Equity Research Monday, May 30, 2016 Danareksa Sekuritas – Equity Research FROM EQUITY RESEARCH Ultrajaya: Milking opportunities (ULTJ IJ. Rp 3,860. NOT RATED) Ultra Jaya is a key player in Indonesia’s booming milk industry. Not only is the company the largest manufacturer of UHT liquid milk in Indonesia (with market share of 46.1%) but it is also the largest producer of Ready-to-drink (RTD) tea in cartons (with market share of 64.6%). Going forward, the company will retain its focus on the milk and tea drink market segments, whose respective size reached Rp5.8tn and Rp7.7tn (based on Nielsen data). To further guarantee its supply of milk, Ultra Jaya plans to open a new farm in Berastagi, North Sumatera, which will have the capacity to hold 23,000 cows (11,500 milking cows). The company also plans to build a new factory and Distribution Center in MM2100 (Cibitung) this year, to improve its distribution network. MARKET NEWS *Analysts’ comment inside AMRT targeting growth above 16% (BI) BRI is ready to distribute additional KUR (BI) Emitent to reinforce cement export (BI) SUPR explore bank loan option (BI) Previous Reports: Cikarang Listrindo: Powering a brighter future-Snapshot20160526 UNTR: Infra projects helped to endure weak Komatsu sales- Snapshot20160525 TPIA: Beneficiary of low oil prices-Snapshot20160520 AUTO: Weak monthly domestic car sales in April 2016- Snapshot20160517 Cement sales April: Not encouraging-Snapshot20160513 ITMG: 1Q16: Still depressed by coal price, but above expectation- Snapshot20160512 IDX ANNOUNCEMENT Corp Action Code Action Date Time (WIB) MPMX AGM 31-May-16 14 TFCO AGM 2-Jun-16 10 BEST AGM 2-Jun-16 10 Source: KSEI MORNING HIGHLIGHT Key Index Close Chg Ytd Vol (%) (%) (US$ m) Asean - 5 Indonesia 4,815 0.6 4.8 258 Thailand 1,413 0.8 9.7 1,090 Philippines 7,412 0.5 6.6 188 Malaysia 1,637 0.4 (3.3) 362 Singapore 2,803 1.1 (2.8) 672 Regional China 2,821 (0.0) (20.3) 40,386 Hong Kong 20,577 0.9 (6.1) 7,216 Japan 16,939 0.6 (11.0) 966 Korea 1,961 (0.4) (0.0) 4,129 Taiwan 8,464 0.8 1.5 2,057 India 26,654 1.1 2.1 503 NASDAQ 4,934 0.6 (1.5) 56,779 Dow Jones 17,873 0.3 2.6 6,050 Currency and Interest Rate Rate w-w m-m ytd (%) (%) (%) Rupiah Rp/1US$ 13,590 0.0 (3.5) 1.9 SBI rate % 6.60 - - (0.6) 10y Gov Indo bond 7.85 (0.1) 0.2 (0.9) Hard Commodities Unit Price d-d m-m ytd (%) (%) (%) Coal US$/ton 53 0.6 4.4 5.1 Gold US$/toz 1,207 (0.5) (6.7) 13.7 Nickel US$/mt.ton 8,379 0.3 (8.6) (4.6) Tin US$/mt.ton 16,225 2.2 (5.2) 11.2 Soft Commodities Unit Price d-d m-m ytd (%) (%) (%) Cocoa US$/mt.ton 3,034 (0.1) (6.8) (7.2) Corn US$/mt.ton 153 1.3 7.2 14.6 Oil (WTI) US$/barrel 50 0.3 7.8 33.6 Oil (Brent) US$/barrel 49 0.1 2.6 32.4 Palm oil MYR/mt.ton 2,597 1.6 (1.8) 18.0 Rubber US$/mt ton 127 (0.6) (18.5 ) 7.7 Pulp US$/tonne 796 N/A 0.8 (0.9) Coffee US$/60kgbag 105 0.3 1.5 2.6 Sugar US$/MT 485 0.2 5.3 14.9 Wheat US$/ton 131 0.1 (0.4) (0.4) Source: Bloomberg
Transcript
Equity Research
Monday, May 30, 2016
Danareksa Sekuritas – Equity Research
FROM EQUITY RESEARCH
Ultrajaya: Milking opportunities (ULTJ IJ. Rp 3,860. NOT RATED)
Ultra Jaya is a key player in Indonesia’s booming milk industry. Not only is the company the largest manufacturer of UHT liquid milk in Indonesia (with market share of 46.1%) but it is also the largest producer of Ready-to-drink (RTD) tea in cartons (with market share of 64.6%). Going forward, the company will retain its focus on the milk and tea drink market segments, whose respective size reached Rp5.8tn and Rp7.7tn (based on Nielsen data). To further guarantee its supply of milk, Ultra Jaya plans to open a new farm in Berastagi, North Sumatera, which will have the capacity to hold 23,000 cows (11,500 milking cows). The company also plans to build a new factory and Distribution Center in MM2100 (Cibitung) this year, to improve its distribution network.
MARKET NEWS
*Analysts’ comment inside
AMRT targeting growth above 16% (BI) BRI is ready to distribute additional KUR (BI) Emitent to reinforce cement export (BI) SUPR explore bank loan option (BI)
Previous Reports:
Cikarang Listrindo: Powering a brighter future-Snapshot20160526 UNTR: Infra projects helped to endure weak Komatsu sales-
Snapshot20160525 TPIA: Beneficiary of low oil prices-Snapshot20160520 AUTO: Weak monthly domestic car sales in April 2016-
Snapshot20160517 Cement sales April: Not encouraging-Snapshot20160513 ITMG: 1Q16: Still depressed by coal price, but above expectation-
Siloam Hospital SILO 9,375 9,400 (0.3) 10.9 (4.3) HOLD
Sources: Bloomberg
WEEKLY COVERAGE PERFORMANCE
Equity Research
Monday, May 30, 2016
Danareksa Sekuritas – Equity Research
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