15 Juni 2020
MNCS Morning Navigator 15 June 2020
Global Market Highlight
DJIA increased by +1.90% on Friday (12/06) followed by S&P 500 (+1.31%) and Nasdaq (+1.01%). These rises are supported by the continuation of the business activity after lockdown so the market expects that the economy will continue to roll despite being overshadowed by a pandemic. Furthermore, some aviation stocks rise more than 10% and contributed to the indices movements, namely: 1) American Airlines; 2) United Airines; 3) Delta Airlines, followed by the 4.8% growth on Adobe stocks. Moreover, the market will look forward to several data releases today, such as: 1) Eurozone Balance of Trade; 2) China FDI; 3) China Retail Sales.
Domestic Updates
Consumer Survey in May 2020 reached 77.8 lower than 84.8 in April 2020. This indicated the continuation of weakening trend in consumer optimism for economic conditions. The weakening of consumer optimism is mainly due to the declining consumer perceptions of current economic conditions, with the deepest decline in the current employment availability index. While on the expectations side, consumers are still relatively optimistic about the forecast of economic conditions in the next 6 months, although not as strong as the previous month's forecast. Consumers are also still quite optimistic about the forecast availability of improved employment and rising incomes in the next 6 months, in line with forecasts for the easing of the COVID-19 pandemic in Indonesia.
Company News
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ANTM IJ plans to distribute dividends amounting to IDR67.84 billion or equals to 35% of the net profit which reached IDR193.85 billion in FY19. Dividend per share will be IDR2.82/share with yield at 0.48%. Cum date is yet to be announced. (Market Bisnis) MNCS Comment: ANTM has maintained 35% dividend payout ratio over the past few years. But due to the drop of 88.2% YoY in net profit, the distributed dividend is naturally lower. ANTM is traded at 0.77x PBV, lower than peers.
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DILD IJ recorded revenue that fell by 6.4% YoY to IDR830.6 billion in 1Q20. Despite the fact that its net profit grew by 74.4% YoY, net income margin increased to the level of 10.2% in 1Q20, (vs 5.5% in 1Q19). However, its debt to equity ratio rose to 59.2% in 1Q20, from 49% in 1Q19. (IDNFinancials) MNCS comment: DILD performance is quite good amid the Covid-19 pandemic in 1Q20, but we should see whether DILD can continue to maintain its resilient in 2Q20. DILD is traded at 8.62x/0.35x PE/PBV.
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KLBF IJ stated that two medicinal products will follow a clinical trial coordinated by the Covid-19 Research and Technology/ BRIN consortium. The clinical trial will begin on June 8, 2020 and is expected to be completed in August 2020. Clinical trials are conducted on Indonesian biodiversity herbal medicines as herbal immunomodulatory products in the care of Covid-19 patients. (Kontan) MNCS Comment: We believe that the successful trial of this collaboration can help meet Indonesia’s need for a vaccine as well as nationwide demand. Moreover, this Covid-19 outbreak has actually driven up sales of the pharmaceutical drugs and medical devices. KLBF is traded at 25.06x/3.94x PE/PBV.
IHSG Updates
JCI rose by +0.53% to 4,880.36 on Friday (12/06), although followed by a net foreign sell reaching IDR1.21 trillion. This flat movement occurred amid the weakening of the Regional Asia’s indices despite the rise on the US indices. The market seems to be waiting for the opening of shopping centers today as some cities are entering a new normal condition. Although Covid-19 cases are still rising with an additional of 857 cases yesterday, making the total cases reached 38,277 in Indonesia. Meanwhile, the Rupiah exchange rate against the USD was weakening at IDR14,133. We estimate JCI will move in the range of 4,700-4,975 while waiting for Retail Sales as of Apr-2020 and Balance of Trade as of May-2020. Today's recommendation: HMSP, SMRA, ACES, AKRA.
Corporate Action
Cum Dividend Date: WSKT
Ex Dividend Date: PTPP
Recording Date: PPRO
Disclaimer On
HMSP,
SMRA,
ACES,
AKRA,
ANTM,
DILD,
KLBF
