Global Market Highlight
DJIA rose by +0.38% on Thursday (01/07) followed by S&P 500 (+0.52%), and Nasdaq (+0.13%).Wall Street closed higher as the market ponder on improving economic data and rising inflation while closely watching the central bank for clues regarding the timing, process and magnitude of policy normalization. The market will look forward to several data releases today, such as: 1) US Unemployment Rate; 2) US Non Farm Payrolls; 3) Canada Balance of Trade
Domestic Update
• The Government officially announced stricter emergency social restriction (PPKM Darurat) for Java & Bali that will start from 3-20 July 2021 in order to curb recently rising domestic Covid-19 outbreak. MNCS comment: Transportation & Tourism were negatively affected by pandemic related measures. In our view, this emergency brake will bring more pressure to these sectors as we already saw foreign tourist visitors dropped 77.6% YoY from Jan-May, airline passenger slumped 31.1% YoY and hotel occupancy rate 30% averagely during the same period and remained below normal 50%. From the macro perspective, lower mobility will again press downward on prices. Indonesia 3Q21 GDP could fall below 5% if cases continue to emerge. We expect the government will provide financial support both for businesses & consumers to cushion further slump on output. Besides that, the government needs to focus on pandemic related measures such as ramping up testing, tracing & vaccination rate to flatten the epidemic curve.
• Furthermore, there was an addition of 7,541 new Covid-19 cases in Jakarta yesterday.
Company News
1. CPIN IJ recorded net sales of IDR12.41 trillion in 1Q21, up +23.85% YoY (vs IDR10.02 trillion in 1Q20). COGS also increased from IDR7.99 trillion in 1Q20 to IDR9.80 trillion in 1Q21. CPIN posted a net profit of IDR1.45 trillion in 1Q21 which was up +61.59% YoY (vs IDR900.25 billion in 1Q20) (IQ Plus). MNCS Comment: We believe that CPIN's position as a market leader in the animal feed industry and DoC (Day old Chicken) drives CPIN's success in maintaining its economy of scale. The efficiency success also led to an increase in net-margin at the level of 11.73% (vs. 8.98% in 1Q20). Currently CPIN is trading at 17.75x/4.17x PE/PBV levels.
2. IMAS IJ will distribute FY20 cash dividends of around IDR4/share or reaching IDR15.98 billion of the total FY20 net profit of IDR545 billion. Cum dividend will be on July 6, 2021 (Kontan). MNCS Comment: IMAS dividend distribution ratio is 2.92% of FY20 net profit, while the offered dividend yield is 0.45%, this value was lower than FY19 yield of 0.81%. Currently IMAS is trading at 0.32x PBV levels.
3. TSPC IJ will distribute FY20 cash dividends of around IDR60/share or reaching IDR270 billion of the total FY20 net profit of IDR787 billion. Cum dividend will be on July 6, 2021 (Kontan). MNCS Comment: TSPC dividend distribution ratio is 34.27% of FY20 net profit, with the dividend yield offered is 3.99%, this value was increase compared to FY19 yield of 3.64%. Currently IPCM is trading at 5.90x/1.07x PE/PBV levels.
IHSG Updates
JCI rose by +0.34% to 6,005.96 on Thursday (01/07) while net foreign sell reaching IDR171.53 billion. JCI closing was higher along with most sectors, as the health sector climbed by +1.92%, followed by non-cyclical (+1.87%), and cyclical (+1.22%). On the other hand, infrastructure weakened -1.04% followed by basic-ind (-0,18%) and finance (-0,12%). Asian stock exchanges were weakened, weighted by the increase of Covid-19 outbreak and the implementation of regional quarantines (lockdowns) in several regions. While JCI still managed to rise. Meanwhile the Rupiah exchange rate was weakening at IDR14,502. We estimate the JCI will move in the range of 5,913-6,134 while waiting for foreign exchange reserves data MoM release. Today's recommendation: DSNG, IRRA, BBRI, PWON.
Corporate Action
Cum Dividend Date: UNIC (IDR149/share), PURI (IDR1.45/share)
Right Issue: ZBRA (IDR812/share)
Disclaimer On
PT MNC Sekuritas
MNC Financial Center Lt. 14 – 16
Jl. Kebon Sirih No. 21 – 27, Jakarta Pusat 10340
Telp : (021) 2980 3111
Fax : (021) 3983 6899
Call Center : 1500 899
