FROM EQUITY RESEARCH

 
     

Bank Syariah Indonesia: Sustainable growth outlook through dominance in the Sharia market; reinitiate with Buy (BRIS.IJ IDR 2.380 BUY.TP IDR 2.700)

·         Driven by above-peers’ financing growth, low-cost funding, and better efficiencies, we expect BRIS to deliver c. 15% EPS growth in FY24-25F. 

·         Given its sustainable leadership in the fast-growing Sharia banking market, we believe BRIS’ scarcity premium valuation is justified.

·         We reinitiate coverage on BRIS with a Buy and TP of Rp2,700, based on an inverse cost of equity GGM with CoE of 8.0%, implying 2.6x PBV.

To see the full version of this report, please click here

 

To see the full version of this snapshot, please click here

 

MARKET NEWS

 
     

MACROECONOMY

Indonesia: Carbon Exchange Transactions Reach Rp31.36bn

Since the carbon exchange was launched until 16 February 2024, there have been 48 service users who received permits with a volume of 501,000 tonnes of CO2 equivalent. OJK said the accumulated value was Rp31.36bn, with details of 31.39% in the regular market, 9.69% in the negotiation market and 58.92% in the auction market. Indonesia has a target of reducing GHG emissions, by 31.89% (unconditionally and without international assistance) or by 43.2 (with international support) from its normal (or Business As Usual) emission levels by 2030. (CNBC Indonesia)

 

SECTOR

AUTO: The Government Officially Provides Electric Car VAT Discount for 2024

The Ministry of Finance has officially issued a new regulation regarding the provision of government-borne value-added tax incentives (VAT DTP) for locally produced electric cars. This is stipulated in the Minister of Finance Regulation (PMK) N0. 8 of 2024. The detailed requirements are as follows: First, electric cars with a minimum TKDN value of 40%. Second, electric buses with a minimum TKDN value of 40%. Third, certain battery-based KBL buses with a minimum TKDN value of 20% - 40%. The amount of VAT DTP for electric cars is 10% of the selling price. However, specifically for electric buses with a minimum TKDN of 20% - 40%, only receive a VAT DTP of 5% of the selling price. The VAT DTP is given for the Tax Period Jan-24 to the Tax Period Dec-24. (Kontan)

 

Property: Indonesian Government has Officially Approved Government-Borne VAT Incentives for Housing

The Minister of Finance has officially approved a government-borne Value Added Tax (VAT) for housing, which will be funded by the Government in the 2024 state budget, as outlined in PMK No. 7/2024. Last year, the government introduced an incentive covering 100% of VAT for house sales ranging from Rp2bn to Rp5bn, scheduled for delivery by June 2024 at the latest. With the new PMK, the government extends the coverage until December 2024, providing a 50% subsidy for houses within the same price range. The incentive has been deemed successful by property companies, as it effectively boosted house sales in 4Q23. (Bisnis)

 

CORPORATE

ACES IJ: Jan-24 SSSG of 5.6% - in line with seasonality

  • Jan-24 monthly sales of Rp664bn (down 18.3% MoM, +9.4% YoY), representing 8% of our FY24F, i.e inline.
  • ACES reported SSSG in Jan-24 of 5.6% (Dec-23: 8.1%), higher vs Jan-23 of 2%.  Ex-Java remains as the growth driver with SSSG of 6.1%, followed by Rest of Java 5.9% and Jakarta 3.8%.
  • In Jan-24, ACES open 2 new stores in Jakarta (The Park Pejaten, 2,300sqm) and Banyuwangi (2,000sqm). The company is optimistic to see stronger growth in Feb-24 following the Chinese New Year event. Maintain our BUY recommendation of ACES with TP Rp920. (Natalia Sutanto - BRIDS)

 

EXCL Reached 1,900 Villages on Sulawesi Island

EXCL has reached a total of more than 1900 villages in 805 sub-districts, 108 cities/districts, and 6 provinces on Sulawesi Island. EXCL owns and manages a total of more than 9,800 BTS, including around 6,400 BTS with 4G cellular networks on the island until 2023. (Investor Daily)

 

PTPP to Sell 14.55mn Shares from Buyback

PTPP will sell 14.55mn shares from its buyback. These treasury shares will be sold through the IDX in accordance with OJK regulations in POJK 30/2017, and PTPP has appointed PT BRI Danareksa Sekuritas to sell the treasury shares on the Exchange. The sale will begin 14 days from the date of information disclosure, namely from 8 Mar 2024 to 8 Sep 2024. (Kontan)

 

SIDO IJ: Above expectations 4Q23 earnings on higher top line and margins

  • In 4Q23, SIDO’s revenue +70% qoq (down 3.8% yoy) driven by herbal and supplement buoyed by higher demand (in domestic and export) following seasonality of rainy season and last bite. Export market reported strong FY23 revenue growth of 39.5% yoy, driven by Malaysia and Philipines. Higher sales supported a higher 4Q23 gross margin of 62.3% and FY23 of 56.6% (FY22: 56.1%).
  • On the operating front, soft top line led to higher A&P/revenue to 10.9% (FY22: 10.3%). Below the operating line, allowance for credit loss (receivable) of Rp35.8bn and forex loss of Rp42.8bn put pressure on FY23 net profit.
  • SIDO reported 4Q23 net profit of Rp414.6bn, down 5.3% yoy (+163% qoq), leading to FY23 bottom line of Rp951bn, down 13.9% yoy. The FY23 net profit was accounted for 107% of our FY23 forecast and 108% of consensus’ estimate, i.e above. (Natalia Sutanto – BRIDS)

 

pic 21 feb 2024.jpg