Global Market Highlight
DJIA dropped by -2.29% on Monday (26/10) followed by S&P 500 (-1.86%) and Nasdaq (-1.64%). Stocks on Monday ended sharply lower as Covid-19 infections surged, stimulus negotiations remained stalemated and investors prepared for the presidential election just more than a week away. White House stated that while stimulus talks continued, President Donald Trump can’t accept parts of the plan the Democrats have proposed. Moreover, the market will look forward to several data releases today, such as: 1) US CB Consumer Confidence; 2) US Durable goods Orders; 3) Spain Unemployment Rate.
Domestic Update
Pre-Working Program Management stated there are 373,745 memberships that have been revoked amounting to IDR1.32 trillion. This number comes from batch 1 pre-work to 9 pre-work competitions. The pre-employment card program recipients received government assistance of IDR3.55 million. The assistance consists of job survey incentives of IDR150,000, training incentives of IDR1 million which cannot be disbursed (for training costs) and incentives for completion of training of IDR 600,000 per month for 4 months.
Company News
1. TBIG IJ recorded revenue of IDR3.93 trillion in 9M20 which increased by 13.49% YoY. Revenues from Telkomsel amounted to IDR1.54 trillion or 39.27% of total revenue followed by revenue from ISAT at IDR845 billion (21.48%), EXCL at IDR667 billion, PT Hutchison 3 Indonesia at IDR576 billion (14.64%), FREN at IDR193 billion (6.94%), and others IDR27 billion. Meanwhile, net profit reached IDR747 billion in 9M20, grew significantly by 22.26% from IDR611 billion in 9M19 (Market Bisnis). MNCS Comment: Tower sector become one of the most resilient in the midst of pandemic which is benefitted from the rising data consumption. TBIG is currently traded at 35.00x/5.58x PE/PBV.
2. ACST IJ revenue fell by -68.7% YoY to IDR960.73 billion in 9M20. The largest decrease in revenue occurred in the construction services segment for third parties by -71.59% YoY to IDR730.86 billion while this is followed by a decrease in general and administrative expenses to IDR118.14 billion. Due to lower revenue, ACST posted a loss for the period of IDR752.75 billion in 9M20 (Kontan). MNCS Comment: ACST performance was already weakening while the pandemic is also poorly affecting the construction sector. As of now, there has not been any new infra structure tender.
3. ASII IJ will be distributing dividends amounting to IDR1.09 trillion or equals to IDR27/share. Dividend yield stood at 0.5%. Cum date will be at October 6, 2020 while payment date will be at October 27, 2020 (Market Bisnis). MNCS Comment: The current interim dividend is the smallest or halved from the usually distributed at least IDR55/share. Though ASII's profit rose in the 1H20 but it was due to a sales of an entity. ASII is currently traded at 9.35x/1.42x PE/PBV.
IHSG Updates
JCI rose by +0.62% to 5,144.05 on Monday (26/10) followed by net foreign buy reaching IDR127.99 billion. JCI strengthened again amid various Regional Asia indices movement. The increase was supported by property sector still pushed by the Omnibus Law sentiment that will positively affect the sector, followed by agriculture boosted by CPO from the upcoming shortage, and finance following the release of 3Q performance that some banks posted beyond estimation. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,650. We estimate JCI will move in the range of 5,067 – 5,182 while waiting for money supply data release. Today's recommendation: PGAS, BBCA, ICBP, WIKA.
Corporate Action
RUPS: EXCL
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