MNCS Morning Navigator 22 October 2020

Global Market Highlight

DJIA dropped by -0.35% on Wednesday (21/10) followed by S&P 500 (-0.22%) and Nasdaq (-0.22%). Market players' concerns over the stimulus agreement which they feel will not be achieved before the November 3 general election have contributed to the global stock exchange rate. The Democratic Party's USD2.2 trillion stimulus proposal was refused by the Republican Senate. The discussion between the Speaker of the House of Representatives, Nancy Pelosi and the Minister of Finance, Steven Munchin, also failed to produce a clear point. Moreover, the market will look forward to several data releases today, such as: 1) US Initial Jobless Claims; 2) German Consumer Confidence; 3) HK Inflation Rate.

Domestic Updates

The Directorate General of Customs and Excise stated that the realization of excise revenue grew by 7.24 YoY to IDR115.32 trillion in 9M20. This achievement is equivalent to 66.97% of FY20E target of IDR172.2 trillion. As for excise on tobacco was IDR111.46 trillion which grew by 8.53% YoY and equivalent to 67.57% of the outlook for cigarette excise revenue of IDR 64.94 trillion. Meanwhile, the realization of ethyl alcohol (EA) excise revenue was IDR210 billion (+123% YoY). Then, the realization of excise on drinks containing ethyl alcohol was IDR3.61 trillion (-23.02% YoY) followed by administration fines of IDR10 billion (-28.91% YoY).

Company News

1.        ANTM IJ recorded a 147% YoY growth on gold sales to 223,994 oz in the 3Q20. So the total gold sales as of 9M20. While gold production from Pongkor and Cibaliung mine reached 13,825 oz which also grew by 6% QoQ in 3Q20 making the total gold produced reached 41,153 oz (Kontan). MNCS Comment: ANTM seems to be able to manage during the pandemic as their sales and production rise. ANTM's net margin also has paired with the pre pandemic level. ANTM is also benefitted from the nickel absorption from the battery holding. ANTM is currently traded at 155.82x/1.46x PE/PBV.
2.       SIDO IJ maintained to post a stellar performance by a 6.1% YoY growth on revenue to IDR2.26 trillion in 9M20. The food and beverage segment recorded the most significant increase of up to 18.78% YoY to IDR722.19 billion. Meanwhile, sales of herbal medicine and supplements edged grew by 0.7% YoY followed by the increase of pharmaceutical segment by 0.56% YoY. Thus, net profit recorded at IDR640.81 billion which increased by 10.78% YoY in 9M20 (Kontan). MNCS Comment: We expect SIDO will be managed to maintain its product mix strategy as well as lowering opex; targeting a double digit growth for net profit in FY20F and exports will be maintained at 2% of total sales.SIDO is currently traded at 27.56x/7.13x PE/PBV.
3.       MIKA IJposted a decrease in revenue of 2.52% YoY or IDR2.32 trillion in 3Q20. The decrease was due to the declining contribution of outpatient care of IDR814.2 trillion (-10.19% YoY). On the other hand, the contribution of inpatient income was still able to grow and was still able to grew by 1.35% YoY to IDR1.5 trillion. This decrease weigh on the total net profit to IDR525.44 billion which decreased by 1.19% YoY in 3Q20 (Kontan). MNCS Comment: The decline was due to the fact that public was still holding back from consulting the hospital. This is because hospitals are still objects of public places that still have a high risk of exposure to Covid-19. MIKA is currently traded at 54.29x/8.46x PE/PBV.

IHSG Updates

JCI decreased by -0.07% to 5,096.44 on Wednesday (21/10) followed by net foreign sell reaching IDR118.90 billion. JCI was flat though six out of nine sectors increased led by miscellaneous and mining industry while the largest decreased were by finance and property sector. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,632.We estimate JCI will move in the range of 5,067 – 5,135. Today's recommendation: UNTR, SMGR, ITMG, JPFA.

Corporate Action

RUPS: GREN, BNTT

Disclaimer On

UNTR, SMGR, ITMG, JPFA, MIKA, SIDO, ANTM