Global Market Highlight
DJIA slipped by -0.16% on Monday (12/04) followed by the slight increase on S&P 500 (+0.01%) while Nasdaq still decreased by -0.36%. Wall Street was weakened as investors awaited guidance from the start of quarterly earnings season this week. Wall Street's outlook on quarterly earnings appears bullish, with investors anticipating EPS will grow by more than 30% this year led by cyclical sectors such as industrials, consumer discretionary, materials, and financials. Moreover, the market will look forward to several data releases today, such as: 1) US Core Inflation Rate; 2) UK GDP; 3) China Balance of Trade.
Domestic Update
• The Retail Sales in February 2021 dropped by 18.1% YoY, from -16.4% YoY in January 2021. But, the Real Sales Index (IPR) for February 2021 dropped slightly by -2.7% MoM, improving compared to -4.3% MoM in January 2021. This improvement was driven by increased public demand during Chinese New Year HBKN and national holidays. In addition improvement occurred in most groups of goods, such as Fuel for Motor Vehicles, Other Household Appliances, and Spare Parts and Accessories.
• Furthermore, there was an addition of 692 new Covid-19 cases in Jakarta yesterday.
Company News
1. PGAS IJ posted revenue of USD2.88 billion in FY20, Which decreased 25% YoY (vs USD3.84 billion in FY19). However, cost of revenue also decreased from USD2.62 billion in FY19 to USD2.03 billion in FY20. PGAS posted a net loss of USD215.76 million in FY20 (vs USD112.981 million of net profit in FY19) (CNBC Indonesia). MNCS Comment: The net loss recorded by PGAS was in line with several ongoing costs and also the depreciation of the rupiah in FY20. Currently PGAS is trading at 0.95x PE/PBV.
2. PWON IJ posted revenue of USD866.45 million in FY20, Which decreased 17.25% YoY (vs USD1.05 billion in FY19). However, COGS also decreased from USD939.95 million in FY19 to USD746.85 million in FY20. TKIM posted a net profit of USD119.6 million in FY20 which increased 11.67% YoY (vs USD107.16 million in FY19) (Bisnis.com). MNCS Comment: PWON's decline in performance was due to the lack of marketing sales in FY20. Today's appetite people prefer landed houses rather than high rises. PWON is currently trading at 25.79x/1.64x PE/PBV.
3. AUTO IJ will distribute FY20 cash dividends of IDR 15.5 / share or up to IDR 74 billion of the total FY20 net profit. The date for the Cum dividend is April 22, 2021 (Emitennews). MNCS Comment: Dividend yield offered is 1.34% or decreased compared to yield FY19 of 6.63%. AUTO is trading at 2,490.39x/0.54x PE/PBV.
IHSG Updates
JCI decreased by -2.00% to 5,948.57 on Monday (12/04) followed by net foreign sell reaching IDR270.82 billion. JCI fell significantly due to a drop on the yearly retail sales as well as the homecoming restriction have been weighing JCI down. Furthermore, the property and miscellaneous industry tumbled beyond 3% followed by the weakening on the rest of the sectors. Meanwhile, the Rupiah exchange rate was weakening at Rp14,595. We estimate JCI will move in the range of 5,892-6,113 while waiting for Balance of Trade data release. Today's recommendation: BMRI, JSMR, ACES, DOID.
Corporate Action
Cum Dividend Date: PTBA (IDR74.69/share)
RUPS: POLU, POLL
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