Global Market Highlight
DJIA slipped by -0.20% on Tuesday (13/04) followed by the increase on S&P 500 (+0.29%) and Nasdaq (+1.05%). Wall Street closed varied due to a vaccine setback as reopening stocks cut some losses and tech rallied ahead of the start of quarterly earnings season. US health authorities halted the use of Johnson & Johnson's Covid-19 vaccine after reports that recipients experienced rare blood clotting. Furthermore, a fall in US bond yields, which trade inversely to prices, also supported investor sentiment on growth stocks. Meanwhile, the consumer price index rose by 0.6% in March, topping estimates for a 0.5% increase. Moreover, the market will look forward to several data releases today, such as: 1) US MBA Mortgage Applications; 2) US Export Prices; 3) US Import Prices.
Domestic Update
• The finance minister has officially extended the electricity bill discount until June 2021. This assistance is given to industrial, business and social electricity customers as part of the 2021 National Economic Recovery (PEN) program. In addition, the assistance provided by the government is a subsidy of 100% in the period January to March 2021. Then, electricity subsidies are reduced by 50% for electricity use in April to June 2021, regulated in PMK40 / 2021. The amount of assistance is determined as the difference between the real usage and the minimum account and the amount of the expense or subscription fee (Kontan).
• Furthermore, there was an addition of 828 new Covid-19 cases in Jakarta yesterday.
Company News
1. BNGA IJ will distribute FY20 cash dividends of IDR44.06/share or up to IDR1.09 trillion of the total FY20 net profit. The date for the Cum dividend is April 19, 2021 (Emitennews). MNCS Comment: BNGA's dividend payout ratio of 60% of FY20 net profit or an increase compared to FY19 which reached 38.20% while the dividend yield offered was 4.16% or decreased compared to FY19 yields of 7.75%. Currently PGAS is trading at 13.24x/0.65x PE/PBV.
2. PWON IJ received marketing sales worth IDR427 billion in 1Q21 or up 17% YoY. This achievement has reached 30.5% of the marketing sales target in FY21E of IDR 1.4 trillion (Bisnis.com). MNCS Comment: PWON's achievement is quite good with double digit growth. With an improvement in property demand, it is hoped that the marketing sales target in FY21E can be achieved. PWON is currently trading at 25.58x/1.63x PE/PBV.
3. WSKT IJ divested part of the shares of the two toll roads it owned to PT Sarana Multi Infrastruktur (Persero) or SMI. The transaction value for the Semarang-Batang and Cinere-Serpong segments reached IDR2.06 trillion. The divestment involves transferring 20% of WTR's shares in the Semarang-Batang toll road and 34.99% of WTR's shares in the Cinere-Serpong toll road to PT SMI (CNBC Indonesia). MNCS Comment: WSKT plans to divest several other toll roads. With the success of these 2 toll roads, it will help improve the balance sheet of the WSKT. WSKT is trading at 1.81x PBV.
IHSG Updates
JCI decreased by -0.36% to 5,927.43 on Tuesday (13/04) followed by net foreign sell reaching IDR459.89 billion. JCI continued the drop with the property, mining and consumer sector leading the fall. Furthermore, the infrastructure sector still managed to increase followed by agri, miscellaneous and basic industry. Meanwhile, the Rupiah exchange rate was weakening at Rp14,605. We estimate JCI will move in the range of 5,850-6,113 while waiting for Balance of Trade data release. Today's recommendation: BBCA, TINS, GGRM, KLBF.
Corporate Action
Cum Dividend Date: ITMG (IDR167/share), BJBR (IDR95.8/share)
RUPS: AALI
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