Daily Brief Indonesia: Kino Indonesia, Mitra Keluarga Karyasehat Tbk, Bank Central Asia and more

In today’s briefing:

Kino Indonesia (KINO IJ) – Staples with a Discretionary Edge

Kino Indonesia (KINO IJ) is one of Indonesia’s most interesting staples players with a strong share in a number of segments within beverages and personal care which dominate its sales.
The company has seen a decent rebound in its beverages business as mobility has improved but continues to face some headwinds from higher input costs and packaging for personal care.
Kino Indonesia (KINO IJ) has been selectively increasing prices to offset higher costs and is seeing an improvement in sales of some of its more discretionary products.

Mitra Keluarga‘s 3Q2022 results reflected the changing environment with patient volumes higher and back above COVID levels but treatment intensity came down YoY in 3Q2022 given last year’s Delta base.
MIKA continues to expand its hospital numbers through greenfield and brownfield expansions with three new hospitals due to open in the next 12 months plus it is open to M&A.
Mitra Keluarga’s treatment intensity should start to improve over the next few quarters given management’s focus on this plus easier YoY comparisons. Valuations remain attractive versus historical levels.

Bank Central Asia (BBCA IJ) released a robust set of 9M2022 results driven by loan growth across all segments together with low-cost CASA funding and falling provisioning.
The bank demonstrated its leadership in transactional banking with total transactions growing +48% YoY, with 89% in volume terms and 59% in value terms through mobile and internet banking.
Bank Central Asia (BBCA IJ) continues to be a core holding and trades at a premium to its peers for good reason and it has already demonstrated its digital prowess.

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