Recent Posts

RHB Indonesia - Bank Rakyat Indonesia - Growing Bigger Through Micro Lending (Bank Rakyat Indonesia, Mitra Adiperkasa, Bumi Serpong Damai)




Good morning,

Bank Rakyat Indonesia – Growing Bigger Through Micro Lending
We maintain our BUY call on BRI with a new GGM-derived IDR16,500 TP (from IDR14,500, 14% upside) as we rollover our valuation to 2018. Micro lending would continue to be its core business despite the uncertainties over the KUR programme – this is as the Government reviews the interest rate subsidy scheme and budget annually. BRI’s asset quality would remain manageable due to its significant exposure to the micro, salary-based and SOE lending segments. The bank is now Top Pick in our domestic big-cap banks universe.
Rabu, 24 Mei 2017

RHB Indonesia - Company Update: Bumi Serpong Damai (BSDE IJ, BUY, TP: IDR2,650), Maintains a Solid Performance




Company Update:
Bumi Serpong Damai (BSDE IJ, BUY, TP: IDR2,650)
Maintains a Solid Performance

 
We have mentioned in the past about our belief that 2017 is the year to be positive on the real estate sector. As the Top Pick in the sector, BSD posted strong 1Q17 results and marketing sales; we believe the company will be able to maintain its solid performance in the coming quarters. Maintain BUY with TP of IDR2,650 (47% upside), which implies a 50% discount to RNAV.

RHB Indonesia - Indosat - Hoping For Yield Improvement (Indosat, Indo Tambangraya)




Good morning,

Indosat – Hoping For Yield Improvement
ISAT’s 1Q17 results were in line with both our and consensus expectations. Its subscriber base and data revenue both maintained decent growth due to a successful rebranding. However, we have yet to see evidence of an effective monetisation of mobile data. Maintain NEUTRAL and our DCF-derived TP of IDR7,100 (WACC: 10.7%. TG: 1%) as we believe the stock rerating is done.
Selasa, 23 Mei 2017

RHB Indonesia - Strategy: Finally Investment Grade Status




Strategy:
Finally Investment Grade Status

 
Underpinned by a stronger budget posture on an improved revenue collection, which could lead to a manageable fiscal deficit of below 3%, S&P upgraded Indonesia’s long-term sovereign credit rating to an investment grade of BBB- (from BB+) with a stable outlook. As a result, we upgrade our index target to 6,150 (from 5,850) on inflow-driven re-rating coupled with higher earnings growth expectations. Companies with a big market capitalization would probably lead the initial wave of performance increase and we expect broader positive performance across sectors. We are positive on banking, consumer, telecom, infrastructure, coal, retail and property sectors and are negative on plantation and poultry sectors.
Senin, 22 Mei 2017

RHB Indonesia - Indonesian Government plans to restrict coal exports in 2019




Good morning,

Indonesian Government plans to restrict coal exports in 2019
Jakarta Post cited Sri Raharjo, the coal and mineral program supervision director at the energy and mineral resources ministry, that Indonesian Government plans to tighten coal export policy starting 2019 in order to preserve coal supply for domestic power generation amid growing demand in Southeast Asia.

Kamis, 18 Mei 2017

RHB Indonesia - Coal Mining - Welcoming New Members Into MSCI Small Cap Index




Good morning,

Coal Mining - Welcoming New Members Into MSCI Small Cap Index
Delta Dunia Makmur and Harum Energy would become new members of Indonesia’s MSCI Small Cap Index effective the close of 31 May 2017. The inclusion should be positive for the share price performances of Delta Dunia Makmur and Harum Energy, in our view. Recent pullbacks in the share prices of Delta Dunia Makmur and Harum Energy have created opportunities to accumulate the counters. We believe coal price (Newcastle, CV 6,300kcal/kg) should trade between USD64-78/tonne, and that China, as the biggest consumer and producer of coal in the world, has an interest in maintaining the coal price at a certain level, which would generate profit for its coal miners.
Rabu, 17 Mei 2017