Ace Hardware, 100 stores by 2015, CLSA

Having opened its 59th new store in Tebet (South Jakarta) this month, the
company is on track to meet their targeted 15 additional stores or +20%
on gross space basis. Coupled with strong same-store-sales growth
(Sssg) number of 18.3% as of 3M12, we foresee the company to deliver a
robust 26% top-line growth this year. Well execution should lead them to
possess 100 stores by 2015, while competition may however limit their
margin expansion. We maintain our BUY rating on the company with
slightly lower TP of Rp5,400/sh to reflect some margin pressure.

BTPN, Productive bank, CLSA

BTPN is one of the few banks with a unique value proposition. After its
successful story in the micro segment, the bank is now entering the
“productive poor” segment, which also offers superb margin. This effort
will support the bank’s sustainable growth. We like the bank’s strong
management and strategy serving a very niche market. We reinitiate the
stock with an outperform recommendation.

Bukit Asam, Not giving up, CLSA

We attended an analyst briefing hosted by PTBA’s corporate secretary and investor relations team. Key takeaways are 1Q12 production is likely at the lower end of our estimates and probably disappoint consensus at c. 3mt. On the plus side, domestic prices are locked in at an average US$87/t (+3% yoy), in line with our estimate. The company is still adamant on winning back concessions issued by the Lahat regency in South Sumatra, including Adaro’s MIP concession.

MBSS, Barging through, CLSA

MBSS is a coal transportation and logistics provider servicing the coal industry predominantly in Kalimantan. It is 51% owned by energy investment group Indika Energy with the founding family still in charge of day to day operations. MBSS has a diversified customer base and strong track record in growing operations on stable margins. It is not a shipping company and is leveraged to coal production growth. We initiate coverage with a BUY recommendation and target price of Rp2,000/sh