RHB Indonesia Morning Cuppa - 04 April 2018 (Harum Energy, Today's News)

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Company Update Harum Energy Firing On All Cylinders We expect the coal production at MSJ, a subsidiary of Harum, to recover to 4.5m tonnes in FY18, from its low of 3.2m tonnes in FY16, which is still below its peak level of c.9.7m tonnes from FY13. Harum’s other subsidiary, KUP, would commence its first production during 4Q18. Meanwhile, Harum’s JV PT Santan Batubara would re-commence its production in 2H18. We consider the sizable net cash position of USD266m, could enable Harum to make accretive acquitions going forward. We reiterate our BUY call with an unchanged DCF-derived TP of IDR3,300 (23% upside).

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Rabu, 04 April 2018

RHB Indonesia Morning Cuppa - 03 April 2018 (Inflation, Mitra Adiperkasa, Today's News)

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Economic Update Inflation Picks Up In March Headline inflation picked up to 3.4% YoY in March (+3.2% in February). This was due to faster growth in the price of raw food and cost of transport and health. Looking ahead, we expect the headline inflation to inch lower to 3.6% in 2018, from +3.8% in 2017. This is on account of: 1. The Government’s commitment to keep energy prices stable; 2. Manageable volatile food prices.

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Selasa, 03 April 2018

RHB Indonesia Morning Cuppa - 02 April 2018 (Economic Outlook, Money Supply, Today's News)

Indonesia Morning Cuppa

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Economic Update Stronger Growth Amid External Headwinds Despite the increasingly protectionist stance in US trade policies, we still expect Indonesia’s economy to grow at a slightly faster pace of 5.3% YoY this year, compared with 5.1% YoY in 2017. This is premised on the country’s limited exposure to the value chain, and on account of a pick-up in government spending, as the 2019 presidential election nears. Stronger growth in investments, and a marginal improvement in consumption growth during the year would also help.

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Senin, 02 April 2018

RHB Indonesia Morning Cuppa - 28 March 2018 (Alam Sutera, Adaro Energy, Today's News)

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Company Update Alam Sutera Outlook Remains Positive Alam Sutera booked strong FY17 earnings that beat our and consensus estimates. This was due to revenue recognition of land sales to CFLD, houses, apartments, and our previously conservative estimates. Going forward, we revise our marketing sales and adjust our revenue recognition method, which leads to a higher FY18F earnings. Maintain BUY with a lower SOP-based TP of IDR470 (from IDR540, 22% upside) implying a 68% discount to NAV. The counter is currently trading at a 73% discount to NAV.

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Rabu, 28 Maret 2018

RHB Indonesia Morning Cuppa - 27 March 2018 (Delta Dunia Makmur, United Tractors, Today's News)

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Company Update Delta Dunia Makmur Growing earnings Delta Dunia booked FY17 reported a net profit of USD47m (+25.9%YoY), which was in line with our estimates but below consensus’ expectations. We think its reported earnings should grow sizably in FY18, on the back of strong volume growth in 2018 and non-recurring tax expenses of ~USD33m in FY17, which are unlikely to re-occur this year. We reiterate our BUY call on Delta Dunia with an unchanged IDR1,400 TP (44% upside), which implies FY18F P/E of 8.9x.

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Selasa, 27 Maret 2018

RHB Indonesia Morning Cuppa - 26 March 2018 (US and China Trade Tariffs, Other People's Wars and Value Chains, Today's News)

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Regional Thematic Impact on Equities From Tariffs US And China Trade Tariffs On Friday we issued a note “Other People’s Wars And Value Chains” on the announcement by the US administration that it will impose significant tariffs on Chinese products being exported to the US; Now we discuss the effects on equities in our footprint.

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Senin, 26 Maret 2018