Global Market Highlight
DJIA weakened by -0.21% on Friday (03/09) followed by S&P 500 (-0.03%), while Nasdaq rose by +0.21%. The Wall Street closing was mixed after Joe Biden said the US economy would remain strong despite disillusioned employment data. Previously, the US Department of Labor recorded US nonfarm payrolls increased by 235,000 last month after an upwardly revised 1.05 million in July. Today the market will be looking forward to several data releases such as: 1) Germany Construction PMI; 2) UK Construction PMI; 3) Eurozone Construction PMI.
Domestic Update
• As of September 5, 2021, the domestic coal production has reached 401.24 million ton or equivalent to 64.24% from the target of 625 million ton this year according to the Ministry of Energy & Mineral Resources (MEMR). MNCS Comment: The domestic coal production remained lagging behind and facing the challenge to meet the target. Despite the low realization, domestic coal price has soared to the highest level in a decade to USD130.99/ton. Surging global prices due to economic recovery, supply chain disruption and flowing funds to commodity assets to hedge against higher inflation are the key drivers. We expect that that domestic producer with a larger export portfolio would benefit from the increasing ASP combined with a cost efficient strategy.
• Furthermore, there was an addition of 303 new Covid-19 cases in Jakarta yesterday.
Company News
1. TBIG IJ recorded IDR2.97 trillion revenue in 1H21 rose by +15.29% YoY (vs IDR2.58 trillion in 1H20). COGS increased from IDR482.96 billion in 1H20 to IDR729.09 billion in 1H21. TBIG recorded IDR663.27 billion net profit in 1H21 or up +29.93% YoY (vs IDR510.48 billion in 1H20) Bisnis Indonesia). MNCS Comment: Solid performance benefited from acquisition of IBST towers which started to book in 2Q21. We believe TBIG can post solid organic growth in line with management's target of ~3,000 new tenants in FY21E. We note that the revenue and EBITDA will be stronger. Currently TBIG trading at 52.44x/7.29x PE/PBV.
2. ADHI IJ recorded IDR4.44 trillion revenue in 1H21 weakened by -19.71% YoY (vs IDR5.53 trillion in 1H20). COGS decreased from IDR4.73 trillion in 1H20 to IDR3.77 trillion in 1H21. ADHI recorded IDR8.28 billion net profit in 1H21 rose by +18.99% YoY (vs IDR6.90 billion in 1H20) (Bisnis Indonesia). MNCS Comment: The lack of new contracts and the delay in terms of payment have an impact on ADHI's performance in 1H21. Currently ADHI is trading at 159.10x/0.47x PE/PBV levels.
3. PPRE IJ recorded IDR1.22 trillion revenue in 1H21 grew by +19.58% YoY (vs IDR997.11 billion in 1H20). COGS increased from IDR789 billion in 1H20 to IDR1.02 trillion in 1H21. PPRE recorded IDR35.91 billion net profit in 1H21 (vs IDR18.85 billion in 1H20) (Emitennews). MNCS Comment: Some payments from national strategic projects (PSN) affected positively to PPRE's revenue. In addition, PPRE maintains several costs, and drives to increase their net profit 1H21. Currently PPRE is trading at 25.91x/0.85x PE/PBV levels.
IHSG Updates
JCI rose by +0.80% to 6,126.92 on Friday (03/09) followed by net foreign buy reaching IDR208.90 billion. JCI closed higher in almost all sectors, led by the industrial sector (+2.11%), followed by the energy sector (+1.91%). On the other hand, the transportation sector slipped by -0.62%, followed by the tech sector (-0.59%). JCI strengthened due to positive sentiment regarding economic recovery data release such as the US national unemployment rate at the lowest point in the last week of August-21 since the Covid-19 pandemic began on March-20 to 5.2% or declined by -3.3% YoY (vs. 8.5% in August-20). However, the market eyes on the new Covid mutation which is a weighting factor for the index. On the other hand, the Rupiah strengthened at IDR14,263/USD level in the spot market. We estimate the JCI will move in the range of 6,100-6,150 while waiting for foreign exchange reserve data release. Today's recommendation: AGRO, ASII, PTPP, UNTR.
Corporate Action
Cum Dividend Date: INDF (IDR278/share), ICBP (IDR215/share), BIRD (IDR36/share)
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