MNCS Morning Navigator

11 April 2022

MNCS Morning Navigator April 11, 2022

Global Market Highlights
DJIA rose +0.40% on Friday (08/04), while the S&P 500 weakened (-0.27%) followed by Nasdaq (-1.34%). Wall Street closed mixed, pressured by the rise in US 10Y T-note yield to 2.73%, triggered from the Fed's aggressive monetary tightening plan. Today, the market will be looking toward several data releases such as: 1) UK GDP YoY; 2) UK Goods Trade Balance; 3) UK Industrial Production YoY.

Domestic Update
• Indonesia's CCI fell 2.1 points to 111.0 in Mar-22 from 113.1 in the previous month. The latest figure marked the lowest reading in six months. MNCS Comment: Albeit the economy continued to recover, the decline in consumer sentiment was attributable to higher inflation outlook given the increase in food & fuel prices. All the 6 sub-indices reported the decline.
• Furthermore, the second dose of vaccination rate nationally has reached 77.5% or equivalent to 161.39 million people.

Company News
1. UNTR IJ will distribute cash dividends of IDR3.4 trillion or equivalent to IDR950/share where the company has distributed an interim dividend on Oct-21 of IDR1.2 trillion. Thus, UNTR has overall distributed a total dividend of IDR4.6 trillion in the 2021 financial year. Dividend Payout Ratio is 45% of net profit of IDR2.02 trillion in FY21. Cum dividend on 21 April 2022 (Bisnis Indonesia). MNCS Comment: Therefore, UNTR will offer a cash dividend yield of 3.32% in FY21, or higher than the FY20 yield of 2.10%. UNTR is trading at the level of 9.48x/1.57x PER/PBV.
2. TKIM IJ recorded net sales of USD1.02 billion in FY21 or an increase of +18.24% YoY (vs USD866.4 million in FY20). Net profit increased +67.87% YoY to USD249 million in FY21 (vs USD148 million in FY20) (Bisnis Indonesia). MNCS Comment: Performance growth was driven by the sales increase in industrial paper segment +43.5% YoY to USD318.6 million and cultural paper +9.5% YoY to USD705.7 million in FY21. It is expected that the company's positive performance will continue to increase this year, in line with the expansion of export targets in several Asian and European regions. TKIM is trading at the level of 6.16x/0.87x PER/PBV.
3. DMAS IJ recorded revenues of IDR1.44 trillion in FY21 or down -45.23% YoY (vs IDR2.63 trillion in FY20). Net profit was recorded at IDR714.74 billion or decreased by -46.96% YoY in FY21 (vs net profit of IDR1.35 trillion in FY20) (Kontan). MNCS Comment: The decline in DMAS performance was due to sales of industrial land which fell -52.32% YoY to IDR1.18 trillion, where it was the largest revenue contributor at 81.94% of the total operating revenues. On the other hand, the company managed to achieve efficiency with COGS which fell -41% YoY, although it has not been able to boost bottom line performance. DMAS is trading at the level of 12.14x/1.62x PE/PBV.

IHSG Updates
JCI rose +1.17% to 7,210.84 on Friday (08/04), followed by net foreign buys which reached Rp1.41 trillion. The majority of sectors strengthened and supported the index, led by the energy sector (+3.67%) followed by the raw materials sector (+2.63%). On the other hand, the weaker sector was led by the cyclical sector (-0.27%) followed by the property sector (-0.16%). The strengthening of the JCI was supported by the upward trend in commodity prices, in line with the Russia-Ukraine geopolitical sentiment and the inflow of foreign investors. On the other hand, the Rupiah exchange rate closed low at IDR14,362/USD. We estimate that the JCI will move in the price range of 7,130-7,240 while waiting for the release of Retail Sales YoY FEB data. Today’s recommendation: GZCO, MDKA, PTBA, ASII.

Corporate Action
IPO: GOTO (IDR338/share)

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