FROM EQUITY RESEARCH
PT Bumi Resources Minerals: CPM site visit affirms plan to raise FY24 production volume (NOT RATED) We visited BRMS’ second gold plant (CPM) in Palu, whose annual production is now estimated to be 4,500 tpd. CPM’s third facility is scheduled to begin operation in 4Q24 with average capacity of 4,000 tpd, following raised production rate in FY24. BRMS currently trades at EV/resources of US$99/oz, with potential earnings growth driver from higher production. 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 Consumer Confidence Declined to 123.1 in Feb24

Indonesia Consumer Confidence declined to 123.1 in February 2024 from 125 in Jan24. The decline was seen across expenditure groups except the lowest (Rp1-2mn). The rise of confidence in the lowest income group was caused by higher current income index which surge to optimism level of 105.9 from Jan's 98.9. (Bank Indonesia)

 

Indonesian Government Agreed to Inject Funds amounting to Rp229bn

The Ministry of Finance agreed to inject a budget of Rp229.06bn to support the subsidized supply of 220,000 housing units through the Housing Financing Liquidity Facility (FLPP) program in 2024. This additional cost disbursement increased by 8.7% from the 2023 Annual Work and Budget Plan (RKAT). (Bisnis)

 

CORPORATE

BUKA Serves 6mn Pre-Employment Participants

BUKA noted that since the Pre-Employment program was launched in 2020, more than 6mn users have purchased training classes at Bukalapak. Currently, more than 450 types of training can be purchased on the Bukalapak marketplace platform. BUKA's pre-employment training program offers three formats: online, offline (face-to-face), and independent learning. (Bisnis)

 

PGAS IJ: FY23 Result Highlights; Inline to ours but above consensus

• PGAS just released its FY23 result with earnings declined by 14.7% to USD278 mn, which was relatively inline with ours (97.3%) but above consensus (107.4%).
• Revenue was recorded at USD3.6 bn, up 2.2% yoy, due to improving distribution volume in FY23.
• Margins was compressed across the board in 2023 due to lower spread in distribution and lower oil price which brings gross and EBITDA margins to 20.1% (vs. 2022: 21.9%) and 27.4% (vs. 2022: 31.3%), respectively.
• On quarterly basis, PGAS recorded positive performance for both revenue (+5.3% qoq) and earnings (+50% qoq) which we believe caused by improving distribution spread during this period. (Hasan Barakwan – BRIDS)

 

PRDA IJ FY23 Earnings: Below Ours and Consensus Estimates

• PRDA reported 4Q23 net profit of Rp24bn, down 72%qoq, leading to overall FY23 achievement of Rp260bn. (-30%yoy), reaching 74.2% and 69.1% to ours and consensus estimates, respectively.
• Revenue shows only marginal growth in FY23, booked at Rp2.2 tn. (+1.9%yoy), with two main customer base of walk-in patients and doctor referrals shows negative growth of -0.1% and -8.1%yoy, respectively. The only strong growth came from external referrals (+16.9% yoy), which includes testing demand from hospitals, insurance, and BPJS. We believe the result should mirror the FY23 BPJS-dominated trend across healthcare players.
• Opex also increased by 14.6% yoy in FY23, both on marketing (+61%yoy) and G&A expenses (+12%yoy), yielding an eroded EBITDA margin by 530bps to 18.3%, compared to mgmt guidance of 25-26%. We will revisit our forecast to adjust overall FY23 achievement and FY24 outlook. More details on volume development post-analyst meeting tomorrow (Mar.14,2024: 12-3.30 PM.) We currently have a BUY rating with TP of Rp6,400. (Ismail Fakhri Suweleh – BRIDS)

 

TPIA Completed Bond Issuance Worth Rp1.5tr

TPIA completed its first rupiah bond issuance in 2024, which amounted to Rp1.5tr. At this stage, TPIA offers coupons denominated in Rupiah up to 7.95% for series A for 3 years with a total of Rp542.3bn, 8.25% for series B for 5 years with a total of Rp416.80bn, and 8.75% for series C for 7 years with a total of Rp540.82bn. In total, TPIA has executed four stages of the Shelf-Registration Bond Program IV. In detail, the issuance of Phase I in 2022 closed with a value of Rp2tr, Phase II in 2023 of Rp1.25tr, and Phase III in 2023 of Rp1tr. (Kontan)

 

INCO to Hold Rights Issue After Further Divestment to MIND ID

INCO will hold a rights issue. This rights issue action is part of INCO's divestment carried out by MIND ID. INCO plans to conduct a rights issue by issuing a maximum of 603.44Mn new shares with a nominal value of Rp25/share. The new shares will be issued from INCO's portepel shares and will be listed on the Indonesia Stock Exchange. INCO will use the proceeds from the rights issue for capital expenditure and/or working capital purposes by INCO. (Kontan)