Global Market Highlight
DJIA rose by +0.67% on Friday (23/04) followed by S&P 500 (+1.09%) and Nasdaq (+1.44%). Wall Street managed to strengthen supported by data indicating an acceleration in economic activity and even faster growth in new home sales, while Biden would propose a hike in the capital-gains tax rate to 39.6% from 20% for individuals making more than USD1 million a year. Moreover, the market will look forward to several data releases today, such as: 1) US Durable Goods Orders; 2) US Dallas Fed Manufacturing Index; 3) Germany Ifo Business Climate.
Domestic Update
• Bank Indonesia released economic liquidity or money supply in a broad sense (M2) in March 2021, which continued to show positive growth, where M2 position in March 2021 was IDR 6,888.0 trillion or grew by 6.9% YoY, lower than growth of the previous month at 11.3% YoY. The slowdown occurred in all of its components, namely the narrow money supply (M1) of 10.8% YoY, lower than the previous month's growth of 18.6% YoY.
• Furthermore, there was an addition of 896 new Covid-19 cases in Jakarta yesterday.
Company News
1. EXCL IJ will distribute FY20 cash dividends amounting to IDR31.7/share or reaching IDR339 billion of the total net profit of FY20 (CNBC Indonesia).MNCS Comment: EXCL dividend distribution ratio of 50% of FY20 net profit or an increase compared to FY19 which reached 29.85% while the dividend yield offered was 1.55% or an increase compared to the FY19 yield of 0.77%. Currently EXCL is trading at 58.77x/1.14x PE/PBV.
2. LPPF IJ posted revenue of IDR1.16 trillion in 1Q21, which is down -24.98% YoY (vs IDR1.55 trillion in 1Q20). However, COGS also decreased from IDR631.40 billion in 1Q20 to IDR472.82 billion in 1Q21. LPPF posted a net loss of IDR95.35 billion in 1Q21 which is down 1.5% YoY (vs IDR93.95 billion in 1Q20) (Kontan). MNCS Comment: We see a decline in performance supported by the continuation of PSBB and micro-scale PPKM which are still being implemented until 2Q21. Tax incentives for retailers and shopping centers planned by the government are expected to be able to sustain even better performance this year. LPPF is currently trading at 8.88x PBV.
3. AKRA IJ recorded contract revenue of IDR5.11 trillion in 1Q21 which fell -19.04% YoY (vs IDR6.34 trillion in 1Q20). AKRA posted a net profit of IDR305 billion, up + 33.7% YoY (vs IDR228 billion in 1Q20) (Bisnis Indonesia). MNCS Comment: The performance of AKRA 1Q21 is in line with MNCS projections where revenue and net profit imply 25.53%/29.10% of the FY21E target. Improved gross and operating profit margins helped achieve an increase in profit in 1Q21. AKRA is trading at 10.68/1.41x PE/PBV.
IHSG Updates
JCI increased by +0.38% to 6,016.86 on Friday (23/04) followed by net foreign sell reaching IDR41.42 billion. JCI continues to strengthen which was driven by the significant strengthening of miscellaneous industry, followed by the financial, agriculture, mining and basic industry sectors. Meanwhile, the Rupiah exchange rate was weakening at Rp14,525. We estimate JCI will move in the range of 6,000-6,080 while waiting for the motorbike sales data release. Today's recommendation: ASII, BBNI, LSIP, BSDE.
Corporate Action
RUPS: ADRO
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