1 October 2020
In 1H20, UNTR’s net profit was down 28,3% YoY with lower revenue from construction machinery and mining contraction. Low coal prices and economic slowdown became the main factor of weak 1H20 performance. Pamapersada targets 16% YoY lower coal production for 2020 and we see the coal outlook is still sluggish until the first quarter of 2021. Hence, we downgrade the rating to SELL for UNTR.
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25 September 2020
CTRA's performance in 2Q20 was supported by revenue from the development segment with an 89% contribution. The Landed house and shophouse segment was the only segments that grew during the PSBB period. 2Q20 income was booked at IDR1.29 trillion (-13.6% YoY), followed by the first net loss recorded by CTRA at IDR8 billion. Currently, there is a discourse on adding mortgages to the PEN program. If realized, this will be a positive sentiment, but CTRA will still have to set a strategy in order to attract homebuyers.
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23 September 2020
PSBB impacts the poultry sector, with the decrease of demand for chicken meat and egg resulting in the company’s sales to drop. In 2Q20, after PSBB was implemented, the company’s sales declined (-9.3% YoY, -1.3% QoQ) to IDR13.7 trillion. This would then resulted in the company’s net profit falling to IDR730.7 billion (-20.2% YoY, -20.8% QoQ). We believe that if PSBB continues to be tightened, it will impact sales from the livestock and broiler feed until the end of 2020.
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23 September 2020
INCO posted a net profit of USD53 million in 1H20 and in-line with our expectation. The result was supported by higher production, higher ASP, and lower production cost as crude oil and coal prices decline. We maintain estimates for 2020-2022F after INCO’s better results in 1H20 and estimate the nickel prices to hover at USD15,300-15,800/tonne until the end of 2020. Hence, we retain BUY recommendation for INCO.
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23 September 2020
BMRI’s current liquidity is fairly relaxed, in line with the gradually decreasing Loan to Deposit Ratio (LDR). As of March 2020, BMRI LDR was at 94.9%, then decreased to 87.7% in June 2020.
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