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Good morning,
Ground checks –
Indofood’s higher flour retail selling price MoM, but flat noodle selling
price
Based on our ground
checks in a Hypermart store in Jakarta, Indofood Sukses Makmur’s (Indofood)
(INDF IJ, BUY, TP: IDR10,300) flour Segitiga Biru and Kunci Biru
retail selling price increased by 9% MoM and 8% MoM respectively – possibly
to pass on higher wheat price which jumped at end of June. Meanwhile, Cakra
Biru’s retail selling price remain flat.
Indofood’s instant
noodle retail selling prices was also flat MoM. For premium instant noodle,
Mayora (MYOR IJ, NR)’s Bakmi Mewah retail selling price increased by
8% MoM which is now level with Indomie Real Meat’s price. Since its price
difference to its competitors narrowed, we see Indofood’s premium instant noodle
sales is likely to increase.
Instant
noodles accounted for c.52% of Indofood’s consolidated 1H17 EBIT, while flour
(Bogasari) contributed 14% to EBIT. We maintain BUY on Indofood with
IDR10,300 TP (23% upside) which implies 16x FY18F P/E. (Andrey Wijaya)
Link to daily
report: Indonesia Morning Cuppa 060917
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Media Highlights:
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Corporate
Modern retail
ceiling price will be upheld until end of year
LMAN allocates
IDR237bn to pay interest for bailout fund
Domestic air
passengers posts 11% growth
Ciputra targets
IDR1trn presales from Northwest Hill
Perusahaan Gas
Negara cuts net income target
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Our
Recent Publication:
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Economics Update: July Loan Growth Picks
Up, M2 Growth Moderates
Link to report: July
Loan Growth Picks Up, M2 Growth Moderates
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Economics Update: August Inflation Remains
Moderate After Holiday Season
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Results Review: Perusahaan Gas Negara –
Another Downside Surprise On Distribution Margin
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Company Update: Astra International –
Rising Auto Competition, Promising Mining Units
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Sector Update: Coal Mining – Headwinds from
PLN
Link to report: Headwinds
From PLN
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Results Review: Adaro Energy – Strong 2Q17
Earnings
Link to report: Adaro
Energy : Strong 2Q17 Earnings
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Company Update: Ramayan Lestari – Closing
10 Supermarkets To Benefit Earnings
Link to report: Ramayana
Lestari : Closing 10 Supermarkets To Benefit Earnings
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Company Update: United Tractors – Increasing Growth
Of Mining Contracting Volume
Link to report: United
Tractors : Increasing Growth Of Mining Contracting Volume
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Results Review: Bekasi Fajar – Expect To Maintain Its
Performance In 2H17
Link to report: Bekasi
Fajar : Expect To Maintain Its Performance In 2H17
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Economics Update: BI Cuts Key Policy Rate, Maintains
Neutral Stance
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Best regards,
Andrey Wijaya
Senior Vice President
Research Analyst – Auto, Consumer, Cement
PT RHB Sekuritas Indonesia
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