Category: Business

Corporate Actions

Two Indonesian businessmen, Patrick Walujo and Jerry Ng, will acquire 51% shares of the publicly listed lender PT Bank Artos Indonesia Tbk (ARTO) from the existing shareholders Hardy family. Both of them will absorb the share through rights issues program.

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First Half Results

Property developer Bumi Serpong Damai (BSDE) booked a net profit of Rp2.09 trillion in the first half (H1) of 2019. It jumped 411% from Rp409 billion in the corresponding period of 2018, mainly supported by other income, while revenues grew 15.4% to Rp3.6 trillion from Rp3.12 trillion previously. Gross profit rose 18% to Rp2.64 trillion, and operating profit increased by 48% to Rp1.48 trillion. 

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Market This Week

Global markets will face more pressure this week as trade tension intensifies. Bloomberg reported that U.S. equity futures tumbled while the yen and Treasury contracts climbed after the latest escalation in the furtherSino-American trade war. The yuan slumped, and stocks looked headed for steep losses in Asia.

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Domestic market of coal

Thermal coal inched up 0.07% to US$67.3 per ton last Friday (Aug 23), but the last quoted price represented 37% fall year-on-year. Global economic slowdown hurts the prospect of coal in export market, but domestic market of the commodity is set to grow faster in the coming years from power generation, mineral processing (especially bauxite, nickel, and cement), and the drive to add value for low-calorie coal.

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‘Bail-out’ of Eximbank & Duniatex

The government plans to inject Rp5 trillion of capital into Lembaga Pembiayaan Ekspor Indonesia or Indonesian Eximbank in the State Budget 2020. The plan is criticized because the agency’s non-performing loans (NPL) jumped from 6.81% in 2017 to 13.73% last year. NPL was predicted to grow further because of its huge exposure to the default of Duniatex.

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First Half Results of Adaro

While most coal miners reported a profit decline for the first half (H1) of 2019, The second-largest coal producer Adaro Energy (ADRO) posted a profit growth. The Company focused on maintaining healthy margins and continued to be disciplined with its costs.

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Positive H1 Performance of ANTM

State miner Aneka Tambang (ANTM) reported unaudited net sales of Rp14.43 trillion for the first half (H1) of 2019, a 22% growth year on year (y/y). Its gold sales, the main contributor, grew 14% to 15,741 kilograms (kg), compared to 13,760 kilograms in H1 last year. Gold contributed Rp9.61 trillion sales or 67% of total ANTM’s sales in the said period. The higher average price of gold and nickel could also support the company’s financials in the third quarter.

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Market & Rate Cut

The central bank (Bank Indonesia/BI) gave a surprise with the second cut of its benchmark interest rate (BI 7-day repurchase repo rate), by 25 basis points (bps) to 5.5%. The deposit facility and lending facility rates are also reduced by 25 bps to 4.75% and 6.25%, respectively.

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Construction: Update on Turnkey Fund

State-owned construction firm Wijaya Karya (WIKA) will get a payment of Rp6 trillion for turnkey projects in the second half (H2) of this year through its subsidiary Wijaya Karya Beton (WTON) to maintain its cash flow. That said projects are Balikpapan-Samarinda toll road project (Rp4 trillion) and energy project (Rp2 trillion). Per June 2019, WIKA has cash and cash equivalent of Rp5.62 trillion.

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First Half Results: TOWR & TBIG

Telecommunications tower operator Tower Bersama Infrastructure (TBIG) booked a net profit of Rp382 billion in the first half (H1) of 2019. It declined 5.2% from Rp403 billion in the corresponding period of 2018, as it paid higher tax, while revenues grew 9.57% to Rp2.28 trillion from previous Rp2.08 trillion.

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Market & Fed Rate

Fed officials viewed their interest-rate cut as an adjustment that would help counter the effects on the outlook of weak global growth and trade policy uncertainty (while promoting a faster return of inflation to the central bank’s target), the minutes of the July meeting showed. 

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Sinarmas Coal Play

Pretty much as predicted Golden Energy and Resources Ltd, a company controlled by Sinarmas Group, has gradually increased its ownership in ASX-listed metallurgical and thermal coal miner Stanmore Coal Ltd. Sinarmas is now on its way to become one of the largest coal groups in the region with operations in Indonesia and Australia.

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