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MNCS Morning Navigator

05 Januari 2021

MNCS Morning Navigator 05 January 2021

Global Market Highlight

DJIA dropped by -1.25% on Monday (04/01) followed by S&P 500 (-1.48%) and Nasdaq (-1.47%). Wall Street dropped on the first trading day of 2021, amid concerns about global Covid-19 cases as UK imposed a 3rd lockdown as a mutated Covid-19 strain fuels a record-breaking surge in cases. Monday’s decline came as traders fretted over the growing number of Covid-19 cases around the world and its potential impact on the global economic recovery. Wall Street was also keeping an eye on Georgia as the state prepares for Senate runoff elections on Tuesday, which could give Democrats a majority in the chamber. Moreover, the market will look forward to several data releases today, such as: 1) US ISM Manufacturing PMI; 2) US Total Vehicle Sales; 3) Germany Retail Sales.

 

Domestic Update

• BPS released inflation in December 2020 of 0.45% with a Consumer Price Index (CPI) of 105.68. The inflation rate for the calendar year (January – December) 2020 and the year-on-year inflation rate (December 2020 against December 2019) is 1.68%. The core component in December 2020 experienced inflation of 0.05%. The inflation rate for the core components of the calendar year (January– December) 2020 and the inflation rate for the core components year on year (December 2020 to December 2019) is 1.60%.

• Furthermore, there was an addition of 1.832 new Covid-19 cases in Jakarta yesterday.

 

Company News

1. MDKA IJ recorded a revenue of USD296.53 million in 3Q20, which fell by -8.55% YoY (vs USD 324.28 million in 3Q19). MDKA posted a net profit of USD57.19 million which dropped by -13.59% YoY from the net profit in 3Q19 of USD 66.19 million (Kontan). MNCS Comment: We hope the full year performance to increase as MDKA will be benefited from the increasing gold price. MDKA is currently traded at 50.15x/7.03x PE/PBV

2. SIDO IJ is ready to develop the export market and launch several new beverage and supplement products. In addition, development is also carried out in the export market with new destination countries. So that this year SIDO has budgeted a Capex of IDR 135 billion from internal cash (Investor Daily). MNCS Comment: We believe several key initiatives from the management offer a significant leap for long-term outlook. Capex will be used to complete the production facility for liquid herbal and also for maintenance. SIDO is currently traded at 27.91x/7.22x PE/PBV.

3. WIKA IJ entered into an affiliated transaction in the context of providing shareholder loans to PT Wijaya Karya Serang Panimbang as a subsidiary of the company. Funds used for contractor payments to support the smooth running of the Serang Panimbang toll road project amounting to IDR2.35 trillion (Investor Daily). MNCS Comment: We hope that the transaction will be able to help with the project as delays occurred in 2020. WIKA is currently traded at 273.43x/1.35x PE/PBV.

 

IHSG Updates

JCI rose by +2.10% to 6,104.90 on Monday (04/01) followed by net foreign buy reaching IDR354.13 billion. JCI opened the first trading day of the year with an incline, backed by all sectors. The increase is anticipated as investors optimism rose to welcome the new year, as January usually gave the second highest return after December. Meanwhile, the Rupiah exchange rate was strengthening at IDR13,895. We estimate JCI will move in the range of 6,000 – 6,140 while waiting for Retail Sales and Consumer Confidence data release. Today's recommendation: HMSP, MDKA, MEDC, BMRI.

 

Corporate Action

Cum Date Dividend: GEMS (USD0.0051/share)

RUPS: BBSI

 

Disclaimer On

HMSP, MDKA, MEDC, BMRI, SIDO, WIKA

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