MNCS Morning Navigator

31 Mei 2021

MNCS Morning Navigator 31 May 2021

Global Market Highlight
DJIA rose by +0.19% on Friday (28/05) followed by S&P 500 (+0.08%) and Nasdaq (+0.09%). Wall Street closed higher with support from data confirming an economic recovery, despite inflation running at its highest annual rate in about 13 years. While the market is concerned that the rising inflation could lead to tapering,which could prompt a rise in 10-year Treasury yields. Moreover, the market will look forward to several data releases today, such as: 1) China NBS Manufacturing PMI; 2) Germany Inflation Rate; 3) Japan Retail Sales.

Domestic Update
• The State Revenue and Expenditure Budget Report (APBN) notes that until the end of April 2021, the realization of income tax revenue (PPh) had increased by 0.48% YoY, equivalent to IDR81.18 trillion. This amount has reached 37.74% of the outlook for Corporate Income Tax at the end of 2021 which is IDR215.08 trillion. This shows that the condition of the company is relatively better so that the revenue (corporate income tax) increases at the time of payment in April (Kontan).
• Furthermore, there was an addition of 1,064 new Covid-19 cases in Jakarta yesterday.

Company News
1. TLKM IJ will distribute a cash dividend of around IDR168.01/share or IDR16.64 trillion of the total FY20 net profit of IDR20.80 trillion (Bisnis Indonesia). MNCS Comment: TLKM dividend payout ratio reached 80% of the net profit of FY20, while the offered dividend yield of 5.13% is lower compared to FY19 yield of 5.05%. Currently TLKM is trading at the levels of 15.57/3.16x PE/PBV.
2. UNVR IJ will distribute a cash dividend of IDR100/share after previously distributing an interim dividend of IDR87/share in Dec-2020. Thus, the total dividends distributed to shareholders from the financial year FY20 amounted to IDR187/share or reached IDR7.13 trillion of the total FY20 net profit of IDR7.16 trillion (CNBC Indonesia). MNCS Comment: UNVR dividend payout ratio stood at 99.58% of FY20 net profit, while the total dividend yield offered is 3.21% or an increase compared to FY19 yields of 4.00%. UNVR is currently trading at 32.44x/33.58x PE/PBV.
3. WTON IJ will distribute FY20 cash dividends of around IDR2.94/share or reaching IDR25.6 billion of FY20's total net profit of IDR128 billion (CNBC Indonesia). MNCS Comment: WTON's dividend payout ratio stood at 20% of FY20 net income, while the dividend yield offered is 1.04%, this value is lower than FY19 yields of 6.04%. WTON is currently trading at 19.33/0.74x PE/PBV.

IHSG Updates
JCI rose by +0.12% to 5,848.62 on Friday (28/05) followed net foreign buy reaching IDR1.29 trillion. JCI continued the rally despite basic industry, cyclical and finance being the only rising sectors while the majority fell. We see that the foreign net buy also contributes to the strengthening. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,285. We estimate JCI will move in the range of 5,800-6,005 while waiting for the PMI Markit Manufacturing data release. Today's recommendation: ANTM, SSMS, BBTN, MAPI.

Corporate Action
Cum Dividend Date: EPMT (IDR200/share), KMDS (IDR13.75/share), PZZA (IDR21.96/share)

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