Global Market Highlights
DJIA weakened -0.58% on Monday (21/03), followed by S&P 500 (-0.04%) and Nasdaq (-0.40%). Wall Street's performance was weighed down by the increase in the yield of US T-note 10Y to reach the level of 2.31% triggered by the Fed's hawkish comments saying that they are preparing to aggressively raise benchmark interest rates sooner than the market anticipated. Rising crude oil prices (Crude Oil) reaching the level of USD112.76/Bbl also raised investor concerns for the potential high inflation rates. Today, the market will be looking toward several data releases such as: 1) UK Public Sector Net Borrowing; 2) Japan Coincident Index Final; 3) Japan Leading Economic Index Final.
Domestic Update
• Government successfully issued IDR18.41 trillion of SR016 attracting 44,579 investors across generations in Indonesia. MNCS Comment: The booming of retail investors along with the improving financial and investment literacy could be a positive catalyst for deepening the domestic financial market as well as becoming a source of financing for the government.
• Furthermore, the second dose of vaccination rate nationally has reached 74.1% or equivalent to 154.37 million people.
Company News
1. TBIG IJ recorded IDR6.18 trillion of revenue, or up +15.99% YoY in FY21 (vs IDR5.33 trillion in FY20). Meanwhile, net profit increased +50.14% YoY to IDR1.6 trillion (vs IDR1.06 trillion in FY20) (Kontan). MNCS Comment: We see that this achievement is supported by strong organic growth and tower portfolio acquisitions, where in FY21 gross rentals increased by 7,633, consisting of 4,348 telecommunication sites and 3,285 collocations. JSMR is trading at the level of 42.56x/7.11x PER/PBV.
2. JSMR IJ recorded a +10.9% YoY increase in revenue to IDR15.16 trillion in FY21 (vs IDR13.7 trillion in FY20). This increase was supported by toll revenues of IDR10.76 trillion, up +23.05% YoY in FY21. Meanwhile, net profit rose +222.35% YoY to IDR1.61 trillion (Kontan). MNCS Comment: We see that the company have the potential to maintain its positive performance along with increased community activity and expansion strategy in FY22E, where the company has added 13 km of new toll road operations this year, bringing the company's total operating toll roads to 1,259 km and total toll road concessions 1,809 km. JSMR is trading at the level of 16.22x/1.27x PER/PBV.
3. ADCP IJ recorded a +46% YoY increase in marketing sales to IDR884 billion in FY21 (vs IDR606 billion in FY20). Meanwhile, net profit decreased by -2.17% YoY to IDR130.36 billion in FY21 (vs IDR133.25 billion in FY20) (Kontan). MNCS Comment: We see that through some LRT projects that will start operating this year, along with the economic recovery, the company has the potential to record a better performance in FY22E. ADCP is trading at the level of 15.50x PER.
IHSG Updates
JCI flat +0.00% to 6,955.18 on Monday (21/03), followed by net foreign sell which reached IDR566.60 billion. The majority of sectors experienced strengthening, led by the transportation sector (+2.02%) followed by the technology sector (+1.71%). On the other hand, the weaker sector was led by the financial sector (-0.69%) followed by the non-cyclical sector (-0.29%). Investors are waiting for the results of the negotiations conducted by Russia-Ukraine, if these negotiations fail, the escalation of the war will have the potential to heat up again and become a negative sentiment for the financial market. 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 6,926-7,000. Today’s recommendation: ERAA, MLIA, MYOR, DOID.
Corporate Action
RUPS: LIFE, PALM, SILO
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