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Good morning,
Summarecon Agung –
Meeting Takeaways
We met with Summarecon Agung’s (SMRA IJ,
Neutral, TP: IDR1,125) management to get the latest insight on the company’s
performance with the following key takeaways:
¨ Management maintain
FY17 presales target at IDR3.5trn and remain confident target will be
achieved through several new launches in this 2H17. 8M17 presales was booked
at IDR1.84trn or 53% from company’s target and 68% from our target.
o Several upcoming new launches in this 2H17 are:
o Bekasi – Burgundy phase 2 in 23 Sept, with total target
proceeds of IDR210bn
o Serpong – Symphonia landed houses in Oct, with total
target proceeds of IDR 450bn
o Bandung – residential and commercial launches in 4Q17,
with total target proceeds of around IDR660bn.
o Karawang – Residential launch in 4Q17, with total
target proceeds of IDR200bn.
¨ Though confident for
this year, management’s view towards 2018 was rather conservative with flat
target marketing sales as it is near election year.
¨ Regarding gearing
position, there will IDR900bn of bonds due in 2018. The company plans to
refinance the bond by using its several of internal cash plus issuing another
bond. The company targets to lower its debt/equity ratio to 90%.
Link to daily
report: Indonesia Morning Cuppa 180917
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Sector Update:
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Automotive – New MPV by SGMW tested in
Jakarta
SGMW
is likely to launch a medium MPV which is called Wuling Baojun in the Chinese
market. In Indonesia, this vehicle is likely be equipped by 1.5 ltr or 1.8
ltr machine with manual transmission and will be competing with Astra's
Toyota Avanza or Toyota Innova. Estimated selling price is around IDR200m.
Our recommendation on Astra is BUY with a TP of IDR9,200, implying 17x FY18F
P/E. (Andrey Wijaya)
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Economics Update:
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Exports And Imports
Moderated in August After Festivities
Exports moderated to
a growth of 19.2% YoY in August, after rising by 41.1% in July. We believe it
was affected by the normalisation in shipments as July’s number was affected
by holiday festivities in June. Moving forward, we envisage the export of
goods and services to return to a growth of 10% in 2017, vis-à-vis the -3.5%
recorded in 2016. This is on the back of a low base effect, a pick-up in
primary commodity prices and an improvement in global demand.
¨ We expect the
current account deficit (CAD) to widen in 3Q17. In August, the trade
account recorded a surplus of USD01.7bn from -USD0.3bn in July. However, the
surplus in the first two months of the quarter is lower than that in 2Q,
suggesting that Indonesia’s CAD in the balance of payments could widen during
the third quarter.
¨ Exports moderated
in August,
mainly on account of a slowdown in non-oil & gas exports after the
normalisation of shipments.
¨ The moderation in
exports by destination was observed across both the advanced countries and
emerging markets.
This was mainly on the back of an easing in exports to Japan, China, ASEAN,
the US and the EU.
¨ Imports, likewise,
eased during the month. Imports moderated to an increase of 8.9% YoY (+54% in
July). This was on account of a slowdown in both volume and price of non-oil
& gas imports and a decrease in volume of oil & gas imports. (Rizki Fajar)
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Media Highlights:
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Corporate
August wholesale 4W
sales stagnant
Semen Indonesia
considers IDR2trn bond
Adhi Karya looks to
arrange LRT financing scheme
Hero Supermarket
eyeing expansion
Alfa Energi books
new USD45mn contract
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Our
Recent Publication:
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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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Company Update: Indofood CBP – A Flat Price For
Noodles, a Higher Price For Dairy
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Company Update: Matahari Department Store –
Moving From Growth To Dividend Play
Link to report: Matahari
Department Store : Moving From Growth To Dividend Play
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Company Update: Bukit Asam – Assesing PLN’s
Request On The Coal Price Formula
Link to report: Bukit
Asam : Assesing PLN’s Request On The Coal Price Formula
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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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Best regards,
Andrey Wijaya
Senior Vice President
Research Analyst – Auto, Consumer, Cement
PT RHB Sekuritas Indonesia
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