Poor Q4 Drags Down PGAS, Next?
Shares of oil and gas company PT Perusahaan Gas Negara (PGAS) Tbk eroded 4.15% to Rp2540 Friday (March 17) with over 122 million shares exchanged hands as investors were disappointed with poor results in the fourth quarter of 2016, which forced PGAS to report 24% fall in net profit for the whole year.
Corporate Results: Tunas Baru Lampung, Indocement, and Prodia
Shares of Tunas Baru Lampung (TBLA), producer of palm oil & derivatives and sugar, opened higher to respond strong performance of the company last year. Second largest cement producer Indocement (INTP), meanwhile, lost almost 2% in the morning session as some investors responded negatively deeper corrections in the fourth quarter of 2016. Newly listed healthcare services provider PT Prodia Widyahusada (PRDA) Tbk gained 2% in the morning session as the Company reported strong performance in 2016.
Revisiting Kris Wiluan’s KS Energy
KS Energy Limited, a company controlled by Indonesian businessman Kris Wiluan listed on Singapore Exchange (SGX), once had market value of S$1.9 billion. That was ten years ago. Yesterday, the stock declined 1.28% to S$0.08 to make a market value of S$42 million only, less than half of its equity.
Those Continue to Invest in Indonesia: Meiji
Meiji Co Ltd, one of the largest business groups in Japan, has a long presence in Indonesian business. Started back in 1974 when it established PT Meiji Indonesian Pharmaceutical Industries in partnership with Tjipto Pusposuharto and others, Meiji has since expanded its portfolios in Indonesia to include food & beverages.
Kimia Farma (KAEF): FY16 Results & Outlook
State-owned pharmaceutical company PT Kimia Farma Tbk (KAEF) booked net profit of Rp267.4 billion last year, relatively flat compared to 2015 (Rp261 billion). The Company actually posted strong sales revenue growth of 22% to Rp5.8 trillion. Its gross profit also improved substantially by 21% to Rp1.86 trillion, but operating profit improved only by 13.3%, while financial charges surged by 66%. Combined with significant increase in tax expenses, KAEF then posted flat growth in net profit.
Revisiting Indonesian Alumina Industry
Last year was a better year for Indonesian alumina industry, at least in terms of sales revenues. Higher volume and average price of aluminium in international market, especially in the fourth quarter, contributed to the growth. PT Indonesia Chemical Alumina (ICA), a joint venture between Showa Denko (Japan) and Aneka Tambang (ANTM), for example, generated sales revenue of Rp471.95 billion, jumped by 64% from 2015.
Toll Road Projects Update
State-owned toll road developer and operator PT Jasa Marga Tbk (JSMR) has just provided updates about its toll road projects by the end of February 2017. Hutama Karya, fellow state owned company assigned to build trans-Sumatra toll road, has also updated public about status of toll road projects by March 10, 2017. Combined, they add credibility to the program pushed by Jokowi-Kalla administration.
Key Takeaways from February 2017 Trade Data
Indonesia booked trade surplus of US$1.32 billion in February 2017, an increase 16.1% year-on-year, thanks to 11.2% growth in export, while import increased by 10.6%. Higher average price of key commodities contributed to export growth, while higher price of crude and gas didn’t help much.
Cement Market in February
After a weak start, cement sales picked up slightly by 0.5% year-on-year in February, lifted by stronger performance in Java market, but relatively weaker outside Java. Semen Indonesia (SMGR) was a winner in the month with 6% growth in domestic sales to 1.92 million tons, while export sales skyrocketed 1075%.
Indosat: FY16 Results & Outlook
Indosat (ISAT), the second largest telecommunications operator, booked net profit of Rp1.1 trillion last year against loss of Rp1.31 trillion in 2015, supported by strong sales revenue growth of 9% and improved margins. Sales revenues softened in the fourth quarter, but operating profit jumped 129% in the quarter.