NISP Sekuritas Daily 14 Jan 2011 (ASII, KLBF, KRAS, AMRT, UNSP, META)

Astra International spends Rp600bn for land acquisition (ASII, Rp48,000, Buy)
·          Astra International spent Rp600bn to acquire 121ha of land in Karawang, West Java. This land will be utilized for Astra Daihatsu Motor in order to boost production capacity to 300,000 units per year from 200,000 units/year currently. Astra acquires this land through its subsidiaries, Astra Daihatsu Motor and Astra Daihatsu Sales.
·          This is part of Astra US$900mn capex for 2011 where the company also plans to increase its non automotive business both organically and inorganically.
·          ASII is trading at 2011F PER of 12.5x and EV/EBITDA of 9.1x, Buy.
 
Kalbe open to acquisition (KLBF, Rp2,975, Hold)
·          Kalbe Farma announced it is still open for acquisition of pharmaceutical companies. The company continues to study all opportunities, stating that the range of acquisition could be between Rp100bn-Rp1tn. This is outside the capital expenditure allocated for this year, which is between Rp600-650bn.
·          This year revenue is expected to increase by 15% YoY to Rp11.6tn from Rp10.1tn, driven by 10 new drugs launched this year. In addition it will enter the Vietnamese market for generic drugs and antibiotics. It has prepared US$10-15mn for that plan.
·          KLBF is trading at 2011F consensus PER of 17.4x and EV/EBITDA of 10.0x.
 
Krakatau Steel needs 6mn tons of coking coal in 2014 (KRAS, Rp1,180)
·          Krakatau Steel is currently exploring possibility to acquire coking coal mines as the company’s needs to secure coal availability for steel making activities. Krakatau added that it requires 2mn tons/year of coking coal next year and it will be increasing in 2014 by more than three fold along with higher production rate target.
·          The company has not shared further information on this plan and still exploring all the possibilities.
 
Alfaria revenue up by 33% YoY (AMRT, Rp2,800)
·          Sumber Alfaria Trijaya, the owner of Alfamart, stated that revenue has increased by 33% YoY in 2010 to Rp14tn from Rp10.55tn. The success was in line with the starting of operations of 800 new outlets in 2010, making total outlets to reach 4,800 units.
·          However for this year, although another 800 outlets will be opened, its revenue target is dependent on domestic factors such as inflation and electricity tariff. The number of new outlets is deemed to be modest, as the company intends to open new warehouses in Makassar and Bali.
·          The company shared that it has delayed its plan to expand to Vietnam until further notice as it has not met the right partner yet. 

Moody’s cut rating on Bakrie Sumatera Plantations (UNSP, Rp385)
·          Moody’s downgraded its rating on BSP’s bonds to Caa1 from B3 with negative outlook. The rating agency added the downgrade was primarily due to higher leverage position and increasing requirement for refinancing.
·          Moody’s sees BSP has to obtain additional cash ahead of US$160mn and US$150 of sequential maturing bonds in November 2011 and July 2012. The impact of this rating downgrade may make BSP meet difficulties to obtain new loans.
·          UNSP is trading at 2011F consensus PER of 10.6x and EV/EBITDA of 7.0x.

Nusantara to complete toll road acquisition in 2Q11 (META, Rp295)
·          Nusantara Infrastructure will complete an acquisition for a toll road in Jawa Timur by the latest in 4 months or this 2Q11. The investment cost for the 40km road reaches Rp700bn.
·          A total of Rp3-4tn is prepared for toll road acquisition this year. The company is also eyeing to acquire a 20km toll road in Jakarta. Funds will be allocated from internal cash and banking loans with a ratio of 30:70.