Tuesday, July 31, 2012

Bank Mandiri plans to raise US$480 million loan

PT Bank Mandiri Tbk enlarged foreign currency loans target to US$480 million after managed to scoop US$250 million in the first semester of 2012 which bundled with recapitalization bonds valued at IDR1.8 trillion.

The company is conducting an assessment with several banks to execute foreign currency loans and government bonds sales. The proceeds are expected to be directly channeled into foreign currency loans before 2012 ends.
The banks recently signed a foreign currency loan of US$250 million which bundled with recapitalization bonds sales valued at IDR1.8 trillion. Bank Mandiri received the loan from Standard Chartered Bank with 3 years period.

Net profit Gajah Tunggal increase 25%

PT Gajah Tunggal Tbk scooped IDR526 billion net profit, increased 25% compared to the same period of that last year as driven by realized profit on the investment and cancellation of provision for doubtful accounts because the company receives payment for the debt.

Gajah Tunggal Director Catharina Widjaja said both issues eliminated the losses due to the weakening rupiah exchange rate against the U.S. dollar which arise dure to debt in foreign currencies.

"In the second quarter of 2012, we completed the purchase of nearly 100 hectares land for US$108 million located in the new industrial area in Karawang. The purchasing has two objectives, a portion of the land will be used for the construction of tires proving ground which will begin in the coming months and is expected to be completed within 2 years to 3 years," he explained on Tuesday (07/31/2012).

Furthermore, she said, the others will be used for Gajah Tunggal manufacturing locations expansion. "This land purchase is financed with internal resources and requires no external funding."

He explained the management has decided to start commercial production of radial tires for trucks and buses. "The radial tires production for trucks and buses will be carried out gradually over the next 3 years with a total production capacity target of about 1,500 – 2,000 tires per day. Total capital expenditures for this program is expected to reach US$150 million over 3 years period”

Catharina said Gajah Tunggal net sales in the first half of 2012 increased 9.4% to IDR6.36 trillion, compared with same period last year which amounted to IDR5.81 trillion.

In addition, she said, four-wheeled original equipment manufacturer (OEM) market also increased due to increasing demand from manufacturers who have teamed up with GT. On the contrary in two-wheeler OEM market, delivery to Michelin and export to Europe decreased.

"Gross profit margin in the first half of 2012 increased to 17.4% from 13.2% in the same period of last year due to significant decrease in natural rubber price. The quarterly gross profit margin in the second quarter of 2012 was quite stable due to the high cost of chemical materials [related to the oil price] used by Gajah Tunggal."

She also said the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the first semester 2012 reached US$104 million, up 43% compared with same period a year earlier.

Friday, July 27, 2012

CIMB Niaga plans to issues IDR2 trilion bonds

PT Bank CIMB Niaga Tbk is planning to conduct bonds issuance worth IDR2 trillion in October. The proceeds will be used to support credit expansion.

The proceeds will be used to support credit expansion that is expected to reach 18% in 2012.  CIMB Niaga has issued bonds several times and the last done in November 2011. At the moment, the bonds worth IDR1, 5 billion with a tenor of 3 and 5 years.

CIMB Niaga noted 18% credit growth until June 2012 toIDR137.46 trillion than last year, smaller than average banking industry at 28%.

Company’ net profit rose 29.22% to IDR1.99 trillion than IDR1.54 trillion on the same period last year amid hike in net interest income by 23.84% to IDR4.68 trillion from IDR3.79 trillion

Express Taxi & Waskita Karya plans IPO this year

PT Express Transindo Utama, operator of Express taxi, is planning to conduct initial public offering this year and pick PT Mandiri Sekuritas as underwriter.

PT Express Transindo Utama will conduct mini expose, today (7/27/2012), The fund will be use to add armada, potentiallt to focus on premium taxi. The company will conduct IPO in the fourth quarter, he continued. The unit of Rajawali Corpora is eyeing IDR500 billion by releasing 20% shares.

On a separate occasion, PT Waskita Karya might conduct IPO in November 2012 at the fastest. The company is currently waiting for government’s approval and regulation regarding its status as state-owned company, after restructuring process by PT Perusahaan Pengelola Aset.