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Selasa, 18 Januari 2011

CLSA INDO: AKR Corporindo (AKRA IJ), proceeds usage from SOBI divestment from analyst Di Shui

·         What will AKR do with proceeds from SOBI divestiture? Company expects to receive US$230 in proceeds from SOBI divestiture, ~Rp1.6 trillion after taxes.
·         Mgmt is guiding ~30% to be paid out in cash dividends (tentative number).
·         Remaining Rp1 trillion to be retained for investments in energy and coal business. No specific acquisition targets as of yet.
·         Distribution will still drive the bulk of earnings going forward. Distribution ~90% of FY10 revenue, ~70% for petroleum only (ex chemicals).
·         How will reduction in fuel subsidies affect AKR? Indo consumes 62m kl of refined petroleum products per year. ~40% non subsidized, 60% subsidized. In FY10, AKR captured 2.2% of the entire distribution market (1.355m kl), or 5.4% of the non-subsidized market.

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