Global Market Highlights
DJIA slightly fell by -0.09% on Thursday (04/11), meanwhile the S&P 500 rose by +0.42% followed by Nasdaq (+0.81%). Wall Street closing was mixed due to the market awaiting for the Labor Department's October jobs report release, which indicated another update on the US economic recovery. Both The Fed and The Bank of England has decided to maintain their interest rates at 0.25% and 0.1% consecutively. Today the market will be looking forward to several data releases such as: 1) US Non Farm Payrolls; 2) US Unemployment Rate; 3) Eurozone Retail Sales YoY.
Domestic Update
• Today BPS will release Indonesia's GDP data for 3Q21. MNCS Comment: We expect Indonesia GDP to expand by +1.63% QoQ/+3.59% YoY in 3Q21. Lower growth was driven by the implementation of tighter mobility restrictions amid the second wave of Covid-19 outbreak in Jul-Aug 2021.
• Government of Indonesia decided to cancel all the scheduled government securities issuance in the rest of 2021. The cancellation of auction was due to the target of budget financing from securities issuance in 2021 has been met. MNCS Comment: We expect with the cancelation of auction in the end of 2021 would minimize supply risk. Therefore a short term rise in government price is likely. However the impact should be temporary and looking ahead, Indo GB yield is expected to rise.
• Furthermore, the second dose of vaccination rate nationally reached 36.6% or equivalent to 76.19 million people.
Company News
1. ACES IJ recorded IDR4.69 trillion revenue in 9M21 weakened by -14.35% YoY (vs IDR5.48 trillion in 9M20). COGS decreased from IDR2.77 trillion in 9M20 to IDR2.39 trillion in 9M21. ACES recorded IDR322.85 billion net profit in 9M21, fell by -39.04% YoY (vs IDR529.59 billion in 9M20) (Kontan). MNCS Comment: ACES’s top line and bottom line decrease driven by a decline in sales, especially in lifestyle products fell by -16.10% YoY to IDR1.98 trillion in 9M21 (vs IDR2.35 trillion in 9M20). On the other hand, ACES successfully booked efficiency by decreasing the COGS (-14.08% YoY) and operating expenses (-7.31% YoY). Currently, ACES is trading at level 57.57x/4.98x PER/PBV.
2. LPPF IJ will distribute IDR100/share interim dividend or equivalent to IDR257.25 billion for the 2021 book year period. The cum dividend date will be held on November 10, 2021 (CNBC Indonesia). MNCS Comment: The payout ratio stood at 48.31% from the 1H21 profit of IDR532.48 billion. Dividend yield reached 2.89%. LPPF is trading at the level of 15.53x/8.58x PER/PBV.
3. ISSP IJ recorded IDR3.81 trillion revenue in 9M21 or an increase of +40.42% YoY (vs IDR2.72 trillion in 9M20). COGS rose from IDR2.34 trillion in 9M20 to IDR2.99 trillion in 9M21. ISSP recorded IDR445.54 billion net profit in 9M21, rose by +801.21% YoY (vs IDR49.44 billion in 9M20) (Kontan). MNCS Comment: The significant growth in top-line and bottom-line was boosted by an increase in sales. Domestic sales reached IDR3.47 trillion in 9M21 with the water pipe sales as the main revenue driver worth IDR621.49 billion. On the other hand, ISSP managed to reduce the financial expenses by -18.69% YoY and other expenses of -44.63% YoY. ISSP is trading at the level of 4.84x/0.76x PER/PBV.
IHSG Updates
JCI strengthened by +0.52% to 6,586.44 on Thursday (04/11) followed by net foreign buy reaching IDR315.84 billion. JCI closed higher in almost all sectors, led by the transportation sector (+2.99%), followed by the energy sector (+2.16%). On the other hand, the health sector weakened by -0.19%. The strengthening of the JCI was driven by the increase in the majority of global indices, where the market participants had been more anticipating the tapering policy. And made the market not too reactive along with the implementation of the tapering. On the other hand, the Rupiah weakened at IDR14,338 level in the spot market. We estimate the JCI will move in the range of 6,550-6,627 while waiting for the release data of Indonesia GDP QoQ. Today's recommendations: CENT, BBTN, BRPT, ACES.
Disclaimer On
