US and China Agreed to Cut Tariffs in 90-Day Deal Starting 14 May-25

MACROECONOMY
US and China Agreed to Cut Tariffs in 90-Day Deal Starting 14 May-25
The US and China agreed to lower tariffs for 90 days starting 14 May-25. The US cut tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on US goods from 125% to 10%. However, the US maintained a 20% tariff on fentanyl-related products from China. China also agreed to revoke non-tariff measures, including rare earth export restrictions, blacklisting of US firms, and the DuPont antitrust probe. (Bloomberg Technoz)

INDUSTRY 
Indonesia Posted 51,205 Car Sales in Apr-25

Indonesia recorded car sales of 51,205 units in Apr-25 (vs Apr-24; 48,766 units; +5.0% YoY), rebounding from a 5.1% drop in Mar-25. The recovery was driven by the low base effect as Eid al-Fitr occurred in Apr-24. GAIKINDO set a 2025 target of 750,000–900,000 units, above the revised 2024 projection of 850,000 units and actual 2024 sales of 865,723 units. (Trading Economics)

COMPANY 
BCAS: ITMG IJ – 3M25 Earnings Missed ours and consensus

- 3M25 Net Profit grew by 5.5% YoY to USD65mn, forming 19.9%/21.9% of Ours/Cons. Belowconsensus and our forecast. Owing to 18% YoY lower cash cost to USD66/t. 
- Revenue came at USD483mn (-1.4% YoY), forming 20.5%/22.1% of ours/Cons forecasts. Mainly driven by better volume. Sales volume grew by 18% YoY and Production grew by 7.5% YoY. Meanwhile ASP declined by 17.4% YoY to USD81/t 
- Looking at the achievement and weak coal price in 2Q25, we deemed the results as below. We will review our TP and forecast