In today’s briefing:
- Harita Nickel IPO: Trading Debut
- Harita Nickel IPO Trading – Quality Names in the Bookbuild Should Aid Sentiment
- ITMG: Ex-Dividend, Dividend Yield Compelling at 20% With 33% of the Market Cap in Cash
- Sumber Alfaria Trijaya (AMRT IJ) – A Strong Finish with More Convenience Ahead
Harita Nickel IPO: Trading Debut
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) priced its IPO at IDR1,250 per share to raise gross proceeds of US$660 million. The shares will start trading tomorrow.
- We previously discussed the IPO in Harita Nickel IPO: The Bull Case, Harita Nickel IPO: The Bear Case and Harita Nickel IPO: Valuation Insights.
- Peers have re-rated and the IPO price continues to imply a discount to the median peer CY2023 P/E multiple. Therefore, the IPO price remains attractive.
Harita Nickel IPO Trading – Quality Names in the Bookbuild Should Aid Sentiment
- PT Trimegah Bangun Persada Tbk (Harita Nickel) (2230010D IJ) raised around US$660m in its Indonesian IPO.
- PT Trimegah Bangun Persada Tbk (Harita Nickel, HN) is a vertically integrated pure-play nickel company operating on Obi Island, Indonesia.
- In this note, we will talk about the trading dynamics and valuation.
ITMG: Ex-Dividend, Dividend Yield Compelling at 20% With 33% of the Market Cap in Cash
- ITMG went ex-dividend yesterday, paying out a whopping 16.8% (6416 Rph/share) final dividend in addition to the interim dividend of 10.8% (4128 Rph/share), bringing the FY22 yield to >27%.
- After payment of the 474 mn USD final dividend and 223 mn USD tax liability, we estimate the company will have >1.0 bn USD net cash (~33% mkt cap).
- At current coal prices (NEX 190 USD/ton), the Indonesian coal producer trades on a 20% dividend yield for FY23 assuming a 65% dividend payout ratio (in line with historical payout).
Sumber Alfaria Trijaya (AMRT IJ) – A Strong Finish with More Convenience Ahead
- Sumber Alfaria Trijaya (AMRT IJ) remains one of the most interesting proxies for retail spending in Indonesia, with a nationwide Alfamart footprint in the most popular mini-market format.
- The company’s latest numbers confirm the momentum behind and the recovery with improving margins. Alfamart expanded its store numbers aggressively in FY2022 and will continue into 2023.
- Sumber Alfaria Trijaya will push aggressively in expanding its Lawson convenience stores this year on top of its mini-market expansion as a future growth driver.
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