Undervalued Adaro Group
Shares of Adaro Energy (ADRO) have gained more than 40% in the past six months to trade at Rp3,520 on Tuesday (Aug 27), but the company was still valued less than equity and traded with PE multiple 4.5 on annualised earnings in the first half.
Revisiting Vale Indonesia
Shares of state nickel firm Vale Indonesia (INCO) faces a 1.05% loss to Rp3,770 to make market capitalization of Rp39.73 trillion. Vale, an established nickel player in Indonesia, is valued smaller that Harita Nickel (Rp59.31 trillion) and new player Merdeka Battery Materials/MBMA (Rp58.31 trillion).
Revisiting Harum Energy
Shares of Harum Energy (HRUM), one of coal groups entering nickel, gained significantly in the past few days since the company announcing a stock buyback plan on August 9. The last quoted price, however, reflected market capitalisation of Rp18.4 trillion, still way below equity (Rp21.2 trillion).
Low margin of Berau Coal
PT Berau Coal Energy Tbk (BRAU), one of the largest coal miners in Indonesia controlled by Sinarmas Group (Widjaja Family), booked net profit of US$6.7 million only from sales revenue of US$1.27 billion in the first half of 2024.
Revisiting Jhonlin Agro
Shares of Jhonlin Agro Raya (JARR), engaged in plantation and CPO processing owned by South Kalimantan businessman Haji Isam, fell by 0.79% to Rp250 on Monday (August 19), moving further away from IPO price (Rp300), despite recent news about involvement of the group in food estate project in Papua.
New & Renewable Energy Update
Shares of Kencana Energi Lestari (KEEN), one of renewable energy players listed on the Indonesia Stock Exchange (IDX), ended flat at Rp710 on Friday (Aug 19) to make a market capitalization of Rp2.6 trillion. Unlike Barito Renewables (BREN), Kencana Energi was valued way below equity and traded with PE multiple 9 only.
Alarming signs from export-import data
Indonesia’s export grew 6.5% year-on-year, while import expanded by 11%. Some analysts see these as positive signs of ‘stronger domestic investments’, but that might not be the case. Export growth was mainly attributable to higher average price of volatile commodities like oil & gas, gold and copper.
Reality Check on Axiata-LinkNet (2)
Fixed broadband operator Link Net (LINK), subsidiary of Axiata Group, where telco operator XL Axiata owns 20% shares, suffered loss of Rp282.3 billion in first half this year, surged by 120% from the corresponding period last year.
XL Axiata + SmartFren = ?
XL Axiata (EXCL) and SmartFren (FREN), which are in the process of merger, have finally released their respective first half 2024 results. XL Axiata improved in almost all aspects of operations, while SmartFren came up with relatively weaker figures.
Hutama Karya & Governance Issues
So, Bintang Perbowo, former CEO of PT Hutama Karya, a state-owned EPC firm tasked to develop the trans-Sumatra toll road, has been named suspect in a corruption case. The Corruption Eradication Commission (KPK) has also seized 54 plots of land owned by IZ, one fellow suspect in the case.