XL Axiata (EXCL), considered third largest telco operator, booked net profit of Rp282.4 billion in the first half of 2019, better than net loss of Rp81.7 billion in the corresponding period of 2018. Unfortunately, XL Axiata’s performance in the second quarter weakened compared to the first quarter.

We attended Indo Water Expo 2019 few weeks ago. We met some companies from China, South Korea, Germany, United States, and other countries offering their respective products. One of the companies attracting our attention is Yunnan Water Investment from China, which has already had a project in Surabaya, East Java province.

While waiting winner of the tender to acquire over 3,000 telecommunication towers from Indosat (ISAT), let’s talk about valuation of independent tower operators listed on Indonesia Stock Exchange (IDX) and their performance. Centratama Telekomunikasi (CENT) by far is the only one releasing first half financial results. This company, where private equity firm Northstar is one of shareholders, reported net profit of Rp12 billion only, crashed 82.3% from the corresponding period of 2018.

Unlike Fajar Surya Wisesa (FASW), paper producer PT Suparma Tbk (SPMA) reported a relatively stronger second quarter. Sales revenues grew 16% year-on-year, while gross profit margin improved to 16.5% in the quarter. Suparma, unfortunately, is valued substantially less than its equity.

SCG Packaging, member of Siam Cement Group, has recently completed acquisition of 55% shares in paper producer PT Fajar Surya Wisesa Tbk (FASW) for Rp9.6 trillion. At the last quoted price, Fajar Paper had market value of Rp20 trillion or 4.6 x equity as at June 30, 2019. Overvalued?

Puradelta Lestari (DMAS), developer of Deltamas City in West Java controlled by Sinarmas Group, recorded net profit of Rp625.7 billion in the first half of 2019, skyrocketed from Rp93.8 billion in the corresponding period of 2018. Why? Well, sales revenues also surged to Rp985.2 billion from Rp246.8 billion in the first half of 2018. What’s special?

Other than Mubadala-Chandra Asri and Adnoc-Pertamina, Abu Dhabi Crown Prince and President Joko Widodo witnessed the signing of a memorandum of understanding between Maspion Group (Alim Markus Family) and DP World Asia for the development of new container terminal in East Java province.

Premier League remains the world’s most attractive football competition, including in Indonesia. Interesting that the new player in the media television business, PT Global Media Visual (MOLA TV) won rights to air the competition for the next three seasons: 2019/20, 2020/21, and 2021/22. The agreement between MOLA TV and The Football Association Premier League Limited was signed in August 2018.

Ministry of industry predicts Indonesia’s export of textile and garment will reach US$15 billion this year, an increase of 13% from last year even though the first five months was relatively flat compared to the corresponding period last year. The ministry believes trade war between USA and China could benefit Indonesian producers.