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Good morning,
Indika Energy –
Company visit note
We met with the head of investor relations
and corporate finance of Indika Energy (INDY IJ, NR). Followings are key
takeaways from the meeting:
¨ The acquisition of
additional 46% stake of Kideco Jaya Agung to be completed in November 2017. Kideco is the main
driver of Indika Energy’s earnings. Indika Energy would consolidate Kideco
since 1Q18 financial statement.
¨ Kideco Jaya Agung’s
FY18F coal production range between flat to 10% increase from FY17. Kideco Jaya Agung
target to produce coal production of 32m tonnes in FY17. Kideco’s FY18F coal
production range between flat to 10% YoY increase. Its stripping ratio in
FY18 is expected to be unchanged from FY17 of 6x
¨ Mitrabahtera Segara
Sejati (MBSS IJ, NR) may not get benefit from the change in majority
shareholders of Kideco. Based on our discussion with management of Indika,
MBSS may not get additional contracts from Kideco project post the acquisition
of additional 46% stake of Kideco because there are two logistics and
transhipment related companies that serve Kideco.
¨ Not rated. We do not have
rating on Indika. Using ceteris paribus assumptions, Indika is trading at
FY18 P/E of 5.0x. (Hariyanto Wijaya, CFA,
CPA, CMT)
Link to daily
report: Indonesia Morning Cuppa 231017
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Media Highlights:
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Corporate
Investment for LRT
project is predicted to go up by IDR1trn
Bulog rice
absorption to reach 2.3mn tonnes in 2017
Jasa Marga and
Wijaya Karya wait for rating on Komodo bonds
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Our
Recent Publication:
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Economics Update: BI Pauses In October
After Easing August-September
Link to report: BI
Pauses In October After Easing August-September
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Guidance For 9M17
Link to report: Bekasi
Fajar : Waiting On Guidance For 9M17
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Company Update: Arwana Citramulia – Revenue
Remains Robust Despite Elevated Costs
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Economics Update: September Exports
Moderate, Imports Pick Up
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Moderate, Imports Pick Up
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Sector Update: Building Materials –
Infrastructure Projects Boost Bulk Cement Sales Growth
Link to report: Infrastructure
Projects Boost Bulk Cement Sales Growth
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Company Update: Ciputra Development – Toning Down Our
Forecasts
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9M17 Marketing Sales Are In Line With Estimates
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Regional Thematic: Halal – An Earnings
Boost Strategy
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Economics Update: September Inflation
Remains Moderate
Link to report: September
Inflation Remains Moderate
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Company Update: Nippon Indosari Corpindo –
Details On Rights Issuance
Link to report: Nippon
Indosari Corpindo : Details On Rights Issuance
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Best regards,
Andrey Wijaya
Senior Vice President
Research Analyst – Auto, Consumer, Cement
PT RHB Sekuritas Indonesia
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