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Good morning,
Mandiri
and Tabungan Negara Posted Improving Loan Growth
Bank Mandiri (BMRI
IJ, Neutral, TP: IDR11,600) and Bank Tabungan Negara (BBTN IJ, BUY, TP:
IDR2,600) posted improving loan growth in 1Q17. BBTN posted close to 20% YoY
loan growth, supported by subsidized mortgage loan. The company keeps loan
growth target at 21-23% in FY17 with NIM at around 4.5-5%. Meanwhile, Bank
Mandiri posted a 13% YoY loan growth supported by corporate and consumer
credit. Corporate loan is enhanced by palm oil, consumer goods, and
automotive industry. Consumer loan is supported by mortgage loan,
multipurpose loan, and vehicle loans.
Such loan growth figures were in line
with our expectation. For Mandiri, asset quality would remain our main
concern as we expect gross NPL ratio would reach 3.7% by end of year
(end-2016: 4%). We maintain our top pick on BTN due to its strong focus on
subsidised mortgage segment and improvement in asset quality to 2.5% based on
our forecast (end-2016: 2.8%). We assume 21% YoY growth in subsidised
mortgages while total loan book would grow by 17.1% this year. (Eka Savitri)
Link
to Daily report: Indonesia Morning Cuppa 060417
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Media Highlights:
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Corporate
MAP Boga Adiperkasa
to undertake IPO
MAP Boga Adiperkasa
(MBA), a subsidiary of Mitra Adiperkasa (MAPI IJ, BUY, TP: IDR6,675) will
offer 20% of its shares to the public. MBA operates in the food and beverage
industry, holding rights to five brands which are Starbucks, Pizza Express,
Krispy Kreme, Cold Stone Creamery, and GODIVA. In mid-2016, MAPI issued
IDR1.08trn in zero coupon bonds that could be converted to 29.9% of shares in
MBA. (Kontan)
Comment: MAP Boga
IPO spin-off will likely go at higher EV/Ebitda, but lower PE than the
parent. This is MAPI's crown jewel, the cafe & restaurant segment's EBIT
and PBT grew 46% & 86% in 2016A. General Atlantic PE bought 30% stakes at
MAP Boga in end of 2016 at valuation of ~13x EV/Ebitda & ~28x PE 2016A.
Peers, SBUX US & BFD MK trades at 11-15x EV/Ebitda and 27-28x PE 2017F. (Stifanus Sulistyo)
Surya Semesta shareholders approve Cipali
divestment
Erajaya looks to sell IoT products
Indofarma looks to achieve IDR15bn in
profits
Nusa Raya Cipta aims IDR3.3trn in new
contract this year
Sariguna targets IDR57bn from IPO
Merdeka Cooper Gold starts production of
Tujuh Bukit mine
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Our
Recent Publication:
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Indonesia Strategy: Exuberance Over
Positives Ahead
Link to report: Indonesia Strategy: Exuberance Over Positives Ahead
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Sector Update: Coal Mining - Monetising
Australian Coal Supply Disruption
Link to report: Monetising Australian Coal Supply Disruption
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Economics Update: Harvest Season Brings
Some Relief In March Food Prices
Link to report: Harvest Season Brings Some Relief In March Food Prices
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Results Review: Harum Energy – FY17
Earnings To Spike
Link to report: Harum Energy : FY17 Earnings To Spike
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Sector Update: Regional Plantation – Time
To Lock In Profits
Link to report: Regional Plantation: Time To Lock In Profits
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Company Update: Astra Agro Lestari –
Downtrend In CPO Prices Push Share Prices Down
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Company Update: PP London Sumatra Indonesia
– Downtrend In CPO Prices Push Share Prices Down
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Results Review: Summarecon Agung – Weak
Performance May Persist
Link to report: Summarecon Agung : Weak Performance May Persist
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Indonesia Economic Outlook: Stronger Growth
As Exports & Government Spending Recover
Link to report: Stronger
Growth As Exports & Government Spending Recover
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Company Update: Tower Bersama
Infrastructure – Moderated Growth And Stretched Balance Sheet
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Best regards,
Helmy Kristanto
Director
Head of Indonesia Research
PT. RHB Securities Indonesia
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