17 Mei 2021
MNCS Morning Navigator 17 May 2021
Global Market Highlight
DJIA rose by +1.06% on Friday (15/05) followed by S&P 500 (+1.49%) and Nasdaq (+2.32%). Wall Street closed higher as signs of a rebounding economy squared off against increasing inflation. Furthermore, 87% of 457 constituents in S&P 500 have beaten consensus estimates on earnings result, growing 50.6% YoY in aggregate. Moreover, the market will look forward to several data releases today, such as: 1) US NY Empire State Manufacturing Index; 2) China Retail Sales; 3) China Unemployment Rate.
Domestic Update
• Retail sales tumbled by -14.6% YoY in March 2021, after plunging by -18.1% a month earlier. On a monthly basis, retail sales jumped by +6.1% MoM in March, the first monthly increase in three months, recovering sharply from a -2.7% MoM drop in February.
• Car sales soared by +902.9 YoY in April of 2021, to 78,908 unit. On a monthly basis, car sales were -7.1% MoM from March, when the government introduced tax benefits for the acquisition of new vehicles.
• Furthermore, there was an addition of 161 new Covid-19 cases in Jakarta yesterday.
Company News
1. ITMG IJ posted revenue of USD284.24 million in 1Q21, down -22.31% YoY (vs USD365.90 million in 1Q20). However, cost of revenue also decreased to USD199.35 million in 1Q21. ITMG posted a net profit of USD42.08 million in 1Q21 which increased by 173.18% YoY (vs USD15.40 million in 1Q20) (Bisnis.com). MNCS Comment: ITMG's revenue decrease was due to a -29.30% YoY drop on coal sales to 4.1 million ton in 1Q21. However, due to cost efficiency, ITMG managed to boost the bottom line. ITMG is trading at 5.93/1.12x PE/PBV.
2. LPKR IJ targets an increase in marketing sales in FY21E to IDR3.5 trillion or a 31% YoY growth expected from sales of new landed houses. In FY20, marketing sales, LPKR managed to grow 45% YoY to IDR2.67 trillion with a performance of 7% above the FY20 target (Kontan). MNCS Comment: This strategy is expected to be able to increase LPKR's marketing sales, considering that the demand for landed houses is still quite high at this time. LPKR is currently trading at 0.72x PBV.
3. DMAS IJ will distribute an FY20 cash dividend of IDR6.5/share after previously distributing an interim dividend of IDR25/ share on Dec-2020. Thus, the total dividend distributed to shareholders from the financial year FY20 was IDR31.5/share or reached IDR1.52 trillion of the total FY20 net profit of IDR 1.35 trillion (Kontan). MNCS Comment: DMAS dividend distribution ratio of 112.50% of FY20 net profit or decreased compared to FY19 which reached 150% while the dividend yield offered was 14.06% or decreased compared to the FY19 yield of 24.27%. Currently DMAS is trading at 9.97x/1.86x PE/PBV.
IHSG Updates
JCI fell by -0.63% to 5,938.35 on Tuesday (11/05) followed by net foreign sell reaching IDR60.33 billion. JCI declined as it seems like investors were profit taking on the last trading day of the week along with the upcoming Eid Al-Fitr and a long holiday. Energy sector still managed to strengthen while the remaining sectors fell. Meanwhile, the Rupiah exchange rate was flat at IDR14,198. We estimate JCI will move in the range of 5,883-6,030 while waiting for Balance of Trade data release. Today's recommendation: LSIP, BMRI, DOID, TBIG.
Corporate Action
Cum Dividend Date: TOTL (IDR10/share)
Stock Split: SRTG (1:5)
Disclaimer On
LSIP,
BMRI,
DOID,
TBIG,
ITMG,
LPKR,
DMAS
