FROM EQUITY RESEARCH
Astra Internasional: ICE should sustain its dominance in the 4W market, but lacks ST catalysts; reinitiate with a Hold rating (ASII.IJ IDR 5.074 HOLD.TP IDR 5.700) ·         Our study concludes that the economic benefit of hybrids/EV in Indonesia is still in question, hence ICE should sustain its dominance. ·         We forecast ASII’s net profit to decline by 10% YoY in FY24F, as we expect recovery in 4W sales to be offset by weaker mining segments. ·         We have a HOLD rating on ASII with a TP of Rp5,700. While the current valuation prices in earnings downside, ASII lacks ST catalysts 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

Global: Summary of January Manufacturing PMI Estimates

• US Manufacturing PMI unexpectedly expanded with PMI of 50.3 (vs. 47.9), the highest since Oct22.
• The Eurozone’s rose to 10-month high at 46.6, output decreased at the softest pace since April.
• UK's rose to 47.3 with production fell to three-month low, highly affected by the Red Sea crisis.
• Japan's Manufacturing PMI steadied at 48.0 (vs. 47.9) with factory activity still contracting for eight consecutive months. (Trading Economics)

 

Indonesia Investment Realization reached Rp1,418.9tr in 2023

Investment grew by 17.5% yoy while creating 1.82mn jobs. The realization surpassed the target set by President at Rp1,400tr. The Foreign Direct Investment (FDI) grew 13.7% yoy to Rp744tr and Domestic Direct Investment grew 22.1% yoy to Rp674.9tr. In 4Q23, investment realization reached Rp365.8tr (+16.2% yoy). (Bisnis)

 

CORPORATE

ADHI Aims for a Conservative Target, Hoping That the New Contract will Meet 2023

ADHI is seeking a conservative target in 2024, hoping that the achievement of new contracts in FY24 will at least match the realization in FY23 with a new contract value Rp37.4tr rose by 58% from Rp23.7tr in FY22. Several project categories are being targeted, including railway projects, ESG-based projects, and toll roads. This choice was made since the government's contribution to new projects last year was significant, accounting for 34%. (Kontan)

 

BMRI Receives Rp37.5tr Distribution Mandate of KUR in 2024

BMRI was mandated to distribute Rp37.5tr in people's business credit (KUR) this year, with a total of Rp34.24tr distributed to 320,675 debtors by FY23. KUR distribution in FY24 will concentrate on the producing sector, including agriculture, plantations, and production services for the processing industry. (Emiten News)

 

FREN Plans Rp8.57 Trillion Jumbo Rights Issue

FREN will conduct a capital increase with a rights issue and is eyeing funds of IDR 8.57 trillion. FREN will issue a total of 171.45 billion ordinary shares in the name of series D, with a value of IDR 50 per share.  The rights issue will be held from March 18, 2024 to March 22, 2024. The plan is that FREN will use Rp5.48 trillion of the rights issue proceeds for debt and interest payments for FREN loans. Meanwhile, the rest will be used for FREN's working capital. (Bisnis)

 

Based on the first 2 Scenarios of the prospectus, in this rights issue BCA Sekuritas and Sinarmas affiliates are committed and standby buyers with Rp5.5tr. The prospectus suggests total RI can raise proceeds of Rp8.5tr. Prospectus also adds the possibility of exercising remaining warrants which can bring total proceeds to Rp14tr. (Niko Margaronis – BRIDS)

 

MBMA Gives Subsidiaries US$100mn Loan at 4.75% Interest

On January 22, 2024, MBMA agreed to give MIA shareholder loan money in the amount of US$100mn with an annual interest rate of 4.75% for a duration of one year. The funds will be utilized to assist MIA's subsidiaries' business operations by providing debt, capital deposits, and/or advances on capital deposits. (Emiten News)

 

TBIG is Ready to Pay Off Rp1.01tr Bonds

TBIG has prepared an Rp1.01tr bond repayment fund that will mature on February 17, 2024, and is ready to cover the interest on the 12 bonds. The bonds are designated as Sustainable Bonds IV Tower Bersama Infrastructure Phase III 2021 Series B. The payment agent for the repayment of the principal and interest on the 12 bonds will be PT Kustodian Sentral Efek Indonesia (KSEI). (Emiten News)

 

TOWR Received a MSCI ESG Rating Upgrade

TOWR, the holding company of Protelindo and iForte, had recently received an upgrade in MSCI ESG Ratings to AA from BBB given a year ago. The company ensures that the management will strive to maintain and improve this rating in the future. (Company)

 

WIKA and 11 Financial Institutions Agreed on a Master Restructuring Agreement

WIKA and 11 financial institutions agreed on a Master Restructuring Agreement (MRA) with an outstanding value of Rp20.58tr, equivalent to 8.71% of WIKA’s restructured debt as of January 23, 2024. By achieving MRA, WIKA can now focus on continuing other stream restructuring methods to create strong fundamentals and run a sustainable business. According to the company, the agreement showed that its restructuring efforts have been fully supported by the Ministry of BUMN and the financial institutions that have collaborated with WIKA so far. (Bisnis)