12 Juni 2020
MNCS Morning Navigator 12 June 2020
Global Market Highlight
DJIA plunged by 6.90% on Thursday (11/06) followed by S&P 500 (-5.89%) and Nasdaq (-5.27%). Stock suffered their worst day since March as traders more concerned about the second wave of Covid-19 cases in some states due to lockdown reopening. Overall the Covid-19 cases in the US topped 2 million. Thursday's move also followed by the Fed warning on US economy will contract by 6.5% in FY20E and will keep its rates at currently low levels through FY22F. Moreover, the market will look forward to several data releases today, such as: 1) US Export and Import Prices; 2) China FDI; 3) Japan Industrial Production.
Domestic Updates
The government will still reopen shopping centers despite increasing COVID-19 cases. The Ministry of Trade have conducted simulations on the implementation of the health protocol in one of the retail outlets owned by PT Ace Hardware Tbk (ACES), despite the fact that the number of positive cases of COVID-19 is increasing. The Ministry of Trade said the opening of the outlet is to encourage the economic sector, so that it will not worsen in this pandemic situation.
Company News
-
BSDE IJ plans a private placement of 1.92 billion new shares (10% of current share capital). With 90% price assumptions from 25-day closing price (619/688) the company can potentially obtain IDR1.19 trillion of funds. (Information Disclosure) MNCS Comment: In the middle of the uncertainty, the private placement can potentially increase the company’s liquidity. On the other hand, this will also increase capital for BSDE to continue expanding during the pandemic. BSDE is traded at 5.78x/0.51x PE/PBV, lower than peers.
-
JSMR IJ will be distributing IDR110.36 billion of dividends to shareholders or equivalent to IDR15.20/share. Dividend payout ratio stood 5% of FY19 net profit which reached IDR2.21 trillion. The dividend yield is at the level of 0.4% while cum date is yet to be announced. (Emiten News) MNCS comment: Amidst the pandemic season, JSMR is still distributing dividends although in a low rate. JSMR is traded at 12.36x/1.46x PE/PBV, lower than peers.
- UNTR IJ will be distributing the remaining dividend of IDR805/share from the total dividend of IDR1,213/share. Previously, UNTR has distributed an interim dividend amounting to IDR408/share in Oct-2019. The remaining dividend yield is at 4.89% while dividend payout ratio stood at 40% of the FY19 net profit which amounted to IDR11.12 trillion. The cum date is yet to be announced. (Emiten News) MNCS Comment: We see that the remaining dividend is quite higher than the interim dividend and with the dividend yield reaching 5%, it will be quite attractive. UNTR is traded at 6.09x/0.97 PE/PBV.
IHSG Updates
JCI fell by -1.34% to 4,854.75 on Thursday (11/06), followed by a net foreign sell reaching IDR247.24 billion. This decrease was triggered by the weakening in the Regional Asia and the global indices. This became the second day of index’s healthy correction as some blue chips stocks decline. This was also followed by the profit taking action from the investors. Meanwhile, the Rupiah exchange rate against the USD was weakening at IDR14,020. We estimate JCI will move in the range of 4,600-4,975 while waiting for Consumer Confidence as of May-2020. Today's recommendation: ASRI, BMRI, CTRA, ADRO.
Corporate Action
Cum Dividend Date: PTPP
Cash Dividend Date: WSBP, KINO
Disclaimer On
ASRI,
BMRI,
CTRA,
ADRO,
BSDE,
JSMR,
UNTR
