Riset Jumat 12 April 2013, bi rate akan naik Q3, ADHI TP 3,300 PTPP TP 1,350 TOTL TP 1,120 WIKA TP 2,300

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RISET FR CIMB 12 APRIL 2013 :

1.Indonesia Economic Update | Apr MPC meeting – BI signals policy tightening by Michelle CHIA,

The central bank held the BI rate steady at 5.75%, but signaled that it is moving to tighten liquidity conditions to combat renewed inflation risks brought on by price shocks in horticulture goods and potential changes to the fuel subsidy policy. We revise our 2013 inflation forecast to 5.6% from 5.2% and now expect BI to raise the FASBI rate by 75bp by 3Q13 and the BI rate by 50-75bp in 2H13.


2.Construction | Growth in spades
OVERWEIGHT - Maintained
by Lydia TOISUTA, Linda LAUWIRA

We continue to like the construction sector’s growth story, which should extend its rerating even though the sector has run up 37% YTD, outperforming the JCI by 24%. Investors are likely to pay for higher multiples in boom conditions. We reiterate our Overweight stance; WIKA and ADHI are our top picks. The sector is expected to notch up an EPS CAGR of 33.3% for 2013-15, even higher than FY12’s 29.6% growth. We believe that a rerating is warranted as the growth is consistent with an improvement in the quality of the sector’s returns. Catalysts include acquisition of multi-year and high- profile projects, consolidation and the unlocking of the value of subsidiaries.

ADHI Outperform TP 3,300
PTPP Outperform TP 1,350
TOTL Outperform TP 1,120
WIKA Outperform TP 2,300

(11 April 2013)



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