10 Mei 2021
MNCS Morning Navigator 10 May 2021
Global Market Highlight
DJIA rose by +0.66% on Friday (07/05) followed by S&P 500 (+0.74%) and Nasdaq (+0.88%). Wall Street rose along with tech stocks rallied as a weaker-than-expected US jobs report eased fears about rising inflation. US employers added 266,000 jobs in April, far below forecasts close to 1 million. Wages jumped, rising 0.3% on the year, suggesting new workers will need to be paid even higher salaries if they are to return to the workforce. The market is rallying as the disappointment leaves the door open for the Fed to keep financial conditions easy for longer and delays the tapering and rate-hiking conversations for the time being. Moreover, the market will look forward to several data releases today, such as: 1) US ISM New York Index; 2) US Consumer Inflation Expectations; 3) US Halifax House Price Index.
Domestic Update
• BI released Indonesia's foreign exchange reserves at the end of April 2021 at USD138.8 billion US dollars. This figure is an increase compared to the way at the end of March 2021 amounting to USD137.1 billion. The position of foreign exchange reserves is equivalent to financing 10.0 months of imports or 9.6 months of imports and servicing of government external debt, and is above the international adequacy standard of around 3 months of imports.
• Furthermore, there was an addition of 809 new Covid-19 cases in Jakarta yesterday.
Company News
1. AMRT IJ will distribute an FY20 cash dividend of IDR9.3/share after previously distributing an interim dividend of IDR6.03/share in December 2020. Thus, the total dividends distributed to shareholders from the financial year FY20 amounted to IDR 15.33/share or reached IDR636.56 billion of the total FY20 net profit of IDR1.06 trillion (Bisnis Indonesia). MNCS Comment: AMRT dividend payout ratio of 60% of FY20 net profit or an increase compared to FY19 which reached 49.56% while the dividend yield offered was 1.64% or an increase compared to the FY19 yield of 1.47%. AMRT is trading at 36.58/5.23x PE/PBV.
2. WSKT IJ posted a new contract value of IDR2.13 trillion as of April 2021, this realization reached 8.9% of the company's target of IDR26 trillion. The tender that WSKT is currently participating in is worth IDR15 trillion for government infrastructure projects and BUMN (Bisnis Indonesia). MNCS Comment: We assess that WSKT will continue this positive trend, accompanied by the government's focus on infrastructure development in FY21E. WSKT is currently trading at 1.93x PBV.
3. LINK IJ posted revenue of IDR4.05 trillion in FY20, up +7.71% YoY (vs IDR3.76 trillion in FY19). The cost of revenue also increased from IDR747.70 billion in FY19 to IDFR868.74 billion in FY20. LINK posted a net profit of IDR941.71 billion in FY20, up +5.27% YoY (vs IDR 894.53 billion in FY19) (IQ Plus). MNCS Comment: In FY21E, the company has budgeted a capital expenditure of IDR 2.5 trillion which will be used to continue the network migration project of 200,000 sites. Currently LINK is trading at 12.10x/2.47x PE/PBV.
IHSG Updates
JCI slipped by -0.70% to 5,928.31 on Friday (07/05) followed by net foreign buy reaching IDR146.56 billion. JCI continued to weaken due to the drop in all of the sectors except for healthcare. It seems that some investors are cashing out as the long holiday came closer. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,285. We estimate JCI will move in the range of 5,910-5,950 while waiting for balance of trade data release. Today's recommendation: BBRI, INDF, BRPT, ANTM.
Corporate Action
Cum Dividend Date: AKRA (IDR75/share), BDMN (IDR36/share), RANC (IDR30/share)
Disclaimer On
BBRI,
INDF,
BRPT,
ANTM,
AMRT,
WSKT,
LINK
