27 Mei 2020
MNCS Morning Navigator 27 May 2020
Global Market Highlight
DJIA rose by +2.17% on Tuesday (26/05) followed by the increase of S&P 500 (+1.23%) and Nasdaq (+0.17%). The increase was caused by the market optimism in regard of the coronavirus vaccine and new normal life expectations that will trigger the revival of economy after a few months of lockdown. Novavax, one of the US biotechnology companies, is also developing a corona vaccine and will begin clinical trials of its products in Australia which got a positive response. The market will look forward to several data releases today, such as: 1) China Industrial Profits per Apr-2020; 2) France Consumer Confidence per Apr-2020; 3) US MBA Mortgage Application per Apr-2020.
Domestic Updates
Jakarta Government plans to re-open some shopping center as of June 5, 2020. This will be a catalyst for some retailers namely MAPI, MAPA, LPPF, ACES and RALS as they can regain revenue from offline store. Besides, mall operators such as SMRA, PWON, CTRA and LPKR can receive rent revenue from retailers after a few months of lockdown. Although these shopping centers reopening are still proceed with caution as stated in the Decree of the Minister of Health No. HK.01.07/MENKES/328/2020 concerning Guidelines for the Prevention and Control of COVID-19 in Office and Industrial Workplaces.
Company News
-
SMRA booked marketing sales of IDR855 billion in 1Q20 or equals to 19% of FY20E target of IDR4.5 trillion. Summarecon Serpong remains the major contributor with 41% followed by Summarecon Bekasi (28%) and others. This realization decreased by 22.27% YoY from IDR1.1 trillion in 1Q19. This is due to the Covid-19 pandemics that occurred in early 2020. The government plans to reopen shopping centers in early June will benefit SMRA. SMRA is currently traded at 12.19x/0.85x PE/PBV. (Market Bisnis)
-
INTP only operates 3 out of 10 factories in Citeureup due to the Covid-19 pandemics. This will impact <25% of the total revenue. Although management ensures that it will not affect the fulfillment short term liabilities as INTP has zero debt. Some mitigation measures are taken including efficiency in all fields including distribution cost efficiency. INTP is currently traded at 22.26x/1.77x PE/PBV. (Kontan)
-
JSMR reported up to 55,776 vehicles return to Jakarta from the East, West and South on the second day of Eid Al-Fitr. The traffic volume dropped by 63% YoY compared to last year. JSMR appealed to toll road users to actively participate in preventing Covid-19 transmission and to keep social distancing. JSMR is currently traded at 12.96x/1.53x PE/PBV. (Kontan)
IHSG Updates
JCI increased by +1.78% to 4,626.80 on Tuesday (26/05) although followed by a net foreign sell reaching IDR220.43 billion. The index escalation was due to the lockdown easing progress in Jakarta as the President monitors some locations followed by the announcement of shopping centers reopening in early June. Furthermore, the citizens optimism rises as they embrace a new normal life in the coming month. Meanwhile, the Rupiah exchange rate against the USD was depreciated at IDR14,755. We estimate JCI will move in the range of 4,600-4,700 while waiting for the Loan Growth and Money Supply of Apr-2020. Today's recommendation: BBCA, ICBP, SMRA, ASII.
Corporate Action
Cash Dividend Date: KINO, WSBP, TOWR
Disclaimer On
BBCA,
ICBP,
SMRA,
ASII,
INTP,
JSMR
