1H22 NPAT achievement is above our and consensus estimates. 1H22 net profit came in at Rp130b, contributing to 67% of our 2022 net profit estimate and 138% of consensus estimate. 1H22 net margin expanded to 37.7%. 2Q22 net profit jumped 780% qoq to Rp117b with net margin of 43.1%. BEST maintained 2022 marketing sales target of 20ha with ASP target of Rp2.7m-3.5m/sqm. Maintain BUY with target price of Rp196.
GREATER CHINA Strategy Alpha Picks: August Conviction Calls: We see further risks of a market pullback from growing macro uncertainties and switch to a defensive bias in August. Add AIA, CTGDF, CR Land, and Kweichow Moutai to our BUY list, Ganfeng Lithium, Tinci Materials, Henlius and Sinopharm to our SELL list. This Is Only The Beginning: Hong Kong’s aggregate balance will soon fall below HK$100b, and we expect the prime lending rate to rise 75bp by year-end. Results Kweichow Moutai (600519 CH/...
Strategy: Alpha Picks: Add ENAK To Our Selection: Our picks: ENAK, UNVR, BMRI, BBNI, SMGR, TLKM, KLBF and MAPI. Bekasi Fajar Industrial Estate (BEST IJ/BUY/Rp138/Target: Rp196): 2Q22: NPAT jumped 780% qoq, above expectation. Gudang Garam (GGRM IJ/HOLD/Rp25,550/Target: Rp26,000): 2Q22: First quarterly loss since 1Q13; below expectation. Downgrade to HOLD. Mayora Indah (MYOR IJ/HOLD/Rp1,840/ Target: Rp1,700): 2Q22: Below expectations but a yoy improvement. TRADERS’ CORNER Dayamitra Telekomun...
We expect BEST to book a turnaround in net profit of Rp193b in 2022 and Rp346b in 2023 as industrial land demand recovers. With a 20ha marketing sales target and ASP of Rp2.7m-3.3m/sqm in 2022, BEST is expected to book Rp600b-700b of its 2022 revenue with a potential net profit of Rp193b in 2022, compared with a net loss of Rp71b last year. BEST is traded at an attractive valuation of -1SD to its five-year average discount to RNAV. Re-initiate coverage with BUY and target price of Rp196.
GREATER CHINA Sector Consumer: Optimistic despite near-term bumps. INDONESIA Update Bekasi Fajar Industrial Estate (BEST IJ/BUY/Rp115/Target: Rp196): Expecting net profit turnaround as industrial land demand recovers. MALAYSIA Sector Banking: Our assessment indicated that ample provision buffers have been built in to weather the upcoming inflationary challenges. Maintain OVERWEIGHT. Small-Mid Cap Highlights Cnergenz (CNERGEN MK/NOT RATED/RM0.505): The direct winner of the US-China trade tiff w...
The extension of the VAT waiver programme could underpin presales growth (contributions to total marketing sales in 2022 for BSDE, CTRA and SMRA could reach 12%, 9% and 10% respectively). Our main concern is the rising COVID-19 cases. Other catalysts that could support sector growth are: a) more than enough property inventory and various project launches to support presales growth, b) time lag between BI’s rate hike and mortgage rate adjustment, and c) improving recurring income growth (discount...
We believe property companies under our coverage could see marketing sales grow by an average of 6.72% yoy in 2022. The exemption of VAT has been approved until Jun 22 and will underpin sector growth. Recurring income could strengthen further as we expect traffic in malls to continue to improve. The low mortgage environment could continue at least until 1H22, as we expect the impact from the higher BI 7DRR benchmark rate on mortgage rate to have a time lag, and is unlikely to be severe. Maintain...
The independent financial analyst theScreener just lowered the general evaluation of BEKASI FAJAR INDL.EST (ID), active in the Real Estate Holding & Development industry. As regards its fundamental valuation, the title still shows 1 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date Dece...
Our portfolio slightly outperformed in Sep 21 with a 1.93% return compared with the JCI’s 1.91%, marking the second consecutive month of outperformance. We add UNVR, MYOR, BEST and ERAA into our portfolio; these names should benefit from the post-pandemic recovery. Aside from being the beneficiaries of the post-pandemic economic recovery, they are also trading at a historical discount in terms of valuation. Our picks are UNVR, JSMR, TLKM, SMRA, BMRI, MYOR, ERAA and BEST.
With the relaxation of PPKM (semi-lockdown) and the recent lower number of COVID-19 cases, we expect marketing sales to recover in the remaining months of 2021. VAT exemption stimulus and low mortgage rate will also support the recovery of marketing sales. We think there is a chance the government will extend the stimulus to 2022 and we expect the final decision will be made in Dec 21. Maintain OVERWEIGHT on the sector. Amid the current uncertainties, our sector picks are BSDE and CTRA.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Residential property enjoyed strong growth in 2Q21 marketing sales. CTRA, SMRA, and BSDE gained 89% yoy, 363% yoy and 87% yoy. As the government tightens social restrictions, we maintain our marketing sales target due to solid 1H21 marketing sales achievement, extension of VAT discount policy deadline to Dec 21 to boost marketing sales, and the potential relaxation of social restrictions in 4Q21. Maintain OVERWEIGHT on the sector. Amid the current uncertainties, our picks are BSDE and CTRA.
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