MNCS Morning Navigator 16 December 2020

Global Market Highlight

DJIA rose by +1.13% on Tuesday (15/12) followed by S&P 500 (+1.29%) and Nasdaq (+1.25%). Stocks raced in to welcome the development of a corona vaccine, as well as hopes of a liquid fiscal stimulus in the US. Now that the FDA is back with the good news, the vaccine from Moderna is said to be meeting expectations for emergency use, which is a crucial step before full approval appears. Mass vaccination in the US has finally begun, but the number of cases that have died due to Covid-19 has more than 300,000 people. While fiscal stimulus is needed to maintain the momentum of US economic recovery. The stimulus is now being discussed by policymakers, whose value is up to USD908 billion. Moreover, the market will look forward to several data releases today, such as: 1) US Retail Sales; 2) US PMI Markit Manufacturing; 3) US Balance of Trade.

Domestic Update

• Indonesia’s external debt experienced lower growth,  recorded at USD413.4 billion at the end of October 2020, consisting of public debt (Government and Central Bank) of USD202.6 billion and private debt (including state-owned enterprises) of USD210.8 billion. Indonesia’s external debt at the end of October 2020 grew by 3.3% YoY, decreased from 3.8% YoY in the previous month, mainly influenced by lower growth of government external debt.
• Furthermore, there is an additional of 1.057 new Covid-19 cases in Jakarta yesterday.

Company News

1.        LPCK IJ targeting the pre-sales value at IDR1.4 trillion for FY21F. This value is 40% higher than the target set by LPCK this year of IDR1 trillion. The pre-sales target of LPCK in 2020 was fulfilled in November. This happened because the Waterfront Estates project was selling well. LPCK target in FY21F of which about 70% is contributed by affordable landed houses (Kontan). MNCS Comment: The need for landed houses will indeed be a strategy for property companies in 2021, due to the high backlog Property in Indonesia. PTBA is currently traded at 5.04x/0.39x PE/PBV.
2.        GIAA IJ stated that they had served 1.5 million passengers in 3Q20, which is only 18% of the total passengers served in 3Q19. While as of 9M20, GIAA has a total of 8.1 million passengers consist of 6.1 million in 1Q20 and 500.000 in 2Q20 followed  by the 3Q20. The number only reached 27.3% of 9M19 passengers (Investor Daily). MNCS Comment: The drop is natural due to the pandemic, while the 3Q20 passengers has gone up showing a recovery. We hope that the FY21F performance will be better with the reviving economy.
3.        UNIC IJ will distribute an interim dividend of IDR110 per share with a total 2020 interim dividend payment of IDR42.166 billion. The interim dividend distribution came from the net profit amounting to IDR 58.2 billion in 9M20. Thus, the 2020 interim dividend payout ratio will reach 72.33% with 2.51% yield. Cum date will fall on 21 December 2020 (Emiten News). MNCS Comment: We see that despite the pandemic, UNIC's performance went up and thus distribute dividend. Perhaps this is due to an increasing demand for chemicals. UNIC is currently traded at 6.17x/0.63x PE/PBV.

IHSG Updates

JCI slipped slightly by -0.04% to 6,010.13 on Tuesday (15/12) though followed by net foreign buy reaching IDR852.14 billion. JCI was flat as most of the sectors fell, but miscellaneous sector and infrastructure sector are still strong. Miscellaneous was backed by the increase on November car sales. Meanwhile, the Rupiah exchange rate was weakening at IDR14,120. We estimate JCI will move in the range of 6,000 – 6,020 while waiting for loan growth data release. Today's recommendation: MAPI, PGAS, TLKM, HMSP.

Corporate Action

RUPS: TUGU, KREN, IGAR

Disclaimer On

MAPI, PGAS, TLKM, HMSP, LPCK, GIAA, UNIC