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BRI Danareksa Sekuritas Equity Snapshot - December 29, 2021
December 29, 2021 09:20

MARKET NEWS

MACROECONOMY

China's money rates off highest levels in months after PBOC boosts cash injections

China's short-term money rates eased from levels around their highest in months on Tuesday (Dec 28) after the country's central bank stepped up liquidity injection to meet higher demand for cash towards the year-end. The People's Bank of China (PBOC) injected 200 billion yuan (US$31.39 billion) through seven-day reverse repos into the banking system, the biggest daily injection since late October, offseting 10 billion yuan worth of such loans expiring on the same day. The central bank said at its 2022 work meeting that China will keep its monetary policy flexible next year as it seeks to stabilise growth and lower financing costs for businesses amid growing economic headwinds. (Source: CNA, Reuters)

 

SECTOR

Poultry: Santa is Coming to Farm

Its Christmas! Some townsfolk are enjoying holiday while some are complaining the high food prices. In this season, it’s the farmers (both broiler and layer) that are enjoying the present given to them, 10% and 42% increase in farm-gate ASP MTD!

  • Despite the high cost environment, we expect Dec only profit numbers will be green as broiler prices stayed above IDR20k/kg throughout the month.
  • Egg experienced a price spike of 42% reaching IDR27k/kg. Chicken and egg, will the price of chicken follow the spike of egg price? We don`t think so. Despite sharing the same demand pattern, the supplies are not highly correlated.
  • Amid the continuous IDR500/kg increase per week in broiler price, we expect IDR22k is the cap.
  • Data to watch are Jan-22 prices (historically lower m-o-m), next culling program (the last one ended on 25 Dec), and the local corn prices.

 

Logistics: Pertamina International Shipping allocate USD 1.6bn investment

Pertamina International Shipping (PIS) is allocating USD1.5-1.6bn to 2030 for greener business development through adding tankers capable to transport LPG and LNG. PIS also plan to use ships with dual fuel and gas fueled ships in 2030-2040. In 2030, PIS will operate ships with LSFO and marine diesel fuel and initiatives to reduce high emission fuel. PIS plan to transporte DME and Biodiesel (B40-B50) in 2030-2040. PIS expects to reach USD 4bn revenue in 2027 by adding more fleets to 164 unit from 95 units. This would improve cargo capability from 125mn ton per year to 180mn ton per year (Investor Daily)

 

CORPORATE

GIAA expects passenger growth of 27%mom in Dec21

GIAA estimate its passenger may grow around 27%mom driven by increase in people’s mobility. The expectation of the growth corresponds to internal survey by GIAA in which the passengers may travel around oct21, Nov21, and Dec21. The expectation of increasing mobility is also supported by more relax restriction and Christmas and new year period. GIAA sees this as turning point for recovery acceleration for GIAA performance and Indonesia tourism. (Investor Daily)

 

Smartfren CEO Opens Up Merger Opportunities with XL Axiata

Sinar Mas Group telecommunication issuer, PT Smartfren Telecom Tbk. (FREN) openly tempts XL Axiata to merge. President Director of Smartfren Telecom, Merza Fachys, stated that he is open to merging with other telecommunications operators. For example, such as XL Axiata or other operators, both domestic and international players.

He also admitted that the issue of the merger between FREN and EXCL was getting tighter. This, he continued, was triggered by the consolidation between Indosat Ooredo and Tri Hutchison. However, he cannot confirm that FREN will merge with other telecommunication operators. (Source: Bisnis Indonesia)

 

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