30 Juni 2020
MNCS Morning Navigator 30 June 2020
Global Market Highlight
DJIA rose by +2.32% on Monday (29/06) followed by S&P 500 (+1.47%) and Nasdaq (+1.20%). This strengthening occurred led by the aviation sector after the US aviation authority issued a flight certification test permit such as Boeing (+14%) and Southwest Airlines (+9.36%). The decision of the US aviation authority is seen positively by the market as a signal of economic recovery in the US. Moreover, other various stocks followed the rise namely Apple (+2.3%), Facebook (+2.1%), Gap (+3.7%) and Kohler (+10.1%). The market seems to be optimist despite the staggering rise on the Covid-19 cases in the US making the total case reached 2.5 million. Moreover, the market will look forward to several data releases today, such as: 1) US Consumer Confidence; 2) UK GDP Growth; 3) China PMI Manufacturing.
Domestic Updates
The Minister of Finance explained that the realization of fiscal incentives for the health sector so far has only reached 4.68% of the total funds prepared at IDR87.55 trillion. This means that the funds disbursed are only IDR4.09 trillion. The realization of incentives for social protection was recorded at 34.06% of the total funds prepared amounting to IDR203.9 trillion. In other words, the funds that have been disbursed amounted to IDR69.44 trillion.
Company News
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ANTM IJ sales fell 16.35% YoY to IDR5.2 trillion in 1Q20. ANTM's revenue is still largely derived from gold sales of IDR3.97 trillion or 76% of total sales. Besides gold, ferronickel also contributed IDR965.95 billion or around 19% of total sales. ANTM experienced a foreign exchange loss of IDR362 billion. So that the company posted a loss of IDR281.84 billion in 1Q20. (Market Bisnis) MNC Comment: The drop in revenue is in line with restrictions on international export trade activities affected by the Covid-19 pandemic. ANTM is currently traded at 0.79x PBV.
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ACES IJ recorded sales growth of 4.53% YoY to IDR1.97 trillion in 1Q20. This achievement exceeded the company's expectations that previously estimated revenue performance would be depressed due to the corona virus pandemic (Covid-19). Previously, ACES estimated that revenue and net profit for 1Q20 would decrease by 25%. So ACES posted a net profit of IDR245.68 billion, increasing by 3.9% YoY in 1Q20. (Market Bisnis) MNC Comment: We see that the increase revenue on retails are due to the goods sold are useful such as hygiene and cleaning tool, so even in the midst of pandemic goods sold on ACES are still being sought. ACES is currently traded at 26.05x/5.21x PE/PBV.
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WSBP IJ recorded total revenue in 1Q20 of IDR753.6 billion, down 65% YoY (vs IDR 2.2 trillion in 1Q19). Meanwhile net profit was IDR104.5 billion or weakened 63.52% (vs. IDR 286.58 billion in 1Q19). (emitennews) MNC Comment: During Covid-19 pandemic, construction became one of the most impacted sectors. WSBP is currently traded at 0.72x PBV.
IHSG Updates
JCI was flat by -0.05% to 4,901.82 on Monday (29/06), followed by a net foreign sell reaching IDR603.64 billion. This flat movement recurred amid the weakening on Regional Asia while the US indices rose. We are expecting a potential minor window dressing at the end of 2Q20 today. Furthermore, there was an additional 1,082 Covid-19 cases making the total case reached 55,092 in Indonesia. By average the daily case increase is around 1000 cases. Meanwhile, the Rupiah exchange rate against the USD was weakening at IDR14,245. We estimate JCI will move in the range of 4,816-5,020 while waiting for Inflation Rate as of June 2020. Today's recommendation: CPIN, PTBA, BBNI, MAPI.
Corporate Action
Ex Dividend Date: SMGR, TLKM
RUPS: HOKI
Disclaimer On
CPIN,
PTBA,
BBNI,
MAPI,
ANTM,
ACES,
WSBP
