MNCS Morning Navigator 03 December 2020

Global Market Highlight

DJIA increased by +0.20% on Wednesday (02/12) followed by S&P 500 (+0.18%) while Nasdaq fell by -0.05%. The surge came after optimism about the jumbo stimulus package and the latest news on the vaccine. Hoping to re-inject the sluggish US economy hit by the pandemic US House Speaker Nancy Pelosi and Senate Minority Party Leader Chuck Schumer supports a jumbo fiscal stimulus package worth USD908 billion. This is ready to be passed by the two majority political parties in the US to support small business and unemployment in the US. Furthermore, US Treasury Secretary Steve Mnuchin also supported the additional stimulus bonus for the airline sector which was hit very badly after the Covid-19 pandemic worth USD20 billion. Meanwhile, other positive news comes from the giant in the pharmaceutical sector Pfizer, who reportedly has received permission from the British government for emergency use for the vaccine of Pfizer and its partner BioNTec. emergency before 2021. Moreover, the market will look forward to several data releases today, such as: 1) US Initial Jobless Claims; 2) US ISM Non-Manufacturing PMI; 3) China Caixin Composite PMI.

Domestic Update

• BPS recorded an increase of 4.57% in the foreign tourist visits in October 2020 (158,189 visits) as compared to September 2020 (151,275 visits). Most of the foreign tourists came from Timor Leste amounting to 82,800 or 52.3% of total foreign visitors (-8.07% YoY). The next group of tourists came from Malaysia and China as much as 29.1% and 4.2% of the total visitors.
• Furthermore, the new cases of Covid-19 infection in Jakarta is reported to be 1,058 on December 2, 2020.

Company News

1.       ACES IJ will open a new stall of around 1,700 sqm and bring about 13 total units opened in 2020. Other than expanding its stall, ACES also focus on online sales as well as reducing unnecessary costs. ACES booked a sales of IDR5.48 trillion in 3Q20 (-8.21% YoY) while net income plunge by 26.6% YoY. The home improvement segment fell 9.81% YoY to IDR2.85 trillion, followed by lifestyle product and toys that are contracted by 4.86%/19.07% YoY respectively (Investor ID).MNCS Comment: ACES performance in 3Q20 slightly below consensus and our estimate due to unexpected PSBB thightening in Sep-20. We believe the SSSG will gradually improved in 4Q20. ACES is currently traded at 40.07x/5.84x PE/PBV.
2.        MCAS IJlaunched DigiResto through its subsidiary, PT Digital Maxima Kharisma (DMK). This integrated food ordering platform has more than 2,200 active F&B merchants since the soft-launch on 1H20. With a partnership with SiCepat as a logistics provider, DMK offers several options such as on-site dining, takeaway and delivery, as well as payment options (IDN Financials). MNCS Comment: MCAS seeking this partnership as an opportunity to expand its business as promising potential of food delivery segment especially during pandemic. MCAS is currently traded at 99.43x/6.15x PE/PBV.
3.        EPAC IJ booked sales of IDR122.65 billion in 9M20, down by 14.12% YoY from IDR142.83 billion last year. However, the decline was offset by decreasing COGS of 22.51% YoY to IDR95.63 billion. Therefore, the company booked a solid bottom line performance of IDR6.37 billion which was 275.85% increase YoY from same period last year (Kontan). MNCS Comment: Due to efficiency, EPAC which has just been listed this year managed to pump it's bottom line. EPAC is currently traded at 47.63x/2.76x PE/PBV.

IHSG Updates

JCI rose by +1.56% to 5,813.99 on Wednesday (02/12) though followed by net foreign sell reaching IDR155.31 billion. The strengthening is supported by all sectors but mostly by mining, miscellaneous, property and infrastructure following the positive sentiments from the vaccine. While mining sector is backed by the rise on commodity prices such as coal, nickel and gold. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,125.We estimate JCI will move in the range of 5,563 – 5,840 while waiting for foreign exchange reserve data release. Today's recommendation: RALS, CPIN, WSKT, UNTR.

Corporate Action

Cum Dividend Date: POWR, KLBF

RUPS: MTFN

Disclaimer On

RALS, CPIN, WSKT, UNTR, ACES, MCAS, EPAC