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FROM EQUITY RESEARCH DESK |
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IDEA OF THE DAY |
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Merdeka Battery Materials: Earnings Miss due to FX Loss; Lowering Our Est. on Potential Higher Cost (MBMA.IJ Rp730; BUY TP Rp880) · FY25 net profit missed estimate dragged by fx loss with weaker JV income despite strong EBITDA growth (+34% y-y). · We see geopolitical-driven cost pressure emerges, with sulfur surging to ~US$170/ton impacting HPAL and mining cost structure. · Maintain BUY with lower TP of Rp880, as trimmed 26F–27F margin assumptions are largely offset by AIM acid hedge benefits. To see the full version of this report, please click here
To see the full version of this snapshoot, please click here
MARKET NEWS |
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MACROECONOMY
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US Payrolls Rose 178K In March 2026 and Unemployment Fell To 4.3% US payrolls rose 178K in March 2026 and unemployment fell to 4.3%, beating expectations and rebounding from a February contraction. Job gains were driven by healthcare, construction, transportation, and manufacturing, while declines continued in federal government and financial sectors. February payrolls were revised down to -133K, reflecting earlier weakness due to strike effects. Despite stronger headline data, labor force participation slipped to 61.9% and broader unemployment (U-6) rose to 8.0%, indicating underlying labor market conditions remain mixed. (U.S. BLS, Bloomberg) |
SECTOR
Commodity Price Daily Update Apr 2, 2026
Indonesian Government to Implement B50 Biodiesel Policy
The Indonesian government will implement the B50 biodiesel policy starting July 1, 2026, aiming to boost energy independence, reduce fossil fuel use, and potentially save up to Rp48tr in subsidies, with sufficient CPO supply ensured by industry players. While the policy is expected to strengthen domestic energy reliance, it may reduce export volumes depending on global vegetable oil prices. However, concerns from mining and heavy equipment sectors highlight potential risks, including higher fuel consumption, increased maintenance costs, and operational challenges due to biodiesel characteristics. (Kontan)
CORPORATE
ADRO Allocates Rp5tr for 12-Month Share Buyback
ADRO plans to use Rp5tr for a share buyback over 12 months starting April 18, 2026, pending approval at the AGM on April 17. The buyback will not exceed 10% of issued capital and is expected to maintain net assets while boosting shareholder returns and investor confidence. (Emiten News)
BMRI Raises US$750mn in Oversubscribed 5-Year Bonds at 5.25% Coupon
BMRI successfully issued US$750mn in 5-year global bonds with a 5.25% coupon on March 31, 2026, attracting strong investor demand with 3.3x oversubscription, reflecting high international confidence. The issuance marked the bank as the first Southeast Asian issuer to re-enter the global bond market пасля geopolitical tensions, supported by prudent timing and effective execution strategy. (Emiten News)
HRTA Subsidiary Forms Strategic Partnership to Strengthen Gold Ecosystem
HRTA, through its subsidiary PT Emas Murni Abadi (EMA), has entered into a strategic collaboration with PT Danusa Tambang Nusantara (DTN) and PT Agricourt Resources (PTAR), part of the UNTR Group. The partnership aims to strengthen an integrated national gold industry ecosystem from upstream to downstream, covering domestic gold refining activities and the distribution of domestically produced precious metals to downstream industries. (Kontan)
