Kalbe Farma (KLBF IJ)
Not rated
Analyst: Erdji Herlando

Resurrecting margin, but to a lower level
• GM has reset lower while 2H26 remains under pressure
• Route from 37.6% to c.40% GM runs through each vertical
• Stable product contribution
• Sound earnings, misrepresented in share price correction

Telkom Indonesia (TLKM IJ)
BUY / TP: IDR:3,400 (+50.4%)
Analyst: Chandra Pasaribu

Appoints new chief executive
• New chief executive appointed, slight changes in board of directors (BOD)
• Telkom Infrastructure (TIF) spin-off completed
• Danantara gets more involved in data centers (DCs)
• Re-iterate BUY – TP: IDR3,400

Banking Sector
Analyst: Yap Swie Cu

Margin pressure continues for most banks
• Funding costs pressure persisted for most banks
• Better funding structure, strong lending expansion, and resilient fee income lessen the impact of rising rates to BBNI and BMRI
• Soft rebound in BBTN’s top line
• Modest NII pressure in BBRI’s and BRIS
• BBCA – our top pick – continued to see an upward NII trend

Indofood Sukses Makmur (INDF IJ)
BUY / TP: IDR:8,000 (+16.8%)
Analyst: Erdji Herlando

Diversified growth at a holding discount
• CBP business remains strong under weakening consumer purchasing power
• Agribusiness to benefit from Super El Niño and government program implementation
• Its wheat flour and pasta subsidiary, Bogasari, has shown sustained market expansion and its distribution business has reported steady growth
• We initiate coverage with a BUY recommendation and a TP of IDR8,000 (US$0.45)

Macro-economics
Analyst: Chandra Pasaribu

Positive numbers, questionable sustainability
• Inflation to continue similar pattern MoM
• Trade surplus of US$3.6bn from lower imports
• PMI at 52.4 spells short-term recovery
• Defensive position is advised

Bank Rakyat Indonesia (BBRI IJ)
BUY / TP: IDR:4,900 (+54.6%)
Analyst: Yap Swie Cu

Rise in funding costs weighs on earnings
• Top-line earnings moderated amid soaring funding costs
• Eased provisioning
• Loan expansion normalized in July-August, as expected
• Re-iterate BUY on BBRI’s undemanding valuation