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Good morning,
Summarecon –
Management cut marketing sales target
Yesterday management has officially cut
down target 2017 marketing sales to IDR3.5trn from IDR4.5trn. This revision
came a few days after the company reported -16% YoY slump on its 1H17
marketing sales. Although presales improved a significant 118% QoQ during
2Q17, management deemed the market has not recover to their expectation.
With the new target, the company’s YTD
marketing sales accounts for 41% / 39% from company's / our FY17F presales
target, still below the historical average 53% for the first semester. As for
2H17, management has indicated plans for several new launches spread over its
four locations with total target proceeds of IDR2.5trn.
On
another note, 1H17 results is slated to be released by the end of July with
management indicated on a flat YoY achievement for the company. Aside form
the low presales achievement, we are also cautious over its high gearing
level and high interest costs. As such we keep our NEUTRAL recommendation on
Summarecon, with TP of IDR1,420, implying 53% discount to NAV. (Yualdo Tirtakencana)
Link
to daily report: Indonesia Morning Cuppa 190717
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Media Highlights:
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Corporate
Adhi Karya signs new
contract worth IDR25.4trn
Adhi Karya (ADHI IJ,
Neutral, TP: IDR2,100) has signed new contracts worth IDR25.4trn up to June
2017 or around 57.7% from the target of IDR44trn in FY17. The new contracts
include LRT construction phase I around IDR19.7tn. For contribution of
business, the contracts are dominated by construction and energy sectors with
97.7%. In 2017, the company targets IDR14.5tn in revenues, an increase of
27.1% YoY. (Kontan)
Comment: Adhi Karya (ADHI IJ,
NEUTRAL, TP: IDR2,100) recorded poor new contracts collection of IDR5.7trn
(-5.2% YoY) (excluding IDR19.7trn LRT Greater Jakarta) in 1H17, accounted for
32.6%/27.1% to our/company’s FY17F estimates. Based on our conversation with
the company, 2Q17’s results will not be good, as potential turning point
could be seen in 3Q17 instead. Maintain Neutral on the stock. (Dony Gunawan)
NPL declines while loan growth moderates
Retail sales growth to grow at single digit
in FY17
Textile exports up by 0.62% YoY in 1H17
Astra International 4W sales increased by
9.4% YoY in 1H17
Link Net to expand in Medan and Batam
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Our
Recent Publication:
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Economics Update: Exports And Imports
Decline In June Due To Festivity
Link to report: Exports
And Imports Decline In June Due To Festivity
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Corporate News Flash: Waskita Karya –
Positive Outlook Ahead
Link to report: Waskita
Karya : Positive Outlook Ahead
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Sector Update: Real Estate – Presales
Improved In 2Q17 With Confidence Intact
Link to report: Presales
Improved In 2Q17 With Confidence Intact
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Sector Update: Engineering &
Construction – All Is Well
Link to report: All
Is Well
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Sector Update: Plantation – Cautious Mode
On
Link to report: Plantation:
Cautious Mode On
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Company Update: Bank Negara Indonesia –
Gaining Momentum
Link to report: Bank
Negara Indonesia : Gaining Momentum
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Strategy: Smoother Homecoming
Link to report: Indonesia
Strategy: Smoother Homecoming
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Sector Update: Coal Mining – China’s Hydropower Capacity Cut – a
Potential Upside
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Economics Update: M2 Growth Continues Uptrend, Loan
Growth Moderates
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Sector Update: Food & Beverage Products
– Potential Impact Of Recent Wheat Price Jump
Link to report: Potential
Impact Of Recent Wheat Price Jump
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Best regards,
Helmy Kristanto
Director
Head of Indonesia Research
PT RHB Sekuritas Indonesia
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