Global Market Highlight
DJIA slipped by -0.54% on Thursday (26/08) followed by S&P 500 (-0.58%), and Nasdaq (-0.64%). All three major indexes closed lower, with stocks in consumer discretionary, technology, financials and consumer staples among the biggest losers. On the other hand, Dallas Fed President Robert Kaplan said he still believes the Fed in September would announce a plan for tapering to start in October or shortly thereafter. Today the market will be looking forward to several data releases such as: 1) US Core PCE Price Index YoY; 2) US Michigan Consumer Sentiment Final; 3) China Industrial Profits (YTD) YoY.
Domestic Update
• According to OJK, Indonesia's banking sector recorded at credit growth of 0.5% YoY; Third Party Fund (TPF) increase of 10.4% YoY; NPL (gross) stood at 3.35%; Liquid Assets/TPF at 32.51% and CAR at 24.67% as of July-21. MNCS Comment: Overall Indonesia's banking condition remained solid from liquidity, asset quality and capital perspective although the intermediary function still needs to be enhanced to support the economy.
• Furthermore, there was an addition of 574 new Covid-19 cases in Jakarta yesterday.
Company News
1. PWON IJ recorded IDR2.46 trillion revenue in 1H21 rose by +24.87% YoY (vs IDR1.97 trillion in 1H20). COGS increased from IDR1.01 trillion in 1H20 to IDR1.29 trillion in 1H21. PWON recorded IDR464.64 billion net profit in 1H21 declined by -3.71% YoY (vs IDR482.55 billion in 1H20) (IQ Plus). MNCS Comment: The increase of PWON’s revenue was driven by the sale of condominiums and offices, however the increased cost of funds and the existence of a penalty of redemption bond affected PWON's net profit to not be optimal in 1H21. Currently PWON is trading at 22.80x/1.40x PE/PBV.
2. TOWR IJ recorded IDR3.97 trillion in 1H21 grew by +7.78% YoY (vs IDR3.69 trillion in 1H20). COGS decreased from IDR1.09 trillion in 1H20 to IDR1.08 trillion in 1H21. TOWR recorded IDR1.69 trillion net profit in 1H21 or an increase of +29.86% YoY (vs IDR1.30 trillion in 1H20) (Kontan). MNCS Comment: We see the increase in TOWR's net profit in 1H21 was driven by the success of efficiency in several segments such as a decrease in depreciation expense (-2.5% YoY), finance expense (-10.1% YoY) and marketing expense (-26.4% YoY). TOWR is currently trading at 19.62x/6.27x PE/PBV.
3. DSNG IJ recorded IDR3.30 trillion revenue in 1H21 spiked by +4.67% YoY (vs IDR3.15 trillion in 1H20). COGS increased from IDR2.42 trillion in 1H20 to IDR2.50 trillion in 1H21. DSNG recorded IDR207.5 billion net profit in 1H21 or an increase of +14.18% YoY (vs IDR181.74 billion in 1H20) (Bisnis Indonesia). MNCS Comment: DSNG performance is lower than our estimation reaching by 40% only. We see that they still booked a growing income. We believe this will be offset on the 4Q21E as we believe that production will increase along with the rainy season. Currently DSNG is trading at the level of 13.03x/0.87x PE/PBV.
IHSG Updates
JCI slipped by -0.90% to 6,058.08 on Thursday (26/08) followed by net foreign sell reaching IDR273.46 billion. JCI closed lower in almost all sectors, led by the finance sector (-1.27%) followed by instructor (-1.16%). On the other hand, the tech sector spiked by +0.19%, followed by the energy sector (+0.01%). Asian regional markets closing varied relatively to weaken, driven by the market concerns over the announcement of the tapering off policy from the Fed. It has triggered the market to take profit. On the other hand, the Rupiah weakened by -0.14% to IDR14,418 in the spot market. We estimate the JCI will move in the range of 6,020-6,110. Today's recommendation: DSNG, BACA, SRTG, SMRA.
Corporate Action
Cum Dividend Date: INCI (IDR25/share), FILM (IDR11/share), GJTL (IDR10/share)
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