NISP Sekuritas Daily 13 Jan 2011 (BUMI, LSIP, ADHI, SSIA, New IPO)

Vallar shows progress in acquisition on Bumi Resources (BUMI, Rp3,075, Buy)

·          Vallar announced significant progress in its acquisition progress over Bumi Resources and Berau Coal (BRAU, Rp540). Vallar said that all plans are on track and the acquisition on Bumi is scheduled to be concluded in February 2011. Meanwhile, completion schedule target on Berau is 8 April 2011 where Vallar will provide tender offer for Berau shares.

·          Despite no cash flow impact for Bumi Resources, existence of Vallar in shareholders structure will enable Bumi to obtain wider financial access to support growth strategy and obtaining favorable funding structure.

·          BUMI is trading at 2011F PER of 14.5x and EV/EBITDA of 5.7x, Buy.

London Sumatra seeks approval for stock split (LSIP, Rp12,050)

·          In announcement published today, London Sumatra to hold an EGM on 28 January 2011 in order to seeks shareholders’ approval for stock split.

·          The company aims to increase its shares liquidity where it is reported the split ratio is 1 : 5, translating nominal price adjustment to Rp100/share from Rp500/share currently.

·          This plan will deliver positive sentiment on Lonsum’s share price as liquidity will be higher and enables wider segment of investors to access the company’s shares.

·          LSIP is trading at 2011F consensus PER of 13.3x and EV/EBITDA of 8.8x.

Adhi wins Rp902.8bn contract at beginning of year (ADHI, Rp840)

·          Adhi Karya shared that it has won several EPC contracts for a hydrothermal power plant worth a total of Rp902.8bn. The plants will be located in Riau, Kalimantan Barat and Kalimantan Timur.

·          This year, EPC contracts will become Adhi’s focus in driving revenue. The company targets new contracts to grow by 20% to Rp9.72tn from 2010 achievement. EPC contracts make up 31.6% of ADHI revenue, following construction projects.

·          ADHI is trading at 2011F consensus 7.5x and EV/EBITDA 4.2x.

Surya Semesta targets Rp143bn net income in 2011 (SSIA, Rp880)

·          Surya Semesta is targeting Rp143bn of net income this year, up by 30% YoY from 2010E figure of Rp110bn. This is backed on 30% revenue growth from Rp1.6tn to Rp1.9tn.

·          The company expects revenue to be driven from higher areal sales and also from its construction and hotel business. Its subsidiary, Suryacipta Swadaya, has already secured a purchase commitment for 130ha of its land in the Kawasan Industri Suryacipta City. 121 ha will be purchased by Astra Internasional, which could attract other potential buyers. 

Garuda price between Rp750-Rp1000 (New IPO)

·          The government has set the price range for Garuda between Rp750-Rp1000. With that price, EV/EBITDA is between 7-4x and 10.8x. As much as 9.36bn shares are for offering or 36.84% from total shares.

·          The company cannot pay out dividends as it is still has an accumulated loss in its book; however it plans for quasi reorganization to erase the loss.

·          Book building is between January 12-24, while offering date is on February 2,4,7, 2011. The shares will be listed on February 11, 2011. Underwriter is Mandiri Sekuritas, Bahana Securities and Danareksa Securities.