Global Market Highlight
DJIA weakened by -0.14% on Wednesday (01/09) while S&P 500 strengthened by +0.03% followed by Nasdaq (+0.33%). The Wall Street closing was mixed as investors looked beyond weak economic data that weighed on the dollar to focus on the likely continuation of massive central bank stimulus measures. However, the US labor market continues to recover, with private payrolls increased by 374,000 jobs in August-21 (vs 326,000 in July-21). Today the market will be looking forward to several data releases such as: 1) US Balance of Trade; 2) Canada Balance of Trade; 3) Japan Foreign Bond Investment.
Domestic Update
• Bank Indonesia (BI) issued new regulation of Peraturan Bank Indonesia No. 23/13/PBI/2021 on Macroprudential Inclusive Financing Ratio and will be effective as per August 31, 2021. Therefore the previous regulation PBI No. 14/22/PBI/2012 will no longer prevail. MNCS Comment: The regulation will focus on credit disbursement to MSME by conventional banks, sharia banks and sharia business units. With this regulation, we expect that MSME's role in fostering the domestic economy would be strengthened given their large contribution. In 2020, MSME labor absorption reached 97% from total jobs, 83.3% from total exporters and receiving 60.4% from total investment. As of July-21 we note that loan disbursement to MSME grew 1.93% YoY despite the overall credit growth being below 1% YoY in the same period.
• Furthermore, there was an addition of 673 new Covid-19 cases in Jakarta yesterday.
Company News
1. PTBA IJ recorded IDR10.29 trillion revenue in 1H21, grew by +14.21% YoY (vs IDR9.01 trillion in 1H20). COGS increased from IDR6.46 trillion in 1H20 to IDR6.74 trillion in 1H21. PTBA recorded IDR1.78 trillion net profit in 1H21 increased by +38.01% YoY (vs IDR1.29 trillion in 1H20) (Kontan). MNCS Comment: PTBA's performance is relatively lower than our estimation. However, we see a decent growth on both top and bottom line. We hope this will continue till the end of year. Currently PTBA is trading at 7.06x/1.45x PE/PBV.
2. ICBP IJ will distribute FY20 cash dividends of IDR215/share or reaching IDR2.51 trillion from FY20 net profit of IDR6.59 trillion. Cum date schedule on September 6, 2021 (Kontan). MNCS Comment: ICBP's dividend payout ratio is 38.09% of total FY20 net profit, while the total dividend yield offered is 2.56% or higher than FY19 yield of 2.34%. ICBP is currently trading at 15.21x/2.98x PE/PBV.
3. MLPL IJ recorded IDR5.13 trillion revenue in 1H21 declined by -2.39% YoY (vs IDR5.25 trillion in 1H20). COGS decreased from IDR4.22 trillion in 1H20 to IDR4.14 trillion in 1H21. MLPL’s net profit increased by IDR103.86 billion in 1H21 (vs net loss of IDR352.34 billion in 1H20) (CNBC Indonesia). MNCS Comment: We note that solid performance is supported by the improvement in MPPA's segment, higher investment returns and the cost-saving strategy. MLPL remains committed to carrying out business transformation in each of its subsidiaries. Currently MLPL is trading at 34.11x/1.78x PE/PBV.
IHSG Updates
JCI slipped by -0.97% to 6,090.93 on Wednesday (01/09) while net foreign buy reaching IDR41.31 billion. JCI closed lower in almost all sectors led by the tech sector (-3.66%), followed by the basic materials sector (-1.67%). On the other hand, the energy sector increased by +0.63%, followed by the transportation and logistics sector (+0.53%). JCI weakened due to the contraction in PMI data for August-21 at 43.7 even though this figure improved from the previous month (vs. 40.1 as of July-21). The contraction caused by the decline in people's purchasing power due to the extension of the PPKM. Meanwhile, the Central Statistics Agency (BPS) announced the Consumer Price Index (CPI) of 106.57 or an increase of +0.03% MoM or +1.59% YoY. On the other hand, the Rupiah weakened at IDR14,283/USD. We estimate the JCI will move in the range of 6,050-6,150. Today's recommendation: WTON, BTPS, BRPT, PTBA.
Corporate Action
Cum Dividend Date: LCKM (IDR0.5/share)
RUPS: WIKA
Public Expose: CSAP
Disclaimer On
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