Bank Tabungan Negara (BBTN IJ)
BUY / TP: IDR:2,500 (+17.4%)
Analyst: Yap Swie Cu
Expect FY19F earnings to miss target
• Rising bad loans pressurized earnings
• Positive Dec 2019 earnings to be expected at the expense of lower-than-targeted loan-loss coverage
• Expect lower-than-projected FY2019F earnings, equity balance
• No positive catalyst to share price until final results come out
Trade Balance
Analyst: Chandra Pasaribu
Reduced trade deficit in 2019
• Flat oil imports with minor increase in exports
• Non-OG goods turned in a surplus
• Positive catalyst for currency stability
Waskita Karya (WSKT IJ)
HOLD-UPF / TP: IDR:1,475 (-1.7%)
Analyst: Muhammad Abdul Aziz
Hunting down the capital
• Divestment normalizes its balance sheet
• Dominated by robust yet risky projects
• Expect higher new contracts of IDR35tn in FY2020
• Re-initiate coverage with a HOLD-UPF call and a TP of IDR1,475
INDUSTRY
• 4W sales down by -10.8% in FY19
• Domestic cement volume inched up 0.6% YoY in FY19
• Astra Honda to aim at sales of 4.9mn units in FY20
CORPORATE
• BTN’s (BBTN IJ) junior global bonds oversubscribed by 12.3x
• BSD (BSDE IJ) books IDR6.5 tn marketing sales in FY19
INDUSTRY
• Churn rate to decline post SIM registration
CORPORATE
• Vale Indonesia (INCO IJ) and Mind Id continue to discuss CSPA
• Mega Manunggal Property (MMLP IJ) to budget capex of IDR1.2tn in FY20
INDUSTRY
• Government to alter LPG subsidy
• Morris Garage to enter Indonesian auto market
• India to stop import CPO from Malaysia
CORPORATE
• Indocement (INTP IJ) see revenue growth of 3-4%
• Wijaya Karya (WIKA IJ) aims IDR65tn in 2020
