Today's Headlines - 16 Juli 2014

Astra Agro’s CPO Production Grew 21% (ID) Astra Agro Lestari (AALI) managed to produce crude palm oil (CPO) as much as 852,942 tons during the first half of 2014. Production grew by 21.1% compared to the same period last year at 704,211 tons. AALI’s FFB production increased by 14.5% to 2.74 million tonnes during the first half of 2014, higher compared to the same period last year of 2.39 million tons. Thus the production yield increased to 11.01 tonnes per hectare (ha) compare to 10 tonnes per ha last year. Lower-than-expected Heavy Equipment Sales in 1H14 (BI) Heavy equipment sales in 1H14 reached 2,032 units with sales of 905 units in 1Q14 and 1,127 units in 2Q14. The sales realization in 1H14 is still far from the association target of 6,127 units for this year. Industry claimed the stalled construction projects during the first six months of this year coupled with the lack of improvement in commodity prices is the main cause for the low heavy equipment sales. Semen Indonesia Post Profit of Rp2.7 trillion (ID) Semen Indonesia (SMGR) expects its net profit for the first half of 2014 to reach Rp2.77 trillion, up 8% compared to the same period last year at Rp2.57 trillion. Meanwhile, revenue rose 12% to Rp12.79 trillion from Rp11.42 trillion. According to the company's, cement demand growth until the first half of this year was not as good as last year, growth until June 2014 only reached 4%, lower than the initial estimation of 6%. To anticipate the decline in cement demand, the company has taken a number of strategic steps such as cost efficiency, increase energy independence, as well as strengthening the distribution network. Waskita Start Pejagan-Pemalang Toll Road (BI) Pejagan-Pemalang toll road can finally start soon after the government approved Waskita acquisition over the project. With the approval, Waskita plan to do the groundbreaking soon by the end of July 2014. Previously, PT Pejagan Pemalang Toll Road, the subsidiary of PT MNC Infrastruktur is the concession owner of this toll road segment. This toll road will consist of four sections that will be done in stages with total construction value estimated at Rp2tn. Initially, Waskita will do the construction in section I (Pejagan-Brebes, 14.2km) and section II (Brebes Barat-Brebes Timur, 6km). Read More