Global Market Highlights
DJIA rose slightly by +0.43% on Wednesday (20/10) followed by S&P 500 (+0.37%)%, meanwhile Nasdaq fell slightly by -0.05%. Wall Street closed mixed as concerns about the supply chain problems and higher costs are relieved due to US companies giving great 3Q21 earning reports and maintaining their profit margins. On the other hand, the UK Government released its Core Inflation Rate YoY data which fell to 2.9% in September-21 from previously at 3.1% level last year. Meanwhile, Europe’s Core Inflation Rate YoY rose to 1.9% in September-21 from last year at 1.6% level as a consequence of continuing supply chain problems and higher input costs. Today the market will be looking forward to several data releases such as: 1) US Continuing and Initial Jobless Claims; 2)US CB Leading Index MoM; 3) Canada New Housing Price Index YoY.
Domestic Update
• Bank Indonesia (BI) decided to continue accommodative macroprudential policy by extending 0% Down Payment (DP) for vehicle ownership credit and maximum 100% Loan to Value/Financing to Value all mortgage loans for selected banks that meet NPL/NPF criteria up until the end of 2022. MNCS Comment: We expect property and automotive sales to reach pre-pandemic level next year assuming national vaccination target has been met without a third wave outbreak and Indonesia GDP to grow by 5% back to its average long term growth.
• Furthermore, there was an addition of 103 new Covid-19 cases in Jakarta yesterday.
Company News
1. BSDE IJ booked marketing sales worth IDR6.1 trillion in 9M21 or grew +29% (vs IDR4.7 trillion in 9M20). This value is equivalent to 87% of the marketing sales target of IDR7 trillion for FY21E. 69% BSDE's marketing sales contributed by the residential segment worth IDR4.2 trillion (CNBCIndonesia). MNCS Comment: We see an increase in sales driven by government stimulus by providing VAT relaxation. The extension of 0% down payment of mortgage for up to FY22E is projected to increase sales in the future. BSDE is currently trading at level 17.75x/0.79x PER/PBV.
2. KINO IJ will distribute an interim dividend of IDR12/share or IDR17.14 billion for the 2021 book year period. The cum dividend date is scheduled on October 28, 2021 (Iqplus). MNCS Comment: The payout ratio stood at 60.38% from the 1H21 profit of IDR37.71 billion. Dividend yield reached by 1.50%. KINO is trading at the level of 40.54x/1.21x PER/PBV.
3. SMRA IJ recorded IDR3.4 trillion marketing sales for up to 9M21. The value increased by +69.15% YoY (vs IDR2.01 trillion in 9M20). The largest contributor came from sales of land houses of IDR2.04 trillion or 60% of the total marketing sales up to 9M21 (Kontan). MNCS Comment: We see SMRA's marketing sales have the potential to increase and meet the FY21E target of IDR4 trillion, driven by the 100% DTP VAT stimulus from the government until the end of FY21E and the determination of low bank loan interest rates which is extended until the end of F22E. Currently, SMRA is trading at level 70.72x/2.21x PER/PBV.
IHSG Updates
JCI weakened by -0.04% to 6,656 on Tuesday (19/10) followed by net foreign buy reaching IDR514.23 billion. JCI closed mixed, the weaker sector was led by the technology sector (-1.57%), followed by the energy sector (-0.59%). On the other hand, the cyclical consumer sector strengthened +0.90%, followed by the transportation sector (+0.79%). The JCI weakening as investors choose to take profits after 5 days rally. Meanwhile, BI has decided to keep its benchmark interest rate at 3.5%. On the other hand, the Rupiah strengthened towards the level of IDR14,076 in the spot market. Today's recommendations: SAME, BRPT, ERAA, ADHI.
Corporate Action
RUPS: PMJS, CCSI, PYFA
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