MNCS Morning Navigator

07 April 2022

MNCS Morning Navigator April 7, 2022

Global Market Highlights
DJIA weakened -0.42% on Wednesday (06/04), followed by S&P 500 (-0.97%) and Nasdaq (-2.22%). Wall Street depreciated triggered by the Fed's hawkish tone ahead of the FOMC Meeting, where it is estimated that the Fed will start raising interest rates more aggressively (+50 bps) and reducing the balance sheet of USD95 billion per month. In addition, the rise in US T-Note 10Y yield to 2.66% also weighed on technology stocks. Today, the market will be looking toward several data releases such as: 1) US FOMC Minutes; 2) US Initial Jobless Claims; 3) Japan Foreign Bond Investment.

Domestic Update
• The Ministry of Energy and Mineral Resources has set the domestic reference coal price (HBA) on April-22 at USD288.4/ton. MNCS Comment: HBA is still high in line with high global coal prices amid the threat of disruption to production and energy supply chains as a result of the Russia-Ukraine conflict.
• Furthermore, the second dose of vaccination rate nationally has reached 76.9% or equivalent to 160.18 million people.

Company News
1. JPFA IJ will distribute cash dividends of IDR707.9 billion or equivalent to IDR60/share. Dividend Payout Ratio of 35% of net profit of IDR2.02 trillion in FY21. (Bisnis Indonesia). MNCS Comment: That way, JPFA will offer a dividend yield of 3.67% in FY21, higher than the FY20 yield of 1.79%. JPFA is trading at the level of 9.48x/1.57x PER/PBV.
2. SMRA IJ recorded a net revenue of IDR5.56 trillion in FY21 or an increase of +9.05% YoY (vs IDR5.02 trillion in FY20). Net profit rose +80% YoY to IDR323.71 billion in FY21 (vs IDR179.84 billion in FY20) (Bisnis Indonesia). MNCS Comment: Improved performance was driven by landed house property income which rose +36.66% YoY to IDR2.72 trillion. On the other hand, financial expenses decreased by -2.91% YoY to IDR1 trillion in FY21. SMRA is trading at the level of 36.97x/1.38x PER/PBV.
3. PTPP IJ has budgeted capex of IDR4.2 trillion in FY22E or lower than last year's IDR6.2 trillion. 80% of Capex will be used for existing projects such as the Semarang-Demak Toll Road and Danareksa Tower, while the rest will be used for its subsidiary (Kontan). MNCS Comment: It is expected that the company can maximize its capex, to achieve the revenue and profit growth target set by the company of 10% - 15% YoY. PTPP is trading at the level of 22.49x/0.55x PER/PBV.

IHSG Updates
JCI weakened -0.62% to 7,104.22 on Wednesday (06/04), followed by net foreign buys which reached IDR707.70 billion. The majority of sectors weakened and weighed on the index, led by the transportation sector (-1.80%) followed by the financial sector (-1.28%). On the other hand, the sector that experienced strengthening was led by the technology sector (+2.10%) followed by the energy sector (+1.53%). JCI depreciated from the taking profit action by the investors after a fairly high rally in the previous trade. In addition, investors also tended to wait and see, waiting for the Fed's minutes on monetary tightening as well as considering the potential for a US recession from the yield inversion. On the other hand, the Rupiah exchange rate closed high at IDR14,357/USD. We estimate that the JCI will move in the price range of 7,080-7,120 while waiting for the release of the Foreign Exchange Reserves MAR data. Today’s recommendation: ACES, TBIG, INDF, PGAS.

Corporate Action
Cum Dividend: SIDO (IDR22.70/share), BJBR (IDR99.11/share), ADMF (IDR607/share)

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