Global Market Highlight
DJIA rose by +0.10% on Friday (24/09) followed by S&P 500 (+0.15%), while Nasdaq weakened by -0.03%. The Wall Street closing was mixed following the August-21 US employment report of 235,000, lower than the consensus of 720,000. This week, the Federal Reserve revised the 2021 GDP growth at 5.9%, previously at 7%. On the other hand, the investors still focus on the impact of Evergrande's default. Today the market will be looking forward to several data releases such as: 1) US Durable Goods Orders MoM; 2) US Fed Williams Speech; 3) UK BoE Gov Bailey Speech.
Domestic Update
• As of August 2021, Bank Indonesia (BI) reported the value of total loans in Indonesia increased 1.16% over the same month in the previous year. MNCS Comment: After experiencing an 8-month straight of contraction since October last year, loan growth finally flipped out to positive territory on June-21. The August 2021 figure marked the 3rd consecutive month of a positive growth. This is a good sign that banking intermediary functions started to improve amid ample liquidity in the economy. Improving epidemiologic development also boost confidence that loan growth may increased 4-6% this year
• Furthermore, there was an addition of 168 new Covid-19 cases in Jakarta yesterday.
Company News
1. KAEF IJ recorded IDR5.56 trillion revenue in 1H21 increased by +18.57% YoY (vs IDR4.69 trillion in 1H20). COGS spiked from IDR2.90 trillion in 1H20 to IDR3.70 trillion in 1H21. KAEF recorded IDR57.60 billion net profit in 1H21 rose by +18.58% YoY (vs IDR48.57 billion in 1H20) (Emitennews). MNCS Comment: We see that the Covid-19 pandemic affected the increase of healthy product demand, we estimate that KAEF will record a fairly good performance until FY21E. Currently KAEF is trading at 187.87x/1.85x PE/PBV levels.
2. BINA IJ recorded IDR101.25 billion net interest income in 1H21 rose by +26.39% YoY (vs IDR80.11 billion in 1H20). Interest expenses increased from IDR126.83 billion in 1H20 to IDR218.73 billion in 1H21. BINA recorded a net profit of IDR23.17 billion in 1H21 or an increase of +767.79% YoY (vs IDR2.67 billion in 1H20) (IQ Plus). MNCS Comment: In addition to the increase in net interest income, BINA's bottom line performance was driven by the capital gain of financial assets of IDR48.69 billion in 1H21. Currently BINA is trading at 423.78x/19.40x PE/PBV levels.
3. KRAS IJ recorded a +31% YoY increase in product sales to 1,279,000 tons in Aug-21 (vs. 980,000 tons on Aug-20). KRAS managed to reduce fixed and variable costs up to -16% and up to -8%. KRAS continued to record positive performance improvements until August-21 with a profit of IDR800 billion or an increase of +54% YoY (vs IDR362.5 billion on August-20) (Kontan). MNCS Comment: We see that KRAS has succeeded in carrying out its transformation in terms of sales, digitalization, downstreaming, to a good business model, so that it has the potential to increase net profit growth. KRAS is currently trading at 10.57x/1.22x PE/PBV.
IHSG Updates
JCI slightly strengthened by +0.03% to 6,144.82 on Friday (24/09) followed by net foreign buy reaching IDR1.59 trillion. JCI closed higher along with strengthening in almost all sectors led by the energy sector (+3.02%) followed by the cyclical sector (+1.65%). On the other hand, the infrastructure sector weakened by -0.74%, followed by the transportation sector (-0.70%). The JCI strengthened due to the Fed's statement about tapering would not be implemented in the near future. In addition, the strengthening is driven by the increase of coal stocks, due to the spike of demand for coal in Europe caused by the energy crisis, especially for power plants. On the other hand, the Rupiah weakened at IDR14,258 level on the spot market. We estimate the JCI will move in the range of 6,060-6,170. Today's recommendations: UNTR, WTON, PGAS, EXCL.
Corporate Action
Cum Dividend Date: HEXA (IDR1,142/share)
RUPS: AGRO
Disclaimer On
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