Global Market Highlight
DJIA rose by +0.41% on Thursday (27/05) followed by S&P 500 (+0.12%) while Nasdaq weakened by -0.01%. Wall Street closing was mixed along with the improving signs of the labor market. Initial jobless claims fell by 38,000 to 406,000 on May 22, the lowest level since March 2020 that beat economists' forecasts for a decline to 425,000. The Financial Sector also strengthened following a new rate hike as the yield on the 10-year Treasury rose above 1.6%. Moreover, the market will look forward to several data releases today, such as: 1) US Core PCE Price Index; 2) US Michigan Consumer Sentiment Final; 3) Japan Unemployment Rate.
Domestic Update
• The results of the Bank Indonesia Residential Property Price Survey (SHPR) indicate that residential property sales increased by +13.95% YoY in 1Q21 (vs -20.59% YoY in 4Q20). However, residential property prices slightly grew by +1.35% YoY, in 1Q21. Property development financing, which comes from the developer's internal funds, reaches 65.45% of the total capital requirement. From the consumer side, KPR facilities are the main preference for financing sources in the purchase of residential property with a share of 73.67% of total financing (Bank Indonesia).
• Furthermore, there was an addition of 940 new Covid-19 cases in Jakarta yesterday.
Company News
1. HMSP IJ will distribute an FY20 cash dividend of around IDR72.8/share or IDR8.47 trillion of the total FY20 net profit of IDR8.58 trillion (Bisnis Indonesia). MNCS Comment: The dividend payout ratio HMSP is 98% of FY20 net income, while the dividend yield offered is 5.64%, this value is lower than the FY19 yield of 6.49%. HMSP is trading at 14.50/4.57x PE/PBV.
2. ADHI IJ booked new contracts of IDR3.6 trillion in 4M21. ADHI targets the acquisition of new contracts in FY21E of IDR24 trillion or an increase of 20% YoY. Currently, the company is participating in the investment tender for the Jakarta Outer Ring Road (JORR) toll road project for the Cikunir-Ulujami or JORR Express segment, which is expected to be followed by the end of this year. In addition, ADHI will also participate in six railway packages in the Philippines (Emiten News). MNCS Comment: ADHI continues to strive to optimize new contracts on several toll roads and other infrastructure, to improve performance after being affected by Covid-19 in FY20. ADHI is currently trading at 130.67/0.63x PE/PBV.
3. KLBF IJ will distribute an FY20 cash dividend of IDR22/share after previously distributing an interim dividend of IDR6/share in Dec-2020. Thus, the total dividends distributed to shareholders from the financial year FY20 amounted to IDR28/share or reached IDR1.6 trillion of the total FY20 net profit of IDR2.73 trillion (Kontan). MNCS Comment: The dividend payout ratio of KLBF is 47% of FY20 net profit or an increase compared to FY19 which reached 37%, while the total dividend yield offered is 1.97% or an increase compared to the FY19 yield of 1.44%. Currently KLBF is trading at 23.23x/3.63x PE/PBV.
IHSG Updates
JCI rose by +0.45% to 5,841.83 on Thursday (27/05) while net foreign sell reaching IDR84.40 billion. JCI rose along with a positive sentiment from the property data release. Subsequently, industrial, non-cyclical and infra sectors supported JCI movement, while finance and health fell. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,288. We estimate JCI will move in the range of 5,735-6,005 while waiting for the PMI Markit Manufacturing data release. Today's recommendation: INCO, UNTR, ACES, EXCL.
Corporate Action
Cum Dividend Date: NELY (IDR10/share), BYAN (IDR1,295/share), CLEO (IDR2.5/share)
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