13 Mei 2020
MNCS Morning Navigator 13 May 2020
Global Market Highlight
DJIA slipped by -1.89% on Tuesday (12/05) followed by the weakening of S&P 500 (-2.05%) and Nasdaq (-2.06%). The fall was caused by a series of unfortunate factors, as follows: 1) A deflation of -0.8% MoM, the lowest since December 2008; 2) The increase of VIX Index by +19.84% to 33.04, became the highest in May; 3) Unemployment rate reaching 14.7%, became the highest since World War II. The Fed has taken several policies into account in response for the deflating US economy such as considering a lower Fed Rate (negative rate). The market will look forward to several data releases today, such as: 1) UK GDP Growth per Apr-2020; 2) UK Balance of Trade per Apr-2020; 3) US Monthly Budget Statement per Apr-2020.
Domestic Updates
- Retail Sales Survey by Bank Indonesia revealed a further sales slump in March 2020. The Retail Sales Index (RSI) decreased by -4.5% YoY compared to -0.8% YoY in February 2020. This decrease came from all commodity groups, except Food, Beverages and Tobacco, for which sales have remained solid. RSI in April 2020 is predicted to sink further to -11.8% YoY on all commodities surveyed. Meanwhile the decline in future prices is in line with the forecasted decline in demand.
- Commission VII of the Indonesian House of Representatives ratifies revision of Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba). Which include a guarantee of extension to IUPK after fulfilling some terms and conditions in Article 169A. While Article 169 A letter a stated that agreements that have not yet received an extension are guaranteed to get two times the extension in the form of IUPK for 10 years. We see that this regulation will benefit the companies within the coal mining industry.
Company News
- MYOR recorded revenue decrease of 10.55% YoY to IDR5.38 trillion on 1Q20. Revenue consists of domestic sales (69.8% of revenue) and export sales (30.2% of revenue). Efficiency is reflected on the decline of COGS by 12.71% YoY to IDR3.72 trillion. While gain on foreign exchange of IDR605.06 billion contributed to the significant net profit growth of 99.72% YoY which amounted to IDR931.39 billion in 1Q20. (Market Bisnis)
- WSBP plans to distribute dividend amounting to IDR201.52 billion. The amount is equal to 25% of net profit in FY19 which is IDR806.15 billion. Dividend per share is at the level of IDR8.22/share with dividend yield at 5.20%. Furthermore, 70% of the net profit will be recorded as retained earnings while the other 5% will be used as a mandatory reserve fund in accordance with Article 70 UUPT. (Kontan)
- MIKA reported a revenue growth of 8.71% YoY to IDR874.71 billion on 1Q20. Inpatient revenue rose 9.60% to IDR550.56 billion while outpatient income rose 7.23% to IDR324.15 billion. Also, other operating income increased significantly by 144% YoY to IDR15.51 billion. So net profit grew by 8.62% YoY to IDR198.77 billion in 1Q20. (Kontan)
IHSG Updates
JCI decreased by -1.09% to 4,588.73 on Tuesday (12/05) followed by a net foreign sell reaching IDR1.04 trillion. The weakening index was due to the worsening of domestic economic data such as the retail sales drop which reflects lower purchasing power and is predicted to drop even lower on April despite being the Ramadhan season. On the other hand, the increase on Covid-19 patients in Indonesia by 3.39% yesterday increase fear and further suppressed the index. Meanwhile, the Rupiah exchange rate against the USD was depreciated at IDR14,905. We estimate JCI will move in the range of 4,474-4,726 while waiting for the Balance of Trade as of April 2020. Today's recommendation: JPFA, INCO, BBCA, JSMR.
Corporate Action
Cash Dividends: SDRA
Ex-Date Dividend: AKRA
RUPS: TURI
Disclaimer On
MYOR,
WSBP,
MIKA,
JPFA,
INCO,
BBCA,
JSMR
