Ace Hardware Indonesia: Boom sale to lift June-July sales (ACES.IJ IDR 605 BUY.TP IDR 840) ACES recorded 5M23 SSSG of 3.5% translating into sales of close to IDR3.0tn. Sales should get a timely lift in June and July thanks to the ongoing Boom Sale campaign. Meanwhile, we assume a 46.8% gross margin as the company needs to reduce its inventory days to 250 days from Mar-23’s figure of 279 days. ACES will have its AGM today (June 21, 2023) and we assume a flat payout ratio of 50%, implying IDR19.4 DPS (~3.1% yield). Maintain BUY with an unchanged TP of IDR840 implying 22.7x PE (-0.5SD of 3 normal years). 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’s New Credit is Expected to Rise in May

Bank Indonesia's Survey on Financing Supply and Demand indicates that weighted net balance (SBT) on new credit is 82.6% (prev: 68.9%). Lending standard was also on negative territory (negative = looser standard) with Consumption Credit lending standard become looser at -6.7% (prev:-1.1%). (Kontan)

 

US Housing Starts and Building Permit in May 2023 Exceed Forecast

Housing starts jumped to 1.63M on annualized rate (Cons: 1.4M), 13-month high, and Building Permit stood at 1.49M (Cons: 1.42M). (Reuters)

 

Comment: Although the data caused immediate volatility as market see the data as a reinforcement on Fed's hawkish stance, we believe weakening in the US would still continue. GDP Nowcast only slightly revised to 1.9% (+0.1 p.p) after the housing data, money supply growth is still negative, disinflation still on progress, and unemployment is going up. One more hike still seem more likely. (Economic Research, BRIDS)

 

SECTOR

Construction: Tender Data of Section 6A of IKN Toll Road

Tender bidding data for the IKN Nusantara toll road Section 6A (Riko-Rencana Outer Ring Road - 6.28 km length) has been released. With project’s ceiling value of IDR 1.54 tn, ADHI recorded as submitter of the lowest bidding price at IDR 1.49 tn, while Hutama Karya and PT Brantas Abipraya submitted IDR 1.51 tn. bids, then PTPP and WSKT submitted bids of IDR 1.52 tn. (Bisnis)

 

CORPORATE

ASII Car Sales Grew 9.31% in 5M23

ASII 5M23 car sales increased by 9.31% yoy to 231,596 units. Several car brands under ASII experienced an increase in sales including Toyota (135,473 units; +10.9%), Daihatsu (81,128 units; +10.5%), Honda (63,140 units; +18%). Toyota became the best-selling car in this period and is still the leader in the domestic car market with a market share of 32%. (Kontan)

 

HEAL Builds a Hospital in IKN, Targeting to Operate in 2024

HEAL will officially build the first international standard hospital in the IKN area which is targeted to operate in August 2024 and has signed a cooperation agreement. In the process of building this hospital, HEAL cooperates with PT Bina Karya which has been designated as an Authorized Business Entity (BUO) by the government. (Bisnis)

 

Electrum will Conduct Groundbreaking for Electric Motor Factories

Electrum - A joint venture electric motor manufacturer with GOTO and TOBA, will lay the groundbreaking for the construction of an electric motorbike factory on June 23, 2023. The first electric motorbike factory will be built in Zone E of the Greenland International Industrial Center, Cikarang, West Java. (Bisnis)

 

MAPI Distributes Dividend IDR 132.31 bn

MAPI through AGMS agreed to distribute a final dividend of around IDR7.9/share (yield: 0.5%; price: IDR1,695) for FY22 book to shareholders. In total, MAPI's dividend reached IDR132.31 bn and reflects a payout ratio of around 6.3%. (Bisnis)

 

Telkomsel Completed 3G to 4G BTS Upgrade

Telkomsel has completed its transition of 49,000 3G upgraded to 4G BTS, which started since March 2022. Telkomsel now claiming 96% of population area in Indonesia are covered by 4G/LTE Telkomsel network, concurrently uSIM 4G users recorded an increase of 84% yoy with 4G traffic payload increased 14% yoy. User migration to 4G devices also have increased 51% yoy. (Bisnis)

 

TPIA Collaborates with Ecovance Co.

TPIA collaborates with South-Korean based Ecovance Co. to develop biodegradable plastic ecosystem project, with both companies signed agreements yesterday (6/20). Materials to be used are polybutylene PBAT and PBS. (Bisnis)