- Cement: Jan20 Weak Volume
- Coal: Production target might be revised up!"
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How big Pinehill group is?
Total sales volume stood at 7.4bn packs of noodle in FY19 (vs.
Pinehill owns four subsidiary companies and is primarily engaged in the manufacturing of instant noodles in Saudi Arabia, Nigeria, Turkey, Egypt, Kenya, Morocco and Serbia using the "Indomie" trademark under a licensing agreement with PT Indofood Sukses Makmur Tbk ("Indofood").
Pinehill is an affiliate of Mr. Anthoni Salim, the Chairman of the Board of Directors of the Company (the "Board"), a substantial shareholder of the Company, the President Director and CEO of Indofood and the President Director and CEO of
What to do with the stock? Learning from the Past.
We recorded three of Indofood Group's latest corporate actions, two of which (Jun 2017 and end-2018) were land acquisitions from related parties. Upon announcement, share price reacted negatively (-5/-7% and -9/-11% for
Comment: Expect some dip on the back of this news. Related Party Transaction is always deemed negative. Yet, I would take this opportunity to LONG the stock! This is called Inter-related Company financing. Historically speaking, the stock will always bounce back once the dust has settled.
I personally found these two books are very insightful to better understand Salim Group. I really recommend these books below i.e. Liem Sioe Liong's Salim Group by Richard Borsuk and Nancy Chng and the Rhythm of Strategy by Marleen Dieleman
Cement: Jan20 sales volume was weak across area (
Jan cement volume just came out with overall volume dropped by 8% yoy (national) with
Some flood and heavy rainfall still persist in Feb so we don't expect a meaningful volume pick-up in Feb. Weak demand, combined with risk of oversupply (attached below) made us skeptical on the prospect of ASP and thus, overall margin .
While we initially thought the drop in stock price for both
Jan20 sales volume
Astra will maintain market share in 2020
Coal production target might be revised up in 1H20
The Ministry of Minerals and Energy Resources indicated that coal production realization could exceed the target set by the government at 550m tonnes. Note that the 550m production target set in the RKAB also already exceeds government's assumption of 530m tonnes based on the non-tax income in the state budget. (Kontan)
The 2020 capex target is set at Rp7.5tr, slightly lower than 2019's realization of Rp9tr. 80% of the capex will be used to develop infrastructure and network transportation, as
B100 program can't just rely on CPO
Government cited that biodiesel as a substitute for solar cannot just rely on CPO, but must also increase the use of environmentally friendly biofuel from other sources such as coconut and castor fruit. On another note, the Asosciation of Biofuel Production Indonesia (Aprobi) is currently focusing on implementation of B40 by end of 2020. (Investor Daily)
Japanese investors look to invest in pharma
Japan External Trade Organization (JETRO) cited that it still hopes for the auto industry, which Japanese is heavily invested in, to see a pick-up going forward. At the same time, it also hopes for growth from other indsutries such as pharmaceutical. (Bisnis Indonesia)
Plaza Indonesia plan a 5% right issue on June 2020
Plaza Indonesia Realty (
Pertagas allocates US$280mn for investment
Pertagas allocates US$280mn in the company 2020 budget for pipeline replacement in Rokan Block project to maintain oil production during the management changes to PT Pertamina. The maintenance itself needs US$ 450mn with a total working period of 2 years. To note, Pertagas will work on some projects this year, such as Kuala Tanjung pipeline (North Sumatra), distribution pipeline in Semarang, and Rokan Block pipeline in Central Java. (Investor Daily)
Sales commentary is not a product of research
Sumber : IPS