Indonesia Daily Market Insights: In-Depth Analysis of Key Players

Date: Monday, 25 November 2024
Broker: PT UOB Kay Hian Sekuritas

Introduction

In the dynamic world of financial markets, staying informed about the latest developments is crucial for investors. This comprehensive analysis dives deep into the performance and prospects of key Indonesian companies as featured in the latest report by PT UOB Kay Hian Sekuritas. This article provides an engaging and detailed look at Trimegah Bangun Persada, Bank Rakyat Indonesia, and Dayamitra Telekomunikasi, offering insights into their financial health, market performance, and future outlook.

Trimegah Bangun Persada: A Nickel Giant’s Promising Future

Trimegah Bangun Persada, a leading nickel producer based in Obi Island, has shown remarkable performance in its latest quarterly results. The company recorded its strongest quarterly earnings since its IPO, surpassing expectations. In the third quarter of 2024, the company posted a net profit of Rp2.03 trillion, marking an 18.2% year-on-year increase and a 12.6% quarter-on-quarter rise. This robust performance was primarily driven by higher limonite sales and substantial associate income from Halmahera Persada Lygend (HPL).

For the nine months ending in September 2024, Trimegah Bangun Persada reported a net profit of Rp4.84 trillion, an 8.4% year-on-year increase, surpassing 90% of both internal and consensus projections. Despite expectations of weaker performance in the fourth quarter due to softer nickel prices, the company remains optimistic. The anticipation of a nickel price recovery in 2025 and a strong production outlook support this positive perspective.

The company’s revenue growth in the third quarter was bolstered by a 103.2% year-on-year increase in limonite sales volume. The associate income surge by 54.7% year-on-year was driven by higher sales volumes of Mixed Hydroxide Precipitate (MHP) and other downstream products from HPL and Obi Nickel Cobalt (ONC). Moreover, electrolytic cobalt began contributing to the company’s revenue, with 238 tonnes sold in the third quarter, achieving a cash margin of US\$13,739 per tonne.

Looking ahead, the approval of mining quotas could continue to support London Metal Exchange (LME) prices in 2025, benefiting integrated players like Trimegah Bangun Persada. The company’s total reserves and resources have seen a slight increase, enhancing its long-term prospects. The company’s earnings estimates have been revised upwards, reflecting higher sales volumes and FeNi Average Selling Prices (ASP) in 2024, as well as increased MHP and downstream HPL sales volumes for 2024-2025.

In conclusion, Trimegah Bangun Persada is maintaining its “BUY” recommendation with a target price of Rp1,480, based on an EV/EBITDA target of 8.6x, suggesting significant potential for growth in the coming years.

Bank Rakyat Indonesia: A Technical Buy Opportunity

Bank Rakyat Indonesia, one of Indonesia’s prominent financial institutions, is currently positioned as a technical “BUY” with a potential return of 5%. The bank’s share price closed with strong gains, forming a long-body bullish candlestick, indicating a potential for further rebounds. The technical indicators such as the Relative Strength Index (RSI) are sloping upwards, coming out from the oversold zone, while the Moving Average Convergence Divergence (MACD) is on the verge of forming a bullish crossover signal.

The resistance levels for the bank’s shares are identified at Rp4,510 and Rp4,610, with support levels at Rp4,330 and Rp4,250. Investors are encouraged to buy at Rp4,390 and take profit at Rp4,600, with an approximate timeframe of 2-4 weeks. The institutional research maintains a fundamental “BUY” recommendation with a target price of Rp5,600, reflecting the bank’s strong market position and growth potential.

Dayamitra Telekomunikasi: Riding the Bullish Wave

Dayamitra Telekomunikasi presents an enticing technical “BUY” opportunity with an 8% potential return. The company’s share price has recently closed higher, forming a bullish candlestick pattern. This price movement broke above the Rp590 resistance level, potentially triggering further bullish pressure to challenge resistance levels at Rp645 and Rp655.

Technical indicators for Dayamitra Telekomunikasi are favorable, with the RSI sloping upwards and the MACD showing signs of a bullish crossover signal. Investors are advised to buy at Rp600 and take profit at Rp650 within a 2-4 week timeframe. The institutional research echoes a fundamental “BUY” recommendation with a target price of Rp790, highlighting the company’s promising growth prospects in the telecommunications sector.

Conclusion

The latest report from PT UOB Kay Hian Sekuritas provides valuable insights into the performance and future outlook of key Indonesian companies. Trimegah Bangun Persada continues to shine with its strong earnings and optimistic future prospects, while Bank Rakyat Indonesia and Dayamitra Telekomunikasi present attractive technical “BUY” opportunities for investors. As the market evolves, staying informed and seizing these investment opportunities can pave the way for financial success.