AKR Corporindo Tbk AKRA FY 2010 Sales Turnover Increases 36% to Rp 12.2 trillion, Net Profit Rp 311 Billion

PT AKR Corporindo, Tbk. (Bloomberg: AKRA IJ), Indonesia’s leading bulk logistics and infrastructure provider and largest private sector distributor of petroleum and basic chemicals reported 36% increase in sales revenue to Rp 12,195 billion for the fiscal year ended December 31, 2010 compared to the same period during the previous year.
Petroleum sales revenue jumped 49% to Rp 7,474 billion with volume of refined petroleum
products distributed during the year of 2010 increasing by 32%. Increasing demand for High
Speed diesel from coal mining, power, and industrial sectors in Indonesia enabled AKRA to
supply refined products from its extensive logistics infrastructure spread across 15 locations
across Indonesia.
Net profit for the fiscal year ended December 31, 2010, increased by 13% to Rp 311 billion

PT. Harum Energy Tbk (HRUM) - 2010 results update

 12-Month Price Target : Rp 9,300/shr

Booked net income growth in 2010
Harum Energy had been able to book net income growth in 2010
despite extremely bad weather that coal producers had to encounter
last year. Net income grew 7.4% from Rp767 billion to
Rp824 billion. The bottom line of 2010 was below our expectation
of Rp880 billion in 2010. HRUM’s revenue decreased 2.5% from
Rp4.6 trillion to Rp4.5 trillion and above our expectation of Rp4.3
trillion revenue in 2010. Mirroring the revenue, income from operations
also decreased slightly 6.4% from Rp1.2 trillion to Rp1.1
trillion.
 
Extreme weather took its toll
Extreme weather in 2010 took its toll where Indonesian coal producers
had to trim production target. Although HRUM had met its
7.4 million coal production target (according to company but no
specific numbers yet released), we expect the only slight increase
of coal price and appreciation of rupiah offset the positive impact
from the increase of coal production. The other two coal producers
(PTBA and ITMG) that had announced the 2010 results all
saw their net income dropped in 2010. Net income of PTBA decreased
26% and net income of ITMG decreased 39% in 2010.
The numbers highlighted the adverse condition that the Indonesian
coal producers had to face in 2010.

Coal demand and Japan Disaster
Newcastle Coal price did turn lower from the day of Japan Tsunami
(March 11,2011) from US$129.6/tonne to US$123.3 in

Ciputra Property 2010 results: Stronger bottom line profit than sales

Ciputra Property (CTRP IJ)         BUY
Price/Tgt: Rp350/500   Mkt Cap: Rp2.2t        Daily Vol: 10.7m        1-Yr Hi/Lo: Rp455/345
2010 results: Stronger bottom line growth than sales.

What's new:
Ciputra Property (CTRP) registered a good set of results during with 2010 bottom line of Rp155b or more than doubled from 2009's of Rp74b. Earnings were mainly driven by lower tax rate (-8% yoy) as well as lower forex loss (-70% yoy to Rp22b). Revenues increased by 6% yoy to Rp356b with gross and operating margins maintained at 62% and 30% respectively.  
Total debt jumped more than three times to Rp55b and would be more in this year as more capital is needed to build  Ciputra World's apartment funded by bank loans. However, cash increased by 3% yoy to Rp1.3t and

Asia Palm Oil Sector - Next catalyst: US Planting Intentions Report on 31 March

● On 31 March 2011, the USDA will release the US Planting
Intentions Report. If the report concludes that soybean acreage
will come in lower than expected, then soybean prices may spike
up and palm oil prices will follow suit.
● In an earlier review, USDA predicted that farmers will sow 10.1
mn more acres this year compared to 2010, in response to high
farm profitability. If true, 2011 would be the second largest YoY
increase in U.S. crop acreage in the last thirty years. Farmers are
expected to plant 92 mn acres of corn in 2011 (up 3.8 mn acres)
and 78 mn acres of soy (up 0.6 mn acres).
● Although the soy-corn price ratio suggests that soybean should
lose acreage to corn, some farmers may still favour planting
soybean due to high fertiliser costs as well as greater weather

Borneo Lumbung Energi - Soilid Start (OUTPERFORM - Maintained, Rp1,650 - Tgt. Rp2,250, Coal Mining)

Above; maintain Outperform. FY10 net and core profits of Rp348bn and Rp389bn
were well above consensus and our forecasts (at 161% and 171% of our forecasts
respectively), driven by stronger-than-expected sales and lower-than-expected
costs. While Borneo’s operating variables (e.g. stripping ratio, unit costs) have yet to
stabilise due to its ongoing mine expansion, the 2010 strength nonetheless cements
our confidence in its ability to deliver. We upgrade our FY11-12 earnings estimates
by 9-12%, taking into consideration its lower 2010 cost base, while introducing 2013
estimates. We also raise our price target to Rp2,250 from Rp2,050 following our
earnings upgrade, still based on DCF (WACC 12.25%). At 11.7x CY11 P/E, Borneo
is attractive vs. its coal peers (13.2x average). Stock catalysts are expected from
strong 1Q11 volume and positive 2Q11 contract settlement prices.
• Production cost was the biggest surprise, coming in 14% below expectations.
2010 production cost was US$70/tonne vs. our US$76 with hauling and mining
costs being the key differences. Given company’s indication of stripping ratio of
16.5x in 2010, the lower-than-expected cost implied lower unit cost base. Stronger
revenue was largely aided by higher-than-expected sales and production volumes