Global Market Highlight
DJIA rose by +0.16% on Wednesday (14/04) followed by the weakening of S&P 500 (-0.41%) and Nasdaq (-0.99%). Wall Street closed higher with optimism following earnings from Wall Street banks that topped estimates. On the other hand, Moderna delivered a positive update on its vaccine, easing some of the concerns following Johnson & Johnson as their new data show its vaccine is more than 90% effective six months after the second shot. Moreover, the market will look forward to several data releases today, such as: 1) US Retail Sales; 2) US Initial Jobless Claims; 3) Germany Inflation Rate.
Domestic Update
• Bank Indonesia stated that the Prompt Manufacturing Index (PMI-BI) stood at 50.01% on 1Q21, an increase from 47.29% in the 4Q20 in line with the increased activity in the Manufacturing sector as a result of the Business World Activity Survey (SKDU).
• The results of the Business World Activity Survey (SKDU) indicate that business activities increased in 1Q21 as reflected in the weighted net balance (WNB) of 4.50%, an increase from -3.90% in the 4Q20. In addition in the second quarter of 2021, respondents predicted that business activities would further strengthen with a WNB of 18.87%
• Furthermore, there was an addition of 661 new Covid-19 cases in Jakarta yesterday.
Company News
1. AALI IJ will distribute an FY20 cash dividend of IDR153/share after previously distributing an interim dividend of IDR42/share in Oct-2020. Thus, the total dividends distributed to shareholders from the financial year FY20 amounted to IDR195/share or reached IDR375.3 billion of the total FY20 net profit of IDR833.1 billion (Bisnis.com). MNCS Comment: AALI's dividend payout ratio of 45% of FY20 net profit or an increase compared to FY19 which reached 44.55% while the dividend yield offered was 1.95% or increase compared to FY19 yield of 0.57%. Currently AALI is trading at 23.05x/1.02x PE/PBV.
2. BJTM IJ recorded loan disbursement in 1Q21 of IDR41.73 trillion or grew by 8.63% YoY while TPF was recorded at IDR76.09 trillion, up 31.72% YoY. Meanwhile, net profit was recorded to grow 2.20% YoY to IDR448 billion in 1Q21. On the other hand, BJTM has restructured credit for 3,297 debtors with a total outstanding of IDR1.82 trillion or around 4.37% of BJTM's credit distribution (Emitennews). MNCS Comment: We believe that BJTM's performance will still be positive in FY21E, supported by loan growth of 8% -9%, followed by NIM of 5% -6% and lower cost of funds. BJTM is currently trading at 8.25x/1.25x PE/PBV.
3. RALS IJ posted revenue of IDR2.52 trillion in FY20, which decreased 54.84% YoY (vs IDR5.59 trillion in FY19). However, COGS also decreased from IDR2.49 trillion in FY19 to IDR1.07 trillion in FY20. RALS posted a net loss of IDR112 billion in FY20 which decreased 82.58% YoY (vs IDR643 billion of net profit in FY19) (Bisnis.com).MNCS Comment: We hope that the efficiency strategy and transformation of the RALS in FY21E can be carried out in the midst of a pandemic situation. In addition, it is hoped that in 2Q21E there will be an increase in sales volume ahead of the Eid holidays. RALS is trading at 1.40x PBV.
IHSG Updates
JCI increased by +2.07% to 6,050.28 on Wednesday (14/04) followed by net foreign buy reaching IDR1.02 trillion. JCI finally rebounded after dropping for three days in a row. We see that the investor bought back the stocks that seemed oversold for the past few days, reflected on the significant buy from the foreign. The strengthening was led by the finance sector as well as miscellaneous and basic industry. Meanwhile, the Rupiah exchange rate was strengthening at Rp14,602. We estimate JCI will move in the range of 5,880-6,113 while waiting for Balance of Trade data release. Today's recommendation: BBRI, ASII, ICBP, SMGR.
Corporate Action
Cum Dividend Date: ANTM (IDR16.74/share)
RUPS: TPIA, JPFA
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