One final push - MayBank Kim Eng
Bond restructuring almost complete; U/G to BUY
Upgrade ASRI to BUY from HOLD as the bond exchange offer to refinance its two senior notes is close to completion. This removes the credit risk overhang that has pressured valuation. We adjusted our presales, interest expense, and FX loss which lead to a change in our FY20-22 EPS by -83%/+1293%/+43%. Our new TP of IDR200 is now based on 81% discount to RNAV (-1SD below 5Y mean). Main downside risk is cancellation of refinancing.
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