Global Market Highlight
DJIA rose by +0.30% on Monday (29/03) while the S&P 500 and Nasdaq weakened by -0.09%/-0.60%. Wall Street close was mixed with the Dow closing at a record high, ignoring declines in energy and bank shares as Boeing rallied on a new order for 737 Max jets. Energy shares are still down 1% following swings in oil prices amid easing expectations of supply disruptions after a container ship blocking traffic on the Suez Canal has been freed. Meanwhile, technology stocks fell when the US bond yield surpassed 1.7%. Moreover, the market will look forward to several data releases today, such as: 1) US CB Consumer Confidence; 2) US House Price Index; 3) Germany Inflation Rate.
Domestic Update
• The United Arab Emirates or United Arab Emirates (UAE) government plans to invest in Indonesia's sovereign wealth fund (SWF). The United Arab Emirates government will inject funds amounting to USD10 billion, or the equivalent of IDR144.71 trillion. The fund will be focused on strategic sectors in Indonesia, such as infrastructure, roads, ports, tourism, agriculture, and other sectors that promote economic growth and social welfare.
• Furthermore, there was an addition of 1,014 new Covid-19 cases in Jakarta yesterday.
Company News
1. BBNI IJ will distribute dividends with a payout ratio of 25% of the net profit of around IDR 820.1 billion in FY20. The distribution of around 60% of dividends (IDR 492.58 billion) will be paid to the government. Meanwhile, dividends for shareholders whose names are registered as the Register of Shareholders (DPS), amounting to Rp327.52 billion or the equivalent of 40% (CNBC Indonesia). MNCS Comment: Although BBNI experienced a decline in earnings in FY20 (-78% YoY), the company was still able to provide dividends of around IDR 43.98/share with a yield of 0.73%. This dividend is lower than the average distribution for the last 3 years at Rp200-250/share, with a yield of ~3.33%. Currently BBNI is trading at 34.39x/1.02x PE/PBV.
2. BBCA IJ will distribute dividends with a payout ratio of 48% to IDR27.1 trillion from FY20 net profit with a cum dividend date on April 5, 2021. Dividends distributed will reach IDR530/share (minus interim dividends paid IDR98 in Dec-2020) (CNBC Indonesia). MNCS Comment: Although BBCA experienced a decline in net profit in FY20 (-5.14% YoY), the company still distributes dividends with a yield of around 1.3%. BBCA is currently trading at 28.90x/4.25x PE/PBV.
3. BRPT IJ posted revenue of USD2.33 billion in FY20, which decreased 2.8% YoY (vs USD2.4 billion in FY19). The decrease in BRPT's net income was due to the decline in petrochemical activity performance by 4.0% YoY from USD1.87 billion in FY19 to USD1.79 billion in FY20. However, cost of revenue also decreased from USD1.82 billion in FY19 to USD1.75 billion in FY20. BRPT posted a net profit of USD141 million in FY20 which increased 2.9% YoY (vs USD137 million in FY19) (Kontan). MNCS Comment: Despite the drop on top line, BRPT was able to maintain their bottom line by cutting cost of revenue. We believe BRPT would increase their performance as demands for basic chemical increase with the recovery. BRPT is trading at 182.70x/5.02x PE/PBV.
IHSG Updates
JCI dropped by -0.46% to 6,166.82 on Monday (29/03) followed by net foreign buy reaching IDR45.55 billion. JCI slumped on the first day of trading, as euphoria over the battery consortium faded, causing the mining sector to fall the deepest. This was followed by property, infrastructure and agri due to the drop on CPO price. On the other hand, basic industry and consumer sector managed to increase. Meanwhile, the Rupiah exchange rate was weakening at IDR14,445. We estimate JCI will move in the range of 6,128-6,240 while waiting for Markit Manufacturing PMI data release. Today's recommendation: PGAS, UNVR, INKP, LPKR.
Corporate Action
Stock Split: ERAA (1:5)
IPO: ZYRX (IDR250/share)
RUPS: TBIG
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