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BRI Danareksa Equity Snapshot - 16 Oktober 2020
October 16, 2020 09:39

Link Net: Share price recovery due (NOT RATED) 
From our virtual meeting with LINK’s CEO and its management we noted the company’s determination to drive subscriber & ARPU growth by further strengthening the quality of its network & customer service. We expect to see decelerating homepass additions as the company focuses solely on network migration off PLN poles. Addressing key risks, we see share price recovery is due. 
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Astra International: Solid quarterly improvement on the cards (ASII.IJ IDR. 4.740 BUY TP. IDR.6,700)
Domestic car sales volume (wholesales) jumped 30.2% mom to 48,554 units in Sep20 amid the re-imposition of one-month large-scale social distancing restrictions (PSBB) in Jakarta. Astra International (ASII) saw its car sales volume surge 53.8% mom boosting its market share to 53.1% in Sep20. In 9M20, the domestic car sales volume was down by 50.7% yoy to 372,046 units, slightly below expectations. Our TP of IDR6,700 is based on the SOTP.

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MARKET NEWS

 

MACROECONOMY

Indonesia recorded a USD2.4bn trade surplus in September

The Indonesian Bureau of Statistics (BPS) recorded a USD2.4bn trade surplus in September 2020, marking five consecutive months of trade surplus. Exports contracted slightly by -0.5%yoy to USD14bn, while imports contracted more sharply by -18.8%yoy to USD11.6bn. However, there was an improving trend in the mom growth for both exports and imports (+7% and +7.7% respectively). For exports, there was 13.6% mom growth in mining exports and 45% mom growth in oil exports. For non-oil and gas exports, there was 13% growth of animal and vegetable fats exports, and 32.5% growth of iron exports. Sectorally, exports from the Agri and Manufacturing sectors grew by 16.2% mom and 6.6% mom, respectively. For imports, there was 7.23% mom growth in the imports of raw materials and 19% mom growth in capital goods imports. For imports of consumption goods, however, they contracted by 6.12% mom. (BPS)

SECTOR

Pharma: INAF will corroborate with Novavax

Indofarma (INAF) stated that the agreement with Novavax Inc – United States for the procurement of a Covid-19 vaccine is on track, subject to the direction of the SOE Ministry. INAF will trade and distribute the vaccine. At present, Novavax is in phase 3 of clinical trials encompassing 10 thousand people ranging from 18-84 years old for a period of 6 weeks. Data from this clinical trial is expected to support the company’s efforts to obtain a license in the UK, the EU and other countries. Novavax plans to increase the capacity of its production up to 2bn doses by mid-2021. Another SOE pharmaceutical company, Bio Farma, has been approved as one of many potential vaccine producers by the Coalition for Epidemic Preparedness Innovations (CEPI) – a coalition of government, private and philanthropies in Norway. Through CEPI, Bio Farma will produce 100mn Covid-19 doses in 4Q21 or 1Q22. (Investor Daily)


CORPORATE

Upstreaming & Transmission revenue back online from Muriah block (PGAS IJ)

Kepodang field under the Muriah block is getting back in operation to be producing 10-20bbtud of natural gas by Saka Energi Muriah Ltd. The gas will be supplied to powerplant unit Tambak Lorok near Semarang. Saka Energi plans to conduct further exploration in Muriah block to improve production. Furthermore the Kalija transmission pipeline will get back online to generate again revenue for KJG subsidiary of PGN.

Waskita Karya: New contracts reach IDR12.2tn

Waskita Karya (WSKT) booked new contracts of IDR12.2tn by mid-Oct20. This translates into a 45% realization rate of the FY target set at IDR27.0tn. WSKT is awaiting the tender winning announcement for projects in 4Q20, such as toll road projects in Sumatra, East Kalimantan, and Jakarta. WSKT obtained works for the development of a commercial center in a Southeast Asia country recently worth IDR1.0tn. (Investor Daily)