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FROM EQUITY RESEARCH DESK |
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Aneka Tambang: Upbeat 3Q24 Operational Outlook (ANTM.IJ Rp 1,370; BUY TP Rp 2,000)
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MARKET NEWS |
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RESEARCH COMMENTARY
KTA from Our Meeting with Ultrajaya (ULTJ – Not Rated)
- Sales volume: ULTJ reported an improved sales volume in July 24, with an 11% yoy increase in the Dairy segment and a 3.3% yoy increase in Non-dairy segment. By end of June 24, total sales volume for 1H24 grew by 6% yoy, although RTD Tea saw a slight decline of 0.5% yoy.
- Margin outlook: ULTJ’s management indicated potential margin improvement in 2H24, supported by 4-5% increase in ASP implemented in May 2024, which is expected to positively impact sales from July onward. Additional factors include the strengthening of Rupiah (with USD-linked raw materials accounting for around 50% of total costs) and stable input costs.
- FY24 guidance: ULTJ maintains its target for double-digit revenue growth for FY24.
- New variants: In July 2024, ULTJ launched 2 new variants in RTD Tea segment: Teh Kotak Rasa Leci and Teh Kotak Rasa Mangga
- MBDK excise and MBG program: Regarding the government’s proposed excise tax on sweetened beverages and the free lunch program, ULTJ mentioned that discussions with the industry are still ongoing. (Natalia Sutanto & Sabela Nur Amalina – BRIDS)
MACROECONOMY
US ISM Manufacturing PMI Edged Higher to 47.2 in Aug24
US manufacturing activity shrank in August for a fifth month with PMI of 47.2, according to ISM, reflecting faster rates of declines in orders and production. Declining orders and a persistent retreat in backlogs remain headwinds to production and illustrate a struggling manufacturing sector. While the ISM gauge of factory employment rose, it still showed a third month of contraction. (Bloomberg)
SECTOR
Government Announces Winners of the 2024 First Phase Oil and Gas Block Auction
Central Andaman Block (Offshore Northern Sumatra):
- Winner: Consortium of Premier Oil South Andaman Limited and Mubadala Energy Holdings Limited.
- Signature bonus: US$300,000.
- Total firm commitment: US$4,032,293.
Amanah Block (Onshore South Sumatra):
- Winner: Consortium of PT Medco Energi Linggau, PT Sele Raya, and KUFPEC Regional Ventures (Indonesia) Limited.
- Signature bonus: US$300,000.
- Total firm commitment: US$3,150,000.
Melati Block (Onshore-Offshore Southeast Sulawesi and Central Sulawesi):
- Winner: Consortium of PT Pertamina Hulu Energi, Sinopec International Energy Investment Holdings Limited, and KUFPEC Regional Ventures (Indonesia) Limited.
- Signature bonus: US$200,000.
- Total firm commitment: US$12,700,000.
Panai and Pesut Mahakam Blocks: Currently in the auction process through a Regular Auction mechanism, scheduled to close on September 11, 2024. (Kontan)
CORPORATE
ARTO Provides a Credit Facility Worth Rp500bn to BBLD
ARTO has signed a Joint Financing Partnership agreement worth Rp500bn with PT Buana Finance Tbk (BBLD). The partnership has an effective term of three years. Earlier this year, BBLD also entered into a Rp50bn credit facility agreement with ARTO. (Investor Daily)
BBCA Officially Merged its Subsidiaries, BCA Multifinance and BCA Finance
BBCA has officially merged its two subsidiaries, namely PT BCA Multi Finance and PT BCA Finance. This merger has been effective since September 1, 2024, with PT BCA Finance being the surviving entity and continuing operations after the merger process. (Emiten News)
BBRI Signs an Agreement with Amundi for Strategic Partnership in BRI MI
BBRI has signed a Conditional Share Subscription Agreement outlining the obligations and rights of Amundi Asset Management (Amundi) in connection with a long-term strategic cooperation plan involving BBRI's subsidiary, PT BRI Investment Management (BRI MI). The transaction involves Amundi subscribing to new shares in BRI MI, making Amundi a minority shareholder while BBRI remains the majority shareholder in BRI MI. (CNBC)
EXCL Aims for High Single-Digit Performance Growth for the Remainder of 2024
EXCL aims for high single-digit growth for the rest of 2024. To achieve this, XL Axiata will focus on expanding its convergence services and network infrastructure both in Java and beyond. The company will also continue to develop its fixed mobile broadband services and leverage artificial intelligence (AI) to explore new opportunities in the dynamic telecommunications sector. (Kontan)
GGRM Prepares for the Construction of Kediri-Tulungagung Toll Road
GGRM is preparing for the construction of the Kediri-Tulungagung Toll Road, which requires an investment of Rp9.92tr. The toll road will have a concession period of 50 years, with operations overseen by PT Surya Cipta Agung. GGRM is currently in the process of acquiring land and plans to start construction in the coming months. (Bisnis)
ISAT and Zurich Collaborate to Launch Insurance Protection Products Through the Indosat App
ISAT and Zurich have collaborated to launch insurance protection products through the Indosat app. According to Zurich, this new product is expected to be more accessible to Indosat customers through a single application. In this new product, Zurich will offer its products through the Indosat apps, myIM3 and bima+, including postpaid bill reimbursement and travel insurance for flight cancellations, lost luggage, and emergency medical needs. (Kontan)
