External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Macroeconomics

<ul><li>While not immediately creating an ideal situation, the recent positive developments help counter the prolonged negative sentiment.</li><li>Sustained market momentum requires key macroeconomic improvements; but twin deficits and tight liquidity add risk catalysts.</li><li>Bank Indonesia intervention will provide a buffer for liquidity, with its ownership in SBN now the highest, surpassing banking’s.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

While not immediately creating an ideal situation, the recent positive developments help counter the prolonged negative sentiment.Sustained market momentum requires key macroeconomic improvements; but twin deficits and tight liquidity add risk catalysts.Bank Indonesia intervention will provide a buffer for liquidity, with its ownership in SBN now the highest, surpassing banking’s.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BRIDS Weekly Update Economic & Fixed Income Research Monday, Jul 01 , 2024

Equity Bottom-Up

PT Astra International Tbk assembles and distributes automobiles, motorcycles, and their related spare parts.  Through its subsidiaries, the Company also operates in the mining, development of plantations, financial and information technology.

<ul><li>Used 4W sales have gained traction rapidly since 2020, in which year used 4W sales grew by 8% yoy, outpacing new 4W sales (-44% yoy).</li><li>In FY23, used 4W sales to total 4W sales reached 58%, vs the 2015- 2019 avg of 42%, as 4W ASP increases exceeded incomes.</li><li>New model releases should help to support new 4W sales. Reiterate Buy rating on ASII with a TP of Rp 5,100.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Used 4W sales have gained traction rapidly since 2020, in which year used 4W sales grew by 8% yoy, outpacing new 4W sales (-44% yoy).In FY23, used 4W sales to total 4W sales reached 58%, vs the 2015- 2019 avg of 42%, as 4W ASP increases exceeded incomes.New model releases should help to support new 4W sales. Reiterate Buy rating on ASII with a TP of Rp 5,100.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Astra International - Challenges from Used 4W, but Expect 2H24F Sales to Improve from 1H24

Cross Asset Strategy

Telekomunikasi Indonesia / Equity Bottom-Up

PT Telekomunikasi Indonesia Persero Tbk is a telecommunication company that provides a variety of domestic telecommunications services such as telephone, telex, telegram, satellite, and leased lines services.  The Company also offers electronic mail, mobile communication, and cellular phone services.

<ul><li>We reiterate our view of ARPU stabilization in 2Q24 reflecting CVM efforts and robust traffic growth thanks to TSEL’slatest product strategy.</li><li>We see growth upside as TLKM leverages its fiber, DCs, towers and satellites portfolio, while WIB investments drive its strategic position.</li><li>We maintain our Buy rating with an unchanged TP of Rp4,400 as we view that the pessimistic growth expectations are priced in.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We reiterate our view of ARPU stabilization in 2Q24 reflecting CVM efforts and robust traffic growth thanks to TSEL’slatest product strategy.We see growth upside as TLKM leverages its fiber, DCs, towers and satellites portfolio, while WIB investments drive its strategic position.We maintain our Buy rating with an unchanged TP of Rp4,400 as we view that the pessimistic growth expectations are priced in.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Telkom Indonesia - Robust Traffic Growth on the Cards for 2Q24

Thematic (Sector/Industry)

<ul><li>Based on the MSME and consumer segments, BPR, and P2P data, we believe banks’ overall asset quality remains robust.</li><li>With higher FY24F CoC of 3.0%, BBRI has allocated adequate provisions to address the current issue in its MSME segment.</li><li>Maintain Overweight rating in the banking sector with BBCA remaining as our top pick.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Based on the MSME and consumer segments, BPR, and P2P data, we believe banks’ overall asset quality remains robust.With higher FY24F CoC of 3.0%, BBRI has allocated adequate provisions to address the current issue in its MSME segment.Maintain Overweight rating in the banking sector with BBCA remaining as our top pick.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banks: Attractive Entry Point Amid Valuation Derating, Supported by the Still Robust Asset Quality

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.