Global Market Highlights
DJIA weakened -1.56% on Thursday (31/03), followed by S&P 500 (-1.57%) and Nasdaq (-1.54%). Wall Street depreciated on fears of higher inflation, following the release of Feb-22 core personal consumption expenditure data (PCE Core) which rose 5.4% YoY (highest increase in nearly 39 years), and initial jobless claims which increased as of 26'Mar-22 to 202K claims. Today, the market will be looking toward several data releases such as: 1) US Non Farm Payrolls; 2) US Unemployment Rate; 3) US ISM Manufacturing PMI.
Domestic Update
• Indonesia's manufacturing PMI was recorded at 51.3 on Mar-22, higher than the previous month's figure of 51.2. MNCS Comment: Indonesia's manufacturing activity remains in an expansive condition for 7 consecutive months with economic conditions remaining solid despite being hit by the third wave of Covid-19 at the beginning of the year.
• Furthermore, the second dose of vaccination rate nationally has reached 76.4% or equivalent to 159.18 million people.
Company News
1. GGRM IJ recorded IDR124.88 trillion of revenue in FY21, up +9.09% YoY (vs IDR114.7 trillion in FY20). Meanwhile, net profit was recorded at IDR5.6 trillion in FY21, or down -26.7% YoY (vs IDR7.64 trillion in FY20) (Kontan). MNCS Comment: We see that the company's profit declined due to an increase in cost of revenue by +13.92% YoY to IDR110.6 trillion in FY21. GGRM is trading at the level of 10.85x/1.03x PER/PBV.
2. KLBF IJ recorded sales of IDR26.26 trillion in FY21, up +13.63% YoY (vs IDR23.11 trillion in FY20). Meanwhile, net profit was recorded at IDR3.18 trillion in FY21, up +16.48% YoY (vs IDR2.73 trillion in FY20) (IQ Plus). MNCS Comment: The increase in the company's performance was supported by an increase in revenue from the distribution and logistics segment as the main contributor by +25.8% YoY to IDR9.75 trillion, followed by the prescription drug segment that rose +14.76% YoY to IDR5.71 trillion. This improvement has increased the company's optimism to target net sales growth of +11% YoY to +15% YoY in FY22E. KLBF is trading at the level of 23.71x/3.85x PER/PBV.
3. INDY IJ recorded a +40.92% YoY increase in revenue to USD3.06 billion in FY21 (vs USD1.81 billion in FY20). Meanwhile net profit was recorded at USD207.41 million in FY21 (vs net loss of USD120.97 million in FY20) (Bisnis Indonesia). MNCS Comment: We see that the increase in company's performance was in line with the sales growth and increase in coal prices in FY21. The company has the potential to improve its performance this year supported by the coal prices remaining high, and business diversification strategy through gold mining, electric vehicles, and solar energy. INDY is trading at the level of 1.19x PBV.
IHSG Updates
JCI rose +0.26% to 7,071.44 on Thursday (31/03), followed by net foreign buys which reached IDR769.14 billion. The sector that supported the index was led by the energy sector (+2.56%) followed by the technology sector (+1.16%). On the other hand, the weaker sector was led by the property sector (-0.45%) followed by the infrastructure sector (-0.41%). JCI's performance outperformed other Asian bourses, which closed lower. Optimism of market players ahead of the release of inflation rate data which is predicted to be stable according to BI's target, has pushed the index to strengthen, the Rupiah exchange rate closed lower at IDR14,369/USD. We estimate that the JCI will move in the price range of 7,000-7,100 while waiting for Inflation Rate YoY MAR data. Today’s recommendation: ANTM, SMRA, ISSP, MLIA.
Corporate Action
Cum Dividend: WOMF (IDR9.50/share), ITMG (IDR3,040/share)
RUPS: ESTA
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