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MNCS Morning Navigator

29 Maret 2021

MNCS Morning Navigator 29 March 2021

Global Market Highlight

DJIA rose by +1.39% on Friday (26/03) followed by S&P 500 (+1.66%) and Nasdaq (+1.24%).Wall Street closed higher supported by a buying pressure with energy and technology leading the gain. Energy stocks racked up gains as oil prices rose 4%. Financials also participated in the broader market rally following a bid in banks after the Federal Reserve gave banks the green light to resume dividends and stock buybacks after June 30. Moreover, the market will look forward to several data releases today, such as: 1) US Dallas Fed Manufacturing Index; 2) UK Mortgage Approvals; 3) UK Mortgage Lending. 

 

Domestic Update

• The Ministry of State-Owned Enterprises (BUMN) officially announced the establishment of the Indonesia Battery Holding (IBH), with the full name of the Indonesia Battery Corporation (IBC), which was formed to manage the integrated battery industry from upstream to downstream in the country. This holding company will consist of four state-owned companies including MIND ID, Antam, PLN, and Pertamina which are targeted to be formed in 1H21 and are expected to start operating in 2025. The investment value of this project reaches IDR238 trillion and will invite LG Energy Solution from South Korea and Contemporary Amperex Technology Co. Limited (CATL) from China (CNBC Indonesia).

• Furthermore, there was an addition of 1,470 new Covid-19 cases in Jakarta yesterday.

 

Company News

1. UNTR IJ managed to record significant sales volume growth in the first two months of 2021. UNTR through its subsidiary PT Tuah Turangga Agung managed to sell 2.62 million tons of coal for the first two months of this year, which increased 38.5% YoY. UNTR's total coal sales in 2021 consisted of 2.04 million tons of low-calorie coal and 553,000 tons of high-calorie coal (Bisnis.com). MNCS Comment: We see that demand over coal is still increasing which further push the price up. We hope this will increase the coal mining performance of UNTR. Currently UNTR is trading at 13.61x/1.36x PE/PBV.

2. WSKT IJ posted revenue of IDR16.19 trillion in FY20,Which decreased 48.73% YoY (vs IDR31.39 trillion in FY19).While, Cost Of Revenue also decreased from IDR25.78 trillion in FY19 to IDR18.17 trillion in FY20. Thus, WSKT posted a net loss of  IDR7.38 trillion in FY20 (vs IDR938.14 million net profit in FY19) (CNBC Indonesia). MNCS Comment: Along with the covid-19 construction sector affected by the lack of new contracts and tenders. In addition, delays in several projects have also resulted in a lack of income. WSKT also underwent an asset revaluation, which put pressure on the company's profit. WSKT is currently trading at 2.43x PBV.

3. WIKA IJ posted revenue of IDR16.53 trillion in FY20,Which decreased 39.23% YoY (vs IDR27.21 trillion in FY19). While,Cost Of Revenue also decreased from IDR23.73 trillion in FY19 to IDR15.01 trillion in FY20.WIKA posted a net profit of  IDR185.76 million in FY20 which decreased 91.87% YoY (vs IDR2.28 trillion in FY19) (CNBC Indonesia). MNCS Comment: The delay in several works has resulted in a decrease in the company's burn rate, and has suppressed FY20 net profit. WIKA is trading at 216.47x/1.07x PE/PBV.

 

IHSG Updates

JCI soared by +1.19% to 6,195.56 on Friday (26/03) followed by net foreign buy reaching IDR294.94 billion. The strengthening of the JCI was still supported by the strengthening of all sectors, especially mining and miscellaneous industries. This was supported by the formation of Battery Holding which pushed mining stocks to strengthen. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,418. We estimate JCI will move in the range of 6,100-6,240 while waiting for Markit Manufacturing PMI data release. Today's recommendation: ANTM, JSMR, BBTN, PTPP.

 

Corporate Action

RUPS: BBNI, BBCA, PTBA

 

Disclaimer On

 

ANTM, JSMR, BBTN, PTPP, UNTR, WSKT, WIKA

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