Saturday, February 24, 2018

Indonesia - Stock Picks for Tomorrow - February 26, 2018: ACES, BUMI, ADRO, PTBA, KLBF, BNGA, BBTN, MLBI, BTPN, BNLI, BMRI, BBNI, WSKT, TCID, BFIN



1. Ace Hardware Indonesia (ACES)
  • The company has always been consistent in giving dividends due to the performance that continues to grow. According to the rules, the amount of the dividend is 20% of net profit. But the last three years, this value is 40-50% of the profit.
  • ACE Hardware Indonesia (ACES) recorded the sales high enough at the beginning of this year. In January 2018, ACES revenue up 17% year on year (yoy). Revenue ACES per January 2018 reached Rp 541.82 billion or up compared to January 2017 of Rp 446 billion.
  • In the year 2018, ACES is targeting revenue growth of 10%, or less than the year 2017 revenue growth of 18%.
  • The company's capital expenditure in 2018 reaching Rp 300 billion for investment 10-15 new outlets. Currently, ACES has 144 outlets and up to the year 2020, ACES optimistic could have 200 outlets.
2. Bumi Resources (BUMI), Adaro (ADRO), Bukit Asam (PTBA)
  • The selling price of coal continued to show strengthening since last two weeks. The high price of black gold due to the high level of global demand. Demand for coal is high enough going on in China, America and some other countries of Asia. As many as 41% of the world's electricity is currently still relies on the supply of coal and it is estimated by the year 2040, coal will contribute 77% power plant. The International Energy Agency predicts coal demand world in 2022 will reach 5.5 billion tons. Although current demand for coal from the United States and Europe are likely to be weakened, but demand from Asia is able to compensate.
  • The positive movement of coal prices still above $100/ton, makes the company optimistic its target revenue this year will rise. The company's projected revenue this year to be USD 5.5 billion this year, from the results of sales of about 90 million tons of coal. Revenue projections rose 12.24 percent (yoy) of the estimated revenue last year.
  • Thailand coal imports in January 2018 rose 21.8% to 1.6 million metric tons. Imports from Indonesia in January 2018 rose 93.9% to 969.919 metric tons.
3. Kalbe Farma (KLBF)
  • The company is targeting the end of the year could sell biosimilar drugs commercially. Biosimilar drugs are biological medicinal products are made similar to the original drug. So far, the company has already spent investment around Rp 500 billion to build biosimilar drug plant facilities.
  • When the biosimilar drug factory already operates, KLBF was able to scoop up the target 50% market share in the country. Biosimilar drug needs in Indonesia are still filled with imported products of origin of South Korea, China and Latin America.
4. Bank CIMB Niaga (BNGA), Bank BTN (BBTN)
  • This year, BBTN targeting revenue commissions from business insurance products (bancassurance) increased 26.7%.
  • BNGA projecting growth of commissions from business insurance products (bancassurance) about 15%-20% in 2018. There are already more than 25 insurance companies that have been working with BNGA.
5. Multi Bintang Indonesia (MLBI)
  • In the year 2017, the company posted net profit of Rp 1.32 trillion, up 34.8% from the previous year of Rp 979.53 billion.
  • Net sales of Rp 3.39 trillion, up 3.98% from Rp 3.26 trillion in 2016. The company's total assets increased from Rp 2.27 trillion in 2016 to Rp 2.51 trillion at the end of 2017. While the amount of liabilities down from Rp 1.45 trillion to Rp 1.44 trillion.
  • While equity increased from Rp 820.6 billion to Rp 1.06 trillion, and cash flow reached Rp 1.3 trillion.
6. Bank Tabungan Pensiunan Nasional (BTPN)
  • Software AG has helped to accelerate the digital transformation of BTPN through improved customer service and the mobile revolution with the socio-economic spectrum across Indonesia. Software AG is Germany's leading software company that develop digital services in 70 countries dam has 4,500 employees.
  • With this mobile service, 85,000 BTPN account successfully created in just over 3 months. WebMethods Microservices Container and DevOps softwares for hosting and ongoing integration, also have helped BTPN in lowering the ratio of errors, operational costs for branch offices, and improve regulatory compliance and improvement capacity to support new services such as bill payments through internet banking.
7. Bank Permata (BNLI)
  • The company posted a net profit of Rp748 billion in 2017, after previously recorded losses in the year 2016. This achievement encouraged by improving asset quality, good credit growth in semester II/2017, recovery of bad debt (non-performing loan/NPL) and management costs in the discipline.
8. Bank Mandiri (BMRI)
  • The chairman of The People's Credit Bank Association (Perbarindo) Joko Suyanto ensured his side set up a digital service with transformation has begun implementing a cashless system with the name e-cash BPR. Perbarindo cooperate with PT Bank Mandiri by starting a pilot project.
9. Bank Negara Indonesia (BBNI)
  • BBNI interested to buy PT Bank Bukopin Tbk (BBKP) to strengthen micro-businesses, particularly to give KUR (Credit for Businesses). BBNI plan, will go through a rights issue which will be held the Bank Bukopin in mid this year. In addition to being a standby buyer in a rights issue, BBNI also wished to take over 30% of the shares currently held by PT Bosowa Corporindo.
10. Waskita Karya (WSKT)
  • The company assesses the moratorium two weeks gives the insignificant impact on financial performance, because the portion of the project elevated just a bit. For example project Jakarta - Cikampek elevated toll road elevated. The project give the income of Rp 218 billion per month to WSKT. So, if their worst scenario moratorium lasts for one month, it lost a full year only 0.004%. The company also revealed that the projects have been insured.
  • WSKT raise funds amounting to Rp 3.45 trillion from the public offer Sustainable Public Offering (PUB) III Waskita Karya phase II the year 2018. Bonds got a rating of A-(idn) from Fitch Ratings Indonesia was offered with attractive interest rates and as much as 1.17 times oversubscribed.
  • PT Waskita Karya Realty, a subsidiary of PT Waskita Karya, targeting sales of apartments of the middle and upper segments in the year reached over 2,500 units for the entire site in Indonesia. The company has developed 10 projects spread over several locations with the growth target to about 200%-300% per year. Meanwhile, capital expenditures capex of Rp 1.25 trillion from internal cash.
11. Mandom Indonesia (TCID)
  • In the year 2017, TCID record sales (unaudited) amounted to Rp2,71 trillion, or rose 7.11% from 2016 year amounted to Rp2,53 trillion. The company also recorded net profit of Rp 179,13 billion. In 2018 the company is targeting sales growth of double digits.
12. BFI Finance Indonesia (BFIN)
  • In the year 2017 corporations posted net profit of Rp 1.18 trillion, up 49% over the previous year of Rp 798 billion. Total financing to Rp 14.3 trillion or up from the initial target of Rp 13 trillion.
  • In 2018, BFI Finance projecting financing is growing at 20% range and expand its network by opening about 40 new outlets.


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