17 Juni 2020
MNCS Morning Navigator 17 June 2020
Global Market Highlight
DJIA rose by +2.04% on Tuesday (16/06) followed by S&P 500 (+1.90%) and Nasdaq (+1.75%). Strengthening occurs following the global trend to welcome the plan of the US central bank namely the Federal Reserve (The Fed), which plans to purchase private bonds in the secondary market. Investors have the opportunity to sell their bonds at a premium price and get cash which will then be rotated and expanded to the global financial market. Furthermore, the release of US retail Sales which rose 17.7% sparks optimism as the number is higher than estimates of 8.5%. Moreover, the market will look forward to several data releases today, such as: 1) UK Inflation Rate; 2) Japan Balance of Trade; 3) Eurozone Inflation Rate.
Domestic Updates
Retail sales in Indonesia dropped by 16.9% YoY in April 2020, after a 4.5% decrease in March 2020. This was the fifth straight month of decline in retail trade, and the steepest fall since November 2008, amid restriction measures that led consumers to stay at home. There were seen lower purchases of clothing (-70.9%), information & communication equipment (-17.5%), cultural & recreational goods (-48.5%), fuel (-39.0%), and food, beverages & tobacco (-7.7%). On a monthly basis, retail sales plunged 13.3% MoM in April, after a 1.6% MoM gain in March.
Company News
- SILO IJ booked a revenue of IDR1.88 trillion in 1Q20, increased by 9.67% YoY from IDR1.71 trillion in 1Q19. This is followed by an increase on cost of revenue by 8.62% YoY to IDR1.24 trillion. Thus, net profit still rose significantly by 386.48% YoY to IDR16.19 billion in 1Q20. (Emiten News) MNCS comment: The revenue and net profit of hospital industry are surely increasing due to the high demand during the Covid-19 pandemic and the dengue fever. SILO is traded at 1.43x PBV.
- CTRA IJ believed that the opening malls on June 15, 2020 is expected to improve financial performance in 2H20. Management expects occupancy of 25% -50% from re-opening in this month. (Kontan) MNCS Comment: Re-opening mall will have a positive impact on CTRA's performance, amid the still considerable risks in the property sector. CTRA is traded at 12.41x PE, lower than peers.
- ASII IJ decided to distribute a dividend with 40% DPR worth IDR8.66 trillion or Rp214.4 per share for the 2019 fiscal year. The interim dividend has been distributed on October 2019 amounting to IDR57/share, while the remaining IDR157/share will be distributed on July 10, 2020 with yield at the level of 3.12%. (Market Bisnis) MNCS Comment: ASII has maintained 40% dividend payout ratio over the years. ASII is traded at 9.44x PE, slightly lower than peers.
IHSG Updates
JCI increased by +3.53% to 4,986.46 on Tuesday (16/06), followed by a net foreign sell reaching IDR602.29 billion. The movement is align with the strengthening on the Global and Regional Asia indices, while investors and the market expects the cut on BI Rate by 25 bps to 4.25% from the current 4.5%, despite the release on Retail Sales data in Indonesia which is the lowest in history. Meanwhile, the Rupiah exchange rate against the USD was strengthening at IDR14,090. We estimate JCI will move in the range of 4,920-5,040 while waiting for the Motorbike Sales and Interest Rate Decision. Today's recommendation: BBRI, CTRA, PGAS, JSMR.
Corporate Action
Cum Dividend Date: AUTO
Ex Dividend Date: RAJA
RUPS: PZZA
Disclaimer On
BBRI,
CTRA,
PGAS,
JSMR,
SILO,
CTRA,
ASII
