Jasa Marga expects 1Q11 revenue to reach Rp1.1tn or 10% YoY growth. 1Q11 traffic volume is expected to increase by 3-4% YoY to 226.5m. Separately, JSMR hopes that government will allow a lower dividend this year to enable Jasa Marga to have more cash to fund expansion. Comment: This indication is in line with our expectation where 1Q11 revenue of Rp1.1tn is 22% of our FY11 forecast of Rp4.9tn, and company’s guidance of Rp4.8tn. Tariff increase in Sep for 11 out of its 13 toll roads will provides additional boost to revenue on top of higher traffic during Moslem holiday. On dividend, last payout ratio was a high 60%; Jasa Marga hopes for a lower payout this year.
Agung Podomoro (APLN IJ) sold Rp1.12tn of property in 1Q11. Comment: 1Q11 pre-sales reached 28% of company’s full-year target of Rp4tn. APLN expects a growth of 43% in marketing sales this year. Profit guidance for 2011 is Rp500-550bn, from Rp242bn in FY10.
Telkom (TLKM IJ) update: more noise in the daily press on a daily basis about the Indo Govt trying to swap Singapore Telecom's stake in Telkomsel into TLKM.
Krakatau (KRAS IJ) plans to add 15% at Krakatau Posco. Local newspaper reported that Krakatau Steel, the state-owned steel maker, plans to increase its stake by 15% to 45% at Krakatau Posco, a joint venture company with Korean’s Posco. Krakatau Posco will build a steel plant with production capacity to produce 6m tons in West Java’s Banten.
Bakrie Brothers (BNBR IJ) aims to deleverage its balance sheet by Rp3tn (US$344.8m). Bakrie Brothers plans to refinance its debts by Rp3tn to Rp3.5tn or 42.8% of the total debts as of Dec 2010. The company is in talks with several potential lenders on the plan and aiming to issue US$100m bonds to finance its expansion in coal and palm oil.