Monday, 30 March 2015

Alam Sutera 2014 net profit of Rp1.1t, +25% below expectation.
Alam Sutera Realty (ASRI) reported 2014 net profit of Rp1.1t, after selling more land plots (with huge margins) than residential projects in Serpong. Total revenue fell 1.4% yoy, mainly due to change in sales mix. Gross and operating margins improved to 64% (2013: 50%) and 53% (2013: 42%) respectively, chiefly driven by higher margins from land plot sales. Despite financial expenses soaring 131% yoy to Rp390b in 2014 due to the rupiah depreciation against the US$, net margin still improved to 30% (2013: 24%).

Bank Central Asia acquiring small bank.
Bank Central Asia (BBCA) is aiming to acquire a small bank which is an industry player in the trading sector with total equity of around Rp500b. BBCA did not disclose the target bank. The company has prepared Rp1.5t, of which Rp500b will be used for acquisition and the remaining for business development. The company targets an NIM of 6% for 2015 (2014: 6.5%).

Unilever 2014 results in line with expectations.
Unilever Indonesia (UNVR) reported 2014 net income of Rp5,738.5b, up 7.2% yoy, and slightly above street’s expectation of Rp5,490b. 4Q14 net income was Rp1689.6b, up 40.7% qoq.

Retail Industry to grow 12% in 2015.
On the back of optimism over economic growth in Indonesia, the Head of Department Data and Market Information of Retail Association (Aprindo) estimates the retail business in Indonesia will grow 12% yoy to Rp188.16t in 2015.

NokScoot banned on safety concerns.
NokScoot, Thailand’s long-haul low-cost carrier, said it expected to lose about 400m baht ($12m) in revenue so far this year after Japan’s civil aviation body refused permission for 44 charter flights. China has joined South Korea and Japan in stopping Thailand-based airlines from flying new charters and routes because of safety concerns highlighted by an international audit

Tuesday, 31 March 2015

Ace Hardware 2014 results in line with expectations.
Ace Hardware (ACES) reported 2014 net income of Rp554.8b, up 9% yoy, and in line with street’s estimate of Rp549.7b. 4Q14 net income was Rp179.1b, down 6% yoy but up 37.7% qoq.

Gudang Garam 2014 results in line with expectations.
Gudang Garam reported 2014 net income of Rp5,368.6b, up 24% yoy, and in line with srreet’s estimate of Rp5,229b. 4Q14 net income was Rp1,325.7b, up 21.3% yoy and 0.3% qoq.

Ramayana Lestari Sentosa: 2014 results below expectations.
Ramayana Lestari Sentosa reported 2014 net income of Rp355b, down 8.5% yoy, and 6.5% below street’s estimate of Rp379.8b. 4Q14 net income was Rp15.4b, down 64.8% yoy and 93.5% qoq. Operating profit declined 26.4% yoy and RALS suffered an operating loss in 4Q14.

Ti Phone Indonesia 2014 results below expectation.
Ti Phone Indonesia reported 2014 net income of Rp305b, up 3.4% yoy, and 13.9% below street’s estimate of Rp354b. 4Q14 net income was Rp64.3b, down 33.6% yoy and 26.7% qoq. Operating profit was still strong, up 16.1% yoy and 10.3% yoy in 2014 and 4Q14 respectively.

Spore home prices post longest losing streak since 2004.
Singapore’s home prices dropped for a sixth consecutive quarter, the longest losing streak in more than a decade, as tighter mortgage curbs cooled demand in Asia’s second-most expensive housing market. An index tracking private residential prices fell 1.1% in the three months ended March 31, matching the longest stretch of declines since March 2004, according to preliminary data from the Urban Redevelopment Authority. The URA changed the method it uses to calculate the property index from last quarter to better reflect the property market. Residential prices fell 4% in 2014, the URA figures showed, the first year-on-year decline since 2008, as the government’s five-year campaign to rein in property values curbed demand. The drop is more prolonged than during the global financial crisis, when prices slid for four consecutive quarters, from the middle of 2008 to mid-2009.

US & Japan refuse to join AIIB.
Taiwan and Norway are the last members to join the new Asian Infrastructure Investment Bank (AIIB), with more than 40 members, including Australia, South Korea, Britain, France, and Germany that have signed up to the development bank. The US and Japan have refused to join, with both countries worried about standards of governance. The AIIB will help finance construction of roads, ports, railways and other infrastructure projects in Asia. The US has asked that the bank should work in partnership with existing institutions such as the Asian Development Bank (ADB) and International Monetary Fund (IMF). Many believe the US’s real concern is that the AIIB will undercut the IMF and World bank and increase China’s influence in the region. The ADB is traditionally headed by a Japanese official, while the IMF and World Bank are dominated by the US. However, it is believed that existing outfits like the IMF and the ADB have neither the money nor the expertise to begin to meet current challenges. Spore’s decision to join AIIB can help it cast a wider net in sharing its development expertise. This also means greater opportunities for local firms to participate in infrastructure projects in developing countries.

Wednesday, 1 April 2015

Eagle High Plantation 2014 results.
Eagle High Plantation (BWPT) reported net income of Rp189.5b for 2014 (2013: net loss of Rp17.1b), 40.4% below market forecast. Revenue increased 30.9% yoy from Rp1,730.1b to Rp2,264.4b and operating profit grew 126.7% yoy from Rp156.3b to Rp354.4b.

Mitra Adi Perkasa: Potential deal with CVC.
Bisnis Indonesia reported that Mitra Adi Perkasa (MAPI) is currently in discussion with CVC Capital (former controlling shareholder of LPPF) in which MAPI will issue a Rp1.5t bond to CVC Capital. The bond has no collateral and no coupon and has a tenure of 5 years. The bond will eventually be transferred into a subsidiary of MAPI, MAP Aktif Adiperkasa (MAA), which is involved in the sports, golf, children and shoes businesses. In 4-5 years’ time, MAA could be listed and CVC will buy a 30% stake in MAA.

Oil &Gas: ConocoPhillips to invest US$2.5b.
ConocoPhillips Indonesia is committed to invest US$2.5b within the next three to four years in Indonesia. The total investment is equivalent to Rp32t (assuming Rp13,000/US$). According to Energy Minister Sudirman Said, ConocoPhillips already invested US$2.5b in the past four years. ConocoPhillips is a major gas contributor of about 20% to the national gas production in 2014.

Foreign interests in banking acquisition.
Indonesia’s banking sector remains attractive for foreign investors as some of them have expressed their interest in acquiring local lenders. The Financial Services Authority’s (OJK) deputy commissioner for banking supervision, Irwan Lubis, said some of the foreign financial institutions had recently met with OJK senior executives to express their interest in acquiring local banks. Most of the buyers are still from Asia, such as from South Korea, Japan and China. They are looking at small-sized lenders. There are also Middle Eastern firms that are keen on taking over local lenders in the sharia banking business. One firm that has taken a more concrete step toward an acquisition is South Korea’s Shinhan Bank. It has submitted a proposal to the OJK to acquire shares within small private lender Bank Metro Express.

Coca-Cola $500m expansion in Bekasi.
Coca-Cola Bottling Indonesia, the local unit of Sydney-based Coca-Cola Amatil, started operations of two new production lines at its plant in Cikedokan, Bekasi, West Java — part of the soft drink giant’s $500m expansion in Southeast Asia’s largest market. The Coca-Cola Company, the parent company of Coca-Cola Amatil, pledged last October $500m in capital for a 29.4% stake in the Indonesian production and distribution units ­— namely Coca-Cola Bottling Indonesia and Coca-Cola Distribution Indonesia — that operate under the trading name Coca-Cola Amatil Indonesia.

Changi Airport & STB S$35m joint marketing.
Changi Airport Group (CAG) and Singapore Tourism Board (STB) announced the largest strategic partnership between both organisations to date – a S$35m joint investment in marketing initiatives. The two-year partnership will see both organisations embark on joint marketing campaigns globally and within key markets aimed at building “greater affinity and emotional ties with travellers.” One of the cornerstones of this partnership is to inject more local flavour to the in-airport experience, with plans to showcase local brands, visual installations of local cultures and other Singapore-inspired displays across all terminals.

Thursday, 2 April 2015

Astra new Isuzu production facility operation in April.
The new factory of Isuzu Astra Motor will commence operation in April. The capacity will have a capacity of 52,000 units that can be increased to 80,000 units.

Astra launching new Toyota Camry.
Toyota Astra Motor (TAM) has launched Toyota New Camry. TAM expects to sell 2,000 units in 2015, up 20% from 1,668 units in 2014. The highest variant of Camry will be the 2.5 Hybrid AT priced at Rp744.5m, variant 2.5V At at Rp580m, and 2.5 G AT at Rp545.3m. In 2014, the mid-sized sedans sold 2,484 units with Camry having a 31.7% market share.

Ciputra Development construction of EcoPlaza Mall at CitraRaya-Tangerang.
Ciputra Development (CTRA) is ground-breaking the Rp300b 2.5ha EcoPlaza Mall. CTRA has secured prominent anchor tenants, such as Gramedia, Blitz Megaplex and Farmers Market. EcoPlaza Mall is part of the mega cluster Ecopolis premium residential area, which is strategically located in the CBD area of the CitraRaya project in Tangerang. Besides EcoPlaza Mall, Ecopolis is equipped with several amenities, such as a water park, theme park, Ciputra Hospital and an office park.

Automobile: Investment commitment of US$4.42b from Japan.
According to Indonesia Investment Coordinating Board (BKPM), Japanese automobile manufacturers will invest US$4.42b to set up manufacturing facilities in Indonesia. Toyota will invest US$1.9b and Suzuki will invest US$2.52b. Mitsubishi will set up production facility in Indonesia, targeting to export 20,000 multi-purpose vehicles in 2018and 40,000-50,000 vehicles in 2019. Total investment in the automobile industry was US$2.5b in 2012, US$5.8b in 2013 and US$2.5b in 2014. Currently, the manufacturing capacity is 2m vehicles per year with domestic sales of only 1.2m units and exports of 200,000 units.

Mega losing grips on PDI-P and Jokowi.
Megawati Soekarnoputri will probably not be facing any opposition at this week’s congress for the Indonesian Democratic Party of Struggle (PDI-P), but she has to accommodate a growing consensus in her party that she should share power with younger members of the party during her next 5-year term. A study by the Centre for Strategic and International Studies (CSIS) shows that the daughter of first president Sukarno would not be able to obtain absolute support from local chapter leaders, unlike she had in the past. The study concluded that 31.5% of the 467 PDI-P chapter leaders would prefer a new leader, suggesting that Megawati will not win by acclamation, or support from every leader. For the 2014 presidential race, the PDI-P nominated then Jakarta governor Jokowi, who won against Prabowo Subianto. After he won, many PDI-P members were angry when Megawati openly attempted to control the Jokowi administration, including her gang surrounding the controversial appointment of the new National Police chief.

Sukamto ordered to pay S$132m to Low Tuck Kwong.
The dramatic fallout between two tycoons, which has dragged on in Singapore courtrooms for more than six years, has ended with a High Court ordering one to pay the other S$280,000 in damages for defamation — believed to be one of the highest for such cases not involving politicians. Mr Sukamto Sia, 55, must also pay Indonesian magnate Low Tuck Kwong an additional S$132m for an initial share sale that was foiled by his defamatory remarks. The legal feud between the former friends began in July 2008 when Mr Low was one month from an initial public offering launch for coal mining company Bayan Resources. Mr Low won the case in Nov 2013, with the Court of Appeal agreeing that Mr Sia had made false and malicious claims and ordering compensation for injuring Low’s reputation.

Retail giants seek concessions on new liquor sale laws.
As curbs on alcohol sales in Spore kicked in on Apr 1, heavyweights among alcohol sellers and suppliers have made another desperate plea to the authorities to shed light on how they can be granted concessions for longer retail hours. Their case: Franchisees’ businesses could suffer by up to 40% because of the restrictions, the five industry players said in a joint statement yesterday. Of the five are retailers NTUC FairPrice and Dairy Farm Singapore, which owns 7-Eleven, Cold Storage and Giant, among others.

Friday, 3 April 2015
Public Holiday for Good Friday