JAKARTA - Following some market news briefs for today:
- PT Bumi Serpong Damai Tbk: Fresh Coming Your Way (BSDE, Rp1.995, Buy, TP Rp2.350). Realization BSDE marketing sales in 8M16 period is one of the best compared to the same industry. The company has many projects in its pipeline to support pre-sales growth next year, we forecast 21% for FY17F. We still recommend BUY with TP BSDE which rose to Rp2.350, as we roll forward (roll forward) prediction of net asset value (NAV) to FY17F. TP was based on 50% discount to NAV. We predict pre-sales will rise as a catalyst for the stock. We cut profit forecasts FY16-17F for factoring (priced in) slower revenue recognition. Key risks: 1) delay the launch of the project, 2) level of behavior (take-up rate) weaker than expected at the launch of a new project. We assess the property sector can provide 40% -50% discount to NAV for improved because of government rules. (Liliana S Bambang, Kevin Halim/Research Mandiri Sekuritas)
- Indonesia Stock Exchange to enter PT Sailing Nelly Dwi PutriTbk (NELY, Rp73) in stocks that experienced price changes and transaction activity that is unusual market activity. The stock fell 49.31% from Rp109 on September 6 became Rp73 on 15 September.
- Minister of Public Works and Public Housing Hadimulyono Basuki said the government is targeting to complete the construction of 769 kilometers (km) of new roads, including the 158 km causeway along the south coast of Java. He stated that priority will be accorded to the construction of trans Sumatra, trans Kalimantan, Sulawesi and Papua roads. In addition, completing construction of 29 kilometer of toll road, 52,000 kilometers of irrigation networks and 39 reservoirs is part of the target. Next year, 39 dams will be built besides nine new reservoirs, 105 reservoirs and 84 thousand irrigation networks. As of September 2016, according to Basuki, the new infrastructure development has reached 46.49 percent of the target with physical development reaching 53 percent. He added that the government will continue to focus on the infrastructure work in 35 strategic development areas, including the area of Borobudur which has been integrated with the Kulon Progo airport.
Sources: Mandiri Sekuritas