State-owned construction firm PT PP (PTPP) and PT Krakatau Tirta Industri, subsidiary of state steel producer Krakatau Steel (KRAS), set up a joint venture (JV) entity (PT Pembangunan Perumahan Krakatau Tirta) which engages in developing drink water supply (SPAM) in Gresik, East Java province with capacity of 1000 liters per second. PTPP holds 75% interest in the JV while Krakatau Tirta holds the rest.
PTPP also prepares some strategies for boosting its earning, after posting the lowest growth in earning last year compared to the 2015-2017 period with 30% growth. The delay in some projects (mainly the EPC segment) also affected poor earnings growth last year. PTPP also opted to cut and hold some private projects of revaluation purpose.
The slow progress on land acquisition for toll road projects and dam also affected the margin. For this year, PTPP will boost the investment projects for feeding its construction business. It allocates capital expenditure (capex) of Rp8.73 trillion for this year, compared to Rp6.78 trillion capex of last year. PTPP allocates Rp1.27 trillion on infrastructure project this year.
State miner Aneka Tambang (ANTM) mulls to refinancing its debt for reducing its cost of funds, as the Company has improved its earning performance. ANTM suffered a loss in 2014-2015, but it posted profits from 2016 (Rp65 billion) to 2018 (Rp874.42 billion). In 2017, it booked a net profit of Rp136.5 billion.
ANTM will also boost its business expansion this year, to responding the improving world commodity prices, and to serve the growing demand in the country. It will accelerate its mineral downstream program by completing all projects by 2021. It allocates capital expenditure (capex) of RP3.38 trillion for this year, a 21% rise compared to last year’s capex (Rp2.79 trillion).
Hospital operator Siloam International Hospitals (SILO) plans to operate 3-5 hospitals this year. It allocates capex of Rp200 billion for this year. SILO targets a double-digit growth for revenues and net profit this year.
The Company booked a net profit of Rp26.39 billion in 2018, dropped 25% from Rp103.5 billion in 2017 due to higher operating expenses. Revenues rose 12% to Rp5.96 trillion from the previous year Rp5.3 trillion, but operating expenses also increased by 20.4% to Rp1.63 trillion from earlier Rp1.35 trillion.
The largest telecommunication operator Telekomunikasi Indonesia (TLKM), or Telkom, through its subsidiary (PT Dayamitra Telekomunikasi/Mitratel), acquired 95% stake in telco tower operator PT Persada Sokka Tama (PST). Within the next 24 months, Telkom will purchase the 5% shares of PST. Currently, Mitratel operates more than 12,500 telco towers in the country. PST has more than 1,000 telco towers.
Multifinancing firm Adira Dinamika Multifinance (ADMF), subsidiary of Bank Danamon (BDMN), issues bonds and Islamic bonds (Sukuk) worth Rp1.6 trillion, offering annual coupon rates at 7.75% to 9.5% with the tenor of 370 days, 36 months, and 60 months. Indonesia Eximbank will also issue bonds and Sukuk, targeting to raise Rp2.5 trillion.
Financing firm Buana Finance (BBLD) mulls to seek bilateral loans of Rp100 billion from Bank QNB Indonesia and Rp150 billion loan from Bank Mayora. It also mulls to find a bilateral loan of Rp1 trillion from Deutsche Bank AG. Recently, Buana Finance signed a syndicated loan of Rp1 trillion led by Bank Central Asia (BBCA).
DISCLAIMER: AUTHOR HAS NO POSITION IN STOCKS MENTIONED
By Yohannes Obor
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