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Good morning,
Sentul City – Visit
notes
We paid a
visit to Sentul City (BKSL IJ, NR), here are the key highlights:
¨ Sentul City
currently has over 1,900 ha of landbank with 335.6ha available for near-term
future development.
¨ This year the
company will deliver several landed house projects, high rise apartments, and
commercial projects where majority of the products will have price in the
range of IDR280mn – 3bn per unit.
¨ Management targets
FY17 marketing sales of IDR1.2trn, 7M17 achieved IDR620bn. Management also
mentioned that recently Sampoerna group has bought 10ha of land in the area
for IDR240bn that will go into 3Q17 marketing sales.
¨ There will be LRT
station crossing over Sentul City. Thus, the company is building TOD nearby
the station called Centerra superblock with total saleable area of ~29ha that
will consist of:
o Currently operating Pertamedika hospital and Giant
Supermarket
o AEON Mall – Operational in Mid 2018 (GFA of 103,414sqm)
o Saffron Residence apartment – 2019
o Office tower
o 5 star hotel
¨ AEON mall is under
long-term rental agreement with the company with rental fee of
o USD12/sqm – First 5 years
o USD15/sqm – next 5 years
o USD30/sqm – next 5 years
¨ BKSL’s balance sheet
is quite healthy with net gearing of 9%. In addition, the company targets
topline growth of 14.9% CAGR (FY13-21F) while EBITDA margin is forecasted to
contract to 33% in 2021F.
¨ Using management’s assumption, the stock is
currently trading at 6.8x FY17F P/E. However, the company did not gave out
dividends in the past except 2013 & 2014. (Yualdo
Tirtakencana)
Link
to daily report: Indonesia Morning Cuppa 150817
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Company Update:
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Nippon Indosari
indicates rights issue price
Nippon Indosari
indicates rights issuance's exercise price in range of IDR1,200 - 1,300 per
share. The company plans to issue maximum 1.15bn new shares with maximum
dilution of 18.52%. The company may announce final rights issue exercise
price in mid September. We maintain Neutral on ROTI with IDR1,180 TP (2%
downside) which implies FY18F P/E of 21x. (Andrey
Wijaya)
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Sector Update:
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Cement – Robust July
cement sales, partly driven by seasonality
Domestic July cement
sales jumped to 5.6m tonnes (+51% MoM, +56% YoY) which we see this were
likely driven by seasonality since cement distributors stock-up its
inventories after the Lebaran holiday. We believe cement distributors lowered
its inventory during two-weeks Lebaran holiday to minimise inventory risks.
Semen Indonesia (SMGR IJ, Neutral, IDR9,800 (implies 14x FY18F P/Es), 8%
downside) domestic market shares slipped to 39.9% in July (from 41.3% in
June), while Indocement (INTP IJ, Sell, TP: IDR12,800 (implies 14x FY18F
P/Es), 44% downside) market shares increased to 25.9% in July (versus 25.1%
in June). Semen Indonesia maintained is ASP at IDR733,000/tonne (+0.1% MoM)
in July.
YT-July, domestic
cement sales reached 34.6m tonnes (+5% YoY), driven by bulk cement which
increased by 11% YoY (versus bag cement rose 3% YoY). We are Neutral on
Indonesia cement sector since we see this year’s domestic overcapacity
situation is likely to remain sustain. However, cement sales which are
cyclically high in 2H, should ease competition in the domestic cement market.
(Andrey Wijaya)
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Media Highlights:
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Corporate
Ministry of Transportation allocates
IDR129bn subsidy for Palembang LRT
Gajah Tunggal sets bond rate at 8.37%
Sariguna plans to add three new plants
Puradelta books 37ha land sales
Lotte Chemical Titan signs new agreement
with the holding company
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Our
Recent Publication:
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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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Company Update: Harum Energy – Strong Earnings To
Continue
Link to report: Harum
Energy : Strong Earnings To Continue
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Best regards,
Helmy Kristanto
Director
Head of Indonesia Research
PT RHB Sekuritas Indonesia
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