In today’s briefing:
- Morning Views Asia: Adani Ports & Special Economic Zone, Agung Podomoro Land
- Erajaya Swasembada (ERAA IJ) – Coming Out a Squall
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Morning Views Asia: Adani Ports & Special Economic Zone, Agung Podomoro Land
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
Erajaya Swasembada (ERAA IJ) – Coming Out a Squall
- Erajaya Swasembada (ERAA IJ) had a tempestuous 3Q2023, with one-off write-downs of inventory in both Indonesia and Malaysia, despite booking strong sales and gross profit growth overall.
- The company has also expanded its store network more aggressively in 9M2023, which meant higher opex and financing to build the new inventory, whilst stores take time to ramp up.
- Erajaya should see a recovery in 4Q2023, given plans to limit store expansion plus a lack of write-offs. Trading on 5x FY2024E PER with forecast +25% EPS growth is attractive.