26 Mei 2020
MNCS Morning Navigator 26 May 2020
Global Market Highlight
DJIA decreased by -0.04% on Friday (22/05) although followed by the increase of S&P 500 (+0.24%) and Nasdaq (+0.43%). These flat movements was caused by the lukewarm condition in the market such as the lockdown easing in the US while the successful research from Moderna still leaves a question mark as it has not been confirmed by the authorities. Meanwhile, the US celebrated Memorial Day on Monday (25/5) and so the market was closed and will re-open on Tuesday. The market will look forward to several data releases today, such as: 1) US Consumer Confidence per Apr-2020; 2) US new Home Sales per Apr-2020; 3) Germany Consumer Confidence per Apr-2020.
Domestic Updates
Indonesia's current account deficit is recorded at USD3.9 billion in 1Q20 or 1.4% of GDP from 2.8% the previous quarter, as imports fell and the deficit in services shrank. This is as expected as BI has predicted that CAD could be maintained at 1.5% in 1Q20. The country's financial and capital accounts had a USD2.9 billion deficit in January-March, compared with the previous three-month's USD12.6 billion surplus, due to portfolio outflows related to the COVID-19 pandemic. Indonesia's Balance of Payments in 1Q20 recorded a deficit of USD8.5 billion, following a USD4.3 billion surplus in the 4Q19. While and the position of foreign exchange reserves at the end of March 2020 was recorded at USD121.0 billion.
Company News
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INDF posted net sales of IDR19.30 trillion in 1Q20 (+0.70% YoY) from IDR19.16 trillion in 1Q19. On the other hand, operating expenses slipped by 2.62% YoY from IDR13.37 trillion in 1Q19 to IDR13.02 trillion in 1Q20. The sales growth and the decrease in operating expenses made INDF to record a profit of IDR1.40 trillion in 1Q20, rose by 4% YoY compared to 1Q19 which amounted to IDR1.34 trillion. INDF is currently traded at 11.37x PE. (Market Bisnis)
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ICBP signed an agreement with Pinehill Corpora Limited and Steele Lake. The transaction was signed on Friday (22/5) and is worth USD2.99 billion or equivalent to IDR44.25 trillion the acquisition fee reached USD300 million and will be paid with with internal cash generated from business activities. The rest will be financed from loan facilities from banking institutions. ICBP is currently traded at 19.70x PE. (Kontan)
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KLBF will distribute IDR937.5 billion of FY19 net profit as cash dividends with dividend per share at IDR20/share. The total net profit in FY19 reached IDR2.51 trillion so the Dividend Payout Ratio (DPR) is 37.3%. While in the previous year, the DPR was higher around 49% to 50%. The ex Dividend Date in the Regular Market & Negotiation Market will be on June 2, 2020 followed by recording date on June 3, 2020. KLBF is currently traded at 24.34x PE. (Kontan)
IHSG Updates
JCI slipped by -0.06% to 4,548.66 on Wednesday (20/05) although followed by a net foreign buy reaching IDR16.54 billion. The flat index movement was due to the release of a widened current account deficit in 1Q20 which will affect the domestic economy. This was followed by the unchanged BI rate on the level of 4.50% while the consensus estimated a 25 bps rate cut. Meanwhile, the Rupiah exchange rate against the USD was appreciated at IDR14,710. We estimate JCI will move in the range of 4,500-4,600 while waiting for the Money Supply of Apr-2020. Today's recommendation: INCO, ICBP, TKIM, BBRI.
Corporate Action
Ex Dividend Date: KINO, WSBP
Disclaimer On
INDF,
ICBP,
KLBF,
INCO,
TKIM,
BBRI
