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Good morning,
Astra International
– Robust July Wholesale
Astra International
(ASII IJ, BUY, TP: IDR9,850) reported a robust wholesale in July 2017. We see
that this was partly driven since dealers are restocking after the Lebaran
holidays. Astra’s July 4W wholesale increased 31% MoM (+33% YoY), while 2W
wholesale rose 52% MoM (+98% YoY). YTD-July, Astra’s sales growth was faster
than the national sales growth. Astra’s market share in 4W increased to 56%
in 7M17 (from 52% in 7M16) and 2W market share rose to 74% (from 72%) in the
same period.
Going
forward, we see rising competition in the domestic auto market from
Mitsubishi Xpander and Wuling Confero. In the last month, Astra’s share price
declined by 17% in anticipation of rising competition. Astra is now trading below
1xSD from its average rolling forward P/E. We reiterate our BUY call on Astra
with a TP of IDR9,850 (25% upside), implying 17x FY18F P/E. (Andrey Wijaya)
Link
to daily report: Indonesia Morning Cuppa 220817
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Company Update:
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Bank Mandiri (BMRI
IJ, BUY, TP: IDR15,000), New President Commissioner and CFO
Bank Mandiri’s
extraordinary AGM yesterday appointed Hartadi A. Sarwono as the President
Commissioner (previously Commissioner in BNI) and Darmawan Junaidi as the new
CFO (previously CFO in Semen Indonesia [SMGR IJ, Neutral, TP: IDR9,800] and
head of treasury in Mandiri). We expect no major changes in Mandiri's
business model going forward. (Eka Savitri)
Indofood CBP (ICBP
IJ, BUY, TP: IDR10,200), Impact from declining wheat price
International wheat
price has declined since the end of July. Indofood CBP – whose main raw
material is flour - should benefit from this condition. On our visit,
Indofood CBP said that in the first two weeks of July its instant noodle
sales were 20% higher YoY, which we believe was partly driven by merchants
restocking its inventories.
Maintain BUY with
IDR10,200 TP (18% upside), implying 21x FY18F P/E. (Andrey Wijaya)
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Media Highlights:
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Corporate
Gas production
targetted to increase to 1.2mn barrels in 2018
United Tractors
targets Tanjung Jati groundbreaking at end of August
Semen Indonesia
supplies concrete for Jakarta-Cikampek toll road
Bukaka Teknik
receives IDR2trn loan facility
PP Presisi targets
IDR300bn net income
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Our
Recent Publication:
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Economics Update: Exports And Imports
Rebounded in July After Festivities
Link to report: Exports
And Imports Rebounded in July After Festivities
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Economics Update: CAD Continues To Widen In
2Q17, BOP Surplus Declines
Link to report: CAD
Continues To Widen In 2Q17, BOP Surplus Declines
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Company Update: Summarecon Agung – Targets Cut Amid
The Low Achievement
Link to report: Summarecon
Agung : Targets Cut Amid The Low Achievement
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Sector Update: Plantation – Stock/Usage Ratios Back
To Historical Average
Link to report: Stock/Usage
Ratios Back To Historical Average
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Results Review: Indosat – Underinvestment
Poses a Medium Term Risk
Link to report: Indosat
: Underinvestment Poses a Medium Term Risk
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Sector Update: Financial Technology –
Embracing The Disruptor
Link to report: Financial Technology – Embracing
The Disruptor
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Economics Update: Economic Growth Sustained
In 2Q17
Link to report: Economic
Growth Sustained In 2Q17
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Results Review: Bank Rakyat Indonesia – More Room For
Improvement
Link to report: Bank
Rakyat Indonesia : More Room For Improvement
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Company Update: Nippon Indosari Corpindo – Expecting
Sunshine After The Storm
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Company Update: Aneka Gas Industri – Muted Volume
Growth Due To Lebaran Break
Link to report: Aneka
Gas Industri : Muted Volume Growth Due To Lebaran Break
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Company Update: Wijaya Karya Persero – Stronger Year
Ahead
Link to report: Wijaya
Karya Persero : A Stronger Year Ahead
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Best regards,
Helmy Kristanto
Director
Head of Indonesia Research
PT RHB Sekuritas Indonesia
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