Author: yosefardi.com

Corporations to Watch

Asian stocks moved in narrow range this morning amidst uncertainties in Europe and commodities market. Nymex crude oil has also been moving in narrow range recently. Indonesia Stock Exchange (IDX) composite index lacks interesting news other than Bakrie-Rothschild ‘war’. Yet, watch out the following companies: Bakrie Telecom (BTEL), Vale Indonesia (INCO), Apexindo, etc. BAKRIE TELECOM (BTEL): This company declines further by 1.82% to Rp270 this morning, way below the price paid by Mount Charlotte (Rp340). Looks like investors are waiting ‘big news’ from BTEL’s creditors. “There are concerns about the debts,” one banker informed us. APEXINDO – TUSCANY: Apparently the deal between Mitra Resources (MIRA) and John Fredricksen’s Tuscany has yet to be closed. Bondholders of Apexindo are worried about the development. VALE INDONESIA (INCO): Australian fund has reportedly been working on possible acquisition of Vale subsidiary in Indonesia. “As far as I know, INCO is the only subsidiary of Vale in Indonesia, right,” one fund manager commented. We will get clarification on this very soon. One thing is clear, INCO shares soared almost 25% in the past two months. BAYAN RESOURCES (BYAN):  San Miguel Corporation has been given three months time frame to conduct due diligence on Bayan Resources for possible acquisition of Dato Low’s shareholding. “We might see the decision in March,” one banker said. ANADARKO PETROLEUM: Anadarko, which reported substantial loss last year, reportedly plans to...

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Djoesianto Law & Network

Consciencefood Holding Ltd is a small cap on Singapore Exchange (SGX). It has market capitalization of S$85.2 million. That’s probably why Mr Djoesianto Law has yet to be included in the Forbes’ list of rich people. Still, it is interesting to watch Mr Law’s maneuvers. Last week, Consciencefood Holding (CSH) announced that it has finalized orders for the beverage production machineries for a total investment of approximately S$11 million, of which S$2.5 million will be funded from the net proceeds of the group’s IPO in 2010 (it raised S$21.12 million). The machineries are expected to be delivered to the Company’s production factory in Medan, Indonesia, in the first half of financial year 2012 and the Company targets to complete the installation of the machineries to commence production of beverages by the second half of financial year 2012. The same week, CSH announced that its subsidiary PT Olagafood Industri Makanan dan Minuman (Olagafood) entered into acquisition of land in Jakarta with a factory equipped with machineries for the production of instant noodles for a total consideration of S$10 million cash. Olagafood purchased the land from PT Olagafood Sukses Mandiri (OSM). Mr Djoesianto Law and his wife Nurni Anggasanah initially owned 100% PT OSM, but divested the company in December 2007. The factory houses four (4) instant noodles production lines, sauce production lines and various other ancillary equipment like boiler plants and generator sets. The Acquisition will enable the...

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Kagum Group

Started out business in fashion, Kagum Group has grown into a substantial property and leisure group in the country. The group might be considered king of factory outlets in the country. It has also expanded into banking and dinning business. We’re talking about a business group founded by Mr Henry Husada. Those shopping lovers are already familiar with the group’s factory outlets: Korek Api Jeans, Stamp, Renaritti, Runway, Jetset, Gossip, Cihampelas Point, Lilly-Rose, Wanted, KPK, Superhero, Mr Bean, Batman, Rose, Aladin Jeans, Superman Jeans, Galeria Jeans, Parijs van Java, and anakku. All of these assets are controlled by PT Renaldi Jaya Eka Inti. From the factory outlet business, Kagum expanded into hotels and villa. The group now controls the following brands: Grand Serela (Bandung), Grand Serela (Kuta, Bali), Banana Inn (Bandung, 92 rooms), Carrdin, Grand Sereti (Bandung), Golden Flower (193 rooms), Gino Feruci (Bandung), Gino Feruci Villa (Lovina, Bali), Zodiak, Malaka Hotel (48 rooms), Prime Royal (Surabaya), etc. The group has also expanded into property sector, including apartment. Its portfolios include Mt Haryono Residence (apartment, Jakarta, 650 units), Jarrdin (Bandung, PT Karya Kagum Husada—4 towers, 2444 units), StarHill (apartment, Bandung), Golden Flower (Cirebon), Grand Asia Afrika (Bandung, 2248 units), Garden Vista, CityLight, Grand Orchard, Grand Dago (4 tower, 2180 units under PT Mutiara Dago), etc. Most of property assets are controlled by PT Bersaudara Kagum Sejahtera, which also owns...

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When Podomoro is One Third of Karawaci

Lippo Karawaci (LPKR) maintains its position as the largest property company listed on Indonesia Stock Exchange (IDX) by market capitalization. On Friday, the stock was worth Rp21.9 trillion, more than three times of Agung Podomoro Land (APLN), which is lot more profitable. While LPKR has gained 46% year-to-date, APLN lost 4.3%. Trading value of APLN shares has been relatively smaller in recent months. May 2002 was the last time the stock traded more substantially. This is interesting because actually public investors hold 29.86% shares of APLN. (FYI: PT Indofica holds 47.28% shares, PT Jaya Lestari Persda 14.68%, and PT Simfoni Gema Lestari 5.07%). While LPKR is now traded 25 times annualized earning per share (EPS) of first half 2012, APLN is only 7.9 times EPS. APLN actually reported strong balance sheet and performance. The company generated net profit of Rp437 billion in the first half of 2012 or an annualized ROE of 18.8%. LPKR also reported net profit of Rp437 billion in the period, but its ROE was substantially smaller than APLN. So, either LPKR is overvalued or APLN is greatly undervalued…   LPKR APLN BALANCE SHEET (Rp Billion) (Rp Billion) ASSET 21259 11770 (1) Current Assets 16860 5425 (2) Non-Current Assets 4398 6345 LIABILITIES 11047 6323 (1) Short-Term 2889 2603 (2) Long-Term 8158 3720 EQUITY 10212 4645       PROFIT-LOSS (Rp Billion) (Rp Billion) Revenues 2406 2317...

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Coal Journal

Thermal coal price in Newcastle Port, Australia, the largest coal export terminal in the region, stood at US$91.55 per ton Friday (August 17). The commodity is now 26% below January 2012 price. Pressures on coal-related stocks continue in the region. In this report: (1) Altura’s Indonesian Acquisition, (2) Lanna Resources, and (3) Nalco-MEC. Coal shipment from Newcastle Port increased to 2.09 million tons for the week ended August 20 from 1.8 million tons in the week ended August 13. ALTURA MINING: Altura, listed on ASX, has executed a formal Sale and Purchase Agreement (SPA) to purchase an 80% equity in the PT Kodio Multicom (KM) and PT Marangkayu Bara Makarti (MBM) coal projects located in South Kalimantan, Indonesia. Both KM and MBM coal projects are located immediately south of the existing three (3) Tabalong Coal Project JV (TCP JV) tenements in the Tabalong Regency of South Kalimantan covering 9,560 hectares. This has boosted Altura’s area in Kalimantan to 17,221 hectares. The vendors will retain the remaining 20% equity in each project. The financial consideration for the acquisition is US$1 million per project plus a royalty to the vendors of US$2.50 per ton of coal mined and sold from each area. The vendors will also be provided with a loan facility of up to US$4 million to assist in their plans to provide possible long term transport solutions to the Tabalong...

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LNG & LPG Terminal Investors

State-owned companies Pertamina, Perusahaan Gas Negara (PGAS), and Perusahaan Listrik Negara (PLN) are all entering LNG receiving terminal business. Other than competition between them, there are also growing interests from private sector to reap potential benefit from growing domestic consumption of gas. Who are they? BOSOWA GROUP: Controlled by Aksa Mahmud family (Aksa is brother in law of former VP Jusuf Kalla), Bosowa plans to work with Pertamina in the construction of LPG terminal with 10,000 tons capacity in Makassar, South Sulawesi. The US$40 million project is funded with internal cash and loans from banks. KHATULISTIWA GROUP: PT Khatulistiwa Mandala Energy, subsidiary, plans to build LNG terminal in Damar Island, Seribu Islands Regency, Jakarta. EWC CORP: This ASX-listed company plans to build a US$500 million LNG terminal in East Java in cooperation with local administration. KRAKATAU GROUP: PT Krakatau Bandar Samudera (KBS), subsidiary of steel giant Krakatau Steel (KRAS), plans to build LNG Terminal in Cilegon, Banten province. Late last year, KBS has signed HoA with PT Energy Dian Kemala CEO Johanes Jani Bunyamin for the project. PT Energy Dian Kemala is subsidiary of PT Bhakti Migas Utama. CHANDRA ASRI: Chandra Asri (TPIA) is working with Vopak Asia Pte Ltd (Singapore) for the construction of US$150 million LPG terminal in Cilegon, Banten province. This is part of the company’s effort to diversify raw materials supply from the current naphtha....

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Who Stands to Gain?

The Jakarta Post runs a headline titled ‘Andi Case to Hit Dems in 2014 Polls’ this morning following antigraft commission KPK’s decision to name Andi Mallarangeng (minister of youths and sports, politician from President SBY’s Demokrat Party) and his brother Choel Mallarangeng (played crucial role in SBY-Boediono campaign in 2009) corruption suspects. Even before the case, Demokrat’s approval rating has dropped substantially to a distant third behind PDI-P and Golkar Party. The case of Hartati Murdaya (businesswoman, key financial supporter and advisor of Demokrat Party) had also worsened the party’s image. Maneuver from Dahlan Iskan (minister of state-owned enterprises) in reporting lawmakers, including three from Demokrat Party, for an alleged extortion only added the pressures. SBY’s own approval rating rocked bottom. Worse, police chief, who is under his direct command, ignored his earlier appeal to stop ‘assaulting’ KPK. This week, media reported of how National Police withdrew more experienced investigators at KPK, systematically weakening the agency’s capacity to launch investigations. The next big fish targeted by KPK is clearly Anas Urbaningrum, chairman of Demokrat Party. Most people believe it is just a matter of when Anas will be named suspect in the Hambalang sports center scandal. Further delays in naming Anas might only worsening Demokrat’s preparation into 2014 elections. The question, of course, who will, as Lennin put it, stands to gain from Demokrat’s miseries? Some surveys placed Golkar far...

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IPO to Watch: Bank Maspion

Bank Maspion Indonesia, based in Surabaya, East Java, has finally kicked off the initial public offering (IPO) after years of on-and-off, including plan to divest the bank to strategic investors. The bank offers 380 million shares, representing 10.98% of its total issued and paid-up shares capital. Prospect? The offering is scheduled for January 2-4, 2013 while listing at stock exchange is set fo January 10, 2012. The IPO proceeds will be used to fund the bank’s loan expansion. As of June 30, 2012, the bank’s assets totaled Rp3.13 trillion, of which credit amounted Rp2.31 trillion, a 20% rise compared to Rp1.92 trillion as of December 2011. Its liability amounted Rp2.75 trillion, of which customers’ deposits accounted for Rp2.72 trillion. Bank Maspion booked net profit of Rp11.08 billion in the first half of 2012 on net interest income of Rp60.99 billion. The bank’s capital adequacy ratio (CAR) stood at 16.02% and non performing loan (net) was 0.16% as of June 2012 while  loan to deposit ratio (LDR) reached 79.91% as of December 2011. Currently Bank Maspion operates 10 branch offices and 11 cash offices. The bank has access to 39,000 units of automated teller machine (ATM) facility. Bank Maspion’s shareholders are PT Alim  Investindo (84.61%), PT Guna Investindo (8.46%, and other individual shareholders (below 2% each). This will become the third company under Maspion Group in the stock exchange. Two others, PT...

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Market Snapshots

Main indexes of Wall Street ended in narrow range again Thursday, while Nymex crude oil slipped to US$86 per barrel, weighing recovery of energy stocks worldwide. In this report: (1) Indosat, (2) Exploitasi Energy, (3) Resource Alam, (4) New Equities. Indosat (ISAT): Second largest telecommunication company PT Indosat Tbk (ISAT) is now studying the impact of tower sales on the company’s revenue and the industry. Alexander Rusli, Indosat’s president director, said the aggresive growth of tower industry has dragged down the bargain power of the telecommunication operators. Currently, the biggest players in tower industry are PT Tower Bersama Infrastructure Tbk and PT Sarana Menara Nusantara Tbk. Rusli said these two tower operators dominate the market and tend to control the price of leasing and sales of towers. “We have to decide whether we want to play to make them bigger or we seek third option, or replace the dinamic of the industry,” he was quoted by Bisnis Indonesia this morning. In early August 2012, independent tower operator Tower Bersama has completed the acquisition of 2,500 towers from Indosat for an upfront consideration of US$406 million. Indosat, as the anchor tenant, has entered into new lease agreements with TBIG on all 2,500 towers, for a minimum period of 10 years. Exploitasi Energi (CNKO): Energy company PT Exploitasi Energi Indonesia Tbk (CNKO) plans to issue bond worth US$500 million to US$1 billion in the second half of 2013, to fund the...

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H1 Earnings: Jasa Marga & Bekasi Fajar

Jasa Marga (JSMR) outperformed IDX composite this year. The stock gained 35%, while composite index inched up by 6% only. A guaranteed growth in toll road tariff shielded the company from the crisis, while public have limited options. Industrial estate developer Bekasi Fajar (BEST) is another top gainer, benefiting from growing demand for industrial area for manufacturing. JASA MARGA The state-owned toll road developer generated strong results in the first half of 2012. Other than impacts from higher toll road tariffs, the company enjoyed the growing traffic in various areas. The company sits over a huge cash (Rp4.5 trillion as of June 30, 2012). With relatively strong balance sheet, the company should be in a very strong position to accelerate toll road development in the country. The company’s net profit margin also improved to 48.4% in the first half, while the annualized ROE is around 20.6%. The following table might be useful for your analysis. Jasa Marga 30-Jun-12 31-Dec-11 Change (%) Assets 22,030 20,922 5.3   Current 4,512 3,997 12.9   Non Current 17,518 16,925 3.5 Liabilities 13,032 12,477 4.4   Current 3,965 3,912 1.4   Long Term 9,067 8,566 5.8 Equity 8,998 8,445 6.5   Shares Volume 6,800 6,800 0.0   1H12 1H11   Revenues 3,274 2,836 15.4    Operating Profit 1,586 1,262 25.7    Net Profit 891 710 25.5    Profit Attributable to Equity Holders 925 711...

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