Mansek Bukopin:1H10 earnings increased by12.9%yoy (BBKP,Rp650,Not Rated)

BBKP reported earnings increased by 12.9%yoy to Rp226.6bn in 1H10,as the bank managed to reduce its interest expense by -22.3%yoy,despite slow down in interest income of -5.0%yoy due to low credit expansion (+5.2%).This brought net interest income to Rp868.3bn (+25.7%yoy).

However,third party fund grew by 21.2%to Rp21.5tn supported by strong growth in demand deposits and savings by 34.1%and 37.6,respectively.As a result,NIM is resided at 4.85%increased from 4.17%from same period last year.

NPL gross was recorded at 2.85%,declined from 3.96%in 1H09,as reduction in bad debt,especially on its commercial portfolio by -25.6%. Meanwhile LDR was at 80.3%(vs 93.7%1H09)and ROE 18.2%(vs.19.7% 1H09)

As per yesterday ’s price,BBKP trades at P/BV 1.5x and trailing-PE10 10x. There is no analyst covering the stock at the moment.

Mandiri Sekuritas Jasa Marga and PP form a joint subsidiary (JSMR, Rp1760, Buy, TP: Rp2100); (PTPP, Rp650, Not-rated)

Jasa Marga and PT Pembangunan Perumahan (PTPP) will work together to form a subsidiary in the property sector and still looking for another private company to join the venture, which scheduled to be formed in semester II- 2010. Both companies have prepared funds of Rp100bn for initial capital.

The new subsidiary will focus in housing and office property and will start the operation in Sidoarjo, East Java, near with JSMR’s toll road. We see that the plan will provide added value for JSMR due to increasing property prices in the region through which the highway. We still maintain BUY on JSMR, currently trades at P/E’10 of 8.9x and PBV10 of 1.5x.

Mandiri Sekuritas Pembangunan Perumahan: March’s new contract bookings to reach Rp3tn (PTPP, Rp650, Not rated)

The company could obtain new contract worth Rp3tn in this first quarter, it equals to 23.1% from its FY10 target of Rp13tn.

Moreover, they are optimist to book half of is new contract target in 1H10. With such target, they are aiming to book revenue and net profit of Rp6.3tn and Rp359bn, respectively. The bottom line level reflects PER10F of 8.8x, which is slightly higher to average construction companies of 8.2x.