In today’s briefing:
- Indosat (ISAT IJ) – The Telco Changeling
- Alam Sutera: Weak Results, with Declining Margins and Credit Deterioration
- WIKA: Decent 1H18
Indosat (ISAT IJ) – The Telco Changeling
- Indosat (ISAT IJ) has come back from being the loss-making underdog amongst the Indonesian telcos and is now well and truly on the rebound, with significant potential upside.
- The acquisition of Hutchison’s “3” has propelled the company into the number two spot in terms of market share and enabled better quality coverage after a well-orchestrated merger.
- Indosat now has a 4G footprint in Java greater than Telkomsel and with significant potential to gain share ex-Java, which provides higher returns. Valuations remain attractive.
Alam Sutera: Weak Results, with Declining Margins and Credit Deterioration
- Established in 1993, PT Alam Sutera Realty Tbk (Alam Sutera) is a small Indonesian property developer, focused on the development and management of large-scale townships of residential and commercial property.
- As of FY16, the company held total land bank of 1,898 hectares in gross area.
- Key source of earnings remain property development sales, with recurring income limited and derived from leases in its shopping malls.
WIKA: Decent 1H18
- Net profit up 19% YoY on strong revenue growth. New order flow remains decent.
- Maintain IDR 2,300 TP, valuations look attractive
- With a diversified portfolio of private construction and public infrastructure projects, WIKA offers broad exposure to Indonesia’s infrastructure investment growth
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