BCAS: WIFI IJ - Rights Issue Plan of 2.95 bn new shares issuance

BCAS: WIFI IJ - Rights Issue Plan of 2.95 bn new shares issuance 
- WIFI announced plan of 2.95 bn new shares issuance representing 55.56% of the capital 
- Each 4 existing shares will get 5 rights; each right could be exercise into 1 new share. Ratio 4:5
- Exercise price at IDR 2000/share; total of target fund raising IDR 5.9 bn
- The new raised capital will be used for building 4 mn new home pass
- Controlling shareholder (ISB) will exercise 1.49bn rights with total of IDR 2.97 bn 
- The shareholders that do not exercises their pre-emptive rights face risk of dilution of max 55.56%; and the non-exercise rights could 
be allocated to other shareholder who place excess orders of their rights
- timeline: Date of recording as of shareholder in the DS as of 13 June 2025; Rights exercise and trading 17-23 June 2025 

Our view: Previously we expect the company raise debt to finance the capex which will incline the interest expense burden. The capital 
raise through right issue could release the finance expense despite lowering EPS (due to higher share outstanding).

MACROECONOMY
China's PPI Dropped 2.5% YoY in March, Steepest Since Nov-23

China's producer prices fell 2.5% YoY in Mar-25, the sharpest drop since Nov-23, amid weak energy demand and U.S. trade tensions. Production materials fell 2.8%, with steep declines in mining (-8.3%), raw materials (-2.4%), and processing (-2.6%). Consumer goods prices also weakened (-1.5%), as prices of durables, clothing, and food declined. On a monthly basis, PPI slipped 0.4%, the biggest fall in six months. (Trading Economics)

US Inflation Eased to 2.4% YoY in Mar-25 

US annual inflation slowed to 2.4% YoY in Mar-25, the lowest since Sep-24 (vs 2.8% in Feb-25 and 2.6% forecast). Energy prices fell sharply, with gasoline (-9.8%) and fuel oil (-7.6%), while natural gas (+9.4%). Inflation also eased for shelter and transport, though food inflation rose to 3%. Monthly CPI fell 0.1%, the first decline since May-20. Core inflation eased to 2.8% YoY, also below expectations, with monthly core CPI up just 0.1%. (Trading Economics)