NISP Delta Dunia raises Rp10tn of fresh cash (DOID, Rp1,180)

• It is reported that Delta Dunia had set a price of Rp1,400 per share for its new
shares issuance through right issue mechanism. The company aims to raise Rp10tn of fresh cash to finance the acquisition over Berau Coal.

• Delta Dunia will use the proceeds to buy an exchangeable bonds issued by Bukit
Mutiara, a shareholders of Berau Coal.

• This news is likely to deliver a positive sentiment on Delta Dunia’s share price as
it was beaten by massive selling activity amid uncertainty over its right issue price.

• DOID is trading at 2010F consensus PER of 6.7x and EV/EBITDA of 2.7x.

Mandiri Sekuritas Indika Energy: negotiation in process for US$700mn new engineering contracts (INDY, Rp1,550, Buy TP: Rp2,180)

Indika Energy is currently in the process of negotiating some US$700mn
worth of new engineering contracts via its Tripatra Engineering group.
This is part of the close to US$2bn worth of bidding activities being
conducted by Indika this year. We consider this to be vital for Indika
since its Tripatra order book is running thin (US$184mn) and is expected
to be exhausted by year end.

Aside from this, Indika and its partners (Marubeni, Komipo, Samtan) are
also working out a deal to secure some US$500mn of syndicated loans to
fund the US$821mn Cirebon Electric Power Project, wherein Indika
Energy has 20% stake. So far, the company has invested a total of
US$35.2mn in the project as of Jan09. Kideco, Indika’s coal unit is set to
be one of the coal suppliers of this 660MW power plant project, slated
for completion in 2011.

We maintain Buy on the stock, which currently trades at PER09x of 5.5x