JAKARTA (TheInsiderStories) – Indonesian listed companies have unveiled their nine months (9M) financial reports, with most soundly beating market expectations. We wrap up their financial performance in the 9M sectoral base as follows:
The sector has shown strong performance with three major state-owned lenders, including largest state-owned lender (by assets), PT Bank Mandiri Tbk (IDX:BMRI), PT Bank Negara Indonesia Tbk (IDX: BBNI) and PT Bank Tabungan Negara Tbk (IDX:BBTN), all posting a surge in net profit, above 20 per cent against the same period last year.
Bank Mandiri saw a 25.4 per cent (YoY) jump in 9M 2017 net profit, to Rp15.1 trillion ($1.1 billion) compared to Rp12.01 trillion reported for the same period one year earlier. Bank Negara Indonesia reported a 31.6 per cent (YoY) jump in net income, to Rp10.2 trillion ($753 million) up to Q3 2017, on the back of sharply-improving income from corporate clients.
Meanwhile, Bank Tabungan Negara posted a 24 per cent jump in net income to Rp2 trillion, with PT Bank Rakyat Indonesia Tbk (IDX: BBRI) recording single digit growth – just 8.2 per cent higher, to Rp20 trillion.
Indonesia’s largest private lender, PT Bank Central Asia Tbk (IDX: BBCA), reported Rp16.8 trillion in net profit in the first 9 months of the year, for an increase of 11.3 per cent over the Rp15.1 trillion reported for the same period last year.
Major players in the consumer sector reaped strong profits. PT Hanjaya Mandala Sampoerna Tbk (IDX: HMSP), PT Unilever Indonesia Tbk (IDX: UNVR) and PT Gudang Garam Tbk (GGRM) posted a 2.82 per cent, 10 per cent and 17 per cent net profit over the period, respectively.
HMSP net profit rose by 2.82 per cent to Rp9.34 trillion over the period, while UNVR and GGMR net profit rose to Rp5.23 trillion and Rp5.4 trillion, respectively. Meanwhile, PT Indofood Sukses Makmur Tbk (IDX: INDF) posted Rp3.28 trillion, 1.2 per cent from Rp3.24 trillion
Retail sector showed a mixed condition, as a strengthening trend shifting to online purchases continues to grow. Some players recorded loses and were forced to shut down their bricks’n’mortar operations. PT Matahari Department Store Tbk (IDX: LPPF) posted Rp1.55 trillion in net profit in 9M, a 6 per cent decrease compared to the previous year’s Rp1.61trillion.
Otherwise, PT Mitra Adiperkasa Tbk (IDX: MAPI) net profit rose by 112 per cent to Rp256 billion, from Rp120 million last year. PT Ace Hardware Tbk (IDX: ACES) posted Rp526.48 billion net profit in 9M, a 10.5 per cent rise from Rp470.07 billion.
After recording slowing growth in the first half, it will gradually recover in the second half and should post a single digit rate. Property sector has shown a rebound after showing sluggish profit growth in previous quarter. PT Bumi Serpong Damai Tbk (IDX: BSDE) posted 100 per cent net profit to Rp2.3 trillion.
PT Modernland Realty Tbk (IDX: MDLN) also posted a 700 per cent net profit jump, to Rp261 billion from Rp29.23 billion. PT Pakuwon Jati Tbk (IDX: PWON) meanwhile posted an 8 per cent rise (YoY) and PT PP Properti Tbk (IDX: PPRO) posted an 8.49 per cent YoY profit rise in 9M.
Up to the third quarter, the construction sector remained solid, supported by increased government spending in H2. PT Acset Indonusa Tbk (IDX: ACST), posted a 178 per cent net profit jump to Rp111.2 billion in 9M, compared to last year at Rp40.3 billion.
Its holding, PT United Tractor Tbk (IDX: UNTR) booked Rp5.64 trillion in 9M, a 80.31 per cent jump compared to Rp3.13 trillion in the same period last year.
State-owned construction firm, PT Adhi Karya Tbk (IDX: ADHI) booked a net profit of Rp205.07 billion, a 78 per cent rise from Rp115.18 billion. Meanwhile PT PP Tbk (IDX: PTPP) booked Rp990 billion net profit, a 75 per cent increase from Rp567 billion a year earlier.
Plantation sector showed a strong net profit as superior prices meant a bright outlook, with a 2 per cent increase this year. PT PP London Sumatra Indonesia Tbk (IDX: LSIP) posted a 134.84 per cent net profit jump to Rp639.5 billion in the 9-month period. Meanwhile, PT Sampoerna Agro Tbk (SGRO) posted a 774 per cent net profit rise to Rp221.89 billion over the period.
Gaining some margin following price stabilizing at US$75 to US$80 per tones. State-owned tin miner PT Timah Tbk (IDX: TINS) booked a 493.37 per cent net profit jump to Rp300.57 billion in 9M, compared to Rp50.65 billion last year. Meanwhile, coal miner PT Mitrabara Adiperdana Tbk (IDX: MBAP) posted a 212.15 per cent net profit jump to $54.84 million in 9M, compared to $17.57 million last year.
A similar performance was shown by coal miner PT Baramulti Suksessarana Tbk (IDX: BSSR) that posted a 293 per cent net profit surge in 9M to $63 million, compared to $16.15 million last year.
Most companies listed in this sector, including PT Telkomunikasi Indonesia (IDX: TLKM), PT Excel Axiata Tbk (IDX: EXCL) and PT Indosat Ooreedoo Tbk (IDX: ISAT), posted a net profit growth above the industry level in the early second half, for about 15 per cent or higher. TLKM posted a 21.7 per cent net profit jump in 9M to Rp17.92 trillion from Rp14.73 trillion last year, while EXCL posted a 49 per cent net profit jump to Rp238 billion in the period.
PT Waskita Beton Precast Tbk (IDX: WBSP) posted a 64.2 per cent profit jump in 3Q to Rp825 billion, compared to Rp502 billion last year. The other players in this sector, including PT Tower Bersama Infrastructure Tbk (IDX: TBIG), are yet to announce their results.
Full Year Outlook
All sectors is expected to gain 15 per cent EBITDA growth in full-year 2017 to Rp246.15 trillion, where acceleration is expected in banks, construction, consumer, industrial estates, plantations, property and retail sectors. We put overweight outlook on these sectors, while banking sector will remain moderate, as bank business plan (RBB) projects a conservative 9-10 per cent lending growth this year and there are over liquidity and payment issues, particularly from state-owned companies.
“The 9M financial reports of most listed companies have shown a recovery. This inspires optimism and confidence that business is growing and will expand and banks will start to disburse loans,” Agus Martowardojo, Governor of Central Bank said on Oct. 31.
As for construction, full support from the government and raised spending from SOEs should support growth in new projects. In addition, realization of construction work should improve: once major players complete their equity raising, their ability to raise funding will become more crucial to sustain a high level of growth.
On consumer, return of subsidy in 2H and 2018 ahead of elections should support staple demand, post-festive demand already stabilized, as well as consensus and market earnings growth expectations: all are manageable.
On industrial estates, inquiries about industrial land are picking up this year. DMAS has over 80 ha ready to move, followed by BEST and SSIA, with 57 ha and 20 ha, respectively. Valuation is attractive at a 70 per cent discount to NAV.
On plantations, we expect export demand to improve this year with re-stocking in countries such as India and China. Upcoming festive seasons such as Mooncake and Diwali festivals will help to stimulate CPO purchases. Biodiesel mandate will continue to provide support to CPO price as government plans to increase biodiesel consumption by 68 per cent on annual base for both PSO (public service obligation) and non-PSO.
On property, supportive macro prudential rules have been in place since 1H 2016, including LTV relaxation, property mortgage relaxation and foreign ownership relaxation. The year of 2017 could be the inflexion point for property marketing sales after a series of monetary loosening and regulation easing.
Actual marketing sales data from developers as of 1Q 2017 posted positive results with 27 per cent on an annual basis increase, compared to contracted 57 per cent in 1Q last year. During January-May 2017, developers were also on a better track. Marketing sales during the period recorded 28 per cent versus 23 per cent last year.
As for retail, we expect more stable demand and higher margins, led by normalized inventory level and cost efficiency efforts. Mid- to low-end retailers are having a tough time arousing demand during 2Q as consumer behavior is apparently shifting toward saving from consumption.
Written by Yosi Winosa, Email: firstname.lastname@example.org