UOB Kay Hian Research upgraded property developer PT Ciputra Development Tbk to “buy” from “hold”, saying the company’s 2012 net profit beat expectations and strong earnings are likely to continue this year.
The company’s 2013 sales are expected to hit 10.1 trillion Indonesian rupiah ($1.04 billion), up 39 percent year-on-year, driven by existing projects and more contributions from subsidiaries, the brokerage said in a note on Monday.
“At least nine new projects with a total development size of 819 hectares to be launched this year,” said UOB analyst Marwan Halim.
The research house upgraded its target price on Ciputra to 1,260 rupiah from 720 rupiah, saying the company expects overall average selling price (ASP) to increase 20 percent year-on-year, backed by strong property demand in the low interest rate environment.
However, UOB cut its rating on Indonesia’s flag carrier PT Garuda Indonesia to “hold” from “buy”, citing concerns about the company’s aggressive capacity expansion, while January data showed a steep decline in domestic loads.
“In January 2013, Citilink’s traffic grew 94 percent, while Garuda’s domestic traffic fell 4.6 percent during the same period. This suggests some degree of cannibalisation by Citilink. Garuda’s domestic routes duplicate that of Citilink’s routes out of Jakarta and Surabaya and price differential is approximately 20-30 percent,” UOB said.
The research house also cut its target price on Garuda shares to 710 rupiah from 830, as it lowered its earnings forecast for 2013 and 2014 by 28 percent and 23 percent respectively.
Ciputra shares were up 2.78 percent at 1,110 rupiah, while Garuda slid 1.54 percent to 640 rupiah. The broader index was down 0.05 percent.
1321 (0621 GMT) (Reporting by Andjarsari Paramaditha, Editing by Anupama Dwivedi) *************************************************************** 10:58 01Apr13 -STOCKS NEWS INDONESIA-Bakrie’s Visi Media surges on takeover offer Shares in PT Visi Media Asia Tbk, controlled by the politically connected Bakrie family, jumped as much as 20.4 percent on Monday after the company received takeover proposal from Indonesia-based CT Corp.
Indonesia’s fifth-richest man Chairul Tanjung, through his holding vehicle CT Corp, proposed to buy a controlling stake in Visi Media valued at up to $1.8 billion in an all-cash deal that would give him the lion’s share of the TV advertising market in Southeast Asia’s biggest economy.
In February, the Bakrie family was said to have been in talks with local bidders, including MNC Group, CT Corp and PT Elang Mahkota Teknologi, to sell a 51 percent stake in Visi Media to help finance a plan to buy back its coal assets Bumi Resources from London-listed Bumi Plc.
Visi Media shares were up 16.67 percent at 630 rupiah as the highest traded volume of the day, outperforming the broader Jakarta Composite Index’s 0.1 percent rise.
$1 = 9,717.5 rupiah Reporting by Andjarsari Paramaditha, Editing by Gopakumar Warrier