Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Currently, <a href="https://www.smartkarma.com/entities/jasa-marga-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:12747:1" rel="noopener">Jasa Marga (Persero) (JSMR IJ)</a> debt to equity is at 2.5x, a five-year high and its earnings multiple is also at the 5 years high at 35x. Some of the bullishness comes from the creation of the INA, the first sovereign wealth fund of Indonesia that will create another funding avenue for Jasa Marga. The commencement of vaccination for public servants and elderlies has also sparked positivity although the result (more traffic) is yet to be seen. At the current level, Jasa Marga's profitability is 28% lower than the peers despite almost having a 100% higher D/E ratio. It is also trading at 64% PER premium and 10% PBR premium. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/192/999/original/image_59574917191615277295474.png?1615277295" class="editor-image img-responsive" data-smartkarma-image-id="192999"></figure><div class="content-remarks">source: Capital IQ</div>At the current level, investors should wait before adding more Jasa Marga into the portfolio as it is trading at 5 years high in PER and also its D/E ratio as well.

Currently, Jasa Marga (Persero) (JSMR IJ) debt to equity is at 2.5x, a five-year high and its earnings multiple is also at the 5 years high at 35x. Some of the bullishness comes from the creation of the INA, the first sovereign wealth fund of Indonesia that will create another funding avenue for Jasa Marga. The commencement of vaccination for public servants and elderlies has also sparked positivity although the result (more traffic) is yet to be seen. At the current level, Jasa Marga's profitability is 28% lower than the peers despite almost having a 100% higher D/E ratio. It is also trading at 64% PER premium and 10% PBR premium. source: Capital IQAt the current level, investors should wait before adding more Jasa Marga into the portfolio as it is trading at 5 years high in PER and also its D/E ratio as well. 

Jasa Marga (JSMR): High Debt and Fully Valued

The first half of the year was a moment to forget for the management; more toll road to build and share price plummeted as a result of earnings compression. As mentioned in my previous note on <a href="https://www.smartkarma.com/entities/12747" target="_blank" data-smartkarma-citation="entities:12747:1">Jasa Marga (Persero) Tbk Pt (JSMR IJ)</a> , the current government has pushed for more development of toll road that aims to improve connectivity in the country. <h2>What's happened in the 1H?</h2><ul>
<li>Added 96.5 km new toll road</li>
<li>Increased market share by 1.4% to 65% in toll road in operation</li>
<li>Lebaran holiday </li>
</ul>The amount of…

The first half of the year was a moment to forget for the management; more toll road to build and share price plummeted as a result of earnings compression. As mentioned in my previous note on Jasa Marga (Persero) Tbk Pt (JSMR IJ) , the current government has pushed for more development of toll road that aims to improve connectivity in the country. What's happened in the 1H?
Added 96.5 km new toll road
Increased market share by 1.4% to 65% in toll road in operation
Lebaran holiday 
The amount of…

Jasamarga (JSMR): Increase Awareness + Launch of ABS = Higher Share Price?

ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Pembangunan Perumahan (Persero) / Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/19840" target="_blank" data-smartkarma-citation="entities:19840:1">Pembangunan Perumahan (Persero) Tbk Pt (PTPP IJ)</a> is a solid contractor, notably with higher margins than rival SOEs.</li><li>Despite challenges in the country's infrastructure build out, PTPP managed to deliver a 20% CAGR in top line over 2012-16 period.</li><li>Negative free cash flows are somewhat offset by IPO of subsidiaries strategy.</li><li>PTPP trades at an inexpensive 10.5x 2018 PE, vs Indo market's 15.1x.</li></ul>

Pembangunan Perumahan (Persero) Tbk Pt (PTPP IJ) is a solid contractor, notably with higher margins than rival SOEs.Despite challenges in the country's infrastructure build out, PTPP managed to deliver a 20% CAGR in top line over 2012-16 period.Negative free cash flows are somewhat offset by IPO of subsidiaries strategy.PTPP trades at an inexpensive 10.5x 2018 PE, vs Indo market's 15.1x.

PT PP Persero: A Less Flashy But Solid Contractor

PT Wijaya Karya (Persero) Tbk / Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/1877" target="_blank" data-smartkarma-citation="entities:1877:1">Wijaya Karya Persero Tbk Pt (WIKA IJ)</a> has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more recently).</li><li>A conference call with the IR reveals that infrastructure projects execution under Jokowi's administration progresses better.</li><li>The weak spot we find is that WIKA's operating cash flows turned big negative, owing to turnkey projects increasingly demanded by project owners.</li><li>Valuation-wise, WIKA trades at an inexpensive 10.1x 2018 PE.</li></ul>

Wijaya Karya Persero Tbk Pt (WIKA IJ) has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more recently).A conference call with the IR reveals that infrastructure projects execution under Jokowi's administration progresses better.The weak spot we find is that WIKA's operating cash flows turned big negative, owing to turnkey projects increasingly demanded by project owners.Valuation-wise, WIKA trades at an inexpensive 10.1x 2018 PE.

Wijaya Karya:  A Leading Infrastructure Contractor

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

<ul><li>Low correlation with Western stock markets, low debt levels, and relatively strong analyst recommendation relative to its sector </li><li>PTPP plans to list up to three subsidiaries in 2H17 in order to gain additional capital to support future growth </li><li>The company should benefit from plans from the Indonesian government to build more than 500km of toll roads by 2019 </li><li>Looks attractive at 17CE* 7.3% ROE/PB versus ASEAN Capital Goods at 5.6% and offers a solid net-cash position </li><li>Risks: Government budget cuts and delay in land clearing process for toll roads</li></ul>* Consensus Estimates

Low correlation with Western stock markets, low debt levels, and relatively strong analyst recommendation relative to its sector PTPP plans to list up to three subsidiaries in 2H17 in order to gain additional capital to support future growth The company should benefit from plans from the Indonesian government to build more than 500km of toll roads by 2019 Looks attractive at 17CE* 7.3% ROE/PB versus ASEAN Capital Goods at 5.6% and offers a solid net-cash position Risks: Government budget cuts and delay in land clearing process for toll roads* Consensus Estimates

PTPP: Infrastructure Growth Prompts IPO Plans

Indonesia

PT Pembangunan Perumahan Persero Tbk is a full service construction company. The Company develops offices and hotels in Indonesia.

Pembangunan Perumahan (Persero) (PTPP IJ)

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Pembangunan Perumahan (Persero) (PTPP IJ)

Jasa Marga (JSMR): High Debt and Fully Valued

At the current level, investors should wait before adding more Jasa Marga into the portfolio as it is trading at 5 years high in PER and also its D...

Henry Soediarko

PT PP Persero: A Less Flashy But Solid Contractor

Pembangunan Perumahan (Persero) Tbk Pt (PTPP IJ) is a solid contractor, notably with higher margins than rival SOEs. Despite challenges in the...

Johannes Salim, CFA

Wijaya Karya: A Leading Infrastructure Contractor

Wijaya Karya Persero Tbk Pt (WIKA IJ) has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more...

Johannes Salim, CFA

PTPP: Infrastructure Growth Prompts IPO Plans

Low correlation with Western stock markets, low debt levels, andrelatively strong analyst recommendation relative to its sector PTPP plans to list...

A. Stotz Investment Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Jasa Marga (JSMR): High Debt and Fully Valued

At the current level, investors should wait before adding more Jasa Marga into the portfolio as it is trading at 5 years high in PER and also its D...

Henry Soediarko

Jasamarga (JSMR): Increase Awareness + Launch of ABS = Higher Share Price?

The first half of the year was a moment to forget for the management; more toll road to build and share price plummeted as a result of earnings...

Henry Soediarko

PT PP Persero: A Less Flashy But Solid Contractor

Pembangunan Perumahan (Persero) Tbk Pt (PTPP IJ) is a solid contractor, notably with higher margins than rival SOEs. Despite challenges in the...

Johannes Salim, CFA

Wijaya Karya: A Leading Infrastructure Contractor

Wijaya Karya Persero Tbk Pt (WIKA IJ) has proven that it can win high profile infrastructure projects (Jakarta-Bandung High Speed Railway more...

Johannes Salim, CFA

PTPP: Infrastructure Growth Prompts IPO Plans

Low correlation with Western stock markets, low debt levels, andrelatively strong analyst recommendation relative to its sector PTPP plans to list...

A. Stotz Investment Research