Global Market Highlight
DJIA rose by +0.89% on Friday (09/04) followed by the S&P 500 (+0.77%) and Nasdaq (+0.51%). Wall Street rose as a pullback in the 10-year US Treasury yield encouraged the rise in growth stocks. On the other hand, producer prices increased more than expected in March. The investors expect higher inflation as vaccine rollouts help the US economic rebound. Moreover, the market will look forward to several data releases today, such as: 1) US Consumer Inflation Expectations; 2) China New Yuan Loans; 3) Eurozone Retail Sales.
Domestic Update
• Bank Indonesia recorded a net foreign buy of IDR 2.34 trillion in the period 5 - 8 April 2021 on the financial market. This figure consists of net buy on the Government Securities (SBN) market of IDR 4.15 trillion and net sell on the stock market of IDR 1.81 trillion. Thus, based on settlement data for 2021 (YTD), net foreign sell were recorded at IDR9.68 trillion.
• Furthermore, there was an addition of 1,031 new Covid-19 cases in Jakarta yesterday.
Company News
1. INKP IJ posted revenue of USD2.98 billion in FY20, Which decreased 7.35% YoY (vs USD3.22 billion in FY19). However, COGS also decreased from USD2.35 billion in FY19 to USD2.12 billion in FY20. INKP posted a net profit of USD294.04 million in FY20 which increased 7.16% YoY (vs USD274.39 million in FY19) (CNBC Indonesia). MNCS Comment: INKP still managed to booked a growing net profit despite the drop on revenue. We hope that the pulp and paper demand in FY21 will have recovered and positively impact the revenue. Currently INKP is trading at 13.29x/0.92x PE/PBV.
2. TKIM IJ posted revenue of USD866.45 million in FY20, Which decreased 17.25% YoY (vs USD1.05 billion in FY19). However, COGS also decreased from USD939.95 million in FY19 to USD746.85 million in FY20. TKIM posted a net profit of USD119.6 million in FY20 which increased 11.67% YoY (vs USD107.16 million in FY19)(Bisnis.com). MNCS Comment: TKIM booked quite a dip on their topline but cost efficiency has improved their bottom line. TKIM is currently trading at 15.77x/1.55x PE/PBV.
3. UNTR IJ will distribute FY20 cash dividend of IDR473/ share after previously distributing an interim dividend of IDR171/share in Oct-2020. Thus, the total dividend per share distributed to shareholders from the financial year FY20 was IDR644/ share or reached IDR2.4 trillion. Date of Cum dividend on 21 April 2021 (Kontan). MNCS UNTR dividend payout ratio of 40% of FY20 net income (vs 39.99% in FY19). Meanwhile, the dividend yield offered was 2.08% or decreased compared to the FY19 yield of 4.41%. UNTR is trading at 14.12x/1.41x PE/PBV.
IHSG Updates
JCI decreased by -0.03% to 6,070.21 on Friday (09/04) followed by net foreign sell reaching IDR32.99 billion. JCI finally broke the 4-day rally with a slight drop, as the mining and basic industry dropped significantly. However, the finance, trade and consumer sectors managed to hold the dip in JCI. We believe the investors were taking profit as the ramadan and fasting season is going to start. Meanwhile, the Rupiah exchange rate was weakening at Rp14,565. We estimate JCI will move in the range of 6,000-6,170 while waiting for Retail Sales data release. Today's recommendation: BBNI, ANTM, EXCL, PTPP.
Corporate Action
RUPS: AUTO, MFMI, MITI
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