Global Market Highlight
DJIA rose by +0.48% on Friday (16/04) followed by S&P 500 (+0.36%) and Nasdaq (+0.10%). Wall Street beamed optimism as the recovery from the Covid-19 pandemic was reflected on the US economic data, including retail sales and weekly jobless benefit claims. On the other side, massive fiscal stimulus, vaccine rollout, and earnings release also supported the sentiment. Moreover, the market will look forward to several data releases today, such as: 1) Eurozone Current Account; 2) Japan Balance of Trade; 3) Japan Industrial Production.
Domestic Update
• Bank Indonesia predicts inflation in April 2021 at 0.15% MoM. On a calendar year basis of 0.60% YTD and an annual basis of 1.44% YoY. The main contributors to April 2021 inflation were chicken, oranges, red chilies, cooking oil and beef.
• Furthermore, there was an addition of 950 new Covid-19 cases in Jakarta yesterday.
Company News
1. MAPI IJ posted revenue of IDR14.84 trillion in FY20, Which decreased 31% YoY (vs IDR21.63 trillion in FY19). However, COGS also decreased from IDR11.32 trillion in FY19 to IDR8.66 billion in FY20. MAPI posted a net loss of IDR553.71 billion in FY20 (vs IDR933.49 billion of net profit in FY19) (Bisnis Indonesia). MNCS Comment: We see that low consumer spending along with social restrictions are still the main obstacles to MAPI's performance. Digital platform development and traffic growth which is predicted to grow in 2Q21E are expected to help MAPI's performance improve. Currently MAPI is trading at 2.47x PBV.
2. ASRI IJ posted revenue of IDR1.41 trillion in FY20, Which decreased 59.36% YoY (vs IDR3.47 trillion in FY19). However, COGS also decreased from IDR1.27 trillion in FY19 to IDR816.69 billion in FY20. ASRI posted a net loss of IDR1.03 trillion in FY20 (vs IDR1.01 trillion of net profit in FY19) (CNBC Indonesia). MNCS Comment: The low absorption of marketing sales and the depreciation of the rupiah caused ASRI to experience a net loss in FY20. ASRI is expected to be able to improve its performance in FY21E. ASRI is currently trading at 0.44x PE/PBV.
3. JPFA IJ will distribute FY20 cash dividends amounting to IDR40 / share or reaching IDR467.52 billion of the total FY20 net profit of IDR916.71 billion. Date of Cum dividend on 23 April 2021 (Kontan). MNCS Comment: JPFA dividend payout ratio of 51% of FY20 net profit or an increase compared to FY19 which reached 13.25% while the dividend yield offered is 1.81% or an increase compared to FY19 yield of 1.67%. JPFA is trading at 28.27/2.43x PE/PBV.
IHSG Updates
JCI closed higher by +0.11% to 6,086.26 on Friday (16/04) followed by net foreign buy reaching IDR296.97 billion. JCI movement was still driven by a significant increase of 2%, especially from the commodity sector such as mining and agriculture, whereas commodity prices strengthened at the previous close. Meanwhile, the Rupiah exchange rate was strengthening at Rp14,565. We estimate JCI will move in the range of 5,900-6,100 while waiting for the Interest Rate Decision. Today's recommendation: BRPT, INDF, ITMG, MAPI.
Corporate Action
Cum Dividend Date: BNGA (IDR44.06/share), UNTR (IDR473/share)
Cum Rights Issue: FREN (IDR120/share)
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