FROM EQUITY RESEARCH
Poultry: Weaker-than-expected data points in Dec23 might lead to 4Q23 earnings shortfall (OVERWEIGHT) ·         Dec23 livebird prices and corn costs missed expectations, leading to potentially weak 4Q23 earnings. ·         We believe there is still downside risk to valuations from potentially soft 4Q23 results and weak chicken prices in 1Q24, similar to 2023.  ·         We currently have an Overweight rating on the sector but see ST downside on the possible 4Q23 earnings miss. 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 Reach 123.8 in Dec23

Consumer Confidence experienced a marginal increase, reaching 123.8 in December 2023 compared to November's 123.6. This uptick was driven by a notable rise in the Purchase of Durable Goods sub-component, registering 113 as opposed to the previous 110.2 in the Current Economic Condition category. However, other sub-components exhibited declines in December, including Current Income (115.2 versus 115.6) and Job Availability (112.7 versus 113.2). Across different income groups, the current economic condition appeared higher for the lowest income group (Rp1-2mn), while lower for the higher income groups. (Bank Indonesia)

 

Indonesian Carbon Exchange Trading reached Rp30.9bn

The trading value of the Indonesian Carbon Exchange reached Rp30.9bn with a trading volume of 494K tons from 26 September 2023 to the end of Nov23. Of this total, 30% was in the regulatory market, 9% in the negotiation market, and 59.7% in the auction market. Meanwhile, at the end of Nov23, there were 46 service users (vs. Oct23: 25 users). (CNBC Indonesia)

 

SECTOR

Banking Sector: OJK is Optimistic that Banking Profits Can Grow 10% in 2024

OJK is optimistic that the performance of the banking industry can grow in the range of 9-10% yoy in 2024, supported by credit growth, which is estimated to grow by double digits. Based on the 2024-2026 Bank Business Plan (RBB) received by OJK, the sectors expected to encourage credit are the household, trade, and processing industry sectors. Furthermore, the credit growth is expected to encourage an increase in NIM, targeted in the range of 4-5%. (Kontan, Infobank)

 

CORPORATE

AMRT will Open Outlet in IKN

AMRT entered into a cooperation project for the development of IKN in the commercial and commercial sector. The company said, this cooperation involves PT Bina karya as the IKN authoritative business entity, The scope of cooperation includes the construction, operation and commercialization of the central building for the distribution of goods to outlets Currently the company is discussing the concept of retail partnerships in the development of minimarket outlets involving the local ecosystem in IKN by using the systems and operating procedures owned by the company. (Kontan)

 

AKRA Establishes a Power Generation Subsidiary

AKRA established a new subsidiary called PT Berkah Renewable Energi Nusantara. This company was established by AKRA together with another AKRA subsidiary, PT Usaha Era Pratama. The company said that the purpose and objective of Berkah Renewable Energi Nusantara is to engage in the operation of power plants, as well as other activities related to the provision of energy. Previously, on October 2, 2023, two AKRA subsidiaries established a company called Berkah Bunker Sejahtera (BBS) which aims to carry out the activities of seaport service business activities. (Kontan)

 

BRIS Collaborates with Mandiri Sekuritas and Aims for One Million Sharia Investors

BRIS Collaborates with Mandiri Sekuritas in launching an all-sharia investment service and targets one million customers in the Islamic capital market in 2024. BRIS also launched the online Customer Fund Account (RDN) service in Islamic banks through Mandiri Online Securities Trading (MOST). This action also marks BRIS as the first full-fledged Islamic bank in Indonesia to launch the opening of Sharia online RDN. (IDX)

 

MEDC Spends US$4.06mn on Exploration Costs after Discovering Oil Reserves

MEDC spent exploration costs of US$4.06mn. The funds are for the Menna-1 Exploration. Exploration activities are carried out through the company’s subsidiary Medco Arabia Ltd. Tethys Oil Oman Onshore Ltd carried out the exploratory effort, which lasted from Oct to Dec 2023, with a net exploration cost of US$203.36 thousand. Exploration well drilling is the test method and area selection. As a result, the Medco Energi business discovered signs of oil deposits and intends to conduct more well testing to prove oil reserves. (Emiten News)

 

PANI Optimistic that Marketing Sales in 2023 has Reached Rp2.1tr

PANI is still in the process of calculating its overall financial performance. According to PANI, its target of Rp2.1tr in 2023 has been achieved as from the first 9 months, the company has also received Rp1.7tr, 82% of its marketing sales target. In 2024, some of PANI's flagship projects include Rukan Lau Pa Sat, Rukan Little Marrakesh, Rukan River Safari, and then there are housing units worth Rp1.3bn in Ilona @Pasadena Hills, Millennial House, and Bukit Nirmala. (Kontan)

 

PGEO Inaugurates Lao-Lao Geopark

PGEO inaugurated the Lao-Lao Geopark pilot project in the PGE Lahendong area, North Sulawesi. Lao-Lao Geopark is the first hot spring pool in Indonesia to utilize geothermal energy directly (direct use). The main energy source used for Lao-Lao Geopark operations comes from the PGE Lahendong geothermal power plant, which fulfills about 30 percent of the electricity needs of the people of North Sulawesi and Gorontalo. Currently, PGEO manages 13 Geothermal Working Areas (WKP) and 1 Assignment Working Area with an installed capacity of 1,877 MW, of which 672 MW is operated and managed directly by PGE and 1,205 MW is managed under a Joint Operation Contract scheme. (CNBC)

 

Shopee as the Most Popular eCommerce Platform in Indonesia

Shopee stands out as the leading e-commerce platform in Indonesia, attracting approximately 73% of consumers who engage in online purchases—followed by Tokopedia and Lazada, with 39% and 22%, respectively. Bukalapak, Blibli, and Zalora secure the subsequent positions, with 6%, 5%, and 2% of consumers, respectively. These findings are based on a recent survey conducted by YouGov, a firm specializing in market research and data analytics, exploring the online shopping habits of Indonesian users. (Marketing Interactive)