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Good morning,
Mitra Pinasthika
Mustika – Visit notes
We met with Mitra Pinasthika Mustika’s (MPMX IJ, NR)
management to get the latest update about the company’s performance. Here are
the following takeaways:
¨ The company divested
20% of MPM Finance in May to its strategic partner JACCS (8584 JP, NR) at
IDR450bn. Currently the company held 20% in MPM Finance.
¨ Post divestment,
consolidated 1H17 top line declined by 7% while bottom line went up 40%. The
company also has a healthier balance sheet with 1H17 net debt declined to
IDR1.7trn (from IDR6.7trn pre-divestment), which made net gearing to drop to
0.3x (from 1.1x).
¨ In Aug, new oil
plant was completed in Cilegon with capacity of 100mn litres per year and 30%
less manual labors to operate. With the operation of the new plant, Mitra
plans to look for partnerships for marketing so that the company will be able
to maximize utilisation rate of the new plant. Management targets 65 – 70%
utilisation rate for 2018.
¨ As of 1H17,
Distribution & Retail remains the major driver with 80% revenue
contribution, while Consumer parts contributed 11%, Auto Services 8%, and
Financial Services at 1%. As for bottom line contribution post divestment,
both Distribution & Retail and Consumer parts contributed 41%, Auto
services 10%, and Financial Services 8%.
¨ During 1H17, total
sales volume of 2W declined by 9% YoY and 4W volume by -67% YoY because Mitra
shut down its Nissan-Datsun dealerships from 11 to 5. Nonetheless, it aims to
cooperate with new principles by offering them a new business model via an
online platform, in which the company is able to offer a wide range of auto
sales and services to prospective buyers. In addition, lubricant sales volume
also fell by 6% YoY.
¨ Based on 1H17 volume
achievement, we estimate that full year volume achievement on 2W to be ~10%
lower, ~57% lower for 4W, and ~5% lower for lubricants.
¨ Mitra also plans to
refinance its USD200m bond this Sept through syndicated loans. Management
estimates cost of funds to be reduced by around 1% or cost savings of around
IDR26bn.
¨ We do not have
rating on this counter. Based on consensus estimates, Mitra is currently
trading at 8.2x FY17F P/E and 7.3x FY18F P/E.
(Yualdo Tirtakencana)
Link to daily report:
Indonesia Morning Cuppa 250917
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Company Update:
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Indika Energy to
acquire majority stake in Kideco.
Indika Energy (INDY
IJ, NR) may acquire a further 45% stake in its subsidiary Kideco Jaya Agung,
making its stake in Kideco to increase to 91%. Currently, the company holds
46% stake in Kideco. Indika will purchase a 40% stake from Samtan – who owns
49% of Kideco’s shares – for USD610mn. Furthermore, Indika will also purchase
5% of Kideco’s shares from Muji for USD67.5mn, making the total transaction
value to reach USD677.5mn.
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Media Highlights:
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Corporate
Bank Indonesia
lowers policy rate to 4.25%
Ciputra issues
USD150mn MTN
Total Bangun Persada
achieves 78.5% of new contract target
Alfa Energi
Investama signed IDR97bn contract
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Our
Recent Publication:
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Corporate News Flash: Astra International –
Vehicle Sales Rise MoM In August
Link to report: Astra
International : Vehicle Sales Rise MoM In August
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Sector News Flash: Telecommunications –
Spectrum Auction In October
Link to report: Spectrum
Auction In October
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Company Update: United Tractors – Boost From Mining
Heavy Equipment Upcycle
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Company Update: Hexindo Adiperkasa – All Good News Is
Already Priced In
Link to report: Hexindo
Adiperkasa : All Good News Is Already Priced In
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Sector Update: Heavy Equipment – Still At
The Start Of An Upcycle
Link to report: Still
At The Start Of An Upcycle
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Economics Update: Exports And Imports
Moderated In August After Festivities
Link to report: Exports
And Imports Moderated In August After Festivities
|
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Company Update: Bekasi Fajar - JV
Divestment Is Positive
Link to report: Bekasi
Fajar : JV Divestment Is Positive
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Sector Update: Building Materials – Higher
Monthly Sales But Margins May Narrow
Link to report: Higher
Monthly Sales But Margins May Narrow
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Sector Update: Coal Mining – Share Price
Correction Overdone
Link to report: Share
Price Correction Overdone
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Corporate News Flash: Bumi Serpong Damai –
Acquisition Of Office Property Units
Link to report: Bumi
Serpong Damai : Acquisition Of Office Property Units
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Best regards,
Andrey Wijaya
Senior Vice President
Research Analyst – Auto, Consumer, Cement
PT RHB Sekuritas Indonesia
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