MNCS Morning Navigator 22 December 2020

Global Market Highlight

DJIA rose by +0.12% on Monday (21/12) followed by the weakening S&P 500 (-0.39%) and Nasdaq (-0.10%). Wall street closed indifferently due to a  mixed sentiments from the agreed stimulus package of USD900 billion while concerns rose for the mutating Covid-19 virus in UK which seems to be more contagious. Moreover, the market will look forward to several data releases today, such as: 1) US GDP Growth Rate; 2) US CB Consumer Confidence; 3) UK GDP Growth Rate.

Domestic Update

• The Minister of Finance ensures that there will be a stamp duty of IDR 10,000 per trade confirmation for all transactions within a day. However, this policy will not be implemented right on January 1, 2021 for transactions on the Indonesia Stock Exchange because there are still infrastructure preparations.
• The Jakarta Governor decide to extend PSBB until January 3, 2021. This is due to the stable case increase in Jakarta at 13% following the inability for hospitals to admit more patients.
• Furthermore, there is an additional of 1.446 new Covid-19 cases in Jakarta yesterday.

Company News

1.        AMRT IJ along with Pertamina and MIDI are developing the Bright Store business at gas stations outside Java. The target of 40 Bright Stores outside Java Island will simultaneously be changed to Bright by Alfamart or Alfamidi which refers to three pilot outlets in the Greater Jakarta area and 250 Alfamarts in the Pertamina gas station area which will also be changed to Bright by Alfamart in stages. The next stage for the development of Co-Branding is not only in the Regular Gas Station area but for all fuel distribution agencies such as Pertashop (Emiten News). MNCS Comment: The strategy would also increase AMRT store expansion and goods distribution outside Java which we hope will impact significantly on AMRT's performance. AMRT is currently traded at 31.36x/4.66x PE/PBV.
2.        BBTN IJ preparing cash funds worth a total of IDR19.9 trillion to ensure the funding needs of its customers during the Christmas 2020 and New Year 2021 holidays. During the long holiday period, BBTN projects a cash need of IDR1.42 trillion per day. The liquidity requirement is 1.35x the maximum liquidity of the Branch Office. BBTN has allocate IDR4.9 trillion in Automatic Teller Machines (ATMs) throughout Indonesia. Then, about 75% of the remaining or equivalent to IDR14.9 trillion is allocated for cash at Branch Offices, Sub-Branch Offices, and Cash Offices of Bank BTN (Emiten News). MNCS Comment: BBTN has well-preparing the upcoming cash demand regarding the holiday assuming that there will be an increase on consumptions especially for eating out and buying gifts. BBTN is currently traded at 1.20x PBV.
3.        JSKY IJ posted a revenue that fell by -46.89% YoY to IDR189.96 billion in 3Q20. The majority of sales came from the solar system business (IDR97.70 billion), solar panels (IDR69.84 billion), and batteries (IDR19.20 billion). Net profit for amounting to IDR17.14 billion which dropped by -34.27% YoY in 3Q20 (Kontan). MNCS Comment: It seems that the drop on top line can be offsetted by reducing costs so that the bottom line does not drop as low. JSKY is currently traded at 21.69x/2.11x PE/PBV.

IHSG Updates

JCI increased by +1.00% to 6,165.63on Monday (21/12) followed by net foreign buy reaching IDR88.08 billion. JCI strengthened again backed strongly by mining and agriculture sector. We believe that the increase was in response of the agreed stimulus which has brought up optimism within the market. Meanwhile, the Rupiah exchange rate was weakening at IDR14,130. We estimate JCI will move in the range of 6,013 – 6,220 while waiting for loan growth data release. Today's recommendation: ADRO, CPIN, BBTN, ASRI.

Corporate Action

Cum Dividend Date: META (IDR2/share)

RUPS: BBKP, AYLS

Disclaimer On

ADRO, CPIN, BBTN, ASRI, JSKY, AMRT, BBTN