06 Juli 2020
MNCS Morning Navigator 06 July 2020
Global Market Highlight
US markets closed on Friday (03/07) due to the Independence Day. The holiday may carry a unique significance to markets that have been shaken by the pandemic. Still, trillions of USD in aid from the Fed and the US government has helped to embolden buyers of assets considered risky on Wall Street. Moreover, several companies striving to create the first effective Covid-19 vaccine or treatment, health-care stocks suddenly appeared to offer big opportunities for gains. Furthermore, the market will look forward to several data releases today, such as: 1) US ISM Non-Manufacturing Business Activity in June-2020; 2) Eurozone Retail Sales in May-2020.
Domestic Updates
The Ministry of PUPR has allocated IDR7.48 trillion for housing programs for the year 2021. The budget will be used for the construction of flats and special houses, self-help housing and the construction of infrastructure, facilities and utilities (PSU) for community housing.
Company News
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INTP IJ posted revenue of IDR3.36 trillion in 1Q20, a decrease of 9.91% YoY from IDR3.73 trillion in 1Q19. The revenue consisted of cement sales to related parties amounted to IDR30.07 billion (-27.29% YoY) and to third parties IDR3.04 trillion (-8.42% YoY). Declining sales were offset by a decrease in cost of goods by 10.54% YoY to IDR2.29 trillion. Efficiency was also carried out by the company by reducing sales expenses by 2.6% YoY and general expenses and administrative expenses by 2.65% YoY. Then INTP was able to record an increase in net profit of 0.88% YoY in 1Q20 to IDR400.43 billion. (Market Bisnis) MNCS Comment: INTP successfully managed their efficiency strategies. INTP is currently traded at 27.24x/1.86x PE/PBV.
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MDLN IJ recorded a decrease in revenue of 88.07% YoY to IDR111.82 billion in 1Q20. The decline in income also occurred in residential and shophouses sales which plunged 56.22% YoY to IDR78.99 billion, followed by income from hotels and rent which also toppled 10.52% YoY to IDR18.35 billion. Then MDLN recorded a net loss amounting to IDR159.1 billion, from a net profit of IDR318.17 billion in 1Q19. (Market Bisnis) MNCS Comment: With the economic slowdown during the pandemic, most people will be prioritizing primary needs, so property sector became one of the highly impacted. MDLN is currently traded at 0.09x PBV.
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PRDA IJ recorded revenue of IDR391.37 billion in 1Q20, decreased by 2.03% YoY. The individual customer and doctor referral segments accounted for 66.3% while the third-party and corporate client reference segments contributed 33.7%. While net profit was recorded at IDR34.78 billion in 1Q20, dropped by 27.48% YoY. (Bisnis) MNCS Comment: During the Covid-19 pandemics, most people would avoid to came in contact with blood work as virus spread became the main concern. PRDA is currently traded at 21.22x/1.74x PE/PBV.
IHSG Updates
JCI was flat by +0.14% to 4,973.79 on Friday (03/07), followed by net foreign buy reaching IDR93.40 billion. This was still due to the euphoria towards the vaccine development, while the Covid-19 cases in Indonesia are still the main concern with an additional of 1,607 cases as of yesterday, which in total reaching 63,749 cases. Furthermore, the market are expecting the release of Consumer Confidence today, which the consensus estimated to increase, signaling a rise in the people’s purchasing power. Meanwhile, the Rupiah exchange rate against the USD was weakening at IDR14,523. We estimate JCI will move in the range of 4,862-5,020 while waiting for Consumer Confidence Data. Today's recommendation: PGAS, CPIN, HMSP, AKRA.
Corporate Action
Cum Dividend Date: MTDL, MYOR, SMSM
Disclaimer On
PGAS,
CPIN,
HMSP,
AKRA,
INTP,
MDLN,
PRDA
