Indonesia Took Negotiation Route on US Tariff Hike

Indonesia Took Negotiation Route on US Tariff Hike
The Govt. confirmed Indonesia would pursue negotiations in response to the 32% import tariff imposed by President Trump on Indonesian goods. The Govt. stated that Indonesia was prepared to increase imports from the US and revise domestic content requirements (TKDN) as part of a reciprocal trade negotiation strategy. (Bisnis.com)

COMPANY
BCAS: SILO IJ - FY24 Core Earnings: In line with Ours, Below Cons

• FY24 Core Profit flattish, recorded at IDR1.2tn (+0.9% YoY), in line with ours/below cons at 97%/89%. 4Q24 net profit recorded at IDR212bn (-34% QoQ; -40% YoY) as there were ~IDR57bn one-offs for MESOP program and investment for Next Gen Siloam transformation. 
• 4Q24 revenue recorded at IDR3.0tn (-2.1% QoQ; +3.3% YoY), with seasonally slower traffic. FY24 revenue was in-line at IDR12.2tn (+9.1% YoY), driven by growth in IP adm/OP visits by 7.8%/7.5% YoY and a blended ASP increase of 4%. Occupancy Rate improved to 67% (vs. 65% in FY23). 

The Co. recorded strong operational and revenue growth in FY24, as there were one-offs that affected bottom-line. Going forward, SILO will focus on transformation for Next Gen Siloam and archetypes model, which we think will yield results in 2026 after the complete rollout. Note that the Co. has secured IDR14.5tn syndicated loan to acquire 14 hospitals from First REIT expected to be completed in FY25. We will review our numbers accordingly with their recent updates. 

BCAS: WIFI 4Q24 - net profit inline despite lower revenue

- WIFI FY24 net profit (+295% yoy) accounted for 103% of our projection; revenue jumped +53% yoy with margin expansion from telecom segment
- 4Q24 net profit increased nicely to IDR 79 bn; however, the qoq net profit increased mainly contributed from reversal of finance expense due to changes of (lower) interest rate on related parties loans 
- 4Q24 EBITDA margin expanded to 80.9% (+8pp qoq) showing good efficiency effort
- 4Q24 Revenue rose 77.8% yoy despite -14.8% qoq; the declining revenue occurred in telco segment, we are waiting for comment from management.