18 Mei 2020
MNCS Morning Navigator 18 May 2020
Global Market Highlight
DJIA rose by +0.25% on Friday (15/05) followed by the strengthening of S&P 500 (+0.39%) and Nasdaq (+0.79%). These rises was supported by a better outlook from consumer index which gone up to 73.7 at May 13 from 71.8 previous month, this surely indicates optimism within the market as the citizens await for a return to business as usual. Furthermore, the US Parliament announce another stimulus bill amounting to USD3 trillion as Covid-19 aid. The market will look forward to several data releases today, such as: 1) China House Price Index per May-2020; 2) Japan Tertiary Industry Index per Apr-2020; 3) US NAHB Housing Market Index per Apr-2020.
Domestic Updates
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Indonesia Balance of Trade recorded a deficit of USD350 million on April 2020. The deficit happened after 2 months of surplus in a row, with USD2.51 billion of surplus in February and USD743.4 million of surplus in March. The April deficit was derived from export amounting to USD12.19 billion, slipped by 7.02% YoY. While import is also dropped by 18.58% YoY to USD12.54 billion.
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ASTRA released April Auto Sales at 7,871 units, significantly dropped by 90.64% YoY. This is due to the Covid-19 outbreak that caused production to be hampered as well as slower demand in the midst of economic slowdown.
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Bank Indonesia released Foreign Debt position on 1Q20 which is at USD389.3 billion. The debt grew by 0.5% YoY, much lower than 7.8% YoY growth on 1Q19. The decrease is due to a decline in government debt by -3.6% YoY and a slower growth in private segment debt by +4.5% YoY in 1Q20. This condition was reflected in Indonesia's foreign debt to GDP by 34.5% in 1Q20, which is lower compared to the ratio in the previous quarter of 36.2%. BI evaluates that these flat results are still safe.
Company News
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BBTN net profit decreased by 36.79% YoY on 1Q20 to IDR457 billion from IDR723 billion in 1Q19. The decrease is due to a higher provision amidst the Covid-19 outbreak which stood at 105.66% previously from 45.07% in 1Q19. Net interest income is at the level of IDR6.17 trillion while PPOP at IDR870 billion. Meanwhile, loan grew by 4.59% YoY and cost of Fund decreased by 61 bps. (Emiten News)
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ITMG booked a decrease on revenue by 19.23% YoY to USD365.90 million on 1Q20 from USD453.02 million in 1Q19. This is due to a lower coal ASP in the first quarter which is at USD58.7/ton (-17% YoY) followed by a lower demand and worsened by the Covid-19 pandemic. Thus, net profit stood at USD15.40 million in 1Q20, decreased significantly by 61.20% YoY. (Kontan)
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ADRO recorded revenue at USD750 million (-11% YoY) in 1Q20. The decline in coal selling price by 17% YoY was still the cause of revenue slump on coal mining companies. Covid-19 pandemics also affected in lower coal demand. So net profit also dropped by 11.34% YoY to USD750.47 million in 1Q20. (Kontan)
IHSG Updates
JCI dropped by -0.14% to 4,507.61 on Friday (15/05) followed by a net foreign sell reaching IDR1.09 trillion. The index decreased amidst the weakening on the Asian indexes, despite the rise of the US indexes. Moreover, the releases of data such as the balance of trade, which recorded a deficit followed by a deep plunge of the automotive sales further suppressed the market and index movement. Meanwhile, the Rupiah exchange rate against the USD was appreciated at IDR14,860. We estimate JCI will move in the range of 4,441-4,660 while waiting for the Current Account and Property Price Index as of 1Q20. Today's recommendation: BBCA, MEDC, UNVR, AKRA.
Corporate Action
Cash Dividends: TOWR
RUPS: EXCL, HMSP, KLBF
Disclaimer On
BBTN,
ITMG,
ADRO,
BBCA,
MEDC,
UNVR,
AKRA
