Recent Posts

RHB Indonesia - United Tractors - Further growth on mining contracting volume (United Tractors)




Good morning,

United Tractors – Further growth on mining contracting volume

Mining contracting volume growth continue to expand. Mining contracting business, the biggest contributor to United Tractors’ consolidated revenue, shows further expansion in volume growth. Its overburden removal volume grew by 7.0%YoY in 5M17 (vs 5.7%YoY in 4M17) while coal production volume grew by 5.6%YoY in 5M17 (vs 4.6%YoY in 4M17). We expect the growth of volume should keep expanding in remaining of the year as rainy days should become less frequent in coming months as BMKG’s forecast that most of Sumatera and Kalimantan would see the dry season commencement from June.
Kamis, 22 Juni 2017

RHB Indonesia - Modernland Realty - Site visit notes (Modernland Realty, Wijaya Karya Beton, Astra International)


Good morning,

Modernland Realty – Site visit notes

We recently visited Jakarta Garden City (JGC), a 370 ha residential & commercial mega cluster of Modernland located in East Jakarta, to get a better understanding about the products.

¨ JGC is the main focus of the company’s marketing sales with ~140 ha of remaining land bank in the area per 31 March 2017. JGC is located in East Jakarta and 15 minutes from Kelapa Gading and also accessible via the newly opened Tanjung Priok – Cawang toll road segment that connects to Jakarta inner ring toll road. Other points of entry includes the Bekasi raya road. The residential development targets middle income segments with average price range of IDR1.5bn – 2.5bn per unit and land price of IDR12.5m/sqm. Management mentioned that the marketing strategy is to continue selling the products of the existing clusters with no launch events except for a new cluster opening. During our visit, we view the JV area with Astra is still under construction with some undeveloped paddy fields, while Mississippi clusters is still under construction with a few houses already built and Thames clusters has been handed over to buyers in April 2017. Clusters with the most residents are the Garden City cluster and the Palm Spring cluster (both were early clusters developed by Keppel Land). AEON Mall soft opening is scheduled in September 2017 with Grand opening in December 2017, while the 3.7ha land area for IKEA is being prepped for ground breaking with operation slated in 2Q18. Other facilities in JGC includes, Global Mandiri school, Food Garden, Modern market, Mayapada hospital (coming soon), and Club House. The company will also launch new commercial products in JGC on July and October targeting IDR1.5trn in marketing sales.
Rabu, 21 Juni 2017

RHB Indonesia - Semen Indonesia - ASP Sees a Slower Reduction In May (Semen Indonesia)




Good morning,

Semen Indonesia – ASP Sees a Slower Reduction In May

Semen Indonesia slowed its domestic selling price reduction thanks to it remaining in a strong position in the domestic market. Despite the tough competition, it has succeeded in increasing its market shares in the last six months. We cut our earnings estimates, driven by higher production costs, but maintain our DCF-based IDR9,800 TP (1% downside) implying a 14x FY18F P/E as we roll forward our valuation. Although this year’s domestic overcapacity situation is likely to remain, its sales, which cyclically high in 2H should ease competition. Maintain NEUTRAL.
Selasa, 20 Juni 2017

RHB Indonesia - Indonesia Morning Cuppa - 19 June 2017




Good morning,

Indonesia’s investment board targets IDR795trn direct investment in 2018
Indonesia’s Investment Coordination Board (BKPM) has set a target of IDR795trn in 2018, up by 17.2% from this year’s target of IDR678.8trn. From that amount, domestic direct investment accounts for 37.6% while foreign direct investment accounts for 62.4%. Singapore, China, Japan, South Korea, Taiwan, and Malaysia are the countries expected to significantly contribute to Indonesia’s FDI figure in 2018. In 2016, Singapore is the country with the highest amount of direct investment in Indonesia with USD9.2bn. (Investor Daily)
Senin, 19 Juni 2017

RHB Indonesia - Exports And Imports Accelerate In May




Good morning,

Exports And Imports Accelerate In May

Exports bounced back with an increase of 24.1% YoY in May, after slowing to a growth of 13.6% in April. This was led by a surge in non-oil & gas exports, mainly driven by a rebound in electrical and mechanical machinery/equipment. Moving forward, we envisage the export of goods and services to return to a growth of 10% in 2017, vis-à-vis the -3.9% recorded in 2016. This is on the back of a low base effect, a pick-up in primary commodity prices and a gradual improvement in world merchandise trade volumes.
Jumat, 16 Juni 2017

RHB Indonesia - Ciputra Development - Strong May presales (Ciputra Development)




Good morning,

Ciputra Development – Strong May presales

Ciputra Development (CTRA IJ, BUY, TP: IDR1,900) booked Jan - May 2017 presales of IDR2,635bn (-59% YoY) or equivalent to 31% from this year's target of IDR8,505bn. During the month of May presales went up significantly by 155% MoM to IDR1,017bn driven by the sales of landed houses & land lots. In terms of product mix, landed house contributed 58% while land lot 39% in May 2017. Majority of the property were sold in Greater Jakarta area while Sulawesi came in at second, shifting from Surabaya in 4M17.
Kamis, 15 Juni 2017