Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

Amman Mineral Internasional / Event-Driven

<ul>
<li>There are 2 constituent changes for the LQ45 Index and 6 constituent changes for the IDX80 Index at the rebalance to be implemented at the close on 30 April.</li>
<li>The largest passive inflows are expected in <a href="https://www.smartkarma.com/entities/amman-mineral-internasional-pt" target="_blank" data-smartkarma-citation="entities:39838:1" rel="noopener">Amman Mineral Internasional (AMMN IJ)</a>, <a href="https://www.smartkarma.com/entities/indosat-tbk-pt" target="_blank" data-smartkarma-citation="entities:5737:1" rel="noopener">Indosat Tbk PT (ISAT IJ)</a>, <a href="https://www.smartkarma.com/entities/bank-rakyat-indonesia-persero" target="_blank" data-smartkarma-citation="entities:484:1" rel="noopener">Bank Rakyat Indonesia (BBRI IJ)</a> and <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 Tbk PT (MDKA IJ)</a>. </li>
<li>With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.</li>
</ul>


There are 2 constituent changes for the LQ45 Index and 6 constituent changes for the IDX80 Index at the rebalance to be implemented at the close on 30 April.
The largest passive inflows are expected in Amman Mineral Internasional (AMMN IJ), Indosat Tbk PT (ISAT IJ), Bank Rakyat Indonesia (BBRI IJ) and Merdeka Copper Gold Tbk PT (MDKA IJ). 
With only 4 days to implementation, there could be relatively big moves on stocks that have large flow/impact from passive fund trading.


IDX30/​​LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks

Bumi Resources Minerals Tbk / Event-Driven

<ul>
<li>The review period for the LQ45 Index ends on 30 June. The changes should be announced in the last week of July, becoming effective after the close on 31 July.</li>
<li>Potential adds are <a href="https://www.smartkarma.com/entities/adaro-minerals" target="_blank" data-smartkarma-citation="entities:35927:1" rel="noopener">Adaro Minerals (ADMR IJ)</a>, <a href="https://www.smartkarma.com/entities/bumi-resources-minerals-tbk" target="_blank" data-smartkarma-citation="entities:9136:1" rel="noopener">Bumi Resources Minerals (BRMS IJ)</a>, <a href="https://www.smartkarma.com/entities/panin-financial-tbk-pt" target="_blank" data-smartkarma-citation="entities:19472:1" rel="noopener">Panin Financial (PNLF IJ)</a>, <a href="https://www.smartkarma.com/entities/energi-mega-persada-tbk-pt" target="_blank" data-smartkarma-citation="entities:17534:1" rel="noopener">Energi Mega Persada (ENRG IJ)</a>, <a href="https://www.smartkarma.com/entities/transcoal-pacific-tbk-pt" target="_blank" data-smartkarma-citation="entities:28449:1" rel="noopener">Transcoal Pacific (TCPI IJ)</a> and <a href="https://www.smartkarma.com/entities/pertamina-geothermal-energy-pt" target="_blank" data-smartkarma-citation="entities:36725:1" rel="noopener">Pertamina Geothermal Energy (PGEO)</a>.</li>
<li>Potential deletions are <a href="https://www.smartkarma.com/entities/japfa-comfeed-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:8258:1" rel="noopener">Japfa Comfeed Indonesia (JPFA IJ)</a>, <a href="https://www.smartkarma.com/entities/indocement-tunggal-prakarsa" target="_blank" data-smartkarma-citation="entities:4040:1" rel="noopener">Indocement Tunggal Prakarsa (INTP IJ)</a>, <a href="https://www.smartkarma.com/entities/timah-persero-tbk-pt" target="_blank" data-smartkarma-citation="entities:11174:1" rel="noopener">Timah Persero (TINS IJ)</a>, <a href="https://www.smartkarma.com/entities/bank-tabungan-negara-persero" target="_blank" data-smartkarma-citation="entities:731:1" rel="noopener">Bank Tabungan Negara Persero (BBTN IJ)</a> and <a href="https://www.smartkarma.com/entities/chandra-asri-petrochemical" target="_blank" data-smartkarma-citation="entities:2556:1" rel="noopener">Chandra Asri Petrochemical (TPIA IJ)</a>. </li>
</ul>


The review period for the LQ45 Index ends on 30 June. The changes should be announced in the last week of July, becoming effective after the close on 31 July.
Potential adds are Adaro Minerals (ADMR IJ), Bumi Resources Minerals (BRMS IJ), Panin Financial (PNLF IJ), Energi Mega Persada (ENRG IJ), Transcoal Pacific (TCPI IJ) and Pertamina Geothermal Energy (PGEO).
Potential deletions are Japfa Comfeed Indonesia (JPFA IJ), Indocement Tunggal Prakarsa (INTP IJ), Timah Persero (TINS IJ), Bank Tabungan Negara Persero (BBTN IJ) and Chandra Asri Petrochemical (TPIA IJ). 


LQ45 Index Rebalance Preview (July): Identifying Potential Changes

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Equity Bottom-Up

Solusi Sinergi Digital Tbk PT / Equity Bottom-Up

<ul><li>4Q21 performance lifted by year-end sales festivities: <span style="font-size: var(--content-font-size);">4Q21 revenue grew 5.9% QoQ to IDR98.1bn, primarily due to a 7.2x QoQ surge in advertising revenue as eCommerce platforms spent big on OOH media during year-end sales promotions.</span></li></ul><div><div><div><div><ul><li>FO deployment delayed but sales traction grows: As at Dec’21, WIFI’s balance sheet indicates that FO completion is currently at 51% (Sep’21: 30%).</li></ul><div><div><div><div><ul><li>Adjusting projections lower for FY22E with stronger numbers further afield: With stronger-than-expected sales traction, we believe that management could hike ASPs for its managed capacity segment in Jun’22 after the current auction is completed.</li></ul></div></div></div></div></div></div></div></div>

4Q21 performance lifted by year-end sales festivities: 4Q21 revenue grew 5.9% QoQ to IDR98.1bn, primarily due to a 7.2x QoQ surge in advertising revenue as eCommerce platforms spent big on OOH media during year-end sales promotions.FO deployment delayed but sales traction grows: As at Dec’21, WIFI’s balance sheet indicates that FO completion is currently at 51% (Sep’21: 30%).Adjusting projections lower for FY22E with stronger numbers further afield: With stronger-than-expected sales traction, we believe that management could hike ASPs for its managed capacity segment in Jun’22 after the current auction is completed.

PT Solusi Sinergi Digital Tbk - FO Delayed but Sales Traction Growing; Exciting FY22E

<div><div><div><div><ul><li>3Q21 afflicted by Covid-19 lockdowns - 3Q21 revenue declined 16.3% QoQ to IDR92.6bn, primarily due to weakness in revenue from advertising (-85% QoQ), partially mitigated by maiden contributions from its 30%-completed (as at Sep’21) fiber optics network of IDR0.5bn.</li></ul><div><div><div><ul><li>FO deployment delayed - Mgmt. highlighted that the deployment of its fiber optic network has been delayed due to lockdowns across Java Island in early 3Q21 as well as delays in completing field surveys to kick off construction.</li></ul><div><div><div><div><ul><li>Adjusting projections lower for FY21E with stronger numbers further afield</li></ul></div></div></div></div></div></div></div></div></div></div></div>

3Q21 afflicted by Covid-19 lockdowns - 3Q21 revenue declined 16.3% QoQ to IDR92.6bn, primarily due to weakness in revenue from advertising (-85% QoQ), partially mitigated by maiden contributions from its 30%-completed (as at Sep’21) fiber optics network of IDR0.5bn.FO deployment delayed - Mgmt. highlighted that the deployment of its fiber optic network has been delayed due to lockdowns across Java Island in early 3Q21 as well as delays in completing field surveys to kick off construction.Adjusting projections lower for FY21E with stronger numbers further afield

PT Solusi Sinergi Digital (WIFI IJ) - Down but Not Out

<h2>Corporate updates on IJE’s fiber optics network</h2><h3>What’s new:</h3><ul><li>WIFI IJ recently announced 2 corporate updates related to the ongoing deployment of its fiber optics network. These are namely:</li></ul><p>                 i.          Signing of MOU with Lintasarta and Trans Hybrid Communication (THC) for                                     dark fiber utilization, and</p><p>                ii.          Engagement of PT Prasetia Dwidharma and PT Sarida Utama for the                                                   deployment of the network outside the Greater Jakarta region</p><ul><li>The MOUs with Indosat’s Lintasarta and THC is expected to pave the way for both entities to lease dark fiber from WIFI IJ. Based on our discussions with management, there has been indicative demand for 6 cores or c.4.2% of total network capacity</li><li>Management shared that the key deliverables from Prasetia and Sarida are the completion of the FO network outside of the Greater Jakarta region by the end of 2021</li><li>Separately, local media reported that WIFI’s FO subsidiary, IJE had secured an investment credit facility from BBNI IJ to the tune of IDR256.6bn. Details on the facility have not yet been released, but previous discussions with management point to a 5-year tenure with an interest rate of about 9-10% per annum.</li></ul>

Corporate updates on IJE’s fiber optics networkWhat’s new:WIFI IJ recently announced 2 corporate updates related to the ongoing deployment of its fiber optics network. These are namely:                 i.          Signing of MOU with Lintasarta and Trans Hybrid Communication (THC) for                                     dark fiber utilization, and                ii.          Engagement of PT Prasetia Dwidharma and PT Sarida Utama for the                                                   deployment of the network outside the Greater Jakarta regionThe MOUs with Indosat’s Lintasarta and THC is expected to pave the way for both entities to lease dark fiber from WIFI IJ. Based on our discussions with management, there has been indicative demand for 6 cores or c.4.2% of total network capacityManagement shared that the key deliverables from Prasetia and Sarida are the completion of the FO network outside of the Greater Jakarta region by the end of 2021Separately, local media reported that WIFI’s FO subsidiary, IJE had secured an investment credit facility from BBNI IJ to the tune of IDR256.6bn. Details on the facility have not yet been released, but previous discussions with management point to a 5-year tenure with an interest rate of about 9-10% per annum.

Wifi IJ: Corporate Updates on Fiber Optics Network

Indonesia

PT Solusi Sinergi Digital Tbk provides information technology services. The Company offers network infrastructure, application and software development, out of home advertising media, and digital advertising solutions. Solusi Sinergi Digital serves customers worldwide.

Solusi Sinergi Digital Tbk PT (WIFI IJ)

IDX30/LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks

Methodology changes means constituent changes for the LQ45 Index and IDX80 Index that will be implemented on 30 April. There are big flows and big...

Brian Freitas

LQ45 Index Rebalance Preview (July): Identifying Potential Changes

There could be 5 changes to the LQ45 in July. Given emphasis on liquidity, the impact on the deletes is higher than on the adds. Historically, the...

Brian Freitas

PT Solusi Sinergi Digital Tbk - FO Delayed but Sales Traction Growing; Exciting FY22E

4Q21 performance lifted by year-end sales festivities: 4Q21 revenue grew 5.9% QoQ to IDR98.1bn, primarily due to a 7.2x QoQ surge in advertising...

SCCM Asia Research

PT Solusi Sinergi Digital (WIFI IJ) - Down but Not Out

Down but not out; Looking forward to FY22E; 9M21 Core PATMI of IDR1.8bn (9M20 LATMI: IDR12.1bn) attained just 18% of our FY21E expectations,...

SCCM Asia Research

Wifi IJ: Corporate Updates on Fiber Optics Network

WIFI IJ recently announced 2 corporate updates related to the ongoing deployment of its fiber optics network, Remain constructive on the both FO...

SCCM Asia Research

IDX30/​​LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks

Methodology changes means constituent changes for the LQ45 Index and IDX80 Index that will be implemented on 30 April. There are big flows and big...

Brian Freitas

LQ45 Index Rebalance Preview (July): Identifying Potential Changes

There could be 5 changes to the LQ45 in July. Given emphasis on liquidity, the impact on the deletes is higher than on the adds. Historically, the...

Brian Freitas

PT Solusi Sinergi Digital Tbk - FO Delayed but Sales Traction Growing; Exciting FY22E

4Q21 performance lifted by year-end sales festivities: 4Q21 revenue grew 5.9% QoQ to IDR98.1bn, primarily due to a 7.2x QoQ surge in advertising...

SCCM Asia Research

PT Solusi Sinergi Digital (WIFI IJ) - Down but Not Out

Down but not out; Looking forward to FY22E; 9M21 Core PATMI of IDR1.8bn (9M20 LATMI: IDR12.1bn) attained just 18% of our FY21E expectations,...

SCCM Asia Research

Wifi IJ: Corporate Updates on Fiber Optics Network

WIFI IJ recently announced 2 corporate updates related to the ongoing deployment of its fiber optics network, Remain constructive on the both FO...

SCCM Asia Research

IDX30/LQ45/IDX80 Index Rebalance: BIG Flows for Some Stocks