Global Market Highlights
DJIA rose +1.23% on Thursday (17/03), followed by the S&P 500 (+1.23%) and Nasdaq (+1.33%). Wall Street strengthened supported by a number of positive data releases including initial jobless claims as of 12 Mar-22 which fell to 214 thousand (vs 229 thousand previously) indicating a strong labor market. Feb-22 housing starts data grew +6.8% MoM to 1.77 million. The rise in crude oil prices of more than +8% also boosted energy stocks. Today, the market will be looking toward several data releases such as: 1) US CB Leading Index MoM; 2) Japan Inflation Rate YoY; 3) Japan BoJ Interest Rate Decision.
Domestic Update
• The gradual increase in Rupiah reserve requirement starting from March 1, 2022 has sapped out IDR55 trillion banking liquidity according to BI. MNCS Comment: We estimate that by the end of 2022, the increase in Rupiah reserve requirement will reduce banking liquidity by around IDR185-200 trillion. However, given LDR is hovering around 80%, we think banking capacity to lend will not be affected significantly as liquidity remains ample.
• Furthermore, the second dose of vaccination rate nationally has reached 73.3% or equivalent to 152.73 million people.
Company News
1. BBCA IJ plans to distribute dividends of IDR17.83 trillion, or equal to 56.9% of FY21 net profit with value of IDR145/share. The company's net profit was recorded at IDR31.4 trillion in FY21 (CNBC Indonesia). MNCS Comment: The company provided a higher dividend yield than the previous year, where in FY21 the yield was 1.81% (vs 1.66% in FY20). BBCA is trading at the level of 31.39x/4.87x PER/PBV.
2. ADHI IJ recorded a revenue increase of +6.45% YoY to IDR11.53 trillion in FY21 (vs IDR10.83 trillion in FY20). Net profit was recorded at IDR55.18 billion in FY21, up +130% YoY (vs IDR23.97 billion in FY20) (CNBC Indonesia). MNCS Comment: We see that the company's positive performance was along with the increase of venture profit by +130.76% YoY to IDR156.79 billion. In addition, the company also managed to reduce its selling expenses by -55.42% YoY. ADHI is trading at the level of 50.98x/0.50xPER/PBV.
3. PWON IJ prepares a capex of IDR2.9 trillion, up +378.54% YoY (vs IDR606 billion in FY20). Most of the capex will be allocated for the construction cost of Pakuwon Mall Bekasi, Pakuwon City Mall extension, and renovation of malls in Yogyakarta and Solo (Kontan). MNCS Comment: We see that the company can be more expansive along with a higher capex allocated this year. The company is optimistic that it can increase its marketing sales by setting a higher target by +28.57% YoY to IDR1.8 trillion in FY22E. PWON is trading at the level of 5.26x/1.58x PER/PBV.
IHSG Updates
JCI weakened -0.40% to 6,964.38 on Thursday (17/03), followed by net foreign buys which reached Rp854.70 billion. A number of sectors weighed on the JCI with a weakening led by the financial sector (-0.61%) followed by the infrastructure sector (-0.30%). On the other hand, the sector that experienced strengthening was led by the technology sector (+1.49%) followed by the transportation sector (+1.27%). JCI underperformed in the midst of other strengthening Asian markets, market participants took profit taking after the JCI had penetrated the level of 7,032 (all time high). On the other hand, Bank Indonesia maintained its benchmark interest rate at 3.5% amidst a number of world central banks, including the Fed, which began to raise their benchmark interest rate. We see that this decision was predicted by market players to be supported by Indonesia's inflation rate which was maintained at the level of 2.06% YoY in Feb-22. On the other hand, the Rupiah exchange rate closed lower at IDR14,388/USD. We estimate that the JCI will move in the price range of 6,900-7,040. Today’s recommendation: GZCO, EXCL, BTPS, BJBR.
Corporate Action
Cum dividen date: BMRI (IDR360.64/share)
RUPS: PLIN, PMJS
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