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.

Equity Bottom-Up

PT XL Axiata Tbk provides a wide range of mobile telecommunications services in Indonesia.

<ul><li>We believe the planned MergeCo to generate better consumer experience and thus, expect value accretion potentials from the deal.</li><li>We see upside to our current valuation (DCF-based TP of Rp3,3300) from the combined spectrum allocations and tower sites optimization</li><li>Maintain Buy rating. We believe risks on the deals are manageable, as both parties appear committed and with IOH’s merger as a precedent.</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 believe the planned MergeCo to generate better consumer experience and thus, expect value accretion potentials from the deal.We see upside to our current valuation (DCF-based TP of Rp3,3300) from the combined spectrum allocations and tower sites optimizationMaintain Buy rating. We believe risks on the deals are manageable, as both parties appear committed and with IOH’s merger as a precedent.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.

XL Axiata - Merger Plan to Offer Upside; Reiterate Buy Rating as We See Deal Risks to Be Manageable

Macroeconomics

<ul><li>The US Treasury's 10-year yield fluctuated, initially dropping from 4.50% on May 3, 2024, to 4.45% on May 9, 2024, before rebounding to 4.50% on May 10, 2024.</li><li>Concurrently, the 2-year UST yield rose by 6 basis points to 4.87% on May 10, 2024, compared to the preceding week.</li><li>One of the reasons the increase of US Treasury yield was a dropped of The University of Michigan Survey of Consumers sentiment index in May to 67.4 from 77.2 in April and Dow Jones consensus of 76. In addition, one year-ahead inflation expectations in the University of Michigan's survey of consumer sentiment rose 30bps from 3.2% to 3.5% in May, the highest level since November 2023.</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.

The US Treasury's 10-year yield fluctuated, initially dropping from 4.50% on May 3, 2024, to 4.45% on May 9, 2024, before rebounding to 4.50% on May 10, 2024.Concurrently, the 2-year UST yield rose by 6 basis points to 4.87% on May 10, 2024, compared to the preceding week.One of the reasons the increase of US Treasury yield was a dropped of The University of Michigan Survey of Consumers sentiment index in May to 67.4 from 77.2 in April and Dow Jones consensus of 76. In addition, one year-ahead inflation expectations in the University of Michigan's survey of consumer sentiment rose 30bps from 3.2% to 3.5% in May, the highest level since November 2023.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.

BRIDS Weekly Update Economic & Fixed Income Research - Monday, May 13 , 2024

PT Kalbe Farma Tbk produces and develops pharmaceutical products for human and animal healthcare.  Through its subsidiaries, the Company also operates in the pharmaceutical, health food, and packaging industries.

<ul><li>Unbranded Generic and distribution to drive FY24F top line, while CH and Nutrition revenue normalized</li><li>We raised FY24-25F NP by 4.5-2.9%, driven by the absence of covid inventory provision and forex gain</li><li>We upgrade KLBF to Buy (from Hold prev.) on its resilient growth profile, attractive valuation and light positioning</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.

Unbranded Generic and distribution to drive FY24F top line, while CH and Nutrition revenue normalizedWe raised FY24-25F NP by 4.5-2.9%, driven by the absence of covid inventory provision and forex gainWe upgrade KLBF to Buy (from Hold prev.) on its resilient growth profile, attractive valuation and light positioningContent 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.

Kalbe Farma - Resilient Growth Outlook at Reasonable Valuation

Bank Syariah Indonesia Tbk PT / Equity Bottom-Up

PT Bank Syariah Indonesia Tbk. operates as a bank. The Bank offers checking accounts, credit and debit cards, loans, insurance, payment protection, phone banking, bill pay, fund transfer, and merchant services. Bank Syariah Indonesia serves customers in Indonesia.

<ul><li>BRIS’ more resilient profile remains intact with a lower CoF from higher SA and a high payroll loans segment to support asset quality.</li><li>We think the lower implied cost of equity of 7.9% is justified given the bank`s higher earnings growth vs its peers at 15/14% in FY24/25F.</li><li>Maintain our FY24F forecasts and TP of Rp2,700; reiterate our Buy rating with superior earnings growth vs. its peers as the key catalyst</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.

BRIS’ more resilient profile remains intact with a lower CoF from higher SA and a high payroll loans segment to support asset quality.We think the lower implied cost of equity of 7.9% is justified given the bank`s higher earnings growth vs its peers at 15/14% in FY24/25F.Maintain our FY24F forecasts and TP of Rp2,700; reiterate our Buy rating with superior earnings growth vs. its peers as the key catalystContent 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.

Bank Syariah Indonesia (BRIS IJ) - Better Entry Point Emerges...

PT Astra International Tbk assembles and distributes automobiles, motorcycles, and their related spare parts.  Through its subsidiaries, the Company also operates in the mining, development of plantations, financial and information technology.

<ul><li>4M24 2W sales reached 2.1m units (-1% yoy; inline), while 4W wholesales remained weak at 263k units (-23% yoy, below our f’cast) </li><li>We trim our consolidated FY24/25F NP estimates by 6%/7% to factor in 18%/16% cutsin automotive revenue, and thus NP growth of -13%/-1%.</li><li>We maintain our Hold rating but with a lower TP of Rp5,100, as we see a more challenging growth outlook despite the stock’s cheap valuation</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.

4M24 2W sales reached 2.1m units (-1% yoy; inline), while 4W wholesales remained weak at 263k units (-23% yoy, below our f’cast) We trim our consolidated FY24/25F NP estimates by 6%/7% to factor in 18%/16% cutsin automotive revenue, and thus NP growth of -13%/-1%.We maintain our Hold rating but with a lower TP of Rp5,100, as we see a more challenging growth outlook despite the stock’s cheap valuationContent 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.

Astra International - Lowering FY24-25F Est. And TP Amid Weaker Auto Sales Outlook

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.