Indo industrial estate, Shimmering industrialization, CLSA

No sign of demand slowing down in sight for industrial land, as industrial
estate developers posted sterling performance in FY11. Given robust
demand and land scarcity, the industrial land price upward momentum
picked up where they left off at the end of 2011. The resurgence of
manufacturing sector, especially automotive and related sector, serves as
another catalyst for industrial land. We expect the trend to continue for
the next few years. Despite strong performance, industrial estate
developers are still trading at average 53% disc. to NAV. Positive view for
industrial estate plays.

Indonesian Coal, Mixed FY11, CLSA

Indonesian thermal coal producers lived up to their production promises in FY11, but reported a mixed set of results. Standouts were Adaro and ITM which reported above ours and consensus expectations on strong ASP and cost control. Oil prices present the biggest risk to earnings in 12CL having averaged US$117/t during 1Q11. We factor in increased fuel costs into our numbers. Top picks remain ITM for defensive earnings and yield and Harum for highest production growth under our coverage.

Bank Danamon, Acquisition in the offing, CLSA

Fullerton Financial Holdings, a unit of Temasek, has entered into a share
agreement with DBS Group Holdings to sell its subsidiary Asia Financial’s
stake in BDMN to DBS. In addition, DBS will offer cash for the minorities,
at Rp7,000/share which is attractive in our view. We therefore prefer to
sell BDMN at a price close to Rp7,000/share and will review our price
target and recommendation accordingly after BDMN’s trading reopens.

Indocement, Poised for growth, CLSA

Indocement has excess capacity and less cost pressure to deliver the
highest profit growth for FY12 vs peers. We raised our ave. selling price
growth assumption to 4%; ytd prices rose by 2%. We expect GP margin
to rebound to 48% in FY12 (FY11:46%), maintaining its superior margin
vs peers. INTP has no debt, and generates enough cashflow to fund more
expansion in the future. Valuation is still attractive vs peers. BUY.

Holcim Indo, Strong momentum, CLSA

Holcim has excess capacity this year to grab market share; we expect
11% YoY sales growth in FY12/14; 2M12 sales grew a strong 26.8% YoY
vs 19.4% of market, at 16% of our FY expectation. We raised our ASP
growth assumption to 4% which will enable stable margin this year. The
company’s balance sheet is getting stronger, and should be moving into a
net cash position in 2014; even with US$325m capex expansion for 2013-
16. Holcim trades at a very attractive valuation vs peers. BUY.

Semen Gresik, Limited upside this year, CLSA

With new capacity coming only in Apr and July, SMGR is likely to just be
able to maintain market share from last year. The company will also be
worst hit on margin given rising energy costs and depreciation despite
the 4% ASP growth assumption. SMGR also needs to gear up for
expansion and starts expensing higher interest in 2013 (previously
capitalized). Valuation is also more expensive vs peers. Maintain U-PF.