STOCKS NEWS INDONESIA-Macquarie starts Sumber Alfaria with 'outperform'

Macquarie Equity Research initiated coverage on retailer PT Sumber Alfaria Trijaya Tbk with 'outperform' and a target price of 7,000 rupiah, saying the company is well-positioned to ride Indonesia's consumer wave.

AMRT is one of Indonesia's top two minimarket operators (the other being the unlisted Indomaret), with a 31 percent market share in the fast-moving consumer goods segment, Macquarie said.

Middle class consumers in Southeast Asia's largest economy are choosing the convenience of minimarkets for grocery shopping over their larger rivals such as France's Carrefour . Their decision is reshaping the $42 billion sector. [ID: nL3E8HQ5L5]

"The company has delivered stellar growth over the past 5 years with 33 percent and 35 percent revenue and earnings compound annual growth rates, respectively," Macquarie analysts Lyall Taylor and Dewi Kusuma said in a note on Thursday.

Operating margins have improved to 2.4 percent from 0.7 percent over the past five years, and the analysts said there is further upside due to operational efficiencies, rising economies of scale, and better product mix.

Shares of the company last closed at 5,500 rupiah on Sept. 27.

1413 (0713 GMT)

(Reporting by Andjarsari Paramaditha, Editing by Prateek Chatterjee)

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14:06 STOCKS NEWS INDONESIA-Bahana expects recovery in crude palm oil

Bahana Securities said crude palm oil (CPO) price may recover in the next few weeks as the current downturn is not sustainable, and it expects strong demand from India and China.

"We remain positive on the Indonesian CPO counters as all CPO counters have underperformed the index by 8 percent in the last one month on seasonally low CPO price," Bahana Securities analyst Leonardo Henry Gavaza, wrote in a note on Thursday.

The research house's top picks in the sector are PT Astra Agro Lestari Tbk and PT BW Plantation on positive growth outlook, recommends to buy the stocks.

At 13.35 a.m. (0635 GMT), the Jakarta Agriculture Index

was up 0.26 percent, while the broader Jakarta Composite Index was up 0.38 percent.

1337 (0637 GMT)

(Reporting by Andjarsari Paramaditha in Jakarta; Editing by Anand Basu) (( 21 3199 7170)(Reuters Messaging:


13:33 STOCKS NEWS INDONESIA-Erajaya buys stake in mobile content firm

Indonesia's top phone distributor PT Erajaya Swasembada

has bought a 30 percent stake in mobile content provider Inovidea Magna Global from its owner Kingsville Union Ltd as part of its business expansion strategy.

Erajaya bought the stake for 750 million rupiah ($78,200), it said in a statement to the Indonesian stock exchange on Thursday.

Jakarta-based Inovidea develops internet games and mobile applications.

Post the deal, Kingsville will own 69 percent of Inovidea, while the latter's CEO will hold 1 percent.

Shares of the phone retailer were down 2.38 percent at 2,050 rupiah, while the broader index was up 0.29 percent.

1305 (0605 GMT) ($1 = 9,585 rupiah)

(Reporting by Andjarsari Paramaditha, Editing by Prateek Chatterjee)

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