Raya is a company with assets of 953,301 square meters land located in Hambalang village, Citeureup. Aftanesia Raya is 99% owned by Irwansyah and Ridwan Imam of 1%.
Sentul City is 34.64% owned by PT Citra Kharisma Komunika, Athena Offshore Holding Limited of 14.13%, PT Bakrieland Development Tbk of 5.26%, and public holders of 45.97%.

Disclosure: No position at the stock mentioned above.

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Resource Alam 1H profit surges 208%

Indonesia's tenth largest coal miner in term of concession area, PT Resource Alam Indonesia (KKGI), part of Rain Group, today reported a skyrocket net profit of 208.09% on the back of strong coal sales volume and higher selling price.

Resource Alam posted Rp214.40 billion net profit or Rp214 per share for the first 6 months of this year (1H 2011) from Rp69.59 billion or Rp70 per share a year earlier (1H 2010). Operating profit surges 194.40% to Rp293.02 billion from Rp99.53 billion.

KKGI's gross profit jumped 157.38% to Rp524.57 billion from Rp293.81 billion, while net sales reached Rp981.09 billion, a 137.24% surge from Rp413.55 billion.

Resource Alam, with concession area of 24,478 hectares located in East Kalimantan, is owned and founded by Adijanto family.

Pintarso Adijanto (Tan Hong Pheng), one of Adijanto's son, is in charge as Resource Alam's President Director and Swandono Adijanto (Tan Hong Swan) is one of the company's Commissioner.
Pintarso and Swandono have other siblings, Winoto Adijanto (Tan Hung Hwie), Suparno Adijanto (Tan Hong Kiat), Muriati Adijanto (Tan Phe Phe), Pandjijono Adijanto (Tan Hong Phang), and Mariana Adijanto (Tan Phwe Leng).

Disclosure: No position at the stock mentioned above.

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Stock recommendation today

Jakarta Composite Index (JCI) is estimated to move higher. However, profit taking actions still shadow the index movement. This is stock recommendation provided by Bisnis Indonesia today:

e-Trading Securities:

The JCI today may move within the range of 4,084-4,160 with uptrend possibility. Several stocks to watch are JPFA, BJBR, and UNTR. The index yesterday inched up 1.12% to 4,132 with a total transaction of Rp6.2 trillion.

Sinarmas Sekuritas:

The index today may swing in the range of 4,090-4,168. However, it is still shadowed by profit taking actions. Stocks to watch: BJBR, BMRI, and INDF. 

Trimegah Securities:

The sentiment of first half financial result remains the catalyst for stocks movement which will further determine the JCI. The momentum will spur the index to achieve a basic support level of 4,080. Several stocks to monitor: ASII, BBCA, UNTR, and MAPI. 

Disclosure: No position at the stock mentioned above.

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APLN to acquire 2 affiliated firms

Property developer PT Agung Podomoro Land Tbk (APLN) aims to acquire 35%-100% shareholdings in two affiliated companies, using Rp800 billion proceed from the issuance of rupiah denominated bonds scheduled in August 24 2011. affiliated

Agung Podomoro plans to raise Rp800 billion through the issuance of two series of bonds which will mature in 3 and 5 years. The acquisition is expected to be completed within 2 years.

Four lead underwriters, PT Deutsche Securities Indonesia, PT Indo Premier Securities, PT Mandiri Sekuritas, and PT Standard Chartered Securities Indonesia will arrange the issuance.

The proposed bonds have obtained A rating with outlook stable from PT Pemeringkat Efek Indonesia (Pefindo).

Disclosure: No position at the stock mentioned above.  

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Sarana Menara returns profit in first half

Telecommunication tower provide PT Sarana Menara Nusantara Tbk (TOWR) reported a 764.83% jump in net profit in the first half of this year on the back of increase in revenue and decrease in financial charges.

Sarana Menara posted Rp257.09 billion net profit in 1H 2011 from Rp38.67 billion net loss a year earlier. Financial charges narrowed to Rp231.48 billion from Rp556.36 billion.

Operating profit rose 19.25% to Rp417.19 billion from Rp349.84 billion. The operator booked Rp772.27 billion revenue, a 16.19% increase from Rp664.64 billion,

Sarana Menara is owned by children of two siblings of Djarum family's namely Michael Bambang Hartono and his younger brother Robert Budi Hartono.

Martin Basuki Hartono, son of Robert Hartono, is currently acting as the president commissioner at Sarana Menara. Michael Hartono owns 24.55% stake in Sarana Bersama through PT Caturguwiratna Sumapala and Robert Hartono owns 25.55% stake in Sarana Bersama through PT Tricipta Mandhala Gumilang.

 

Disclosure: No position at the stock mentioned above.
 
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Wintermar wins US$18 mio contract

PT Wintermar, a  subsidiary of PT Wintermar Offshore Marine Tbk (WINS) has secured a letter of intent  from PT  Kaltim Prima Coal (KPC) to provide three units highly maneuverable azimuth stern drive (ASD) tug for a period of 5 years to assist the berthing and unberthing of large bulk carriers up to 220,000 dwt. 
The 5 year contract with an estimated value of US$18 million will commence on the last quarter this year. KPC is a world-class open-pit coal mine located in Sangata, East Kalimantan, Indonesia.
KPC commenced its operation in 1992 and produces quality steaming coal for export to the Asia Pacific region and beyond. KPC has exported thermal coal to Asia and Europe’s leading power generation utility companies and a range of the world’s steel makers.
Wintermar will deploy its 3 brand new built vessels for this contract. Wintermar operates ASD tugs serving various oil terminals in Indonesia since year 2000. 

Disclosure: No position at the stock mentioned above.

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Medco seals US$150 mio loan from BNI

Oil and gas producer PT Medco Energi Internasional Tbk (MEDC) has secured US$150 million loan facility from PT Bank Negara Indonesia Tbk (BNI).

The facility will mature in 5 years since the signing of the loan agreement, said official statement submitted to Indonesia Stock Exchange today.

Medco will use the facility to refinance its existing loan and working capital. "The loan facility will be used to refinance existing loan which will mature in 2012," said Finance Director Syamsurizal Munaf said in the statement. 

Disclosure: No position at the stock mentioned above.

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Bukit Asam 1H net profit jumps 79%

The state-controlled coal miner PT Bukit Asam Tbk (PTBA) today reported Rp1.61 trillion net profit or Rp699 per share in the first half of this year, reflecting a 78.97% from Rp901.07 billion net profit or Rp394 per share a year earlier.

The robust bottom line was underpinned by higher coal sales. Operating profit rose 87.62% to Rp1.97 trillion from Rp1.05 trillion, surging its margin to 38.48% from 27.70%. Bukit Asam posted Rp5.12 trillion in sales, a 35.09% increase from Rp3.79 trillion

Disclosure: No position at the stock mentioned above.

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Citra Marga to raise Rp240 billion

Toll road operator PT Citra Marga Nusaphala Persada Tbk (CMNP) aims to raise Rp240 billion from the new shares sale without preemptive rights. The proceed will be used by the operator to develop its business.
Citra Marga will issue 200 million new shares at a minimum exercise price at Rp1,200, Rp140 lower or 11.67 discount from closing price yesterday at Rp1,340 per share.
According to the company's announcement today, it will seek approval shareholders' meeting scheduled on August 10 2011.

Disclosure: No position at the stock mentioned above.  

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Stock recommendation today

Jakarta Composite Index (JCI) may swing today with downtrend possibility within the range of 4,059-4,105. Several stocks to watch: TRST, AKRA, BSDE, and BBTN. Here are stock recommendations provided by Bisnis Indonesia daily.

Panin Sekuritas:

Despite downtrend possibility, investors are suggested to accumulate on weakness, anticipating the announcement of the first half result. Several stocks to monitor: TRST, AKRA, ASRI, and INTP.

The index yesterday abated as profit taking actions arouse on blue chips. Global investors sold their portfolios on the back of negative sentiment on Greek's rating downgrade.

e-Trading Securities:

The JCI today may move in the range of 4,046-4,109. Stocks to watch: BSDE, BBTN, and AKRA. Yesterday the index retreated 0.48% to 4,087.09, following sentiment negative from the US market.

Disclosure: No position at the stock mentioned above.

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UNTR 1H equipment sales up 58.60%

PT United Tractors Tbk (UNTR) today reported a 58.60% increase in sales volume of Komatsu heavy equipment in the first half of this year. 

The company booked 4,333 units of sales volume in 1H 2011 from 2,732 units in 1H 2010, said an official statement published today.

Coal output which was made by PT Pamapersada Nusantara, Indonesia's largest coal mining contractor that is wholly owned by UNTR as well, reached 39.9 million tons, a 5.84% increase from 37.7 million tons.

Overburden removal rose 15.95% to 364.9 million bank cubic meter from 314.7 million bcm. Coal production, contributed its coal mining units dubbed PT Prima Multi Mineral and PT Tuah Turangga Agung, jumped 71.88% to 2.20 million tons from 1.28 million tons.

Disclosure: No position at the stock mentioned above.

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Alkindo 1H net profit jumps 735%

Paper tube, paper core, and honey comb producer PT Alkindo Naratama Tbk (ALDO) today reported a 735.28 jump in net profit on the back of strong operating profit.

In the financial statement submitted to Indonesia Stock Exchange today, Alkindo booked Rp3.49 billion net profit in 1H 2011 from Rp418.59 million in 1H 2010.

Operating profit rose 171.48% to Rp6.95 billion from Rp2.56 billion. Alkindo's gross profit increased 64.12% to Rp14.41 billion from Rp8.78 billion. Alkindo reported a 12.82% increase in net sales to Rp91.86 billion from Rp81.42 billion.

Alkindo just listed new shares at the stock exchange at Rp225 per share, entitling the company with Rp33 billion proceed.

Disclosure: No position at the stock mentioned above.

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BW Plantation 1H net profit jumps 99%

Palm oil producer PT BW Plantation Tbk (BWPT) reported a 99.4% increase in net profit for the first 6 months of this year due to higher CPO sales volume.

Kelik Irwantono, Corporate Secretary of BWPT in a press statement said the company, which is controlled by Tjipto Widodo, son of Indonesian businessman Budiono Widodo, booked Rp170.55 billion in 1H 2011 from Rp85.55 billion in 1H 2010.
Net margin increased to 35.8% from 31%. In line with the robust bottom line, BW Plantation's operating profit jumped 122% to Rp275.05 billion from Rp123.87 billion. In return, operating margin rose to 57.7% from 44.9%.
Gross profit rose 98.8% to 327.64 billion from Rp164.84 billion. Revenue increased 73% to Rp476.95 billion from Rp275.67 billion.
CPO sales volume rose 35% to 53,248 tons from 39,438 tons with average selling price of Rp7.77 juta per ton, a 19.4% higher than Rp6.50 million per ton.
BW Plantation's added new planting of 4,418 hectares. Total planted area was 56,476 hectares of the total land bank of 93,000 hectares.
Astra Agro performance
PT Astra Agro Lestari Tbk (AALI) booked a 99.39% increase in net profit of Rp1.27 trillion in 1H 2011 from Rp636.45 billion a year earlier.

The main driver for the profit increase was growth in sales volume. Investor Relations Tofan Mahdi, as quoted by Bisnis.com, said the increas was underpinned by sales volume that rose in 1H 2011. 

AALI's CPO sales rose 44.5% to Rp4.54 trillion from Rp3.14 trillion. CPO sales volume increased 18.7% to 566,744 tons from 466,639 tons.

CPO's average selling price increased 21.6% to Rp8,013 per kg from Rp6,590 per kg. The local market absorbed 94.8% of the total CPO sales  volume or 537,226 tons while the remining or 29,548 tons were exported. 

Disclosure: No position at the stock mentioned above.  

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Astra Agro 1H CPO sales volume up 19%

PT Astra Agro Lestari Tbk (AALI), palm oil producer that is controlled by PT Astra International Tbk, posted a 18.7% increase in CPO sales volume to 566,774 tons in the first half of this year (1H 2011) from 477,639 tons. CPO's average selling price increased 21.6% to Rp8,013 per kg from Rp6,590 per kg.

The local market absorbed 94.8% of the total CPO sales volume or 537,226 tons while the rest or 29,548 tons were exported. 

Based on Oil World report, June 2011 edition, the global’s CPO production in 2010 was approximately 45.87 million tons, went up by 1.3% compared to 2009. 

The growth was mainly derived from the additional mature area, from 12.18 million hectares last year to 12.82 million hectares. 

Referring to the report, total Oil Palm mature area in 2011 will increase to 13.4 million hectares with the total
production is estimated to reach  49.19 million tons. Indonesia and Malaysia as the main World’s CPO producer respectively will produce 48.4% (23.8 million tons) and 37.2% (18.3 million tons) of the total world’s CPO production. 

Disclosure: No position at the stock mentioned above.

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Krakatau 1H profit up 37% on assets gain

The state-owned steel maker PT Krakatau Steel Tbk (KRAS) posted a 36.97% increase in net profit in the first half of this year as it booked gain on transfer of fixed assets.

Krakatau booked Rp1.37 trillion net profit in 1H 2011 or Rp87 per share from Rp997.75 billion in 1H 2010 or Rp63 per share. Following the increase, the company's net margin rose to 16.17% from 11.09%.

Krakatau booked Rp1.09 trillion gain on transfer of fixed assets. However, gross profit tumbled 52.31% to Rp903.61 billion from Rp1.89 trillion as a result of higher cost of goods sold. Net revenue slightly fell 6.56% to Rp8.41 trillion from Rp9 trillion.

Disclosure: No position at the stock mentioned above.

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BNI 1H net profit increases 41%

The state-controlled PT Bank Negara Indonesia Tbk (BNI) today reported a 41% increase in net profit in the first half of this year.

In an official statement published today, BNI booked Rp2.73 trillion net profit from Rp1.93 trillion a year earlier. The increase was because of higher interest income of 5% as well as fee-based income, and efficiency. 

In line with the higher net profit, the bank's loan channeling rose 21% to Rp152.90 trillion from Rp126.23 trillion. The bank's net non performing loan narrowed to 0.7% from 0.9%. 

Net interest income grew 5% to Rp6.09 trillion from Rp5.80 trillion. Total deposits increased 9% to Rp200.14 trillion from Rp184.20 trillion.

Disclosure: No position at the stock mentioned above.

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ASRI posts Rp1.02 trio marketing sales

PT Alam Sutera Realty Tbk (ASRI), that is controlled by Indonesian businessman The Nin King (Argo Manunggal Group), is estimated to book Rp1.02 trillion marketing sales in the first half of this year, representing 57.14% of the full year of marketing sales last year at Rp1.75 trillion.

According to Corporate Secretary Hendra Kurniawan, as quoted by Kontan today, the marketing sales was contributed by residential, apartment, land bank, office building, and commercial areas.

Alam Sutera said the company is focusing on sales value rather than sales volume as the company's land bank is limited. The company currently has 315 hectares of land bank.

Alam Sutera aims to raise Rp1 trillion bond by end of the third quarter of this year. Alam Sutera is in the process to obtain ratings from Fitch Ratings and Standard & Poor's. "Debt to equity ratio of the company is still low as we never issue bonds," said President Director Tri Ramadi.

According to him, the bond proceed will be used by the company to acquire land bank. "We estimate the acquisition may reach Rp2 trillion."
Alam Sutera reported a steep jump in net profit of 151.66% during the first 3 months of this year, boosted by robust sales growth. 
Alam Sutera posted Rp158.47 billion net profit in 1Q 2011 or Rp8.88 per share from Rp62.97 billion or Rp3.52 per share in 1Q 2010. Sales rose 97.49% to Rp405.05 billion from Rp205.09 billion.
Argo Manunggal Group controls Alam Sutera via several firms such as PT Argo Manunggal Land Development that owns 3.97% stake, PT Tangerang Fajar Industrial Estate with 16.70% stake, PT Manunggal Prima Development with 11.42%, PT Selarsa Citamanunggal with 11.86%, and PT Bukit Asri Padang Golf with 5.94%. Public shareholders own 50.11% stake in Alam Sutera.
Alam Sutera's Commissioner Harjanto Tirtohadiguno is key person of Argo Manunggal Group, while the remaining executives in board of commissioner are professional. 

Disclosure: No position at the stock mentioned above.

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Berau to supply coal to Lati power plant

PT Berau Coal, a 90% owned subsidiary of PT Berau Coal Energy Tbk (BRAU), is expected to supply 200,000 tons of coal to mouth mine power plan Lati next year. 

Finance Director Choeruddin Noer at PT Indonesia Pusaka Berau said Lati power plan has capacity of 28 MW. The company is focusing to accomplish one power plant with 2x7 MW capacity. One power plant is expected to operate in August and 1x7 MW additional power plant is underway for tender.

"We expect that Berau Coal enables to supply the coal demand for the power plant of 200,000 tons up to 2014," he said as quoted by Bisnis Indonesia today.

Berau Coal produced 9 million tons coal in the first half of this year, representing 44.3% of the full year target of 20.3 million tons.

Disclosure: No position at the stock mentioned above.

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Danamon rights set at Rp4,100-Rp4,800

PT Bank Danamon Indonesia Tbk (BDMN) plans to hold a rights issue of 1.21 billion new shares at the exercise price range of Rp4,100-Rp4,800 per share, entitling the bank with the proceed of Rp4.97 trillion-Rp5.82 trillion.

The rights issue proceed is representing 10.39%-12.17% of Bank Danamon's current market capitalization. The bank will hold the 1,000-for-144 rights issue. Cum rights is scheduled on September 7-September 12 2011.

The bank will use the proceed to strengthen its capital.  Asia Financial (Indonesia) Pte Ltd, as controlling shareholder, has committed to exercise its rights.

Citigroup Global Markets Singapore Pte Ltd and Deutsche Bank AG, Hong Kong are acting as the standby buyers for the rights issue.

Disclosure: No position at the stock mentioned above.

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Bakrieland 1H net profit jumps 100%

Property developer PT Bakrieland Development Tbk (ELTY) posted a 100.2% increase in net profit in the first half of this year (1H2011) on the back of higher sales.

Bakrieland booked Rp126.1 billion net profit from Rp63 billion in the first half of 2010. Operating profit rose 101.9% to Rp164.2 billion from Rp81.3 billion. mThe company's sales jumped 94.4% to Rp1.04 trillion from Rp537.5 billion.

The biggest contributor for the sales was Bakrieland's business of city property with 73.2% sales to the consolidation sales. Landed residential segment, hotel and resort, and toll road contributed 12.5%, 9.9%, and 4.4% to the company''s total sales.

According to Bakrieland's CEO Hiramsyah S. Thaib, the company is scouting a 30% increase in revenue this year, mainly driven by the strong economic growth.

Disclosure: No position at the stock mentioned above.

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Citra Marga sets non-preemptive rights

Toll road operator PT Citra Marga Nusaphala Persada Tbk (CMNP) aims to issue a 10% non-preemptive rights in a bid to seek cash to develop business.

Citra Marga Indrawan Sumantri said the company schedules an extraordinary of shareholders meeting on August 10 to seek approval on the non-preemptive rights.

"The new shares issuance is like a private placement. However, we haven't decide yet who investors act as standby buyers," he said as quoted by Bisnis Indonesia today.

Indrawan is unwilling to explain further details about the fund raising action. Referring to the closing price on Friday last week, the 10% new shares issuance will entitle Citra Marga with Rp250 billion proceed. Price to earning ratio (PER) of Citra Marga is at 6.14x, far below from PER of Jasa Marga at 20.79x.

According to Indrawan, the proceed will be used by the operator to support expansion and make the shares more liquid.

In the first half of 2011, he said the company is estimated to record Rp170 billion in net profit, a 14.09% increase from Rp149 billion. The figure is in line with the target of the full year of Rp325 billion. Revenue is expected to increase 10% in the first half of this year.

Disclosure: No position at the stock mentioned above.

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Stock recommendation today

Jakarta Composite Index (JCI), a benchmark that measures all stock prices at Indonesia Stock Exchange (IDX), today is estimated to move within the range of 4,068-4,153 with a limited uptrend. However, technically, the index is already overbought. Here are stock recommendations provided by Bisnis Indonesia daily today:

e-Trading Securities:

The JCI may move within the range of 4,068-4,153. Several stocks to watch: MAPI, GJTL, and AALI. Last week, the index inched up 0.95% to 4,106 with total transaction of Rp5.2 trillion.

Reliance Securities:

The index uptrend is targeted to reach 4,179. But, the JCI technically shows an overbought. In the short term, first support and second support may move at 4,090 and 4,040. Stocks to monitor: KLBF, BBCA, and PGAS.

Disclosure: No position at the stock mentioned above.

 
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AKR Corporindo 1H profit soars 1,297%

Indonesia’s leading bulk logistics and distributor of petroleum and basic chemical distributor PT AKR Corporindo Tbk (AKRA) reported a 1,291.79% jump in net profit in the first half of this year as it posted gain from sale of its subsidiary.

AKR Corporindo booked Rp1.17 trillion net profit in 1H 2011 or Rp515.32 earning per share from Rp83.61 billion or Rp38.30 earning per share in 1H 2010.

AKR gained Rp1.68 trillion from the sale of Sorini. Operating profit increased 25.52% to Rp258.09 billion from Rp205.61 billion. Sales and revenue rose 73.56% to Rp9.06 trillion from Rp5.22 trillion.   

Disclosure: No position at the stock mentioned above.

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Reliance sells Rp44 bio bonds

PT Reliance Securities Tbk, local stock brokerage, finally announced its plan to raise Rp44 billion by issuing a 12% rupiah denominated bonds.
The bonds will be issued by Reliance on July 27.
President Director Hosea Nicky Hogan said Reliance will utilize the proceed to refinance the existing bonds of Rp40 billion maturing on July 10.
Hosea said the proposed bonds, maturing on July 10 2014, will be set via a limited offer to less than 50 invidual investors.
Referring to the announcement submitted to Indonesian Securities Central Depository yesterday, Reliance initiates the first coupon payment on September 27.
According to him, Reliance will use the bonds issuance to develop its branches and online trading.
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Bormindo seals US$4.9 bio contract

Drilling operator PT Bormindo Nusantara, a 60%-owned subsidiary of PT Ancora Indonesia Resources Tbk (OKAS), secured a US$4.98 million drilling contract from PT Chevron Pacific Indonesia.
In an official statement submitted to Indonesia Stock Exchange (IDX) today, Ancora however did not mention about the contract period.
Ancora is scouting a Rp27 billion net profit this year, up from Rp18.9 billion.
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Elia Massa Manik leads Elnusa

Shareholders meeting of oil and gas services PT Elnusa Tbk today has obtained an approval to mandate Elia Massa Manik as new president director, replacing his predecessor Suharyanto. The change of Elnusa board of director is in line with the instruction of the company's controlling shareholder, said Corporate Secretary Heru Samodra today.
The meeting also names new Finance Director Sabam Hutajulu after Elnusa's former Finance Director Santun Nainggolan was detained regarding to the case of missing deposit at Bank Mega.
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Metland secures Rp150 billion loan

Property developer PT Metropolitan Land Tbk (Metland) has sealed Rp150 billion from PT Bank Mandiri Tbk.
The loan facility will be used to develop the second stage of Puri Metropolitan, said Corporate Secretary Olivia Widjojo yesterday.
The company will utilize the loan to construct connecting road to Karang Tengah toll road.
"The loan is aimed for our subsidiary which is joint venture company with Agung Sedayu," she said.
Metropolitan Land just listed shares at Indonesia Stock Exchange and obtained Rp454,75 billion proceed.

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Intiland needs Rp450 bio for hospital

PT Surabaya Jasa Medika, an indirect subsidiary of property developer PT Intiland Development Tbk (DILD), requires Rp450 billion investment to construct middle-up hospital dubbed National Hospital, in Graha Famili, Surabaya, East Java.
Surabaya Medika is a joint venture company between PT Grande Family View, a subsidiary of Intiland Development, and PT Istana Mobil Surabaya Indah with 50% shareholding each.
During topping off of the hospital construction today,
President Director Rudy Surjanto at Surabaya Media said the hospital will be established on 8,530 meter squares of land with 10 floors.
He said the hospital is expected to commercially provide services in the first quarter of 2012.
Intiland is controlled by Malang-born businessman Hendro S. Gondokusumo via
Truss Investment of 22,24% and Strands Investment Ltd of 19,89%.

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DOID indicates lower 2Q result

PT Delta Dunia Makmur Tbk (DOID) is indicated to post a weak earning in the second quarter of this year (2Q2011), mainly due to margin compression driven by a jump in depreciation cost, spare part-maintenance cost, and accounting changes in salary and bonus payment from cash basis into accrual basis. "In addition, there would be one-off refinancing cost of US$16 million-US$17 million," said a morning notes issued by PT Mandiri Sekuritas today.
Overall, it potentially reduces Mandiri Sekuritas's FY11 forecast operating margin by 2%-3% or equivalent to Rp130 billion-Rp200 billion earning, compared to the brokerage's previous FY11F net profit forecast of Rp454 billion.
Delta Dunia, parent of Indonesia's second largest coal mining contractor, is budgeting US$250 million capex with potential upgrade to US$280 million if certain projects are awarded. The capex was higher than US$200 million of realized capex last year and US$75 million in 2009.
On the operating side, overburden removal reached 155.7 million bank cubic meter in 1H11 or 43.3% of Mandiri Sekuritas's forecast.
DOID is now guiding 350 million bcm overburden removal, or 2.7% lower than previous number of 360 million bcm.
To achieve this target, the company needs to ramp up its overburden to 32 million-33 million bcm per month, versus 27 million-28 million bcm in May and June.
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Mitratel seals Rp1 trio loan

PT Dayamitra Telekomunikasi (Mitratel), a wholly owned subsidiary of PT Telekomunikasi IndonesiaTbk (Telkom), has sealed Rp1 trillion loan facility from PT Bank Rakyat Indonesia Tbk (BRI).
Mitratel will use the 6-year facility to meet its working capital this year.
Mitratel aims to roll out and acquire 1,672 telecommunication towers and supporting facilities.
Director of Business and Small Medium Enterperises at BRI Djarot Kusumayakti said the bank so far has channeled Rp6.8 trillion loan facilities to Telkom Group.
"We channeled Rp5 trillion loan to Telkom and another Rp800 billion to Telkomsel," he said.
BRI has committed to support business expansion of Telkom Group.
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Mitratel seals Rp1 trio loan

PT Dayamitra Telekomunikasi (Mitratel), a wholly owned subsidiary of PT Telekomunikasi IndonesiaTbk (Telkom), has sealed Rp1 trillion loan facility from PT Bank Rakyat Indonesia Tbk (BRI).
Mitratel will use the 6-year facility to meet its working capital this year.
Mitratel aims to roll out and acquire 1,672 telecommunication towers and supporting facilities.
Director of Business and Small Medium Enterperises at BRI Djarot Kusumayakti said the bank so far has channeled Rp6.8 trillion loan facilities to Telkom Group.
"We channeled Rp5 trillion loan to Telkom and another Rp800 billion to Telkomsel," he said.
BRI has committed to support business expansion of Telkom Group.
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Bank Mandiri may win US$1 bio deal

A consortium of Bank Mandiri may win the US$1 billion financing deal to help the state-controlled nickel miner PT Aneka Tambang Tbk (Antam) to build ferronickel project (FeNi) in Buli, East Halmahera, North Maluku. 

Antam President Director Alwin Syah Loebis confirmed that the consortium of Bank Mandiri is one of investment banks participating beauty contest.

"Bank Mandiri is one of the participants. However, we  haven't decided the winner," he said as quoted by Bisnis Indonesia today.

From 27 investment banks, banks, and securities houses, there were three consortia and one individual investment bank. The consortia were Bank Mandiri, BNI, and BCA. Barclays Capital proposed the financing by itself.

At the final stage, Antam is still in talks with Bank Mandiri's consortium regarding to the financing structure. Bank Mandiri's consortium is consisting of Goldman Sachs, Deutsche Bank, BRI, Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank.

Disclosure: No position at the stock mentioned above.

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Sari Roti to launch Rp500 bio bonds

PT Nippon Indosari Corpindo Tbk, maker of Sari Roti bread, plans to raise a maximum of Rp500 billion from the issuance of rupiah denominated bonds.

The proceed will be used by Sari Roti, a company that is controlled by Salim Group, to underpin business expansion. 

A source close to the deal said Sari Roti has picked PT Mandiri Sekuritas and PT OSK Nusadana Securities as the lead underwriters. "The size is below Rp500 billion."

Sari Roti Operational Director Yusuf Hadi, as quoted by Bisnis Indonesia today, said the company is still finalizing the issuance. Sari Roti has talked about the plan with Mandiri Sekuritas and OSK Nusadana.

However, Yusuf declined to explain the bond structure in detail. Sari Roti will use the proceed to finance the establishment of three baking production facilities in Makassar and Cibitung, West Java. 

Sari Roti is a joint venture between Salim family and Japanese company Shikishima Baking Co Ltd. Nippon Indosari is owned by Bonlight Investment Ltd of 34%, Treasure East Investment Ltd of 34%, Sojitz Corporation of 4.25%, Shikishima Baking of 8.5%, and public holders of 19.25%.

Disclosure: No position at the stock mentioned above.

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Stock recommendation today

Jakarta Composite Index (JCI) is predicted to face another correction today. Here are stock recommendations provided by Bisnis.com today:

Sinarmas Sekuritas:

Technically the index will weaken to 4,006-4,037. It recommends 'buy' shares like BORN, CMNP, BUMI, and INTP.
 

Panin Sekuritas: 

The brokerage is anticipating another correction in the index  as investors still concern on US and European macro economies. Although it is corrected, the index is still in the uptrend pattern at support-resistance level of 3,994-4,038. It noticed that profit taking hit the index since yesterday after successfully breaking new record high. 

We see the correction is still at tolerable level. Some blue chip shares have already made new record highs.

e-Trading Securities: 

The index may consolidate today at 3,980-4,042. It recommends shares like DEWA, GJTL, and SMGR.

Disclosure: No position at the stock mentioned above.

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Bumi aims to buyback shares

PT Bumi Resources Tbk, Indonesia's largest thermal coal exporter, is seeking approval from its shareholders in a bid to buyback its shares.

Director Dileep Srivastava, in an official statement filed to Indonesia Stock Exchange (IDX), said the proposed extraordinary of shareholders meeting scheduled on August 23 2011, is also aimed to seek approval on 75% stake sale of PT Bumi Resources Minerals Tbk (BRMS). 

Disclosure: No position at the stock mentioned above. 

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BW Plantation unit seals Rp40 bio loan

PT Bumilanggeng Perdanatrada (BLP), a wholly-owned subsidiary of palm oil producer PT BW Plantation Tbk, secured Rp40 billion Lembaga Pembiayaan Ekspor Impor.

BLP will use the loan facility, maturing in 12 months and 10% return, to meet its working capital. BLP manages plantation area in Bedaun village, Central Kalimantan.

BW Plantation, that is controlled by Tjipto Widodo, the fourth son of businessman Budiono Widodo, owns and manages seven plantation areas in Kalimantan through seven subsidiaries.

The subsidiaries are BLP, PT Adhyaksa Dharmasatya, PT Wana Catur Jaya Utama, PT Sawit Sukses Sejahtera, PT Bumihutani Lestari, PT Agrolestari Kencana Makmur, and PT Satria Manunggal Sejahtera.

BW Plantation's total area is 93,000 hectares in which 52,060 hectares are planted area consisting of 93% of nucleus. Matured area reached 15,270 hectares with prime age at 9.8 years. 

Disclosure: No position at the stock mentioned above. 

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Fitch revises BTEL outlook to negative

Fitch Ratings has revised Indonesia-based PT Bakrie Telecom's (BTEL) outlook to negative from stable.  Its long term foreign and local currency IDRs (LTLC) have been affirmed at B. At the same time, the agency has affirmed BTEL's senior unsecured rating at B.

The negative outlook reflects the risk that BTEL's leverage and coverage ratios may remain in breach of the agency's negative rating action guidelines, particularly if management's guidance for strong revenue growth during FY11 does not materialize. 

Lower than expected revenue growth caused BTEL's net adjusted debt to EBITDAR leverage to increase to 4.1x at FYE10 from 3.6x at FYE09, slightly above the agency's negative rating guidance of 4.0x, and its funds from operations interest coverage to fall to 3.1x from 3.9x during the same period.

Despite BTEL's subscriber count growing by a robust 23% during FY10, revenue only grew 0.8% yoy, before falling 1.3% yoy in 1Q/11. 

Management of Bakrie Telecom is expecting a significant improvement in FY11, guiding for its gross revenues to grow by 30% to approximate Rp4.5 trillion. 

However, Fitch's negative outlook takes into consideration the ongoing downward pressure on BTEL's average revenue per user (ARPU) due to competitive pressures in the Indonesian Telecom market, as well as the high capital expenditure requirements BTEL is facing during FY11 and FY12. 

While Fitch expects that BTEL's subscriber base will continue to grow in FY11, the extent of revenue growth is likely to be limited if ARPUs continue to fall, and the company's EBITDA margins (FY10: 48.3%) could also come under pressure. 

The ratings may be downgraded if adjusted net debt to EBITDAR leverage remains above 4x, and operating EBITDA to gross interest expense coverage falls below 2.5x over the next 2 years. Conversely, the outlook may be revised to stable if the reverse of these measures takes place.

The ratings reflect BTEL's position as Indonesia's second-largest operator of code division multiple access (CDMA) technology and the fifth-largest cellular operator by subscriber market share. 

BTEL's subscribers totalled over 13 million at FYE10, representing 5.5% of the Indonesian cellular market. 

Following the receipt of full mobility from the regulator in April 2011, BTEL's subscribers will be able to receive network coverage island-wide, allowing the company to compete on a more equal footing with GSM operators that dominate the Indonesian telecom market. 

Fitch notes that during FY10 BTEL launched broadband wireless access (BWA) data services based on its CDMA EVDO technology. 

Strong growth from a low base is likely during FY11 and FY12, and BTEL expects this service to contribute 13% of total gross revenues during FY12.

Notwithstanding its attractive EBITDAR margin above 45%, BTEL's rating is constrained by its position as a sub-scale operator in a highly competitive market, high interest payments and high capex requirements that may result in negative free cash flow generation (FCF). 

Compared to actual capex of Rp1.8 trillion in FY10, and budgeted capex of Rp1.6 trillion in FY11, the company is projecting capex to fall to about 50% of 2011's level from 2012 onwards. 

Fitch notes that this is in contrast to most other telecom companies worldwide, which are expecting capex to remain stable or increase to maintain product competitiveness and service value. Accordingly there is a risk that BTEL's capex reduction plan could decelerate the company's growth compared to the industry over the medium term. 

BTEL's ratings are a notch below its standalone rating of B+, due to corporate governance issues and the weak financial and liquidity position of its parent, PT Bakrie Brother Tbk (BNBR), which has a 45.05% direct and indirect interest in BTEL. BTEL's dividend payout policy is to distribute 15%-25% of net income after tax, but debt covenants have prevented the company from distributing dividends whilst FCF generation remains negative. 

Deterioration in the financial and liquidity position of BNBR, or worsening corporate governance, may lead to negative rating action. 

Conversely, a significant weakening of the linkage between BNBR and BTEL may result in BTEL being rated at its standalone level. 

Disclosure: No position at the stock mentioned above.


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BTPN 1H net profit increases 63%

PT Bank Tabungan Pembangunan Nasional Tbk (BTPN) reported a 63% increase in net profit to Rp585.1 billion in the first half of this year from Rp358.9 billion a year earlier.

In an official statement sent to Indonesia Stock Exchange (IDX) today, the net profit increase was underpinned by growth in loan channelling.

BTPN chanelled Rp26.7 trillion loan, a 33% increase from Rp20.1 trillion. The third party funds reached 32% increase to Rp29.5 trillion from Rp22.3 trillion. The banks' total assets reached Rp40 trillion, a 43% growth from the same period last year.

Disclosure: No position at the stock mentioned above.

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Budi Acid Jaya to settle debts

PT Budi Acid Jaya Tbk will settle Rp58 billion and US$5 million debts this year to several creditors. According to the company's Corporate Secretary Marwati Wongso, Budi Acid will pay Rp58 billion debt to Bank Mandiri and US$2.6 million and US$2.1 million to Sumitomo Corporation and Cargill Financial Services International Inc.

"We will settle the debts using internally generated cash flow," she said as quoted by Bisnis Indonesia today.

Following the debt payment, Budi Acid will make early payment of US$6 million debt this year.

Disclosure: No position at the stock mentioned above. 

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Adhi Karya posts Rp1.8 trio 1H revenue

The state-controlled contractor PT Adhi Karya Tbk (ADHI) is expected to post Rp1.8 trillion revenue in the first half of this year, unchanged from Rp1.86 trillion a year earlier.

Adhi Karya may book a 35.5% increase in operating profit to Rp102.6 billion from Rp75.2 billion. Net profit in 1H 2011 reached Rp21.6 billion.

The company obtained Rp4.1 trillion new projects in the first half of 2011, reflecting a 32.8% from estimated full year of Rp12.5 trillion.

According to Corporate Secretary Kurnadi Gularso, as quoted by Kontan daily today, the new projects were from EPC business in the sector of power plant, oil and gas, and infrastructure.

Disclosure: No position at the stock mentioned above.

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Pan Brothers 1H sales increases 20%

PT Pan Brothers Tbk (PBRX) is estimated to reach a 20% increase in sales in the first half of the year from Rp650.99 billion a year earlier.

Pan Brothers Finance Director Fitri R. Hartono said the increase was contributed by the higher demand for garment products.

Referring to the increase, Pan Brothers might book Rp781.19 billion in sales in 1H 2011. The company's net profit is estimated to raise 22.61% to Rp15.62 billion from Rp12.74 billion.

Fitri said the company is focusing on the accomplishment of new factory in Central Java with estimated production capacity of 42 million pieces a year.

Disclosure: No position at the stock mentioned above.

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Danareksa helps KIJA rights issue

Property developer PT Jababeka Tbk (KIJA) may pick PT Danareksa Sekuritas as an underwriter of its rights issue in a bid to raise funds which will be used to refinance US$35 million debt to PT Bank CIMB Niaga Tbk.

"We are managing the rights issue of Bank Danamon, Jababeka, and another bank," said Danareksa President Director Marciano Hersondrie Herman as quoted by Bisnis Indonesia today.

According to a research released by UBS Securities on June 30, analysts Tim Alamsyah and Felicia Tandiyono said Jababeka requires Rp1 trillion from a combination of rights issue and bond issuance.

If Jababeka might hold rights issue, the ratio would be 1:1. The proceed will be used by Jababeka to settle US$40 million debt to CIMB Niaga.

Jababeka Corporate Secretary Muljadi Suganda said the company is still reviewing the financing options. "There is no certain decision. We are exploring the options and we haven't picked any underwriter," he said.

Disclosure: No position at the stock mentioned above.

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Stock recommendation today

Jakarta Composite Index is exposed to profit taking today, thus potentially leading it to fluctuate. Here are stock recommendations provided by Bisnis.com today:

Sinarmas Sekuritas:

The index tends to swing today within the range of 4,020-4,060. Stocks to watch: UNTR, INDF, JSMR, and BSDE.

e-Trading Securities:

The JCI tiday may move in the range of 3,994-4,047 with downtrend possibility. Stocks to watch: PTBA and ASGR.

Reliance Securities: 

The profit taking probably will push the index to slow down to 4,003-4,040. Yesterday, the index was closed 0.24% or 9.7 points higher to 4,032.97

Disclosure: No position at the stock mentioned above.  

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Truba Alam suffers Rp55 bio net loss

EPC company PT Truba Alam Manunggal Engineering Tbk (TRUB) suffered a Rp55.16 billion net loss in 2010, a 125.49% drop from net profit of Rp216.43 billion in the previous year.

Truba Manunggal, in the 2010's financial statement submitted to Indonesia Stock Exchange today, the net loss was contributed by interest payment of Rp142.51 billion last year as an impact of restructuring of its shareholders loan facility. 

"It is purely due to interest payment as a result of the debt restructuring in 2009," said Gamal Katoppo, Truba's Company Secretary today. 

At the operational line, Truba Manunggal posted a 81.41% jump in operating profit to Rp125.88 billion from Rp69.39 billion. The company's revenue slightly fell 5.86% to Rp2.57 trillion from Rp2.73 trillion.

Disclosure: No position at the stock mentioned above.  

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Radiant Utama to pledge assets

Extraordinary general meeting of Shareholders of PT Radiant Utama Interinsco Tbk (RUIS) held in Jakarta, Friday, last week approved the company to pledge its assets to the financiers which will fund the acquisition of mobile offshore production unit (MOPU).
The company, in an official statement filed to Indonesia Stock Exchange today, is planning to buy MOPU from its partner, Global Process Systems (GPS) from Dubai. Previously, starting 2005, the company and GPS are having a partnership to provide the MOPU for the client, a PSC company in East Java. The project will end in 2020.
However, due to some reason, GPS offered company to buy the MOPU and company agreed to buy the assets with the value of US$35 million. The company  will fund the acquisition by the external funding.  

The company has secured loan commitment from a foreign bank and a financial institution. Therefore, due to compliance with the company article of association, the company should get approval from shareholder to pledge the MOPU to the lenders. 

The company believes the transaction will benefit the company. The company expects the net profit in 2011 and 2012 will be higher by Rp5 million and Rp12 million respectively. 

Moreover, based on the independent appraisal, the MOPU has value of US$ 70 million.  

Radiant Utama believes, acquiring the MOPU at below its market value, will significantly enhance the value to all the shareholders. 

Currently the company has no plan to conduct right issue to raise fund for the exploration of the block.  The company now funds the exploration by internal cashflow. 
Meantime, the company is still having a negotiation with strategic investor who interest with the oil & gas block. "However, we can not disclose the value and the scheme of transaction, as the due diligent is still progressing."

Disclosure: No position at the stock mentioned above.
 
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82 Mio tons to supply local coal market

Coal miners have to supply the local market needs for the commodity of 82 million tons, a 3.88% increase of 79.97 million tons to be supplied under the domestic market obligation this year. 

The supply increase is boosted by higher demand from power plants that have been independently operated by private companies in partnership the state-controlled power producer PT Perusahaan Listrik Negara (PLN).  

Thamrin Sihite, Director General of Mineral and Coal at Ministry of Energy and Mineral Resources, as quoted by Kontan daily today said the increase has counted the need of the local industries. 

The coal production from miners in 2012 is estimated to increase 23% to 332 million tons. About 75.91% of the production may be exported and the remaining may supply the local market need.

 
Disclosure: No position at the stock mentioned above.  

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Intiland secures Rp400 bio loan

Property developer PT Intiland Development Tbk (DILD) requires Rp1 trillion capital expenditure (capex). To fulfill the capex, the company will need bank loan facilities.

"We have secured Rp400 billion loan facility from Bank Bukopin. We will draw down the loan to meet the capex requirement," said Archied Noto Pradono, Executive Director Capital & Investment Management Intiland, as quoted by Kontan daily today.

The company utilized Rp400 billion capex in the first half of the year to develop several projects. "We used Rp200 billion from loan facility and the remaining came from internally generated cash flow."

The capex was spent to develop five projects such as Park Residences, TB Simatupang, Graha Natura, Surabaya, Talaga Bestari, Jakarta, and Whiz Hotel di Semarang, Bali, and Balikpapan,

The company's marketing sales in the first half of the year reached Rp600 billion, representing 60% of the full year target of Rp1 trillion.

Disclosure: No position at the stock mentioned above.

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Stock recommendation today

Market shows mixed sentiments, sending consolidation issue to the investors after Jakarta Composite Index (JCI) recorded new high last week. Here are stock recommendations provided by Bisnis Indonesia daily:

Sinarmas Securities: 

The JCI technically tends to gain within the range of 4,000-4,050. It recommends shares like BBCA, TLKM, and BORN.

e-Trading Securities:

The index today may consolidate with lowered consolidation. It may move within the range of 3,955-4,051. Several stocks to monitor: ADES, INTP, and ULTJ.

The JCI on Friday last week inched up 0.64% or 25.57 points to 4,023.2 with 8 million lots of transactions (equal to Rp4.37 trillion).

Disclosure: No position at the stock mentioned above.

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Reignwood pledges 17.26% ENRG

Thai-based conglomerate Reignwood International Investment (Group) Company Limited, which is founded in 1984 by Thai-Chinese businessman Chanchai Ruayrungruang, has continued to pledge shares of oil and gas company PT Energi Mega Persada Tbk (ENRG).
Based on data compiled by Indonesian Central Securities Depository (KSEI) on July 12 and 13, Reignwood has pledged additional 40 million shares and34.63 million shares of Energi Mega, oil and gas producer that is controlled by Bakrie Group.
Reignwood in total has pledged 7.01 billion shares of Energi Mega, representing 17.26% of ENRG's total outstanding shares.
Assuming the pledge was done at Friday's closing price at Rp200, Reignwood has pledged Rp1.40 trillion of ENRG shares. 
However, there is no clarity from Reignwood about the pledge purpose. Reignwood manages four business sectors such as consumer goods, modern services industry, sport, art, and culture, investment and financial services. Red Bull Vitamin Drink Company Limited in China is one of companies owned by Reignwood Group.

Period of shares pledge:
May 19     2,77 billion shares
24             3,63 billion
June 14     28 million
17            43 million
20           11,05 million
21           15 million
22           50 million
23           100 million
24           70 million
27           20 million
28           100 million
29           100million
July 12    40 million
13           34.63 million
Total        7.01 billion (17.26% of Energi Mega outstanding shares)

Disclosure: No position at the stock mentioned above.
 
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