06 Mei 2021
MNCS Morning Navigator 06 May 2021
Global Market Highlight
DJIA rose by +0.29% on Wednesday (05/05) followed by S&P 500 (+0.07%) while Nasdaq fell by -0.37%. Wall Street closed varied as technology stocks lowered while cyclical stocks continued to advance despite a surprise decline in U.S. services activity and weaker labor market data. ISM non manufacturing data for April fell a reading of 62.7, missing expectations of 64.3. While, private payrolls grew by 742,000 for April, which missed the forecast of 800,000. These declines are slightly surprising, given the surge in spending on services last month as the reopening continued and people spent part of the latest round of stimulus payments. Moreover, the market will look forward to several data releases today, such as: 1) US Initial Jobless Claims; 2) Eurozone Retail Sales; 3) UK BoE Interest Rate Decision.
Domestic Update
• BPS announced data on Indonesia's economic growth for 1Q21 which grew by -0.74% YoY/-0.96% QoQ. As a result, the country's economy is still growing negatively and endured prolonged recession (CNBC Indonesia).
• Furthermore, there was an addition of 845 new Covid-19 cases in Jakarta yesterday.
Company News
1. PTPP IJ has secured new contracts worth IDR2.5 trillion during 1Q21. The new contracts that were won consisted of a parent valued at IDR1.35 trillion and a subsidiary worth IDR1.15 trillion. The projects achieved by the parent company include the Mandalika Area Infrastructure Development for IDR342 billion, Banten Hospital IDR241 billion, Taman Ismail Marzuki IDR190 billion, Grha Waron Hospital Surabaya IDR164 billion (Kontan). MNCS Comment: PTPP's new contract is expected to grow optimally in FY21E. We assess that PTPP can surf, provided that government project tenders can be realized in FY21E. Currently PTPP is trading at 60.91x/0.50x PE/PBV.
2. BDMN IJ will distribute FY20 cash dividends of IDR36.08 / share or IDR352.66 billion of the total FY20 net profit of IDR1 trillion (Emitennews). MNCS Comment: BDMN's dividend payout ratio of 35% of FY20 net profit, while the dividend yield offered is 1.39%, this value is lower than FY19 yields of 9.33%. BDMN is currently trading at 12.17x/0.58x PE/PBV.
3. BRPT IJ will distribute FY20 cash dividends of around IDR2.78/share or reaching IDR259.9 billion (USD18 million) of the total FY20 net profit of USD36.27 million (Bisnis Indonesia). MNCS Comment: BRPT's dividend payout ratio of 50% of FY20 net income, while the dividend yield offered is 0.28% better than FY19 yield, where the company does not distribute FY19 cash dividends. BRPT is trading at 177.24/4.87x PE/PBV.
IHSG Updates
JCI rose by +0.20% to 5,975.91 on Wednesday (05/05) followed by net foreign buy reaching IDR165.49 billion. JCI continued the increase despite the GDP data release that is stil growing negatively in 1Q21. JCI was supported by the increase of most sectors except healthcare, energy, property and transport. Meanwhile, the Rupiah exchange rate was weakening at IDR14,435. We estimate JCI will move in the range of 5,920-6,030 while waiting for foreign exchange reserve data release. Today's recommendation: AALI, INCO, DOID, BSDE.
Corporate Action
Cum Dividend Date: SILO (IDR139/share), KAEF (IDR1.27/share), SRTG (IDR110/share)
Disclaimer On
AALI,
INCO,
DOID,
BSDE,
PTPP,
BDMN,
BRPT
