NISP Sekuritas Daily 03 Jan 2011 (ADRO, JSMR, BHIT, CMNP, MDRN, New IPO)

Adaro prepares Rp10tn for 2011F capex (ADRO, Rp2,550, Buy)

·                      Adaro elaborates more on it capex plan this year where the company said total capex will reach Rp10tn. Previously, Adaro sets capex allocation of up to US$628mn in 2011 to support its out of pit crushing conveyor (OPCC) and 2x30MW mine mouth power plant project. The company said it has allocated Rp4.4tn for the remaining plans, which are Indomet, coal barges, acquisition and for its coking coal project, Indomet.

·                      Adaro plans to use the existing cash to support its capex as the company still holds Rp6.4tn of cash as of 9M10.

·                      The company aims to produce 46mn tons of coal next year, 10% YoY higher from 42mn tons this year. The company moderately aims its ASP to hover around US$64.9/ton – US$67.85/ton, despite its 3Q10 ASP is already around US$60/ton or aiming at 10% YoY – 15% YoY growth.

·                      ADRO is trading at 2011F PER of 12.9x and EV/EBITDA of 6.3x, Buy.

Jasa Marga allocates Rp6.2tn for capex (JSMR, Rp3,425)

·                      Jasa Marga is allocating Rp6.2tn for capex this year. Up by 113.7% YoY from 2010 capex of Rp2.9tn. The company is determining this year for construction work as it has completed many land acquisitions, therefore such a high increase in capex. Projects this year include, the Semarang-Solo section II , Surabaya-Mojokerto section II, JORR West 2 Utara, and the Bogor Ring Road section II.

·                      The capex will be financed 50:50 from internal cash and loans. Loans could be sourced from bank loans during the construction or issuing new bonds after construction.

·                      This year traffic volume is expected to increase to 1bn from 992mn while revenue is targeted to grow by 11.6% YoY to Rp4.8tn from 2010 projection of Rp4.3tn.

·                      JSMR is trading at 2011F consensus PER of 15.9x and EV/EBITDA of 9.5x.

Bhakti Investama sells 12.16% ownership at Citra Marga Nusaphala Persada (BHIT, Rp163; CMNP, Rp1,360)

·                      Bhakti Investama has sold 12.16% (243.2mn shares) of its ownership at Citra Marga at Rp2,100/share. This transaction will give Bhakti Investama Rp510.66bn of cash. Bhakti still holds 3.6% remaining stakes in Citra Marga or around 72.1mn shares.

·                      This transaction is premium to Citra Marga latest price of Rp1,360/share, hence, nay deliver positive sentiment to its share price. The impact will also positive to Bhakti Investama’s share price as the transaction will convey additional cash / share of Rp17/share.

·                      CMNP is trading at 2011F consensus PER of 7.0x and EV/EBITDA of 5.5x.

Modern increases subsidiary capital (MDRN, Rp2,325)

·                      Modern International has increased ownership in Modern Putra Indonesia , its subsidiary, from Rp99bn to Rp199bn. The increase is to support the subsidiary’s expansionary efforts in the 7-Eleven convenience store franchise and to strengthen capital.

·                      Until the end of 2010, 20 7-Eleven outlets have been opened while the company’s Fuji Image Plaza outlets have seen its numbers diminish from 117 in 2009 to only 82 in September 2010.

Megapolitan priced new shares at Rp250 (New IPO)

·                      Megapolitan Developments priced its new shares at Rp250/share, meaning that the company aims to raise Rp212.5bn of cash as Megapolitan issues 850mn of new shares in the IPO.

·                      Offering date will be 4 – 6 January 2010 and the share will be listed on 12 January 2010.

·                      Megapolitan will use 60% of this cash to finance its project development and the balance will be allocated for developing existing residential and commercial area.