Financial News

SingCham Weekly : Edition 15 May 2017

Monday, 8 May 2017

M Cash Integrasi to conduct an IPO.

M Cash Integrasi (MCI) plans to conduct an IPO to raise Rp200-250b this year. The IPO proceeds will be used to finance capex and working capital. Affiliated with KresnaGrahaInvestama (KREN), MCI is developing a digital store that can produce Subscriber Identity Modules (SIM) and e-money.

Nusa Raya Cipta books new contracts worth Rp1.0t in 4M17.

As of end-Apr 17, Nusa Raya Cipta (NRCA) had booked new contracts worth Rp1.0t, accounting for 30.3% of its full-year new contracts target of Rp3.3t for this year. The new contracts came from various projects involving hotels and stations. The company expects to book revenue of Rp2.9t this year, up 20.8% yoy from Rp2.4t. It also targets net income to grow 77.2% yoy to Rp179b from Rp101b in 2016. NRCA will pay out dividend of Rp73.25b, equivalent to 72.5% of2016 net income.

SarigunaPrimatirta to build new factories.

SarigunaPrimatirta (CLEO) will build two new factories to increase production capacity by 5-10% to 1.6b litres p.a. The new factories will be built in Ungaran, Central Java and Kendari, Southeast Sulawesi with a totalinvestment of Rp20b, and are expected to commence operation in Jun 17.

Surya SemestaInternusa to acquire 1,000ha of land.

Surya SemestaInternusa (SSIA) targets to acquire 1,000ha landbank this year. As of end-Apr 17, the company had acquired 635ha, more than the 530ha acquired in 1Q16. SSIA is preparing Rp750bin funds to acquire 500ha of new land. It will also buy back 9.2% of its shares by allocating funds of Rp440b.

Tuesday, 9 May 2017

AKR Corporindo to issue bonds worth Rp1.0t.

AKR Corporindo (AKRA) will issue bonds at a coupon rate of 8.5-9.5% p.a. to raise funds of Rp1.0t. The bond proceeds will be used to finance working capital. Bookbuilding will take place from 8-22 May 17 and thepublic offering will take place on 6-8 Jun 17. The bonds will be listed on the Indonesia Stock Exchange on 14 Jun 17. CIMB SecuritiesIndonesia, Indo Premier and Mandiri Sekuritas will act as the underwriters.

Astra Int to acquire a toll road in Java.

Astra International (ASII) through its subsidiary, Astratel Nusantara, plans to acquire another toll road section in Java this year after acquiring the Cipali toll road. Astratel has allocated capex of Rp4.0t this year andmost of it will be used to finance its acquisition plan.

Garuda Metalindo prepares funds of Rp279b.

Garuda Metalindo (BOLT) is preparing funds of Rp279b to acquire PT Mega PratamaFerindo (MPF), an affiliated company. The funds will come from internal financing and bank loans. Currently, MPF produces4,000 tonnes of steel per month.

Indofood SuksesMakmur offers coupon rate of 8.8% p.a..

Indofood SuksesMakmur (INDF) is offering a coupon rate of 8.25- 8.8% p.a. for its bond issuance worth Rp2.0t which will be used to refinance bonds INDF VI 2012. Pefindo has rated the bonds with anidea+ rating.

Unilever Indonesia secures loans of Rp3.0t.

Unilever Indonesia has secured loans of Rp3.0t from its affiliated company, Unilever Finance International Ag, Switzerland (UFI). The company has allocated capex of €115m (Rp1.6t) capex this year to increase itsproduction capacity. In 1Q17, the company spent capex of Rp287.15b, out of which 85% was used to finance its home and personal care business activities and 15% was used to finance its food and beverage segment.

Wednesday, 10 May 2017

AdhiKarya to build a precast plant.

AdhiKarya (ADHI) through its subsidiary, AdhiPersadaBeton, plans to build new precast plant which will have a production capacity of 300,000 tonnes. ADHI plans to inject Rp300b of funds toAdhiPersadaBeton. Currently, AdhiPersadaBeton operates two precast factories which are located in Mojokerto, East Java and Purwakarta, West Java. As at end-Apr 17, the company had booked new contracts worth Rp4.5t, accounting for 21% of its 2017 new contract target.

ProdiaWidyahusada allocates funds of Rp400b-450b.

ProdiaWidyahusada (PRDA) has allocated capex of Rp400b-450b to expand its laboratories network in 2H17. The funds come from the proceeds of its IPO that was carried out in 2016. To build a laboratory,the company needs to spend Rp56b-57b. PRDA will pay out dividend of Rp28.2 per share, equivalent to Rp26.4b in total. The company expects 2017 revenue to grow 13% yoy.

TotalindoEkaPersada to conduct an IPO.

TotalindoEkaPersada will conduct an IPO by issuing 2.15b new shares to public, equivalent to 30.07% of its fully-issued and paid shares to raise funds of Rp645b-1.05t. The offering IPO price will be Rp300-490 pershares. The company targets to book new contracts worth Rp3.0t, up 100% yoy from its 2016 new contracts booking of Rp1.52t. As of -midMay 17, the company had booked new contracts worth Rp1.49t, accounting for 50% of its 2017 target.

Milk companies marketing in hospital clinic.

Housewife Kay Park, 41, wanted to see a pediatrician in Spore, but on three occasions, she ended up meeting a formula milk company’s marketer in the hospital clinic first. The representative from Dumex, she said, was “persistent”. While mothers interviewed by The Straits Times gave mixed views on whether they agreed with the companies’ marketing strategies, most of them said the marketing costs should not be passed to consumers. Those interviewed were shocked and disappointed to learn that the rise in marketing expenses was a key factor for the hike in formula milk retail prices. A report released by the Competition Commission of Singapore found that between 2010 and 2014, the amount that all major manufacturers spent on marketing increased 42.4 per cent. The competition watchdog found that heavy investment in marketing and research likely led to the increase in markup of wholesale prices, and this in turn, was the main factor for increases in retail prices – which have, on average, more than doubled over the past nine years.

Thursday, 11 May 2017

Indonesia Public Holiday: Vesak Day

Friday, 12 May 2017

ABM Investama to produce 9m tonnes of coal this year.

ABM Investama (ABMM) targets to produce 9m tonnes of coal this year, up 40.62% yoy from 6.4m tonnes in 2016. The company also plans to expand its distribution business this year. In 2016,ABMM booked revenue of US$590.7m and EBITDA US$166m. The company also reported net income of US$12.6m, after having booked a net loss of US$38.1m in 2016.

CaturSentosaAdiprana: Books net income growth of 47% yoy.

CaturSentosaAdiprana (CSAP) booked net income of Rp31b in 1Q17, up 47% yoy from Rp21b in 1Q16. 1Q17 revenue came in at Rp2.2t, up 16.5% yoy from Rp1.9t in 1Q16. About 71% of its revenuecame from the distribution segment and 29% came from the modern retail business. The company targets to book revenue of Rp9.0t andnet income of Rp90b this year. It has allocated capex of Rp250b this year, out of which Rp150b will be used to finance the modern retail business’ expansion and Rp100b will be used to finance the expansion of distribution business.

Fast Food Indonesia to open 30 new outlets this year.

Fast Food Indonesia (FAST) plans to open 30 new outlets this year, out of which 5 were opened in 1Q17. The company also plans to open 20 new KFC Box outlets this year. The company expects 2017 revenueto grow 10% yoy.

HartadinataAbadi to conduct an IPO.

HartadinataAbadi, jewelry manufacturer, will conduct an IPO by issuing 1.5b shares to the public, equivalent to 30% of its issued and paid shares. The company expects to raise funds of Rp420b-Rp534b from the IPO. Mandiri Sekuritas, MNC Sekuritas and RHB Securities Indonesia will act as the underwriters. The bookbuilding will take place on 9-23 May 17 and the listing on the Indonesia Stock Exchange will take place on 20 Jun 17. About 50% of the proceeds will be used to pay off debts, 42% will be used to buyraw materials, 6% will be used to buy new machinery and 2% will be used to improve the internal e-commerce support. The company targets to achieve 20% yoy and 5% yoy revenue and net income growth this year.

KiranaMegatara targets to raise funds of Rp460b-550b from IPO.

KiranaMegatara will conduct an IPO to raise funds of Rp460b-Rp550b by issuing 15% of its fully issued and paid shares. Trimegah Securities will act as the underwriter. The bookbuilding willbe on 9-26 May 17 and effectively be listed on Indonesia Stock Exchange on 20 Jun 17. About 58% of the proceeds will be used to inject funds to its subsidiaries, 22% will be used to pay off debts and the rest will be used to finance its working capital.

Consumers satisfied with online transportation service.

A recent survey by a consumer group showed consumers are generally satisfied with online transportation service in Indonesia despite complaints that led the government to start imposing new regulations. The survey, by Indonesian Consumer Protection Foundation (YLKI), interviewed 4,668 online respondents from April 5 to April 16. “They’re popular because public transportation in big cities in Indonesia, including Jakarta, is still substandard,” he said. In the survey, 77.7 percent of the respondents said service from online transportation companies was very good, 21.8 percent said it was pretty good, 0.4 percent said not good and 0.1 percent said the service was very bad.

Two major hospitals attacked in “Ransomware” storm.

At least two of Indonesia’s major hospitals have been struck in the “ransomware” cyber attack that infected computers globally. Dharmais Hospital and Harapan Kita Hospital in Jakarta are affected by the ransomware, said Semuel Pangerapan, a director general at Indonesia’s Communication and Information Ministry. Cyber extortionists tricked victims into opening malicious malware attachments to spam emails that appeared to contain invoices, job offers, security warnings and other legitimate files. The ransomware encrypted data on the computers, demanding payments of $300 to $600 to restore access. The attack, which leverages hacking tools believed to have been developed by the US National Security Agency, has infected tens of thousands of computers in nearly 100 countries.

Australian in Changi airport arrested & charged in court.

He is believed to be the man seen tussling with policemen at Changi Airport last month, an incident which was captured in two videos that went viral online. It emerged that Australian Jason Peter Darragh, 44, had likely broken the law on multiple occasions during several drunken sprees here, with a total of 11 charges levelled against him. He was charged with three counts of using vulgar language on police officers and two counts of using criminal force on them. He allegedly started his crime spree at the departure hall of Changi Airport Terminal 2 between 12.15am and 12.30am in April.

Foreigners should not import politics into Spore.

The police reminded foreigners visiting or living in Singapore to abide by the law here, a day ahead of planned events in support of outgoing Jakarta governor Basuki Tjahaja Purnama or Ahok. He was sentenced to two years’ jail on Tuesday for blasphemy against Islam. In an advisory, the Singapore Police Force said it is aware of plans to hold these events at the Speakers’ Corner and in other locations, adding that foreigners “should not import the politics of their own countries into Singapore”. The police also reminded the public that organising or participating in a public assembly without a permit is illegal in Singapore.