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FROM EQUITY RESEARCH DESK |
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IDEA OF THE DAY |
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Midi Utama Indonesia: Tapping into local demand; Forecast 20.5% FY24-26F Net Profit CAGR, Initiate with Buy rating (MIDI.IJ Rp 404; BUY; TP Rp 600)
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MARKET NEWS |
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MACROECONOMY
Indonesia Retail Sales Index Down by 2.7% yoy in Apr24
Indonesian Retail Sales declined by 2.7% yoy in April 2024. The decline is a downward revision towards 0.1% growth seen in the first estimate and also the lowest growth since 2021. Food, Beverages, & Tobacco and Information & Communication Equipment are among the sectors that saw a decline in sales yoy. In May24, retail sales are expected to rebound with growth of 4.7% yoy, although the figure will come from a low base as retail sales were -4.5% in May23. On a quarterly basis, retail sales are expected to grow by 1% yoy in 2Q24, lower than 1Q's growth of 5.6%. (Bank Indonesia)
SECTOR
Government Plans to Acquire Rice Company in Cambodia
The Minister of Agriculture said that the government is currently conducting an in-depth study related to the plan to acquire a rice company in Cambodia in anticipation of a shortage of rice stock. The plan is a direct instruction from President Jokowi in anticipation of food price fluctuations because of El Nino. In addition, the NFA said that the rice food assistance program for 22mn KPM in 2025 will reach Rp3tr/month with the distribution of 220k tons of rice. (Investor Daily)
CORPORATE
ARTO Increased its Deposit Rates, Effective on June 12, 2024
ARTO increased its deposit rates by 25bps, effective June 12, 2024. This is the second interest rate adjustment since May 2024. According to the company's official website, for deposits of Rp1mn to Rp49.99mn, the interest rate is set at 4.25% per year. Meanwhile, adjustments to deposit interest rates of up to 25 bps occurred for deposits of Rp50mn to Rp99.99mn (up to 4.75% per year from the original 4.5%). Then, for savings of Rp100mn and above, the deposit interest rate was increased to 5.25% per year from the previous 5%. Lastly, for ‘kantong terkunci’, the interest rate is 4.25%. (Bisnis)
BYD has obtained an import license
The Indonesian government has issued a CBU Electric car import license to BYD. CBU import recommendations are given based on the continuation process of investment realization, and the amount of imports given to BYD is around 10%-20% of the total production capacity. BYD's investment value is estimated at US$1.3bn. (Bisnis)
CLEO Established a New Subsidiary
CLEO established a new subsidiary named PT Stube Segarkan Indonesia (SSI). CLEO established SSI with a shareholding of 99.98% and a capital structure of Rp10bn in authorised capital and Rp5bn in paid-up and issued capital. CLEO's share ownership in SSI is 4,999 shares, equivalent to 99.98% worth Rp4,999,000,000, while PT Bemeroca Uniti Abadi has 1 share, equivalent to 0.02% worth Rp1mn. (Emiten News)
GOTO to Buy Back Shares Amounting to Rp3.2tr
GOTO will conduct a share buyback after approval at its general meeting of shareholders (GMS). The company has prepared US$200mn, equivalent to around Rp3.2tr, for the buyback of GOTO shares, and the funds will come from internal cash. The buyback will not exceed 10% of GOTO shares, including treasury shares. Note that there are currently 10.26mn treasury shares, or equivalent to 0.85% of the issued and paid-up capital. (Bloomberg technoz)
PWON Continues Acquisition of 5.2 Ha Land in Semarang
PWON, through its subsidiary, PT Pakuwon Permai, made the second phase of land acquisition of 5.2 ha in Semarang with a value of Rp121.7bn. The land was purchased from PT Putra Wahid Sejahtera and one individual landowner on June 6, 2024. With the completion of this second phase, the total accumulation of land acquisition in Semarang by PWON has reached 18.2 ha, and the total value has reached Rp424.5bn. (Kontan)
