Global Market Highlights
DJIA rose +0.40% on Friday (01/04), followed by the S&P 500 (+0.34%) and Nasdaq (+0.29%). Wall Street appreciated after the release of Mar-22 unemployment data which decreased to 3.6% (vs. 3.8% in Feb-22). This encourages a strong economic outlook amid the Fed's aggressive interest rate hike plans. Moreover, Mar-22 average hourly earnings also rose +0.4% MoM/+5.6% YoY. Today, the market will be looking toward several data releases such as: 1) US Factory Orders MoM; 2) Germany Balance of Trade; 3) Germany New Car Registrations YoY.
Domestic Update
• Indonesia's inflation recorded an increase of +0.66% MoM/+2.64% YoY on Mar-22 and became the highest inflation since May-20. MNCS Comment: This development was mainly influenced by inflation of red chili, cooking oil, and broiler eggs, along with constraints in several main production centers, the lift off policy of the Highest Retail Price (HET) for simple and premium cooking oil packaging, as well as the increase in feed production costs.
• Furthermore, the second dose of vaccination rate nationally has reached 76.8% or equivalent to 159.96 million people.
Company News
1. MLPL IJ recorded net sales of IDR10.31 trillion, up +0.38% YoY in FY21 (vs IDR10.27 trillion in FY20). Meanwhile, net profit was recorded at IDR201.25 billion in FY21 (vs net loss of IDR 793.09 billion in FY20) (Bisnis Indonesia). MNCS Comment: The improvement in company's performance was supported by the increase from the technology and digital business through PT Multipolar Technology Tbk. (MLPT) revenue by +11.6% YoY to almost IDR3 trillion in FY21. MLPT is trading at the level of 16.88x/0.88x PER/PBV.
2. ISSP IJ recorded IDR5.38 trillion of revenue in FY21, up +42.3% YoY (vs IDR3.78 trillion in FY20). Meanwhile, net profit was recorded at IDR486.06 billion in FY21, up +176.4% YoY (vs IDR175.84 billion in FY20) (Emiten News). MNCS Comment: The improvement in company's performance was supported by an increase in mechanical pipe products increased to 15.2% YoY in FY21, and black pipe increased by 20.6% YoY in FY21. In addition, the company also reduced its financial cost by -15.11% YoY to IDR174.58 billion in FY21. ISSP is trading at the level of 5.74x/0.74x PER/PBV.
3. RALS IJ recorded a +2.56% YoY increase in revenue to IDR2.59 trillion in FY21 (vs IDR2.52 trillion in FY20). Meanwhile net profit was recorded at IDR170.57 billion in FY21 (vs net loss of IDR138.87 billion in FY20) (Bisnis Indonesia). MNCS Comment: We see that the increase in company's performance was supported by the company's success in reducing cost of goods sold by 4.67% YoY to IDR1.38 trillion in FY21 (vs IDR1.45 trillion in FY20). The company has the potential to increase its sales this year along with the economic recovery that can increase people's purchasing power. RALS is trading at the level of 30.99x/1.47x PER/PBV.
IHSG Updates
JCI rose +0.10% to 7,078.76 on Friday (01/04), followed by net foreign buy which reached IDR1.28 trillion. The strengthening of the index was supported by a number of sectors, namely the industrial sector (+1.19%) followed by the raw materials sector (+0.87%). On the other hand, the weaker sector was led by the technology sector (-2.01%) followed by the financial sector (-0.65%). The strengthening of the index was also in line with the relatively high foreign inflow, while the positive catalyst came from the Mar-22 inflation rate which was still maintained at +0.66% MoM/+2.64 %YoY. This shows a strong economic prospect, especially ahead of the Ramadan momentum. On the other hand, the Rupiah exchange rate closed lower at IDR14,369/USD. We estimate that the JCI will move in the price range of 7,030-7,100. Today’s recommendation: GZCO, INCO, TINS, INDY.
Corporate Action
Cum Dividend: BDMN (IDR56.33/share), BNII (IDR6.47/share)
Cum Rights: TRIN (IDR750/share)
Disclaimer On
