25 Juni 2020
MNCS Morning Navigator 25 June 2020
Global Market Highlight
DJIA dropped by 2.72% on Wednesday (24/06) followed by S&P 500 (-2.59%) and Nasdaq (-2.19%). The market has got caught up again in the crossfire of newly confirmed Covid-19 cases, trade protectionism and politics which dampened expectations of an economic recovery. Shares of companies primed to benefit from the economy reopening slipped: United Airlines (-8.3%), Carnival (-11.1%), Norwegian Cruise Line (-12.4%), Gap (-7.8%), Disney (-3.9%). Moreover, the market will look forward to several data releases today, such as: 1) US 1Q20 GDP Growth Rate; 2) US Durable Goods Orders; 3) ECB Monetary Policy Meeting Accounts.
Domestic Updates
Four State-Owned Enterprises (SOE) Banks officially gained funds from the government amounting to IDR30 trillion in line with the issuance of a new regulation from the Minister of Finance relating to banking liquidity assistance. The state-owned banks are namely: 1) PT Bank Mandiri Tbk (BMRI); 2) PT Bank Rakyat Indonesia Tbk (BBRI); 3) PT Bank Negara Indonesia Tbk (BBNI); 4) PT Bank Tabungan Negara Tbk (BBTN). The Minister of Finance claimed to have sent a letter to the Governor of Bank Indonesia (BI) to use government funds in the central bank and transferred it to the national bank. The goal is to encourage the economy and the real sector to recover.
Company News
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MIKA IJ will distribute dividends of IDR21/share for a total of IDR299.17 billion. This is equivalent to 40.97% of the FY19 net profit amounting to IDR730.14 billion, while dividend yield stood at 0.91%. The remaining IDR7.3 billion will be allocated as a reserve fund, and the rest will be recorded as retained earnings to increase working capital. (Market Bisnis) MNCS Comment: MIKA’s revenue rose by 18.13% YoY in FY19 so the dividend per share increased from IDR18/share to IDR21/share. MIKA is currently traded at 43.70x/7.32x PE/PBV.
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BMTR IJ will carry out additional capital through private placement as much as 1.53 billion or around 10% of all paid up and placed shares. The nominal value of shares to be issued is IDR100 per share. To get the approval of the shareholders, BMTR will hold an RUPS on 30 July 2020. (Kontan) MNCS Comment: The purpose of this private placement is to strengthen the Company's capital structure. BMTR is currently traded at 2.36x/0.28x PE/PBV.
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SMGR IJ will distribute dividends, deciding to distribute a dividend of IDR239.21 billion. This amount is equivalent to 10% of SMGR's net profit in 2019 which reached IDR2.39 trillion. The dividend per share is IDR40.33/ share with yield at the level of 0.42%. Cum date will be at 29 June 2020. (Kontan) MNCS Comment: We see a decrease in dividends this year, which is due to the Covid-19 pandemic. SMGR is currently traded at 21.88x/1.70x PE/PBV.
IHSG Updates
JCI rose by +1.75% to 4,964.74 on Wednesday (24/06), although followed by a net foreign sell reaching IDR250.73 billion. The increase occurred despite the decline on the global and regional Asia indices. Furthermore, the lower growth on loan data release to 3.04% MoM does not seem to affect the market. Meanwhile, the Rupiah exchange rate against the USD was strengthening at IDR14,130. We estimate JCI will move in the range of 4,880-5,020 while waiting for Motorbike Sales as of May 2020. Today's recommendation: MEDC, PGAS, BMRI, EXCL.
Corporate Action
Cum Dividend Date: PZZA, SRTG
RUPS: MEDC
Disclaimer On
MEDC,
PGAS,
BMRI,
EXCL,
MIKA,
BMTR,
SMGR
