Kim Eng Indonesia Equity Daily, 15 Jun 09

Our Comment

Hexindo Adiperkasa will propose two dividend payments at EGM on 29 June 2009.
First, dividend from FY08 net profit 2008 with DPOR expected at 30%-40%, and second, dividend from 1Q09 net profit, with DPOR at expected 20%.
The above is because the company will change its financial statement from Jan-Des to April March, to follow policy of its parent company, Hitachi Construction Machinery Co Ltd.
Total of the two dividends is expected at Rp106-136 per share (yield: 4.5%-5.9%).

Separately, Telkom announced Rp296.95 DPS (yield = 3.88), representing payout ratio of 55%.
The company will conduct an extraordinary shareholders meeting after presidential election on changes in the board of commissioners.
Telkom is facing tough competition and pressure from lower tariff derived from lower interconnection. Maintain HOLD.

Acting Central Bank Governor Miranda Goeltom, estimated thatIndonesia annual inflation will reach 5% in 2009 as mild weather should guarantee sufficient domestic food supply, hence lower food prices.
She expects GDP growth to reach the higher end of Central Bank 3-4% forecast, as lower-than-expected inflation which should help boost purchasing power and consumer confidence.

Katarina Setiawan Highlights

Telkom (HOLD): Rp296.95 DPS (yield=3.88% )
Adhi Karya (HOLD): Rp11.51 DPS (yield=2.5%)
Hexindo: Obtained US$192m contracts to supply heavy equipment
Indika Energy: Acquisition plan
Economy: BI estimated 2009 inflation to hit 5%

From our chartist desk

IDX: The index has potential of a technical rebound referring to moving average 100-200 day. We maintain our target levels; 2029 and 2016. Enter at near support levels.

Today trading range is between 2023-2056-2073 (support) and 2107-2124-2157 (resistance) .

CPIN: Strong reversal on MaCD 12-26 days with positive histogram. We set our trend line target at Rp750. TRADING BUY

ELSA: We are still believer on this stock, based on flag pattern and daily TD sequential buy countdown. TRADING BUY