Daily Brief Indonesia: Mitra Adiperkasa, Telkom Indonesia, Indofood Sukses Makmur Tbk P, Cahaya Aero Services, Kalbe Farma and more

• Mitra Adiperkasa stands out as Indonesia’s leading retailers, with an impressive portfolio of brands across segments, a dominant presence in major malls across Indonesia, and a strong online presence. 
• MAPI booked a solid set of results in 3Q2025, with momentum continuing into October, as consumer sentiment has started to improve, with active outperforming. Digital, F&B, and fashion are improving  
• The company’s international business is seeing better performance, especially in Thailand and the Philippines, with expansion remaining on track, and management expressing a more optimistic view for 4Q2025 and beyond.

• Dominant Market Leader: As Indonesia’s largest state-owned telecommunications provider, Telkom holds a commanding market share in both mobile (through its subsidiary Telkomsel) and fixed broadband services, providing a strong foundation for stable revenue generation.
• Strategic Asset Monetization: The company is pursuing a value-unlocking strategy by spinning off its fiber assets. This move, coupled with plans to bring in a strategic partner, aims to improve capital efficiency and potentially lead to a significant re-rating of the company’s valuation.
• Attractive Shareholder Returns: Telkom consistently delivers strong returns to shareholders, evidenced by a high dividend yield and a formal commitment to dividend payouts. The company’s strong cash flow generation supports this policy.

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• Indofood is a vertically integrated food solutions giant in Indonesia, poised to benefit from the country’s favorable demographics and rising consumer spending.
• The Agribusiness segment, particularly palm oil, is a significant growth driver, supported by strong commodity prices and government biodiesel mandates.
• While the company exhibits strong top-line growth and market leadership, it faces risks from commodity price volatility, currency fluctuations, and margin pressures in its consumer branded products segment.

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• Cahaya Aero Services (CASS) is a dominant integrated aviation support provider in Indonesia, poised to capitalize on the nation’s robust recovery and projected long-term growth in air travel.
• The company is demonstrating exceptional financial performance, characterized by accelerating revenue growth, significant margin expansion, and triple-digit growth in net income and EPS over the past three years.
• While the company’s strategic focus on reinvesting for growth has fueled impressive operational expansion, this comes at the expense of shareholder distributions, with no dividends paid in recent years.

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• Kalbe Farma is the largest publicly-listed pharmaceutical company in Indonesia and Southeast Asia, with a diversified business model spanning four key divisions: Prescription Pharmaceuticals, Consumer Health, Nutritionals, and Distribution & Logistics.
• The company is well-positioned to capitalize on the favorable long-term tailwinds of the Indonesian healthcare industry, which is the largest in ASEAN and projected to continue its strong growth trajectory, driven by a large population, a rising middle class, and the national health insurance scheme (JKN/BPJS).
• Despite recent margin pressures from a shifting product mix and currency fluctuations, the stock appears attractively valued, trading at a significant discount to its historical mean. A rebound in revenue, coupled with stable raw material prices and a resilient core profit outlook, presents a compelling investment case.

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