Indofood CBP (ICBP IJ) - 1Q24: Net Profit Up 13.2% yoy, Exceeding Expe...

ICBP reported 1Q24 NPAT of Rp3,224b, up 13.2% yoy. The reported 1Q24 is ahead of expectations. ICBP has not raised prices thus far in 2024, but lower raw material costs will help to expand the margin earned. In 1Q24, domestic volume rose 3% while overseas volume rose 6%. 1Q24 EBIT margin was 24.7%, higher than the 19-21% guidance. A risk that ICBP faces is the depreciation of the rupiah that could impact its foreign debt going forward. Maintain BUY with a target price of Rp13,300.

Erajaya Swasembada (ERAA IJ) - 1Q24: Net Profit Up 8% yoy; Cellular Ph...

NPAT grew 8% yoy, in line with our and consensus expectations. Cellular phones and tablets (82% of ERAA’s total revenue) booked revenue growth of 13% yoy and gross profit growth of 10% yoy. ERAA had 2,095 stores (+13% yoy, +2% qoq) in 1Q24. Net profit growth could improve gradually after the more aggressive store network expansion in the last few years. Maintain BUY with a target price of Rp520.

Reddit (RDDT, Neutral, no change to $54 target) 1Q24 Model Update

No change to our original $54 target as lower estimates are offset by removing the 5% valuation discount that we previously applied for the FTC inquiry, as we're more comfortable it is not a material risk now.

Indonesia Daily - Monday, May 13, 2024

Erajaya Swasembada (ERAA IJ/BUY/Rp410/Target: Rp520): 1Q24: Net profit up 8% yoy; cellular phone and tablet gross profit up 10% yoy. Maintain BUY. Indofood CBP (ICBP IJ/BUY/Rp10,775/Target: Rp13,300): 1Q24: Net profit up 13.2% yoy, exceeding expectations. TRADERS’ CORNER XL Axiata (EXCL IJ): Technical BUY Merdeka Copper Gold (MDKA IJ): Technical BUY

RMBS – Japan: Higher incomes will mitigate risks from rising property ...

Rising borrower incomes and strict debt-to-income limits will mitigate risks for Japanese RMBS in the face of property price increases.

Asia Morning Bites

Weak weekend lending data from China increases rate cut hopes as early as this week. Indian inflation data for April due ahead of this week's US inflation numbers

Tredyffrin-Easttown School District, PA: Update to credit analysis

Our credit view of this issuer reflects its robust property wealth and household income levels, against its sizeable long-term capital improvement plan.

UPMC, PA: Update to credit analysis

Our credit view of this issuer reflects its excellent brand and strategic positioning as well as its cashflow diversity offsetting thinned cash flow and elevated balance sheet leverage.

Sabine Pass Liquefaction, LLC: Update to credit opinion following upgr...

Our credit view of this issuer reflects its long term contracts with financially sound offtakers, its strong global demand and pricing for LNG and its strong operating track record.

Government of Japan – A1 stable: Regular update

Our credit view of this issuer reflects its large, diverse and high-income economy and its very strong external payments position, offset by its very high government debt.

BEIJ/NIBE: US HVAC - Easter held back shipments

Q1'24e: Marginally below consensus on order intake, EBIT

Estimates lowered by 1-2%. Expect guidance to be maintained. TP raised to DKK 400 (350) - BUY

Storytel (Buy, TP: SEK81.00) - Upside potential to 2024 targets

Q1 saw sustained double-digit organic revenue growth, margin expansion across all P&L lines and healthy cash generation. Storytel exhibited flywheel dynamics, with solid net adds, a growing share of internal content consumption, higher engagement and retention, and improved customer acquisition efficiency. It continues to re-establish its industry-innovator perception with its popular AI VoiceSwitcher. While investors would prefer a clear main shareholder to trigger a re-rating, from an operatio...

Weak quarter, sound outlook

Messy quarter, negative est. changes. Asset rotation set to continue. Several reasons to buy the share; BUY, TP SEK 155

Huhtamaki (Buy, TP: EUR47.00) - Flexing the Flexibles

We continue to believe the market is overlooking the sizeable Flexible Packaging step-up opportunity, with significant shareholder value potential from: 1) market share gains; 2) product simplification; and 3) footprint optimisation. With no estimate changes, we reiterate our BUY and EUR47 target price, and continue to find the NTM EV/EBIT of c12.5x (5-year average: c15.0x) attractive and a good entry point.

Crude tanker fleet growth now at 0.8% y-o-y

Q1e and Q2e down, long-term reiterated. ABGSCe ‘25 EBITDA 46% above cons. TP of NOK 427 (422) – BUY

More newbuilds into the upcycle

Near-term estimates down, adding NBs to our estimates. 69% above cons '25e EBITDA. BUY, TP of USD 15