Further Pressure on Hary Tanoe’s Pay TV Business
Intensified pressures from Telkom Group’s IndiHome, Lippo Group’s LinkNet, Sariaatmadja’s Emtek Group, and Sinarmas Group’s DSSA contributed to 7.5% decline in MNC Sky Vision (MSKY), a company owned by businessman and politician Hary Tanoesoedibjo, last year. In the first quarter of 2017, pressures intensified and led to even deeper fall of 18.8% in sales revenues.
Revisiting Bumi Resources
Bumi Resources (BUMI), the largest coal producer in Indonesia, booked net profit of US$88 million in the first quarter of 2017, skyrocketed from US$22.5 million in the corresponding period last year. This was attributable to higher share in net income of associates and joint ventures, and, most of all, US$148.6 million ‘gain’ from tax adjustment.
SmartFren: Strong Sales, but…
Indonesian consumers continue to spend more in telecommunication. Growing use of social media through smart phones and gadgets, including during election of regional leaders, might have benefited telco operators. Other than market leader Telkom (TLKM), which reported strong performance in the first quarter, PT SmartFren Telecom (FREN) Tbk posted sales revenue growth of 36% in the period.
The New Territorial Commanders
The Commander of the Indonesian Military (TNI) General Gatot Nurmantyo has just announced a major job rotation in the TNI. The changes affect many job positions, including the position in the leadership of territorial command structures. Some of the new appointments are worth highlighting for the area they cover include provinces that will take part in the 2018 simultaneous regional elections.
The New Wakasad Hinsa Siburian
Maj. Gen. Hinsa Siburian has been made as the new Army Deputy Chief of Staff (Wakasad), the second highest position in the Army. He replaces Lt. Gen. M. Erwin Syafitri, who has just entered his mandatory retirement age. Hinsa will thus earn his third star.
Revisiting Bukit Asam & Resource Alam
State coal miner PT Tambang Batubara Bukit Asam Tbk (PTBA) booked net profit of Rp870.8 billion in the first quarter 2017, skyrocketed 162% from the corresponding period of 2016, thanks to improved margins. Bukit Asam’s sales revenue actually grew only by 28% to Rp4.55 trillion, but gross profit doubled to Rp1.69 trillion.
Revisiting KINO
Consumer goods player PT Kino Indonesia (KINO) Tbk launched initial public offering (IPO) in late 2015 at Rp3,800 per share. The stock rallied to as high as Rp7,175 in July 2016, but has since collapsed to Rp2,440 on Tuesday (April 25, 2017). Some investors responded negatively the Company’s performance last year.
TNI Leadership Change Rumors
Rumors are going around that the Indonesian Military (TNI) will undergo a leadership change. Suppose the rumor is true, is accelerating the appointment of a new TNI commander the right decision? Who would the President choose and from which military branch?
SinemArt’s Shareholding Dispute: Hary Tanoe v. Sariaatmadja
Two of the biggest television companies, PT Media Nusantara Citra Tbk (MNCN) belonging to Hary Tanoesoedibjo and PT Surya Citra Media Tbk (SCMA) controlled by the Sariaatmadja family, are having a dispute over shareholding in PT Sinemart Indonesia, one of the biggest entertainment and production house companies in Indonesia. The dispute occurred after a court decision stating that the sale of shares of PT Sinemart Indonesia to SCMA’s subsidiary, which was conducted in January 2017, is not valid. What’s interesting is that the decision was made in an in absentia trial and PT Sinemart Indonesia had no knowledge of the trial whatsoever. How is that possible?
Charoen & 7-Eleven Acquisition
Charoen Pokphand Indonesia (CPIN) is the largest integrated poultry player in Indonesia with sales revenue of Rp38.3 trillion last year, an increase of 27.9% from 2015. This Company booked net profit of Rp2.22 trillion, grew by 20.9% from 2015. At the current price, CPIN has market capitalization of Rp54.1 trillion or US$4.07 billion.