Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

Insights across South East Asia

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas</a> is an interesting concept in that its product literally comes out of thin air given its position as Indonesia's leading Industrial gas player with a 45% market share.</li>
<li>The company provides investors with wide-ranging exposure to the Indonesian economy from industry to infrastructure, consumer goods, healthcare, and SME amongst others, which also reduces risk through diversity.</li>
<li>
<a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas</a> 9M2022 numbers reflected a change in revenue mix and demand for medical gas reduces post-COVID and other areas such as industry, retail, and infrastructure started to recover.</li>
</ul>

A catch-up call with <a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas (AGII IJ)</a> to expand on its recent acquisition of assets from its parent Samator Group and update on operations revealed some interesting potential catalysts. 
The acquisition of two industrial gas assets from the parent group we see as positive from both a governance perspective as well as helping to add to future growth, potentially by double digits. 
The transaction was an arms-length one involving the sale of plant and machinery together with ongoing rental agreements which were independently appraised. This provides comfort from a governance perspective given that it was an affiliated transaction.
The strongest growth driver from a segment perspective last year came from the medical gas segment, with stable growth coming from consumer companies and slower growth from manufacturing and infrastructure.
<a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas (AGII IJ)</a> foresees a strong recovery for infrastructure, as the Indonesian government deploys its IDR400tn stimulus, for toll-roads, railways, airports, and ports. 
It should also see a significant recovery in its retail bottles business as the economy continues to open up, which is mainly driven by SMEs and small workshops.
The company is also a beneficiary of the deployment of the COVID-19 vaccine in that it is the largest producer of liquid nitrogen in Indonesia, which is required to keep the vaccine at very low temperatures whilst in transit. 
Management suggests that capex is likely to remain at low levels over the next 2-3 years, as the company sweats its existing assets, especially outside Java. This should enable the company to reduce debt and improve returns.
<div class="content-highlight">
<a href="https://www.smartkarma.com/entities/pt-aneka-gas-industri" target="_blank" data-smartkarma-citation="entities:23564:1" rel="noopener">Aneka Gas (AGII IJ)</a> trades on 12.8x FY21E EV/EBITDA and 11.1x FY22E EV/EBITDA versus its global peers average of 22.1x forward EV/EBITDA. We would expect earnings upgrades as a result of the recent asset acquisition from its parent but this looks like a re-rating story, which we would buy on weakness. 
</div>

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>Fund manager <a href="https://www.smartkarma.com/entities/saratoga-investama-sedaya-tbk-pt" target="_blank" data-smartkarma-citation="entities:13714:1" rel="noopener">Saratoga Investama Sedaya (SRTG IJ)</a> is up 107% yoy, buoyed by its investment holdings in <a href="https://www.smartkarma.com/entities/merdeka-copper-gold-tbk-pt" target="_blank" data-smartkarma-citation="entities:28447:1" rel="noopener">Merdeka Copper Gold (MDKA IJ)</a> and <a href="https://www.smartkarma.com/entities/adaro-energy-tbk-pt" target="_blank" data-smartkarma-citation="entities:6061:1" rel="noopener">Adaro Energy (ADRO IJ)</a>.</li>
<li>The discount to NAV is ~31% against a one-year average of 37%.</li>
<li>Potential large divestments, such as its holding in <a href="https://www.smartkarma.com/entities/tower-bersama-infrastructure" target="_blank" data-smartkarma-citation="entities:3537:1" rel="noopener">Tower Bersama Infrastructure (TBIG IJ)</a>, could causer investors to substantially narrow the NAV discount. </li>
</ul>

Brian Freitas

Pan-Asia Index Rebalances/Events/Delta One

Periscope Analytics

<ul>
<li>There are 3 changes for the IDX30 Index, 6 changes for the LQ45 Index, and 7 changes for the IDX80 Index at the rebalance to be implemented on 31 January.</li>
<li>Largest passive inflows are expected to be on <a href="https://www.smartkarma.com/entities/sumber-alfaria-trijaya-tbk-pt" target="_blank" data-smartkarma-citation="entities:15659:1" rel="noopener">Sumber Alfaria Trijaya Tbk Pt (AMRT IJ)</a> and <a href="https://www.smartkarma.com/entities/surya-esa-perkasa-tbk-pt" target="_blank" data-smartkarma-citation="entities:14326:1" rel="noopener">Surya Esa Perkasa (ESSA IJ)</a>. </li>
<li>With only 4 days to implementation, there will be relatively big moves on stocks that have large flow/impact from passive fund trading.</li>
</ul>

Cross Asset Strategy

<ul>
<li>The Week That Was in ASEAN@Smartkarma is filled with an eclectic mix of differentiated, substantive, and actionable insights, macro and equity bottom-up, from across South East Asia. </li>
<li>The past week saw insights on <a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener">Bukalapak (BUKA IJ)</a>, the performance of Asian IPOs from 2022, the ongoing <a href="https://www.smartkarma.com/entities/total-access-communication" target="_blank" data-smartkarma-citation="entities:948:1" rel="noopener">Total Access Communication (DTAC TB)</a> and <a href="https://www.smartkarma.com/entities/true-corp-pcl" target="_blank" data-smartkarma-citation="entities:8:1" rel="noopener">True Corp Pcl (TRUE TB)</a> merger.</li>
<li>There was also a commentary on the upcoming Ohmyhome IPO in Singapore and an initiation on Thai Property firm <a href="https://www.smartkarma.com/entities/sansiri-public-co-ltd" target="_blank" data-smartkarma-citation="entities:12201:1" rel="noopener">Sansiri Public (SIRI TB).</a> We also had credit research on <a href="https://www.smartkarma.com/entities/kawasan-industri-jababeka-tbk-pt" target="_blank" data-smartkarma-citation="entities:7755:1" rel="noopener">Jababeka</a>.</li>
</ul>

Indonesia

PT Samator Indo Gas Tbk is an industrial gas company. The Company supplies industrial gases such as Oxygen, Nitrogen, and many other gases and related services to many industries including metal works, metallurgy, chemical processes, the petrochemical industry, electronic, and electrical industry. The Company also supplies gases for drinking water and wastewater treatment.

PT Samator Indo Gas Tbk was previously named PT Aneka Gas Industri Tbk. The Company recently changed its name to PT Samator Indo Gas Tbk upon approval of the Company's Shareholders at the Extraordinary General Meeting of Shareholders held on Monday, 12 December 2022 in Jakarta. The rebranding of the Company's name aims to further demonstrate the Company's identity as a national company that will continue to contribute to Indonesia, as well as to align the Company's identity with its parent company, Samator Group. The Company's stock code in the Indonesian Stock Exchange did not change and is still "AGII".

ADTV (USDm)	0.00
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
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EV/EBITDA	0.00
EV/Sales	0.00
Dividend (Yield)	0.00

Samator Indo Gas - AGII IJ

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