Global Market Highlight
DJIA dropped by -0.39% on Tuesday (16/03) followed by S&P 500 (-0.16%) while Nasdaq remains flat (+0.09%).Wall Street weakened due to the fell in cyclical stocks, while tech cut some gains after US bond yields bounced off lows as investors fretted over the Fed's decision due Wednesday. On the economic front, retail sales fell by more than expected due to weather-related events as a cold snap wreaked havoc across the US. Moreover, the market will look forward to several data releases today, such as: 1) US MBA Mortgage Applications; 2) Japan Balance of Trade; 3) Eurozone Core Inflation Rate YoY Final.
Domestic Update
• The government will increase the sales tax rate on luxury goods (PPnBM) to 14% for electric cars, depending on the type of electric car based on the impact of carbon emissions. The PPnBM rate increase policy consists of 2 schemes for PHEV (conventional machines and batteries) and for BEV (batteries) there is no PPnBM / 0% increase.
• Furthermore, there was an addition of 835 new Covid-19 cases in Jakarta yesterday.
Company News
1. BMRI IJ will distribute dividends with 60% payout ratio amounting to IDR10.27 trillion from the FY20 net profit. BMRI will give dividends of IDR6.16 trillion to the state treasury and the remaining 40% will become retained earnings. The dividend stood at IDR220/share with a 3.36% yield (CNBC Indonesia). MNCS Comment: We see that BMRI is still able to provide dividends to investors in the midst of economic conditions that have not yet recovered with an attractive dividend yield of 3.36%. Currently BMRI is trading at 17.86x/1.62x PE/PBV.
2. TBLA IJ posted revenue of IDR10.86 trillion in FY20 or increased 27.31% YoY (vs IDR8.53 trillion in FY19). However, COGS also increased by 28% YoY to IDR8.23 trillion in FY20. TBLA posted a net profit of IDR678.02 billion in FY20 which increased 2.29% YoY (vs IDR662.82 billion in FY19) (Bisnis.com). MNCS Comment: TBLA's good performance will continue until FY21E, supported by the increase in CPO and sugar prices. In addition, the refined glycerine factory expansion and sugarcane expansion will start in FY21. TBLA is currently trading at 7.60x/0.88x PE/PBV.
3. BJBR IJ posted revenue of IDR6.5 trillion in FY20 or increased 6.16% YoY (vs IDR6.08 trillion in FY19). Meanwhile, net profit stood at IDR1.68 trillion in FY20 or increased by 8% YoY (vs IDR1.56 trillion in FY19). The increase in net profit exceeded the banking industry, which recorded a contraction of 33% in FY20 (CNBC Indonesia). MNCS Comment: The good performance of BJBR was supported by loan disbursement which increased by 9.1% YoY and TPF which grew by 19.1% YoY. In addition, NPL was suppressed at the level of 1.4% (-18bps). BJBR is trading at 9.36x/1.32x PE/PBV.
IHSG Updates
JCI fell by -0.23% to 6,309.70 on Tuesday (16/03) followed by net foreign sell reaching IDR256.93 billion. JCI continues to fall due to profit taking but we see this as a healthy correction as JCI still has the potential to strengthen. On the other hand, the trading sector and miscellaneous industry still increase. Meanwhile, the Rupiah exchange rate was weakening at IDR14,410. We estimate JCI will move in the range of 6,276-6,350 while waiting for the BI interest rate decision. Today's recommendation: INTP, ADRO, LSIP, TOWR
Corporate Action
Cum Dividend Date: ARNA (IDR30/share)
RUPS: JTPE
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