External broker reports(aggregated public sources), MNC Sekuritas

MNC Sekuritas

External broker reports(aggregated public sources)

MNC Sekuritas, the first wholly-owned subsidiary established by the Group back in 1989, provides a complete range of services, from equity, fixed income, investment banking to providing research to optimize clients’ investments. Thus far, the company has more than 140 points of sales with over 100,000 clients. 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.

Equity Bottom-Up

PT Sumber Tani Agung Resources Tbk / Equity Bottom-Up

PT Sumber Tani Agung Resources Tbk is an oil palm plantation group company. The Company manages an integrated business process overseeing oil palm estates, palm oil mills, kernel crushing facility, and solvent extraction plant powered by a biogas power plant. Sumber Tani Agung Resources serves customers worldwide.

PT Sumber Tani Agung Resources Tbk (STAA IJ)

<ul><li>STAA is currently focused on three organic expansion agendas: 1) increasing the capacity of the kernel crushing plant (KCP) plant; 2) adding oil mills in Central Kalimantan; and 3) establishing a midstream refinery and fractionation plant.</li><li>These expansions are expected to provide growth opportunities for the company by enhancing its revenue streams.</li><li>STAA's age profile is younger than that of its peers in our universe (12.5 years in FY23).</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.

STAA is currently focused on three organic expansion agendas: 1) increasing the capacity of the kernel crushing plant (KCP) plant; 2) adding oil mills in Central Kalimantan; and 3) establishing a midstream refinery and fractionation plant.These expansions are expected to provide growth opportunities for the company by enhancing its revenue streams.STAA's age profile is younger than that of its peers in our universe (12.5 years in FY23).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.

PT Sumber Tani Agung Resources Tbk (STAA IJ) - Opening New Milestones to Fuel Growth

Thematic (Sector/Industry)

<ul><li>Residential sales grew by +31.2% YoY in 1Q24, meanwhile the ASP was relatively stable with +1.9% YoY growth.</li><li>Developers recorded an average increase in marketing sales of 13.1% YoY in 1Q24, with approximately ~46-47% marketing sales resulting from the VAT incentive, in line with the 100% VAT allowance in 1H24 and 50% in 2H24.</li><li>According to the survey from Rumah123, Tangerang became the most popular location reaching 15.6%, followed by South Jakarta (11.4%) and West Jakarta (10.8%), with a price range of IDR1-3billion/unit. </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.

Residential sales grew by +31.2% YoY in 1Q24, meanwhile the ASP was relatively stable with +1.9% YoY growth.Developers recorded an average increase in marketing sales of 13.1% YoY in 1Q24, with approximately ~46-47% marketing sales resulting from the VAT incentive, in line with the 100% VAT allowance in 1H24 and 50% in 2H24.According to the survey from Rumah123, Tangerang became the most popular location reaching 15.6%, followed by South Jakarta (11.4%) and West Jakarta (10.8%), with a price range of IDR1-3billion/unit. 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.

Property Sector - The Dawn of a Promising Upsurge

Sarana Menara Nusantara / Equity Bottom-Up

PT Sarana Menara Nusantara Tbk, through a subsidiary, builds telecommunications towers. The Company constructs, operates, and rents the towers to mobile telecommunications services providers.

<ul><li>In 1Q24, TOWR booked a revenue of IDR3.05trillion (+0.85% QoQ/+6.35% YoY), representing each 24.67%/24.69% of our target and consensus.</li><li>The tower segment grew flattish (-1.05% QoQ/+0.97% YoY) while the non-tower business improved well (+5.23% QoQ/+20.17% YoY).</li><li>Our estimations for the total revenue to grow by +5.20%/+7.07% YoY in FY24E/FY25F.</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.

In 1Q24, TOWR booked a revenue of IDR3.05trillion (+0.85% QoQ/+6.35% YoY), representing each 24.67%/24.69% of our target and consensus.The tower segment grew flattish (-1.05% QoQ/+0.97% YoY) while the non-tower business improved well (+5.23% QoQ/+20.17% YoY).Our estimations for the total revenue to grow by +5.20%/+7.07% YoY in FY24E/FY25F.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.

TOWR IJ - Unpacking TOWR’s Performance Metrics and Strategic Acquisition

Perusahaan Gas Negara Perser / Equity Bottom-Up

PT Perusahaan Gas Negara Persero Tbk operates in the distribution and transmission of natural gas to industrial, commercial and household users.

<ul><li>In 1Q24, PGAS recorded a distribution margin of USD2.46/MMBtu (+26.1% QoQ/+39.9% YoY) with gas distribution volume of 858BBTud (-7.0% QoQ/12.1% YoY).</li><li>Management targets USD1.6-1.8/MMBtu distribution spread (vs USD1.95/MMBtu in FY23A) with 954BBtud volume for this year (vs 923BBtud in FY23A).</li><li>▪PGAS posted a revenue of USD949.3million in 1Q24 or grew by +1.7% YoY but declined -0.7% QoQ.</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.

In 1Q24, PGAS recorded a distribution margin of USD2.46/MMBtu (+26.1% QoQ/+39.9% YoY) with gas distribution volume of 858BBTud (-7.0% QoQ/12.1% YoY).Management targets USD1.6-1.8/MMBtu distribution spread (vs USD1.95/MMBtu in FY23A) with 954BBtud volume for this year (vs 923BBtud in FY23A).▪PGAS posted a revenue of USD949.3million in 1Q24 or grew by +1.7% YoY but declined -0.7% QoQ.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.

PT Perusahaan Gas Negara Tbk (PGAS IJ) - 1Q24 Outclassed Expectations

Japfa Comfeed Indonesia / Equity Bottom-Up

PT Japfa Comfeed Indonesia Tbk manufactures animal feed, breeds and processes chickens, and operates aquaculture farms.  The Company trades its products domestically and internationally.

<ul><li>JPFA made a notable recovery in 1Q24, with a net profit of IDR664.8 bn (vs a net loss of IDR-7.5 bn in 4Q23 and IDR-249.9 bn in 1Q23)</li><li>The higher-than-expected net profit was primarily supported by better margins in the animal feed and poultry-related segments.</li><li>The government has extended the relaxation of the reference price regulation for commodities such as eggs, corn and broiler meat.</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.

JPFA made a notable recovery in 1Q24, with a net profit of IDR664.8 bn (vs a net loss of IDR-7.5 bn in 4Q23 and IDR-249.9 bn in 1Q23)The higher-than-expected net profit was primarily supported by better margins in the animal feed and poultry-related segments.The government has extended the relaxation of the reference price regulation for commodities such as eggs, corn and broiler meat.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.

JPFA IJ - MNC Sekuritas Equity Report June 6, 2024