Global Market Highlights
DJIA rose by +0,29% on Wednesday (03/11), followed by S&P 500 (+0.65%) and Nasdaq (+1.04%). Wall Street ended higher as The Fed approved plans to begin scaling back its bond-buying stimulus program this November and cut it off by June-22, trimming monthly USD120 billion purchases of treasuries and mortgage-backed securities to USD15 billion. Meanwhile, US released its ISM Non-Manufacturing PMI Final data which rose to 66.7 in October-21 from the previous at 61.9 level on September-21. On the other hand, the Eurozone Unemployment Rate slightly improved at 7.4% in September-21 (vs 7.5% on August-21) or equals to the lowest rate since April-20. Today the market will be looking forward to several data releases such as: 1) US Fed Interest Rate Decision; 2) UK BoE Interest Rate Decision; 3) Canada Balance of Trade.
Domestic Update
• Corporate bond issuance was recorded at IDR83.3 trillion in 10M21. The total issuance was +17.3% YoY higher than the same period last year. MNCS Comment: In our view, higher corporate bond issuance was driven by several factors including : 1) favorable market conditions; 2) lower interest rates and yields; 3) robust investor demand amid ample liquidity.
• Furthermore, the second dose of vaccination rate nationally reached 36.1% or equivalent to 75.21 million people.
Company News
1. AGII IJ recorded IDR2.07 trillion revenue in 9M21 grew by +31.60% YoY (vs IDR1.58 trillion in 9M20). COGS increased from IDR903.14 billion in 9M20 to IDR1.12 trillion in 9M21. AGII recorded IDR172.52 billion net profit in 9M21, rose by +484% YoY (vs net profit of IDR29.52 billion in 9M20) (CNBC Indonesia). MNCS Comment: AGII’s performance growth was driven by higher sales of gas products, especially medical oxygen of IDR1.90 trillion in 9M21 or an increase of +33.68% YoY. Currently, AGII is trading at level 23.11x/1.28x PER/PBV.
2. PRDA IJ recorded IDR1.99 trillion revenue in 9M21 or an increase of +65.80% YoY (vs IDR1.20 trillion in 9M20). COGS increased from IDR547.54 billion in 9M20 to IDR757.75 billion in 9M21. PRDA recorded IDR511.09 billion net profit in 9M21, rose by +318% YoY (vs IDR122.28 billion in 9M20) (Market Bisnis). MNCS Comment: PRDA’s top-line and bottom-line growth were boosted by pent up demand for health checks. Laboratory revenue worth IDR1.85 trillion in 9M21 was a main contributor of PRDA’s revenue. The numbers increased by+67.30% YoY. PRDA is trading at the level of 9.84x/3.13x PER/PBV.
3. ITMG IJ will distribute an interim dividend of IDR1,218/share or IDR1.33 trillion for the 2021 book year period. The cum dividend date will be held on November 10, 2021 (Kontan). MNCS Comment: The payout ratio stood at 80% from the 1H21 profit of USD117.6 million. Dividend yield reached 5.46%. ITMG is trading at the level of 7.39x/1.90x PER/PBV.
IHSG Updates
JCI rose by +0.91% to 6,552.13 on Wednesday (3/11) followed by net foreign buy reaching IDR158.98 billion. JCI closed higher in almost all sectors, led by the technology sector (+1.47%), followed by the property sector (+1.33%). On the other hand, the industrial sector weakened by -0.25%, followed by the non-cyclical consumer sector (-0.19%). The strengthening of the JCI was driven by investor optimism regarding the FED clearer guidance about this year's tapering which is not expected to have a negative impact like the 2013 tapering tantrum. On the other hand, the Rupiah weakened at IDR14,298 level in the spot market. We estimate the JCI will move in the range of 6,450-6,600. Today's recommendations: PTPP, APLN, BBRI, AGII.
Corporate Action
Cum dividend date: KKGI (Rp20/share)
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