18 Juni 2020
MNCS Morning Navigator 18 June 2020
Global Market Highlight
DJIA slipped by -0.65% on Wednesday (17/06) followed by S&P 500 (-0.36%) despite the rise in Nasdaq (+0.15%). These flat movements were still affected by the increase on Covid-19 cases in Arizona and Texas. While, the slight decrease on the indices was caused by aviation stocks such as United Airlines and Delta Airlines which fell by more than 1.8% followed by American Airlines, decreased by 0.3%. However, the technology stocks are still sustaining Nasdaq with Alphabet which rise 0.4%, followed by Amazon (+1%), Netflix (+2.7%) and Apple (+0.9%). Moreover, the market will look forward to several data releases today, such as: 1) UK Interest Rate Decision; 2) US Initial Jobless Claims; 3) Spain Balance of Trade.
Domestic Updates
Minister of Finance estimates that Indonesia's economic growth in the second quarter of 2020 will be contracted by 3.1%. This is in line with the forecast of a number of international institutions, which predict the Indonesian economy will be in the range of -3% to -6% in the April-June 2020 period. The contraction experienced by the Indonesian economy occurs due to the impact of the corona virus disease 2019 (Covid-19). Moreover, in the second quarter period, many regions carried out large-scale social restrictions (PSBB) which restricted domestic economic activities.
Company News
-
IPTV IJ posted consolidated revenue growth of 10% YoY to IDR842.7 billion in 1Q20 compared to the same period in the previous year of IDR764.7 billion. The main contributor to total revenue came from the direct to home (DTH) or satellite tv service segment (77%) which grew 16% YoY. The revenues from the digital, IPTV and broadband segments also grew significantly by 20% YoY. Furthermore, net profit was recorded at IDR40.8 billion. (Market Bisnis) MNCS comment: The increase in performance was due to the growth in viewers as well as watch time as people spend more time at home. IPTV is traded at 35.94x/2.47x PE/PBV.
-
KINO IJ has liquidated its joint venture with a Thai company, Malee Capital Company Limited (Malee) on Monday (6/15/2020). Meanwhile, there are no operational activities, financial conditions and business continuity affected as a result of the decision. (Market Bisnis) MNCS Comment: Liquidation was done as a form of streamlining the company's organizational structure and changes in the company's business model. KINO is traded at 18.16x/1.82x PE/PBV.
- HRTA IJ will be allocating capital expenditure (capex) of IDR58 billion in FY20E. It consists of IDR40 billion to add new machines, while the rest is for expansion or adding new outlets. HRTA also has collaborated with several e-commerce sites and developed online outlets called hrta.store. (Market Bisnis) MNCS Comment: We believe the digital strategy and new outlet expansion will be able to support the sales volume. HRTA is traded at 7.15x/0.90x PE/PBV.
IHSG Updates
JCI was flat, only grew by +0.03% to 4,987.78 on Wednesday (17/06), although followed by a net foreign sell reaching IDR757.58 billion. The movement is align with the strengthening on the Regional Asia indices, while investors and the market are waiting on the BI rate decision today, which the consensus estimated to be lowered by 25 bps to 4.25% from the current 4.5%, despite the bad news from the Ministry of Finance which estimates a deeper contraction in the domestic economy. Meanwhile, the Rupiah exchange rate against the USD was strengthening at IDR14,083. We estimate JCI will move in the range of 4,920-5,040 while waiting for Interest Rate Decision. Today's recommendation: BBRI, CTRA, PGAS, JSMR.
Corporate Action
Cum Dividend Date: PTBA
RUPS: JPFA, BBKP
Disclaimer On
BBRI,
CTRA,
PGAS,
JSMR,
IPTV,
KINO,
HRTA
