Indonesia

• We see 20 potential inclusions to the FTSE All-World and All-Cap indices that will be implemented at the close of trading on 17 June. Most are high probability inclusions.
• LG Energy Solution (373220 KS), Kakao Pay (377300 KS) and Mitratel (MTEL IJ) are the top 3 stocks with the most passive inflows.
• There are a few stocks that will have passive inflows from other index trackers while there are others that have lock-up expiries from now to implementation of the changes.

• The Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and SSE STAR50 (STAR50 INDEX) rebalances were implemented during the week. NIO Inc (9866 HK) started trading in Hong Kong.
• Busy week coming up with the implementation of the KOSDAQ 150 Index, S&P/ASX 200 and the FTSE indices including All-World/All-Cap, China 50, XIN9I INDEX, Taiwan50 and EPRA Nareit.
• The changes to the MVIS Global Junior Gold Miners Index and the MVIS Vietnam Index were announced post market close on 11 March and will be implemented on 18 March.

Japfa Comfeed’s FY 2021 results were better than we had expected, with a strong rebound in Q4 (after COVID-19 lockdowns). The financial risk profile remains stable. That said, cash flows, which can be volatile, were weak. Liquidity has deteriorated, due to a surge in short-term debt to plug the substantial negative FCF.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Logan Property Holdings
2. Shimao Property Holdings
3. Ronshine China Holdings
4. Lenovo
5. Seazen (Formerly Future Land)

and more…

Awaiting for stronger Lebaran in 2Q22F

Solid earnings due to sweet coal prices

4Q21 beats, but FY22 outlook moderates

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Indika Energy
• Jingrui Holdings
• Tata Motors ADR

Solid achievement in 2021

• Astra International (ASII IJ) FY2021 results reflect a rapid recovery in its core auto business plus commodity-related businesses, with +96% YoY net profit growth stripping out Bank Permata (BNLI IJ). 
• The auto and related finance businesses should continue to perform well in 2022, with government luxury tax stimulus measures in place plus commodity prices will support United Tractors’ performance.  
• Astra International (ASII IJ) remains a top pick for the economic recovery in Indonesia plus the company continues to look for investment opportunities to redeploy funds raised from Permata sales.

• Indosat (ISAT IJ)‘s recent results reflect a company going through a positive transition with sales up by +12.4% and EBITDA up +21.4% suggesting a turnaround in the making.
• The company’s acquisition of Hutchison’s 3 looks astute, removing an aggressive competitor, propelling into the number two slot, as well as providing potential operational and scale-related synergies. 
• 2022 will be the company’s year of transition, with higher capex to realised synergies and keep improving the network quality. Valuations are appealing for long-term investors. 

• GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
• GoTo raised more than US$1.3bn in its pre-IPO funding which was reported in November 2021, see here.  Valuation was said to be between  US$28.5-30.0bn.
• The company had already announced that it would look to undertake a dual listing in Indonesia and the US.