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Danareksa Equity Snapshot - 07 Desember 2018
December 07, 2018 09:52

FROM EQUITY RESEARCH

Gudang Garam: More growth to come (GGRM IJ.IDR 81,525 BUY.TP IDR 98,400)

We maintain our BUY recommendation on GGRM with a higher TP following the strong volume growth in 9M18. With more growth expected in 2019 on the back of government plans to maintain cigarette excise tariffs, we believe that the company is well placed to record higher FY19 earnings growth

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Property: BCA Standpoint - Assessment of Property Demand (Neutral)

We met with BCA’s consumer credit department (BBCA IJ; HOLD; TP Rp28,000) and discussed several matters concerning the Indonesian property market including the impact of the LTV relaxation rule and the reduction of property-related taxes on demand. In general, they think the national property demand is still soft pressured by political uncertainty, weak IDR and rising interest rates. Nevertheless, BCA still expects good mortgage growth in FY19 and thinks that the mid-low segment is still lucrative. Maintain Neutral.

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MARKET NEWS

MACROECONOMY

Government: tax revenues are 80% of the full year target

The Directorate General of Tax (DJP) has recorded tax revenues collection of IDR 1,139tn as of Nov 18 or 80% of the full year target. Tax collection in this period is up by 15.8% YoY. Nonetheless, December will be a difficult month for tax collection given the holiday and year-end festivities. (Bisnis Indonesia)

 

Government: Investment reached IDR 162tn in 2018 as more companies obtain tax holidays

As the Directorate General of Tax (DJP) allows more companies to obtain tax holidays, investment appetite is increasing. This is shown by the increase in investment to IDR 162tn this year. Going forward, DJP expects more companies to be eligible for tax holidays, with several companies still being reviewed by DJP. (Bisnis Indonesia)

 

SECTOR

TBIG to acquire tower company Visi Telekomunikasi

Tower Bersama (TBIG) will acquire 51% of Visi Telekomunikasi Infrastruktur listed on the IDX with the ticker GOLD:IJ. TBIG issued a letter of commitment to acquire 51% of GOLD to GOLD shareholders, without disclosing the price. The CFO of TBIG said the transaction is currently being negotiated. GOLD recorded revenues of Rp26.8 tn in FY17 and Rp22.9 tn in the first 9 months of 2018 with XL Axiata and Hutchison contributing the bulk of the revenues. GOLD’s CFO said the company expects to record revenues of Rp32 bn in 2018 and growth of ~19%yoy. A director at GOLD stated that there was price pressure on tenancies from clients. Nonetheless, the outlook for GOLD looks bright given it has a niche position by partnering with AlfaMart which enables it to install micro towers at Alfamart locations. (Kontan, Bisnis)

 

Comment: We do not expect significant changes in the numbers of TBIG even though the proposed acquisition will allow TBIG to leverage on GOLD’s prospects going forward. (Niko)

 

 

CORPORATE

Bank Mandiri projects 15% loans growth in 2019

PT Bank Mandiri (Persero) Tbk (BMRI IJ, BUY, TP IDR8,700) is projecting next year’s loans growth at 13-15% yoy. The projected loans growth in 2019 is similar to this year’s target of 13-15% yoy. BMRI’s management has stated that the loans growth will mainly be driven by the retail and corporate lending segments. The management also expects loans growth to be stronger in 2H19. (Investor Daily)