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FROM EQUITY RESEARCH DESK |
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IDEA OF THE DAY |
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Aspirasi Hidup Indonesia: Growth Momentum Intact Despite a Normalized Jul24 SSSG (ACES.IJ Rp 735; BUY TP Rp 1,100) · ACES reported a normalized SSSG of 4.6% in Jul24 and 9.8% for 7M24, exceeding mgmt’s FY24 target of at least 7% and our FY24F of 7.6%. · Our channel check indicated Nitori Japan may emerge as a potential competitor, but we believe it will take time to match ACES’ scale. · We reaffirm our Buy rating on the back of ACES’ EPS growth (FY24-26F CAGR of 11%), with an unchanged TP of Rp1,100. To see the full version of this report, please click here
To see the full version of this snapshot, please click here MARKET NEWS |
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MACROECONOMY
China Banks Maintained the 1Y and 5Y Loan Prime Rate
China Banks maintained the 1Y and 5Y Loan Prime Rate at 3.45% and 3.85%, respectively, following the unexpected rate cut last month. Tuesday's move also reflected a balancing act by China after Governor Pan Gongsheng recently said that authorities would avoid any “drastic” measures for the economy. (Trading Economics)
Bank Indonesia to Announce the BI Rate; We expect it to Maintain the Rate
Bank Indonesia will announce BI Rate today at 2pm. We expect BI to maintain the rate at 6.25%, while closely monitoring the Fed’s direction in the September meeting, despite the recent strong appreciation of the IDR. (BRIDS)
SECTOR
Gapmmi Cuts Food and Beverage Growth Target to 5%
The Indonesian Food and Beverage Producers Association (Gapmmi) has revised its growth target for the food and beverage industry this year to 5% (Prev: 7-9%). According to Gapmmi, the decline in purchasing power among lower-middle-class consumers has led to reduced sales in the food and beverage industry. This weakening of purchasing power is influenced by a spike in food prices and an increase in banking interest rates. Additionally, there is an extra burden due to the increase in the value-added tax rate to 11%, which has been in effect since April 1, 2022. (Kontan)
CORPORATE
SILO Conducted the First Implant of the Percept PC
Siloam Hospital Kebon Jeruk has conducted the first implant of the Percept PC, an advanced technology from Medtronic, to address Parkinson's disease. This represents the latest in Deep Brain Stimulation (DBS) Therapy. In the last decade, Siloam Hospital Kebon Jeruk has partnered with Medtronic to provide top-quality treatment services for over 60 implants already installed in patients. (Investor Daily)
SMGR Supplied 695,000 Tons of Green Cement for IKN Projects Between Dec22-Jul24
SMGR supplied 695,000 tons of green cement for Indonesia's new capital (IKN) projects between Dec22 and Jul24. This environmentally friendly cement, with a 21%-38% lower carbon footprint than conventional cement and over 90% domestic content, is ideal for National Strategic Projects. It has been used in eco-friendly housing in East Kalimantan, supporting the Ministry of Public Works and Housing's green construction policy. (Kontan)
