FROM EQUITY RESEARCH
Kalbe Farma: Retaining our conservative FY24 view as soft purchasing power may limit revenue recovery (KLBF.IJ IDR 1.470 HOLD.TP IDR 1.600) ·         Post FY23 earnings (broadly in-line vs our est.), KLBF guides for further improvements in FY24F revenues/ EPS growth at 6-7% and 13-15% yoy. ·         Despite the management’s guidance, we see limited catalysts for revenue growth to improve beyond 2Q24 amid soft purchasing power. ·         We keep our FY24-25F EPS growth forecast (3-10% yoy) and DCF-based TP of Rp1,600, with a Hold rating on the unexciting growth outlook. To see the full version of this report, please click here   United Tractors: In-line FY23 net profit; 4Q23 revenue beat largely from coking coal and gold prices (UNTR.IJ IDR 23.850 HOLD.IJ IDR 24.900) ·         UNTR posted in-line FY23 net profit of Rp20.6tr (96%/ 104% of our/ cons. forecast) ·         4Q23 earnings improved to Rp5.3tr (+3% yoy/ +27% qoq) but was mainly driven by stronger coking coal and gold prices. ·         We maintain our FY24-25F est. and Hold rating with unchanged SOTP-based TP of Rp24,900 amid our view of further coal price correction. 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

ASII IJ: 2023 Results

• FY23 NI stood at Rp 33.8t (+17% YoY, 92%/104% of our/consensus estimate. below our estimate but inline with consensus)
• FY23 revenue grew by 5% YoY to Rp 316.5t (102%/101% of our/consensus estimate, inline). Auto segment revenue grew by 6% YoY, financial +12.2%, HE +4% YoY, while agri declined by 5% YoY
• FY23 consolidated GPM is at 23.2% (-10 bps YoY), while EBITDAM declined by 170 bps YoY to 16.9%.

 

Despite strong revenue across the board in YoY basis (except agri), 4Q23 QoQ trend speaks differently:

• Auto segment recorded -13% QoQ revenue growth and -35% QoQ NP growth, due to spike of auto OPEX by ~30% QoQ in 4Q23 despite improvement in QoQ GPM. Interestingly, 4W unit volume sales in 4Q23 is similar to 3Q23
• Other than that, other segments recorded QoQ revenue improvement (except agri), but NP trend speak differently. All segment (except HE) recorded negative QoQ growth in NP, ie financial -2% QoQ and infra -22% QoQ. (Richard Jerry - BRIDS)

 

AVIA IJ; FY23 result: Above our and consensus

• AVIA reported 4Q23 net profit of Rp447bn, +39.6% yoy and +32.9%qoq), leading to FY23 bottom line of Rp1.65tr, +17.3% yoy.
• The FY23 net profit was accounted for 107.6% of our FY23 forecast and 107.9% of consensus’ estimate, i.e above.
• In 4Q23, the revenue of Architectural Solution (AS – including wall paints and other paints) +3.8% yoy and 11.3% qoq while Trading Goods (TG) also reported strong growth of +18% yoy and +14% qoq.
• 4Q23 gross margin also increased by 240bps (vs 3Q23), supported by lower raw material prices and accounting reclassification of the below-the-line expenses.
• For FY24, AVIA provides guidance of +6-10% yoy top line growth (higher vs our FY24F of +5.7% yoy and inline with consensus (+7.1% yoy), supported 6-8% yoy volume growth. (Natalia Sutanto – BRIDS)

 

BBRI to Issue Green Bond Worth Rp2.5tr

BBRI will issue Bank BRI Sustainable Environmental Bond Phase III Year 2024 worth Rp2.5tr in 2024 as a continuation of green bond issued in the previous years with a total target fund of Rp15tr. The bond will be divided into 3 series: Series A with a value of Rp1.23tr and a rate of 6.15% per annum for a period of 370 days, Series B with a value of Rp879.43bn and a rate of 6.25% per annum for a period of 2 years and, Series C with a value of Rp382.9bn and a rate of 6.25% per annum for a period of 3 years. (Bisnis)

 

In other news, BBRI recorded an increase of 400% in QRIS 2023 Merchant transactions. The number of BBRI's QRIS merchants has reached 3.7mn (+30% yoy), in line with the massive acquisition of BBRI QRIS merchants. In 2024, the acquisition of BBRI's QRIS merchants is projected to grow 20% yoy, with transaction volume projected to grow around 18% yoy. (Emiten News)

 

CTRA Partners with PITS to Build Drinking Water Supply in Citra Garden Bintaro.

CTRA partners with Perseroda Pits to improve the drinking water supply in Citra Garden Bintaro. The 28-hectare project aims to provide clean water to residents at any time, ensuring equal access to clean water. The partnership also aims to create a collective clean water service for 1300 new customers, including integrated commercial, social, and public facilities. (Kontan)

 

ISAT Partners with Huawei to Develop AI-based Innovation

ISAT and Huawei have signed a Memorandum of Understanding to support AI-based innovation in Indonesia. The partnership aims to develop AI, industrial applications, ecosystems, and talent competency. The collaboration is part of Indosat's goal to democratize digitalization and accelerate Indonesia's digital transformation. Huawei will continue to make breakthroughs in public cloud and AI applications, providing diverse services for users and local businesses. (Investor Daily)

 

JPFA to Buyback a Maximum of Rp350bn

JPFA will buyback a maximum of Rp350bn, equivalent to 1.5% of the company's issued shares. The company can only conduct a buyback after all previous share purchases (treasury shares) have been fully utilized. Currently, there are 98,905,300 shares of the prior buyback held in treasury. The implementation of the buyback was motivated by a number of considerations. Among others, in managing the business, the company always strives to increase shareholder value by increasing the company's ROE. (Emiten News)

 

TLKM Collaborates With Singtel to Drive Enterprise Digital Transformation

TLKM and Singtel are partnering to accelerate enterprise digital transformation by integrating Singtel Paragon into their enterprise product portfolio. This will enable TLKM to offer a broader range of connectivity solutions, including 5G Network as a Service and Edge Cloud Computing (ECC) services. TLKM will also introduce a seamless fallback solution through the Paragon platform, ensuring uninterrupted network access for its customers. Singtel has also partnered with telecommunications companies globally. (Telecom TV)