MNCS Morning Navigator

08 Januari 2021

MNCS Morning Navigator 08 January 2021

Global Market Highlight


DJIA increased by +0.69% on Thursday (07/01) followed by S&P 500 (+1.48%) and Nasdaq (+2.56%). The Democratic partycontrolled congress would provide more stimulus spending and structural improvements to help tackle the US economy caused by the pandemic. But currently the US is experiencing a riot due to supporters of Donald Trump entering the Capitol building, causing contact between demonstrators and police that has claimed lives. Moreover, the market will look forward to several data releases today, such as: 1) Germany Balance of Trade; 2) US Unemployment Rate; 3) Eurozone Unemployment Rate.


Domestic Updates


• The Ministry of Energy and Mineral Resources noted that the realization of investment in the energy sector throughout 2020 was USD24.4 billion. This value decreased by 26% YoY to USD33 billion.

• Furthermore, there was an addition of 2,398 new Covid-19 cases in Jakarta yesterday.


Company News


1. BBNI IJ expects its loan growth to reach 5% in FY21E. Management set the moderate target to anticipate a weakening economy despite there is a vaccine sentiment. (Investor Daily). MNCS Comment: We see that BBNI's strategy to set the moderate growth and increase provision in order to secure the liquidity are quite decent amidst the uncertain time, which is also align with their lower performance guidance for FY21E. BBNI is currently traded at 20.80x/1.09x PE/ PBV.

2. AUTO IJ through its subsidiary PT Astra Component Indonesia (ASKI) sees an opportunity from new habitual conditions, one of which is the use of masks which is a must when doing activities outside the home. ASKI launched Grin Smile, a transparent electric mask that not only functions as a protection from droplet splashes, but also supports the appearance and comfort of the user. Grin Smile's transparent electric mask is also equipped with a small, rechargeable battery-powered fan that can be used for 3 to 4 hours. In addition, to keep air circulating in order to stay safe when used, this mask is equipped with a 3-layer filter (Emitennews). MNCS Comment: AUTO's business diversification is quite appropriate, amidst the high demand for masks due to the increasing exposure to Covid-19. AUTO is currently traded at -16.59x/0.53x PE/PBV.

3. TOWR IJ through its three subsidiaries PT Profesional Telekomunikasi Indonesia (Protelindo), PT Iforte Solusi Infotek (Iforte), and PT Komet Infra Nusantara (KIN) obtained a revolving credit facility from Bank Mizuho Indonesia amounting to USD34.5 million. These loan funds will be used to support the company's working capital needs as well as for general corporate purposes for Protelindo, Iforte, and KIN (Kontan). MNCS Comment: We see that TOWR still has opportunity to rely on external loans as Net Debt/EBITDA ratio at 2.5x level in FY20E. TOWR is currently traded at 19.25x/5.06x PE/PBV.


IHSG Updates


JCI rose by +1.45% to 6,153.63 on Thursday (07/01) followed by net foreign buy reaching IDR896.65 billion. JCI rose led by the strengthening of the mining sector following the strengthening of commodity prices, such as the increase for nickel. Meanwhile, the Rupiah exchange rate was weakening at IDR13,910. We estimate JCI will move in the range of 6,000 – 6,180 while waiting for foreign exchange reserves data release. Today's recommendation: TINS, INKP, WSKT, ASII.

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