04 Juni 2021
MNCS Morning Navigator 04 June 2021
Global Market Highlight
DJIA dropped by -0.07% on Thursday (03/06) followed by S&P 500 (-0.36%) and Nasdaq (-1.03%). Wall Street fell as investors awaited the jobs report due Friday that could intensify bets on the Fed tapering bond purchases sooner. These positive data pushed economically-sensitive cyclical stocks higher, particularly in financials and energy. The services sector also continued to see a revival as the economy reopens. However, tech weighed on the market movement. Moreover, the market will look forward to several data releases today, such as: 1) US Unemployment Rate; 2) US Non Farm Payrolls; 3) UK Construction PMI.
Domestic Update
• Bank Indonesia (BI) stated that Indonesia’s economic indicators are improving. Higher trade volume & commodity price as well as better domestic mobility as vaccination programs ramped up supporting Indonesia’s economic recovery. MNCS Comment: We are cautiously optimistic about Indonesia’s economy for 2021. We projected GDP to rise 4.46% YoY this year. However downside risks outweigh upsides as the epicenter of the outbreak shifted to Asia and Covid-19 variants are continuously spreading.
• Furthermore, there was an addition of 714 new Covid-19 cases in Jakarta yesterday.
Company News
1. PWON IJ posted revenue of IDR3.97 trillion in FY20, which is decrease -44.77% (vs IDR7.20 trillion FY19). However, COGS also down from IDR673.45 billion in FY19 to IDR596.74 billion in FY20. PWON posted net profit of IDR929.91 billions in FY20 which is down -65.80% YoY (vs IDR2.71 trillion in FY19) (Bisnis Indonesia). MNCS Comment: The decline in PWON's revenue and sales was due to the Covid-19 in FY20. Occupancy of several malls and hotels in Jakarta and Surabaya has an impact on PWON's recurring income in FY20. PWON is trading at 25,43x/1,62x PE/PBV.
2. KRAS IJ posted revenue of IDR484.20 million in 1Q21, an increase of +55.62% YoY (vs USD311.18 trillion in 1Q20). However, COGS KRAS also increased from USD257.08 million in 1Q20 to USD412.71 in 1Q21. KRAS posted a net profit of USD22.08 billion in 1Q21 which is down by -70.27% YoY (vs IDR74.14). (Emiten News). MNCS Comment: The rise in top line already indicates recovery in KRAS' performance however the increase in cost has weighed the bottom line. KRAS is currently trading at 10,21x/1,47x PE/PBV.
3. TOWR IJ will distribute an FY20 cash dividend of IDR22.09/share after previously distributing an interim dividend of IDR6/share in Dec-2020. Thus, the total dividends distributed to shareholders from the FY20 fiscal year amounted to IDR28.09/share or reached IDR1.4 trillion from the total FY20 net profit of IDR2.83 trillion (Kontan). MNCS Comment: TOWR dividend distribution ratio of 78, 57% of FY20 net profit, while the total dividend yield offered was 2.33% or down compared to FY19 yield of 2.77%. TOWR is currently trading at 20,52x/5,96x PE/PBV.
IHSG Updates
JCI rose by +0.99% to 6,091.51 on Thursday (03/06) followed net foreign buy reaching IDR1.15 trillion. JCI rose as most sectors strengthened, led by tech (+12.82%), health (+1.53%) and finance (+1.34%), while the industrial, energy, and property sectors fell. The strengthening was also supported by foreign inflow to several big cap banking stocks. Meanwhile, the Rupiah exchange rate was weakening at IDR14,285. We estimate JCI will move in the range of 5,900-6,113 while waiting for Foreign Exchange Reserves data release. Today's recommendation: ASII, BBTN, INCO, TKIM.
Corporate Action
Cum Dividend Date: LIFE (IDR243/share), BFIN (IDR18/share), ERAA (IDR13.8/share)
Disclaimer On
ASII,
BBTN,
INCO,
TKIM,
PWON,
KRAS,
TOWR
