Global Market Highlight
DJIA dropped by -1.75% on Thursday (25/02) followed by S&P 500 (-2.45%) and the Nasdaq (-3.52%).Wall Street dropped with the Nasdaq fell the deepest in four months, as technology-related stocks remained under pressure following a rise in US bond yields. On the other hand, the lack of new developments around the stimulus and the winding down of the earnings season have caused uncertainty in the market. Moreover, the market will look forward to several data releases today, such as: 1) US PCE Price Index YoY; 2) US Michigan Consumer Sentiment; 3) US Goods Trade Balance.
Domestic Update
• The Ministry of Health stated that around 7.2 million doses of the Covid-19 vaccine had been distributed for the second phase of vaccination throughout the province.
• The FY21 State Budget (APBN) report shows that in January 2021, the realization of tax revenues was IDR68.5 trillion (-15.3% YoY). Tax revenues consist of: 1) Income tax (PPh) of oil and gas (oil and gas) amounting to IDR2.3 trillion (-19.8% YoY); 2) Non-oil and gas tax of IDR66.1 trillion (-15.2% YoY).
• Furthermore, there was an addition of 1,581 new Covid-19 cases in Jakarta yesterday.
Company News
1. ASII IJ recorded a -26% YoY decline in revenue to IDR175.05 trillion in FY20 (vs IDR237.17 trillion FY19). Net income was recorded at IDR16.16 trillion in FY20 or -26% YoY (vs IDR21.71 trillion FY19) (CNBC Indonesia). MNCS Comment: We see that the 50% YoY drop on car sales and the 41% YoY decrease on motorbike sales have affected ASII's performance significantly. But we believe with the PPnBM incentive, ASII would be benefited as most of their car types would get the incentive. Currently ASII is trading at 13.96x/1.45x PE/PBV.
2. INTP IJ records cement sales reaching nearly 1.4 million tons in January 2021 or -6.67% YoY (vs 1.5 million tons in December 2020). Meanwhile, total INTP FY20 sales was 16.5 million tons, 8% lower YoY (Kontan). MNCS Comment: Cement sales in January 2021 are better than the same period last year. The forecast for cement sales in 2021 will be relatively better due to SWF sentiment. INTP is currently trading at 32.26x/2.15x PE/PBV.
3. UNTR IJ recorded revenue of IDR60.34 trillion in FY20 or a decrease of 28.52% YoY (vs IDR84.43 trillion in FY19). The biggest decrease in revenue was from the construction sector which fell by 69.53% YoY to IDR1.2 trillion in FY20, followed by the construction machinery sector -46.49% YoY to IDR18.94 trillion. Namely the profit attributable to the parent entity fell 46.9% YoY to IDR 6 trillion (vs IDR11.3 trillion FY19) (Bisnis Indonesia). MNCS Comment: We see that the decline in UNTR was due to the drop on heavy equipment segment, as business activities were limited and demand slumped. We hope that the FY21E operational will be better and demand returns while the gold and coal mines will be benefited from the increase in commodity prices this year. UNTR is trading at 14.70x/1.46x PE/PBV.
IHSG Updates
JCI rose by +0.62% to 6,289.65 on Thursday (25/02) followed by net foreign buy reaching IDR61.34 billion. JCI rose again, supported by the strengthening of almost all sectors except consumer and miscellaneous industries. Infrastructure led the increase, followed by the mining sector as the commodity prices are still quite high with nickel almost hitting USD20,000/mt. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,082. We estimate JCI will move in the range of 6,173-6,315 while waiting for Loan growth data release. Today's recommendation: BBTN, TLKM, ACES, UNVR.
Corporate Action
RUPS: MOLI, ASJT, BCIP
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