The Middle Income Trap
The Central Statistic Bureau (BPS) reported on Monday (November 6) that Indonesia’s economy advanced by 4.94% year on year (y/y) in the third quarter (Q3) of 2023, slowing from a 5.17% expansion in Q2, pointing to the weakest growth since Q3 of 2021, due to easing household consumption and declines in government spending and exports, amid moderating commodity prices.
Alfamart vs Indomaret: The contrasts
Shares of PT Sumber Alfaria Trijaya Tbk (AMRT), operator of convenience stores Alfamart, ended higher by 1.75% to Rp2,900 last Friday (Nov 3) to make a market capitalization of Rp120.4 trillion. Alfamart is now among the most ‘valuable’ stocks in the market, valued 8.6x equity as at September 30, 2023.
Financial pressure on media industry continues
Media companies listed on the Indonesia Stock Exchange (IDX) reported falling revenues and profitability, among others due to the rise of spending in social media platforms. They have grown digital platforms, but not enough to stop the decline in revenues and profit.
Higher Costs Cut Medco’s Profit
Shares of oil and gas firm Medco Energi Internasional (MEDC), co-owned by Anthoni Salim and Panigoro Families, ended slightly higher by 0.81% to Rp1,240 last Friday to make a market capitalization of Rp31 trillion, only on par its equity.
HM Sampoerna vs Gudang Garam
Shares of cigarette producers HM Sampoerna (HMSP) and Gudang Garam (GGRM), two of the country’s largest players, ended higher by 6.15% and 1.92% respectively on Thursday (Nov 2) as investors responded positively their respective financial performance in the first nine months of 2023.
Cemindo Gemilang vs peers in cement industry
PT Cemindo Gemilang Tbk (CMNT), cement manufacturer famous with its Merah Putih brand, is currently valued substantially higher than bigger and more established players like Semen Indonesia (SMGR) and Indocement Tunggal Prakarsa (INTP).
Garuda improved in Q3, but not enough
Shares of flag carrier Garuda Indonesia (GIAA) ended substantially lower by 4.4% on Wednesday (Nov 2) as investors see improvements in third quarter not enough to cheer them. Garuda recorded a net profit of US$4.1 million in the third quarter against loss of US$76 million in the first half of the year.
Correction on Amman Mineral
Shares of Amman Mineral Internasional (AMMN), parent of gold and copper miner PT Amman Mineral Nusa Tenggara (AMNT), ended lower by 3.7% to Rp6,500 on Tuesday (Oct 31) as investors digesting financial results in the first nine months of 2023.
The undervalued Indofood
Indofood Sukses Makmur (INDF), the largest food company in Indonesia owned by Salim Group, booked profit attributable to owners of Rp7.1 trillion in the first nine months (9M) of 2023, grew 54.3% year on year (y/y), thanks to substantial decline in finance costs.
Astra: What went wrong?
Astra International (ASII) booked profit attributable to owners of Rp25.7 trillion in the first nine months (9M) of 2023, up 10.3% year on year (y/y), as net revenue grew 9% y/y to Rp241 trillion. ASII shares, unfortunately, ended lower by 0.43% to Rp5,775, way below peak in 2017 (nearly Rp9,000).