Global Market Highlight
DJIA rose by +0.78% on Thursday (05/08) followed by the S&P 500 (+0.60%), and Nasdaq (+0.78%). The Wall Street closing was higher due to oil prices rebound, subsequently, there is an improvement in US Macro conditions, such as the decline of the unemployment rate, which in the past week increased by 385,000 people or in line with market expectations. On the one hand, the market is also facing a rising varian Delta virus outbreak. Today the market may be watching several data releases such as: 1) US Non Farm Payrolls; 2) US Unemployment Rate; 3) UK BoE Broadbent Speech
Domestic Update
• Bank Indonesia (BI) will announce Foreign Exchange Reserves positions for July-21 today. MNCS Comment: We expect July-21 Foreign Exchange Reserves to rise from the previous month which stood at USD137.1 billion. Increasing Foreign Exchange Reserves would likely be driven by global bond issuance by the government last month of USD1.65 billion and EUR500 million. Adequate Foreign Exchange Reserves is expected to support rupiah stability.
• Furthermore, there was an addition of 2,311 new Covid-19 cases in Jakarta yesterday.
Company News
1. EXCL IJ posted IDR12.97 trillion revenue in 1H21 or decreased by -0.84% YoY (vs IDR13.06 trillion in 1H20). Operating expenses increased from IDR9.92 trillion in 1H20 to IDR11.00 trillion in 1H21. EXCL booked IDR715.96 billion net profit in 1H21 or decreased by -58.93% YoY (vs IDR1.74 trillion in 1H20) (CNBC Indonesia). MNCS Comment: EXCL's topline performance is quite in-line with the MNCS projection, which implies a 48.54% FY21E target. Meanwhile, the bottom-line performance, which increased by 23% QoQ, far exceeded our expectations, supported by efficiency in opex. Currently EXCL is trading at 19.55x/1.43x PE/PBV levels.
2. SMGR IJ recorded IDR16.21 trillion revenue in 1H21 increased by +1.16% YoY (vs IDR16.03 trillion in 1H20). COGS increased from IDR11.21 trillion in 1H20 to IDR11.62 trillion in 1H21. SMGR recorded a net profit of IDR794.12 billion in 1H21 or up +29.66% YoY (vs IDR612.46 billion in 1H20) (Bisnis Indonesia). MNCS Comment: The improve in SMGR’s profit and revenue was supported by the increase in sales and management of the company's debt. In 1H21, SMGR has achieved sales of 19.15 million tons or +5.7% YoY, cement sales were still dominated by cement bags which increased by 10% in domestic sales, on the other hand the company was able to reduce financial costs by 27.7%. Currently SMGR is trading at 31.37x/1.47x PE/PBV levels.
3. IRRA IJ posted IDR565.18 billion revenue in 1H21 or rose by +611.6% YoY (vs IDR79.42 billion in 1H20). COGS increased from IDR67.44 billion in 1H20 to IDR459.94 billion in 1H21. IRRA recorded IDR50.78 billion net profit in 1H21 or up +1.271% YoY (vs IDR3.65 billion in 1H20) (Kontan). MNCS Comment: This accomplishment is quite related to the vaccination carried out in Indonesia. As the time goes by, IRRA still has a chance from national vaccination with a target of 1 million/day Currently IRRA is trading at 32.16x/11.86x PE/PBV levels.
IHSG Updates
JCI rose by +0.75% to 6,205.42 on Thursday (05/08) followed by net foreign buy reaching IDR857.47 billion. JCI was strengthening in almost all sectors, led by the financial sector (+2.67%) followed by transportation (+0.48%). On the other hand, the cyclical sector weakened by -1.40% followed by the infrastructure sector (-1.23%). JCI closing was higher due to the GDP release that rose by 7.07% causing Indonesia to came out of recession which then driving future optimism. On the one hand, quarterly, the national economy grew by 3.31% or higher than the market forecast of 2.875%. However, throughout the current year, Indonesia's economy is still in the negative zone (-0.74%). Meanwhile the Rupiah exchange rate was weakening at IDR14,343. We estimate the JCI will move in the range of 6,120-6,230 while waiting for foreign exchange reserves. Today's recommendation: BTPS, IMAS, HOKI, TLKM.
Corporate Action
Cum Dividend Date: FISH (IDR250/share), CTRA (IDR8.5/share)
IPO: BUKA (IDR850/share)
Disclaimer On
