External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

External broker reports(aggregated public sources)

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

Macroeconomics

<ul><li>Macro StrategyCurrency Conundrum Bank Indonesia's stance has remained consistent with a continued emphasis on stabilizing the currency</li><li>BI views that the increasing inflation risks will be temporary and manageable</li><li>In addition, BI also foresees capital inflows post an expected peak in the Fed Funds Rate in the November meeting</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Macro StrategyCurrency Conundrum Bank Indonesia's stance has remained consistent with a continued emphasis on stabilizing the currencyBI views that the increasing inflation risks will be temporary and manageableIn addition, BI also foresees capital inflows post an expected peak in the Fed Funds Rate in the November meetingContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Thematic (Sector/Industry)

<ul><li>While recent weak broiler prices and higher local corn prices may drive lower 3Q23 earnings (qoq), we maintain our Overweight view on the back of cheap valuation (at 9.2x EV/EBITDA, -1SD to 5-year average) in view of the potential earnings recovery in 4Q23 and FY24F (22% EPS growth).</li><li>Weak broiler prices in the second week of September, DOC remained robust. Despite the ongoing supply adjustment mechanism through culling, livebird (LB) prices in West Java dropped to IDR18k/kg in mid-September from IDR21k in the early month. In the past two years, LB prices have been weak during September.</li><li>Meanwhile, DOC prices remained high at around IDR 7,500/chick signaling a tighter supply due to the culling programs. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

While recent weak broiler prices and higher local corn prices may drive lower 3Q23 earnings (qoq), we maintain our Overweight view on the back of cheap valuation (at 9.2x EV/EBITDA, -1SD to 5-year average) in view of the potential earnings recovery in 4Q23 and FY24F (22% EPS growth).Weak broiler prices in the second week of September, DOC remained robust. Despite the ongoing supply adjustment mechanism through culling, livebird (LB) prices in West Java dropped to IDR18k/kg in mid-September from IDR21k in the early month. In the past two years, LB prices have been weak during September.Meanwhile, DOC prices remained high at around IDR 7,500/chick signaling a tighter supply due to the culling programs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Poultry: Poised for 4Q23 recovery despite ST headwinds (OVERWEIGHT)

Equity Bottom-Up

GoTo Gojek Tokopedia Tbk PT / Equity Bottom-Up

PT GoTo Gojek Tokopedia Tbk operates as an e-commerce platform. The Company offers mobility, food delivery, logistics, e-commerce, and financial technology solutions. GoTo Gojek Tokopedia serves customers in Indonesia.

<ul><li>We see a pathway for GOTO to deliver positive EBITDA towards the end of 2023, given foreseen recovery in GTV in 3Q23 that shall offer momentum in 4Q23.</li><li>We expect this will be accompanied by fixed costs synergies between platforms, inline with the new CEO’s expectations.</li><li>Positive EBITDA shall allow GOTO to seek more GTV growth in 2024 with less limitations on investments to protect market share and less rationalization measures. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We see a pathway for GOTO to deliver positive EBITDA towards the end of 2023, given foreseen recovery in GTV in 3Q23 that shall offer momentum in 4Q23.We expect this will be accompanied by fixed costs synergies between platforms, inline with the new CEO’s expectations.Positive EBITDA shall allow GOTO to seek more GTV growth in 2024 with less limitations on investments to protect market share and less rationalization measures. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

GoTo Gojek Tokopedia - Positive EBITDA to Sustain GOTO Growth Mode

<ul><li>Key Aspects of SRBI. We note 4 key aspects of SRBI: 1. Rationale. SRBI aims to maximize the utilization of Bank Indonesia's (BI) holdings of Government bonds (SBN) by using SBN as the underlying asset.</li><li>Consequently, the issuance of SRBI will not surpass the outstanding SBN holdings owned by BI, which currently stand at IDR 1,300 tn. SRBI will complement RR SBN by targeting longer tenors (6 - 12 months), while RR SBN will continue to focus on shorter tenors (7 days - 3 months); 2. Primary Dealers and Secondary Market: Conventional banks, registered as BI Open Market Operation Participants, will serve as primary dealers, while foreign entities and other participants in the money market can access SRBI through the secondary market.</li><li>We have learned that the secondary market is already active, with certain participants offering SRBI at a 12-month tenor with a 6.30% yield, which is lower than the weighted average winning bid rate of 6.4%; 3. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Key Aspects of SRBI. We note 4 key aspects of SRBI: 1. Rationale. SRBI aims to maximize the utilization of Bank Indonesia's (BI) holdings of Government bonds (SBN) by using SBN as the underlying asset.Consequently, the issuance of SRBI will not surpass the outstanding SBN holdings owned by BI, which currently stand at IDR 1,300 tn. SRBI will complement RR SBN by targeting longer tenors (6 - 12 months), while RR SBN will continue to focus on shorter tenors (7 days - 3 months); 2. Primary Dealers and Secondary Market: Conventional banks, registered as BI Open Market Operation Participants, will serve as primary dealers, while foreign entities and other participants in the money market can access SRBI through the secondary market.We have learned that the secondary market is already active, with certain participants offering SRBI at a 12-month tenor with a 6.30% yield, which is lower than the weighted average winning bid rate of 6.4%; 3. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Macro Strategy: KTA: Meeting with BI on SRBI

Credit

<ul><li>US CPI accelerated to 3.7% on the back of rising energy prices (5.6% m-m) which accounted for half of the monthly inflation.</li><li>As expected, core inflation moderates further to 4.3% y-y (0.3% m-m), on lower shelter inflation.</li><li>Upon closer examination of the data, it becomes clear that several inflationary pressures are indicating a trend towards easing.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

US CPI accelerated to 3.7% on the back of rising energy prices (5.6% m-m) which accounted for half of the monthly inflation.As expected, core inflation moderates further to 4.3% y-y (0.3% m-m), on lower shelter inflation.Upon closer examination of the data, it becomes clear that several inflationary pressures are indicating a trend towards easing.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BRI Danareksa Debt Research, Weekly Report, September 19, 2023

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

BRI Danareksa Research
External broker reports(aggregated public sources)
• BRI Danareksa Research

Macro Strategy: Currency Conundrum

Macro StrategyCurrency ConundrumBank Indonesia's stance has remained consistent with a continued emphasis on stabilizing the currency

BRI Danareksa Research

Poultry: Poised for 4Q23 recovery despite ST headwinds (OVERWEIGHT)

While recent weak broiler prices and higher local corn prices may drive lower 3Q23 earnings (qoq), we maintain our Overweight view on the back of...

BRI Danareksa Research

GoTo Gojek Tokopedia - Positive EBITDA to Sustain GOTO Growth Mode

We see a pathway for GOTO to deliver positive EBITDA towards the end of 2023, given foreseen recovery in GTV in 3Q23 that shall offer momentum in...

BRI Danareksa Research

Macro Strategy: KTA: Meeting with BI on SRBI

We note 4 key aspects of SRBI: 1. Rationale. SRBI aims to maximize the utilization of Bank Indonesia's (BI) holdings of Government bonds (SBN) by...

BRI Danareksa Research

BRI Danareksa Debt Research, Weekly Report, September 19, 2023

US CPI accelerated to 3.7% on the back of rising energy prices (5.6% m-m) which accounted for half of the monthly inflation.

BRI Danareksa Research