Proactive’s Post

Indonesia Equity:: Bekasi Fajar Industrial Estate (BEST): It is a BUY, technically and fundamentally on the following 2 reasons: 1. Strong price support at IDR100, while strong resistance levels at IDR150, then at IDR200, meaning BEST is offering an attractive entry point right now; 2. As of 30 Sep 2024, net liquidation value of BEST, based on our back of envelope calculation, falls within IDR1.5k-2.0k per share, if we conservatively assume its owned gross land (totaling some 1k ha) was priced at IDR2mn per m2. The company sold 13ha of its ripened land at an average price of IDR3.2mn per m2 during 9M24. Bekasi Fajar, to conclude, is a classic case of a stock priced at maximum pessimism. We thus rate it a best BUY.

Indocement Tunggal Prakarsa (INTP): It is a BUY. INTP started its commercial operations in 1975, making it one the oldest cement manufacturers in Indonesia. The company was founded by the country's top conglomerate during New Order political regime: Soedono Salim*, a founding father of a formidable Salim Group. Partly due to a strong support from the New Order regime, INTP has had been a very profitable firm since its birth date, growing to become the 2nd largest cement producer in the country. However, Salim Group had to let go INTP to GoI** --as a debt settlement-- post 1997-1998 multidimensional crisis. INTP was later sold to Germany-based Heideilberg AG by the gov't. That is the company profile intro, then we proceed to assess whether INTP share at IDR7,225 /unit (at the time of this note), worth a BUY or a SELL. It is, in our opinion, a BUY, based on the following arguments: 1). It is cheap: On EV***/ton metric, like its bigger peer Semen Indonesia, INTP is currently trading at a big discount. Using end-1Q24 balance sheet figures and current equity market cap, INTP's EV/ton is valued at around US$45 /ton, lesser than half either compared to industry's**** acquisition target or new plant investment**** at around US$100-US$120 /ton. On this metric, INTP is a bit cheaper than Semen Indonesia. This in turn should act as a good basis for Salim Group to re-acquire Indocement (especially INTP already generates a significant free cash flows) from the market, meaning downside price risk is rather limited; 2). Fair value of INTP should be at least IDR10k /share, valuing it as re-acquisition target by Salim Group; 3). The company (which carries the familiar Indo as its 'first name') has a high brand value, especially in western region of Indonesia: Sumatra and Java --the mostly populated areas (77% of a total of 279mn Indonesia population live here); consuming a big chunk of cement (and its derivative products) produced in the country. ****In emerging markets. ***Enterprise Value = Shares Market Cap + Total Debt - Cash. **Government of Indonesia. *One of the confidantes of Indonesian 2nd President --a leader of New Order regime who ruled the country for 32 years. 2024 YTD total returns of Indocement against its parent: Heidelberg Materials AG. (Source: Google Finance).

On a segmental basis, KLK said its plantation segment contributed strongly to the group's results, coming in at a 25 per cent increase to RM357.7 million in 2Q24 compared to RM287.3 million in 2Q23 although having marginal improvement in yields.  The group noted that higher crude palm oil (CPO) sales volume and lower cost per tonne of CPO production are the other key factors contributing to strong results. Its manufacturing segment posted a profit of RM56.7 million in 2Q24, marking a sharp drop from RM186.0 million in the same period last year. KLK said although the oleochemical sub-segment in Europe has faced challenges, a more positive outlook is emerging. The group said its strategic restructuring to move downstream in the value chain is expected to yield positive results. https://lnkd.in/gCECRNsk

🔗 https://lnkd.in/dKjm4n3U 📝 Smart #investing: Unveiling key drivers of #strategic #investment for #investors in the Indonesia #Stock Exchange 👥 Ika Yanuarti Loebiantoro, Eaw Hooi Cheng, Nursyamilah Annuar 

IPOA Identifies Four Key Issues for Production Boost in Indonesia https://lnkd.in/gApubUEh #PalmOilMagazine #PalmOil #PalmOilPlantation #FFB #CPO #Production GAPKI IPOA

Indonesia, as one of Southeast Asia’s largest steel producers, faces a critical challenge. With steel production projected to nearly double by 2030, driven by expanding infrastructure, housing, and automotive demands, reducing our carbon footprint is crucial. At PT Gunung Raja Paksi Tbk (GRP), we understand that achieving this requires strong collaboration and innovative solutions. Our partnership with IFC - International Finance Corporation is a pivotal step in addressing this global imperative. Explore how we’re making a difference in this post. IFC Asia Pacific IFC Manufacturing #PartnershipForSustainability #IFC #FutureOfSteel #SteelIndustry #Decarbonization

[EQUITY RESEARCH #6: PT SEMEN INDONESIA TBK] Halo, Investor Muda!👋🏻 Did you know that SMGR is the primary cement supplier for our new capital city, providing 80% of the cement used there?📈 However, with the current oversupply in the industry, SMGR has certainly been affected, as shown by declining revenue in its performance this year😰 Are you curious about SMGR’s prospects under the new government policy?🤔 Read our research below!🙌🏻 Analysts: Vania Nailah Zabrina Daffa Umarsyah Putera Deara Anisa Permatasari Hamzah Putra Davina Putri Ardhita Najwa Amalia Ilyas Be a smart investor to set a bright future! #SalamInvestorMuda #Super7SuperExcited #EquityResearch #CompanyUpdates

SMDM Acquisition, BSDE Exploits Internal Cash JAKARTA. PT Bumi Serpong Damai Tbk (BSDE) is in the process of taking over PT Suryamas Dutamakmur Tbk (SMDM) from Top Global Limited (TGL). This subsidiary of the Sinar Mas Group will acquire 91.99% of SMDM shares. BSDE Corporate Secretary, Ricardo Arief Darmawan, said that the completion of the SMDM takeover plan would depend on the parties fulfilling the terms and conditions as regulated in the conditional share sale and purchase agreement or CSPA. Completion will be made on a date that is within the fifth working day, after the fulfillment or waiver of the terms and conditions agreed in writing between the seller and the buyer. "After completion of the transaction, BSDE will carry out a mandatory tender offer," he said in an information disclosure, Monday (12/8). The transaction value is determined on the basis of the arm's length of the seller's willingness and the buyer's willingness. This was agreed upon after negotiations and taking into account the value of TGL's shareholding in SMDM, SMDM's open market share price, and the results of due diligence. "The source of funds for the takeover of SMDM shares will use BSDE cash funds," he said. Ricardo said that BSDE had several considerations in acquiring SMDM. First, SMDM's land reserves are still extensive, so development potential is still high. Second, strategic location and close to toll road access. Third, geographic diversification for BSDE. Fourth, the transaction price for the planned takeover of SMDM shares is still quite reasonable. Peluang #investasi dan pengembangan #properti yang saling menguntungkan: Hubungi kami +62 811-8506-660 project@nusadev.com https://lnkd.in/g3KdMqT #propertybusiness #propertydevelopment #propertyinvesting #NusantaraDᴇᴠᴇʟᴏᴩᴍᴇɴᴛs #renovasiproperti #renovasi #renovasirumah #kontraktor #renovasiproperti #properti #renovasigudang #kontraktor #bangungudang #gudang #pergudangan #konstruksi 

Johor Plantations Group (JPG) plans to utilize RM735 million raised from its initial public offering (IPO) to establish a palm oil operation powered by clean energy. This strategic move aims to meet increasingly stringent regulations in key markets such as Europe. Managing Director Mohd Faris Adli Shukery highlighted the company’s confidence in appealing to European consumers due to its sustainability-certified supply chain and commitment to halving its carbon output by next year, aligning with the European Union Deforestation Regulation set to take effect soon. #JohorPlantationsGroup #IPO #PalmOil #CleanEnergy #Europe #Sustainability #EuropeanUnionDeforestationRegulation