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MNCS Morning Navigator

01 April 2021

MNCS Morning Navigator 01 April 2021

Global Market Highlight

DJIA slipped by -0.26% on Wednesday (31/03) followed by the rise of S&P 500 (+0.36%) and Nasdaq (+1.54%). Wall Street's closing was mixed but tech stocks still managed to closed higher despite the rise of the US 10-year yield to 1.74%, the highest since Jan-21. Consumer discretionary stocks also played a role in pushing the market. The economic backdrop, meanwhile, continues to spur investor optimism as the economy created 515,000 private jobs last month, lower than the expectation of 550,000 expected, but still giving a positive signal. Moreover, the market will look forward to several data releases today, such as: 1) US ISM Manufacturing PMI; 2) China Caixin Manufacturing PMI; 3) US Initial Jobless Claims. 

 

Domestic Update

• The Indonesia Stock Exchange reported that the total funds raised from the initial public offering (IPO) reached IDR3 trillion from 11 companies in 1Q21, or an increase of 11% YoY compared to IDR2.7 trillion from 19 companies that IPO during the 1Q20 (Bisnis.com).

• Furthermore, there was an addition of 965 new Covid-19 cases in Jakarta yesterday.

 

Company News

1. GGRM IJ posted revenue of IDR114.47 trillion in FY20, Which increased 3.57% YoY (vs IDR110.52 trillion in FY19). However, COGS also increased from IDR87.74 trillion in FY19 to IDR97.08 trillion in FY20. GGRM posted a net profit of IDR7.64 trillion in FY20 which decreased 29% YoY  (vs IDR10.88 trillion in FY19) (Bisnis.com). MNCS Comment: We see that GGRM did get an advantage from the tobacco tax for kretek cigs that won't be increased. We hope that this will be able to reduce some cost and improve the bottom line. Currently GGRM is trading at 9.10x/1.19x PE/PBV.

2. DMAS IJ posted revenue of IDR2.63 trillion in FY20, Which decreased -0.75% YoY (vs IDR2.65 trillion in FY19). Revenue from the company is supported by marketing sales above the company's target of 19.5%. In addition, there were industrial land sales of 119.5 hectares. However, cost of revenue also decreased from IDR1.16 trillion in FY19 to IDR1.01 trillion in FY20. DMAS posted a net profit of IDR1.35 trillion in FY20 which increased 1% YoY (vs IDR1.33 trillion in FY19) (Bisnis.com). MNCS Comment: Even though the income has decreased, the marketing sales achievement is quite good as several global companies move their production to Indonesia. DMAS is currently trading at 8.44x/2.06x PE/PBV.

3. KLBF IJ recorded net sales of IDR23.11 trillion, a slight increase of +2.12% YoY (vs IDR22.63 trillion in FY19). In terms of cost of goods sold, it was recorded that it increased to IDR12.86 trillion in FY20 (vs IDR12.39 trillion in FY19). So that the net profit was recorded at IDR2.73 trillion in FY20 or an increase of +9.05% YoY (vs IDR2.51 trillion in FY19) (Bisnis.com). MNCS Comment: KLBF was able to increase net profit driven by the efficiency of selling expenses which increased by only 3.79%. We see that in FY21E the improvement in KLBF's performance continues in line with medical needs during the ongoing pandemic. KLBF is trading at 26.93x/4.23x PE/PBV.

 

IHSG Updates

JCI dropped by -1.42% to 5,985.52 on Wednesday (31/03) followed by net foreign sell reaching IDR1.11 trillion. JCI dropped significantly again on concerns from the global market about the potential for an increase in the FED interest rate which is faster than previously stated. From the domestic side, the response to the discourse from BPJS TK to reduce the share portion of the investment portfolio and the realization of earnings that were below expectations became negative sentiments for the JCI. Meanwhile, the Rupiah exchange rate weakened to Rp14,525. We estimate JCI will move in the range of 5,870-6,050 while waiting for Markit Manufacturing PMI data release. Today's recommendation: AKRA, BBCA, GGRM, INCO

 

Corporate Action

Cum Dividend: FASW (IDR70/share)

RUPS: SMRA

 

Disclaimer On

AKRA, BBCA, GGRM, INCO, GGRM, DMAS, KLBF

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