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3Q15 corporate result round-ups: Disappointing, but bottoming out


The Indonesian equity market has just undergone corporate result season for the third quarter 2015. Thus far, 84 companies (71% of total market cap of the JCI), out of 99 (85% of total market cap of the JCI) stocks within our coverage, have reported earnings.


While most corporate earnings have disappointed with more than half, or 45 companies having reported results below our and consensus’ expectation, we find that for the market as a whole, 3Q15 performance has bottomed out, improving from 2Q15’s level on a y-y basis.


Actual 3Q15 y-y operating profit growth thus far has reached +6.1% (2Q15: -5.0%), vs. +8.8% in 3Q14 (exhibit 1). On the bottom line, net profit growth decelerated from +10.9% in 3Q14 to -5.9% in 3Q15 (2Q15: -7.5%). The culprits behind the earnings slowdown would be IDR depreciation against the USD, and continued weak GDP growth, which we expect to come in at 4.72% (1Q15: 4.71%, 2Q15: 4.67%; 2015: 4.72%).

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