*Indonesia Sustainable Palm Oil (ISPO) and the Roundtable on Sustainable Palm Oil (RSPO) preparing for a joint audit. The partnership aims to reduce the time and cost needed for companies and farmers to obtain certificates for sustainable palm oil. Currently, there are 184 companies with a certificate ISPO, combined with the palm area of 1.3 million hectares and 6.2 million tons of CPO production.
* Pharmaceutical companies are adding capacity. PT Kalbe Farma Tbk (KLBF, Rp1.815, NEUTRAL, TP 1500) has allocated Rp1.5 trillion in capital expenditure for FY16, in which 200 billion is targeted for expansion prescription drugs. While, PT Sido Appears Tbk (SIDO, Rp590, NEUTRAL, TP 550) also increase the capacity of 100-180 million sachets/month. Expansion Kimia Farma is to build a plant 4x the capacity of the current plant.
*PT Agung Podomoro Land Tbk (APLN, Rp312) got the refinancing of bank loans. The company has received a new loan facility to partially refinance maturing bonds Rp875bn on August 25, 2016. According to Finance Director APLN, Cesar M. Dela Cruz, the new company’s refinancing rate is still cheaper than the current bond coupon rate of 11%. Until Jun’16, obligation bonds totaled APLN Rp4,57 trillion.
*PT Bukit Asam Tbk (PTBA, Rp9.900, NEUTRAL, TP 9200) and the National Electricity Company (PLN) will revise the power purchase agreement for Sumsel 8. One of the clauses in the agreement requires the inclusion of a letter of intent relating to the construction of transmission lines under sea Java-Sumatra (HDVC) to complete the payment process. In the agreement, this clause is planned to be removed to ensure certainty Sumsel 8. Both PTBA project and the company was in discussions in terms of the amendment and is targeted to be completed by September 16th.
*PT Lippo Karawaci Tbk (LPKR, Rp1.155) through its subsidiary, Lippo Malls Indonesia Retail Trust Management Ltd. (LMIRT), received a new syndicated loan facility from BNP Paribas, CIMB Bank Berhad, and JP Morgan Chase Bank of SIN $ 350 million, or about Rp3 trillion. The new loan is divided into two; A facility with a tenor of 48 months and S$175mn; B facility with a tenor of 60 months and S$175mn. LPKR plans to use part of the funds for acquisition purposes.
*PT Modern International Tbk (MDRN, Rp176) will relocate the 7-eleven store close to the office area. With this strategy they are optimistic to book Rp1.2 trillion in revenue by the end of 2016. The target for 2H16 is to add 12 new stores to the budgeted capex of Rp10bn.
*PT Puradelta Lestari Tbk (Dmas, Rp278, BUY, TP 300) is eyeing the sale of additional land of 10ha in FY16. The buyers are mostly related to the automotive sector. If fully executed, this will bring the total sales of their marketing to 61ha for FY16F, or 22% higher than the target of their 50ha.
*Superindo will focus on the expansion of Java and Sumatra. Management will add five new stores in 2016, the company has so far opened two stores in Sumatra (Palembang and Lampung). Superindo control 136 stores, 70 of which are in the Greater Jakarta area. Management margin expansion going forward aiming higher contribution from private brands.
Sources : Mandiri Sekuritas