Indonesia Banking Industry
Analyst: Yap Swie Cu
Top banks 10M19 results summary
• In-line results, BBCA has best earnings quality
• No surprise about BBTN’s sharp profit fall
• Modest core earnings performance in BBRI, BMRI and BBNI
• Recommendation
Industri Jamu Sido Muncul (SIDO IJ)
Analyst: Anindya Saraswati
BUY / TP: IDR:1,450 (+14.2%)
The herbal expert
• Herbal growth engine
• New source of growth: exports
• Re-initiate coverage with a BUY call and a TP of IDR1,450
Inflation
Analyst: Chandra Pasaribu
Government keeps lid on Nov inflation
• Food, Processed Food and Housing contributes to inflation
• YoY inflation 3.0%, the low end of guidance
• Anticipating higher inflation in Dec19
• Entering Dec 19 to favor consumer sector
INDUSTRY
• Pharmaceutical industry to implement local content
• West Java province opens bipartite talks to determine minimum wage increase
INDUSTRY
• Government to regulate online trading
• MNC Vision to acquire Linknet
INDUSTRY
• Telco industry to grow by 7% in FY19
• 2W sales volume to reach 5.5mn units up to Oct19
CORPORATE
• Erajaya Swasembada (ERAA IJ) opens 15 new stores
• Wijaya Karya (WIKA IJ) aims 3 Africa countries
