FROM EQUITY RESEARCH DESK

IDEA OF THE DAY

Bank BTPN Syariah: Robust start in FY25 and a more positive tone regarding asset quality improvement (BTPS.IJ Rp 950; BUY TP Rp 1,200)

• BTPS booked a net profit of Rp110bn in Jan25 (-12% mom, +47% yoy), reaching 10% of our FY25F and 9% of consensus, i.e., above.
• Despite a weak ultra-micro segment, the improvement in asset quality is driven by an improving business model and is expected to continue.
• Maintain Buy rating with an unchanged TP of Rp1,200. Key risk to our call includes changes in asset quality trend.

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BRIDS FIRST TAKE

• Coal: Government requires coal export pricing to use HBA (OVERWEIGHT)

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RESEARCH COMMENTARY

ITMG (BUY, TP: Rp31,300) - FY24 Result

• FY24 core profit of US$394mn: below ours but beat vs. Cons est (107% of FY24F).
• 4Q24 core profit: US$125mn +47% qoq/ +29% yoy.
• Strong 4Q24 sales volume of 6.9Mt +23% yoy/ +11% qoq and lower cash cost ($60/t, -5% qoq/ -17%yoy) more than offset the lower ASP in the quarter.
• We currently have a Buy rating on ITMG with TP of Rp31,300.

Technology (OVERWEIGHT) - inDrive in communication with Ministry of Manpower; no need for driver partners to become employees

The President of ride-hailing company inDrive stated that his company is in discussions with the Indonesian government regarding regulations that would classify online motorcycle taxi (ojol) drivers as workers instead of partners. He emphasized that inDrive's current partnership model offers better earnings and lower commission take rate of 10% compared to competitors. The Ministry of Manpower (Kemenaker) is preparing regulations to formalize ojol drivers' worker status, ensuring they have legal protections after Lebaran. However, inDrive claimed that its partner drivers are satisfied with their current conditions and do not seek a change in status as they are content with their overall compensation through inDrive. (Kompas)

 

BRIDS Comment:

We believe this is another round of negotiations between the government and ride-hailing platforms. If partners are reclassified as employees, it would undermine the entire platform-based sharing economy model. The company’s focus would shift from maximizing the utilization of partners' fixed assets (vehicles) to maintaining a workforce and potentially assuming responsibility for those assets. inDrive’s suggestion implies lowering take rates from the current 25-30% levels at Gojek and Grab to enhance driver compensation. While this poses risks, it may also pressure Gojek and Grab to scale back competition-driven discounts and redirect those savings toward higher driver earnings. Reaching out to GOTO, seems to be taking a similar approach by offering some form of Tali Asih Hari Raya allowance. Gojek also emphasizes non-monetary benefits such as IPO share distributions, social responsibility programs, and Ramadan support initiatives. (Niko Margaronis - BRIDS)

 

MARKET NEWS

MACROECONOMY

China to Inject US$55bn into Top Banks to Boost Lending and Reduce Risks

China is going inject capital of US$55bn to its three biggest banks which could be finance by a special sovereign bond issuance. The new capital is expected to reduce risks and spur lending. (Bloomberg)

 

SECTOR

Commodity Price Daily Update Feb 26, 2025

Automotive: GAC International Expands in Indonesia

GAC International is making Indonesia its manufacturing and export hub for Southeast Asia, with plans for global expansion. In partnership with Indomobil, it has built a 50,000-unit factory in Cikampek, set to start full operations in April 2025, beginning with the Aion V EV. (Kontan)

 

CORPORATE

AMRT Targets 15% Sales Growth During Ramadan and Eid 2025

AMRT targets 15% sales growth during Ramadan and Eid 2025, driven by consumer goods. It plans to add 800 new outlets, mainly outside Jabodetabek, while boosting sales in existing stores. A new store with a five-year lease cost around Rp600mn. (Kontan)

 

BUKA Confirms GIC's Complete Divestment -IDX

BUKA's mgmt. confirmed a change in share ownership, with Kreatif Media Karya wholy owned subsidiary of EMTEK raising the stake from 25.4bn shares to 35.1bn shares and changing the stake from 24.6% to 34.1%. The difference in the stakes is exactly the portion of Archipelago Investment Pte part of GIC Singaporean SWF. (IDX)

 

CNMA Allocates Rp300bn for Share Buyback

CNMA plans a Rp300bn share buyback, repurchasing up to 2.48% of its 83.34bn outstanding shares. Post-transaction, paid-up capital will decrease to 77.07bn shares, with public ownership dropping from 9.999% to 7.518%, while 2.48% will be held as treasury shares. Major shareholders, including HSBC-Fund SVS Salween Investment Pte Ltd (22.509%) and PT Adi Pratama Nusantara (13.499%), will maintain their stakes. (Investing)

 

EMTK Confirms PT Adikarsa Sarana Purchase, Raising Stake to 14.1%

EMTK confirmed the purchase of 2.25bn shares by PT Adikarsa Sarana (affiliated to Sariaatmadja family). Hence Adikarsa Sarana raised their stake from 10.4% to 14.1%. This explains partially the crossing that took place on the 10th of February of 4.29bn shares which are identical to the shares registered under Archipelago Investment Pte Ltd in the January share register, but in February the name is eclipsed. (IDX)

 

Hyundai Secures 2,012 Orders at IIMS 2025, Stargazer and Creta Lead Sales

PT Hyundai Motors Indonesia (HMID) recorded 2,012 vehicle orders at IIMS 2025, with Stargazer, Stargazer X, and Creta as the top models. The mgmt. expressed appreciation for customer enthusiasm, reaffirming Hyundai’s commitment to innovation and customer satisfaction in Indonesia. (Kontan)

 

ISAT Targets 1.4 GHz Frequency Spectrum

ISAT has officially expressed its interest in participating in the 1.4 GHz frequency auction to be held by Komdigi. ISAT has clearly communicated its intention to participate in accordance with the regulations set by the government. ISAT hopes for clarity regarding the requirements for auction participants, especially for operators committed to expanding networks in remote areas. (Kontan)

 

SILO Targets Kidney Stone Treatment

SILO, through Siloam ASRI Hospital, has launched the Urinary Stone Center, an integrated service center equipped with technology focused on urinary tract stone diseases (UTS). To enhance services for patients with urinary stones, SILO will introduce several robotic technologies for surgical procedures, which will be directly imported from the United States. However, SILO management has not disclosed the investment value for the procurement of this advanced technology. (Kontan)