Wednesday, February 28, 2018

Indonesia - Stock Picks for Today - March 1, 2018: BSDE, LSIP, SIMP, GMFI, WSKT, WSBP, AUTO, SMGR, KLBF, JPFA, WTON, INKP, PGAS, MEDC, WEGE, KMTR



1. Bumi Serpong Damai (BSDE)
  • In the year 2017, BSDE posted revenue of Rp 10.35 trillion, up 57% compared to the same period of the previous year of Rp 6.6 trillion. BSDE is able to posted the increase in net profit to 173% to Rp 4.92 trillion from Rp 1.79 trillion previously.
  • BSDE have landbank about 2,500 - 2600 acre so it has a chance to build anything in accordance with the needs of the community, such as high rise building at an affordable price. While the total assets of the company up to 31 December 2017 reached Rp 45.95 trillion, up from Rp 38.53 trillion in the period December 31, 2016.
2. London Sumatra Indonesia (LSIP)
  • In 2017, the company posted net profit amounted to Rp 763,48 billion, up 28.56% from the previous Rp 593,82 billion in 2016. Sales rose 23.1% to Rp 4,73 trillion from Rp 3,84 trillion previously. Earning per share increase to Rp 112 from the previous Rp 87. In addition, the company posted total assets also increased to Rp 9.74 trillion from the previous Rp 9.45 trillion.
  • FYI, according to MRC Stratistics, the global market of palm oil and derivatives estimated USD 80.3 billion in 2015 and be USD 130.2 billion in 2022.
3. Salim Ivomas Pratama (SIMP)
  • In the year 2017, the SIMP revenue amounted to Rp 15.83 trillion, or grow 8.92% from Rp 14.53 trillion in the year 2016. Meanwhile, net profits amounted to Rp 512.20 billion or down 4.85% yoy compared to of Rp 538.33 billion.
  • The company increases the total palm oil processing capacity by constructing two new palm oil mill completed in 2017, as well as one other plant to be completed in 2019. The company also expanded on refining CPO factory in Surabaya with capacity 300,000 tonnes per year which is expected to be completed in the first quarter of the year 2018.
3. GMF AeroAsia (GMFI)
  • In 2017, GMFI posted operating income reached US$ 439.3 million, up 13 percent compared to the same period of the previous year's US$ 388.7 million. The company's net profit increased by 15.3 percent to $50.9 million US. Meanwhile, total assets rose 22% from US$ 442.6 million in 2016 to US$ 539.2 million in 2017.
  • The company is targeting revenues this year to be around US$ 505 million, or a rise of 15% compared to last year's realization of US$ 439.28 million. Net profit also targeted growing double digits. Income from non-group is also expected to increase from the current 37% to 48%.
  • The company this year preparing capital expenditures of US $100 million or Rp 1.37 trillion, up nearly 400% from the previous year. Capital expenditures this year are used for the construction of a hangar in Batam and capabilities development i.e. the engineering component, a capacity of footprint, rejuvenation as well as security aspects.
4. Waskita Karya (WSKT)
  • Minister of State-Owned Enterprises will overhaul its Board of Directors Waskita Karya in the general meeting of shareholders (AGM) April 2018.
  • Analysts suggest the accumulation buy because the projects moratorium are temporary, and construction of infrastructure is a top priority of the Government. The construction sector is ideal for medium and long term investment, predictable and still continues to grow.
  • Currently, 15 of the 17 project construction was suspended during the construction of the overpass by the Government has already started to be worked on again.
  • WSKT has increased the paid-in capital and is placed in cash to PT Trans Jabar Toll (TJT) amounted to Rp 112 billion. TJT is a subsidiary of Waskita Toll Road with ownership of 99.99%. TJT is toll road concession holder for Bogor-Ciawi-Sukabumi.
5. Waskita Beton Precast (WSBP)
  • WSBP disbursed funds Rp 27 billion for construction of laboratory with building area 2,261 m2 in Karawang, West Java. The lab was built with more complete facilities include research, product testing, and new product development. The plan, the new laboratory will start operating in may 2018.
6. Astra Otoparts (AUTO)
  • AUTO posted growth of net profit amounted to 31.85% year on year through the year 2017 to Rp 551.41 billion, while the 2016 year of Rp 418.20 billion. The increase in revenue is a result of the increased performance of the replacement market, export sales, as well as the increased contribution to net profit from joint ventures and associated companies.
  • Indo Premier predicts, income year 2018 to Rp 14.71 trillion, 2019 to Rp 16.11 trillion, and 2020 to Rp 17.65 trillion. As for the net profit forecast of 2018 Rp 647 billion. 2019 with a net profit of Rp 797 billion, and 2020 with a net profit of Rp 915 billion.
7. Semen Indonesia (SMGR)
  • SMGR targeting power plants from the waste heat recovery power generator (WHRPG) capacity of 30.6 MW in Tuban will be operational in April 2018. This project could reduce CO2 emissions amounted to 122,358 tons per year.
  • The project worth of 220 billion, started construction in 2014, This is the result of cooperation between the Ministry of Industry, SMGR and NEDO Japan.
8. Kalbe Farma (KLBF)
  • KLBF established the biosimilar factory in an industrial area of Delta Silicon Cikarang. For the first stage, the company has issued investment of Rp 700 billion.
  • In five years, the product is targeted to contribute income biosimilar to Kalbe reached 25-30%, or up from the current contributions by 10%. The company will produce six biosimilar products in the next five years, such as granulocyte for the stimulus of red blood cells, erythropoietin for the blood cell stimulus, insulin, and some monoclonal antibody drugs for cancer.
9. Japfa Comfeed Indonesia (JPFA)
  • JPFA intend do a buyback that will be implemented over the next 18 months after the general meeting of shareholders (EGM) on 5 April 2018. Buyback period lasted until 5 October 2019. Buyback will also be performed at any time, depending on market conditions. The company revealed, buyback was done to improve the shareholders return on equity and maximize returns to shareholders.
10. Wika Beton (WTON)
  • WTON recorded rise in profit of 23.4 percent up to 31 December 2017 period to Rp 337.12 billion, compared to net profit of Rp 273.00 billion in the same period a year earlier. Net income rose to Rp 5,36 trillion from Rp 3,48 trillion a year earlier. While total assets until 31 December 2017 reached Rp 7.06 trillion rise sharply from total assets until 31 December 2016 which Rp 4,66 trillion.
11. Indah Kiat Pulp & Paper (INKP)
  • Taiwan urges calm amid frantic run on loo paper. Taiwan's Premier called for calm yesterday following a desperate run on toilet paper on the island, sparked by speculation of imminent price hikes. Shelves usually stacked with toilet paper, kitchen paper and boxed tissues stood empty in many supermarkets as residents rushed to stockpile supplies. Major online retailers had also run out, including PChome, which reportedly sold five million packs of toilet paper in three days.
  • The panic buying started after major supermarkets were informed by toilet paper manufacturers of a 10 per cent to 30 per cent price hike from mid-March due to rising international pulp prices. The price of the short fibre pulp used to make toilet paper now costs about US$800 (S$1,000) per tonne, compared with US$650 a year ago, according to Taiwan's Ministry of Economic Affairs.
  • Forest fires in Canada and disruption to production in Brazil are among the factors being blamed.
12. Perusahaan Gas Negara (PGAS), Medco Energy Intertational (MEDC)
  • Shell says the market for LNG grew by 29 million tons last year, 30 percent more than previously expected.
  • Trading in LNG reached 293 million tons in 2017, up from just 100 million tons at the turn of the century. At nearly 300 million tons, suppliers shipped enough LNG last year to power about 575 million homes, by Shell's count. In Asia alone, demand rose by 17 million tonnes. That's nearly as much as Indonesia, the world's fifth-largest LNG exporter, produced in 2017.
  • Australia plans to build LNG import terminal with a capacity of 2 million tons per year to solve the problem of energy crisis. The growth in exports has led to a shortage of LNG in Australia, resulting in a surge in prices. In 2017, the domestic market more expensive than the price of exports to Japan. Australia is the second largest LNG exporter in the world. Until now, the number one exporter is Qatar.
13. Wika Gedung (WEGE)
  • Institut Teknologi Sepuluh Nopember (ITS) Surabaya has employed the contractor PT Wijaya Karya Tbk (Wika) and PT Wika Gedung Tbk (WEGE) to develop a commercial district and techno park covering an area of 30 ha.
14. Megatara Kirana (KMTR)
  • KMTR netto sales rose 57.4 percent in the period ended December 31st, 2017 become Rp 12,10 trillion, compared to sales of Rp 7,69 trillion in the neto same period of the previous year. Net profit reached Rp 423.17 billion up from Rp 209.90 billion profit the previous year. While total assets until 31 December 2017 reached Rp 3,55 trillion down from total assets until 31 December 2016 which Rp 3,80 trillion.


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