Global Market Highlight

DJIA slipped by -0.18% on Monday (26/04) followed by the rise of S&P 500 (+0.22%) and Nasdaq (+0.87%). Wall Street closing was mixed as it was still influenced by several sentiments: 1) The release of 1Q21 earnings which were above expectations thus driving market movements; 2) The wave of Covid-19 cases which is still increasing, raises new concerns; 3) Waiting for the FED's decision on the expected interest rate policy that is still dovish. Moreover, the market will look forward to several data releases today, such as: 1) US CB Consumer Confidence; 2) US House Price Index; 3) Japan BoJ Interest Rate Decision.

Domestic Update

• BKPM recorded the realization of investment that entered Indonesia amounting to IDR219.7 trillion (+2.3% QoQ/+4.3% YoY) in 1Q21. The amount is around 25.66% of this year's investment target of IDR856 trillion. The realization of investment consisted of Domestic Investment (PMDN) amounting to IDR108 trillion (-4.2% YoY/+4.2% QoQ) and Foreign Investment (PMA) amounting to IDR111.7 trillion (+14% YoY/+0.6% QoQ).

• Furthermore, there was an addition of 749 new Covid-19 cases in Jakarta yesterday.

Company News

1. BBNI IJ recorded lending in 1Q21 to grow +2.2% YoY to IDR559.33 trillion, while TPF grew +8.1% YoY to reach IDDR639 trillion, followed by NIM growth that improved from 4.5% in 4Q20 to 4.9 % in 1Q21. Meanwhile, BBNI posted a net profit of IDR2.39 trillion in 1Q21, or down -43.76% YoY (vs IDR4.25 trillion in 1Q20) (CNBC Indonesia). MNCS Comment: BBNI 1Q21 performance is relatively in line with consensus estimates and MNCS with earnings implying 26% / 27% of the FY21E target. In FY21E, loan is targeted to grow by 6% -9% with NIM at the level of 4.6% -4.8%. Currently BBNI is trading at 32.55x/0.97x PE/PBV.

2. SIDO IJ recorded net sales of IDR793 billion in 1Q21 or grew +9% YoY. The food and beverage segment contributed IDR257.45 billion or an increase of +30.22% YoY (vs IDR197.70 billion in 1Q20). Then followed by supplements which edged up +1.11% YoY to IDR505.76 billion. SIDO posted a net profit of IDR269 billion in 1Q21 which increased by 16% YoY (Kontan). MNCS Comment: We estimate that SIDO's performance will remain solid in FY21E supported by the high demand for herbal products with the brand of Tolak Angin still dominating 72% market share. In addition, SIDO has a strong balance sheet with zero debt with attractive dividends (DPR 100%). SIDO is currently trading at 22.30x/8.19x PE/PBV.

3. INTP IJ records sales of 1.4 million tons in Mar-2021. This figure is 200,000 tons higher than the achievement in Feb-2021. The increase in sales in March was due to the high rainfall in the previous month. As of 1Q21, INTP's total sales volume reached 4 million tons or an increase of 2.5% YoY (vs 3.9 million tons in Q1FY20) (Kontan). MNCS Comment:  We estimate that the increase in sales at INTP is also supported by an increase in people's purchasing power, we also estimate that sales in 2021 will be better than the previous year. INTP  is trading at 25.83/2.10x PE/PBV.

IHSG Updates

JCI fell by -0.87% to 5,964.82 on Monday (26/04) followed by net foreign sell reaching IDR226.57 billion. JCI slipped as finance, agri, infrastructure and basic industry sectors weighed JCI down despite the strengthening of the mining and property sector. Meanwhile, the Rupiah exchange rate was strengthening at Rp14,485. We estimate JCI will move in the range of 5,930-6,030 while waiting for the PMI Markit Manufacturing data release. Today's recommendation: AKRA, CPIN, UNTR, BFIN.

Corporate Action

RUPS: BNLI

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