MNCS Morning Navigator

03 Desember 2021

MNCS Morning Navigator December 03, 2021

Global Market Highlights

DJIA grew by +1.82% on Thursday (02/12) followed by S&P 500 (+1.42%) and Nasdaq (+0.83%). Wall Street ended higher as investors continue to monitor the spread of the new coronavirus variant as well as measures that governments are taking to restrain it. Meanwhile, the US Labor Department released its weekly jobless claims report which stated that the US Initial Unemployment Claims went below its estimation at 222,000 claims, followed by the decrease of US Continuing Jobless Claims at 1.95 million claims on November-21 as the demand for labor in businesses remains strong amid persisting worker shortages. Today, the market will be looking toward several data releases such as: 1) US Non Farm Payrolls; 2) US Unemployment Rate; 3) US ISM Non-Manufacturing PMI.

Domestic Update
• Foreign investors booked a net sell of IDR31 trillion in the domestic government bond market in Nov-21. The foreign holding of tradable Indo government bonds has decreased from IDR949.3 trillion to IDR918.5 trillion. MNCS Comment: The outflows particularly in the last week of Nov-21 was also followed by the increase in benchmark series of government bond yields. This trend was also underpinned by rising pressure in the financial market due to the spread of the omicron variant that depreciated the value of IDR and increased risk premium.
• Furthermore, the second dose of vaccination rate nationally has reached 46.5% or equivalent to 96.85 million people.

Company News
1. SMRA IJ recorded IDR3.79 trillion net sales in 9M21 increased by +16.25% YoY (vs IDR3.26 trillion in 9M20). COGS increased from IDR1.88 trillion in 9M20 to IDR2.05 trillion in 9M21. SMRA recorded IDR170.44 billion net profit in 9M21 (vs net profit of IDR277.06 billion in 9M20) (Emitennews). MNCS Comment: SMRA’s top-line growth was driven by the increase of land houses sales recorded at IDR1.96 trillion in 9M21 or up by +49.99% YoY (vs IDR1.31 trillion in 9M20). The increase was in line with the relaxation of VAT and 0% down payment for the property sector which was extended until FY21E. SMRA is trading at the level of 59.57x/1.59x PER/PBV.
2. PTPP IJ recorded new contract growth by +15.09% YoY to IDR15.4 trillion on October-21 (vs IDR13.38 trillion on October-20). (IQPlus). However, this value has only reached 51.16% of the total new contract target for FY21E of IDR30.1 trillion (Kontan) MNCS Comment: Although the contract received is far from the target set, we see that the company is still trying to target several new projects until the end of the year, including toll road projects, factories, several dams, and WWTPs, and so on. In the future, PTPP’s new contract opportunities will face several challenges given the government’s plan to reduce the RAPBN in the construction sector by 14% YoY to IDR384 trillion. Currently, PTPP is trading at level 39.52x/0.64x PER/PBV.
3. BNBA IJ plans to conduct a right issue of 462 million shares or approximately 16.67% of the total issued and fully paid shares, with a ratio of 5:1 and an exercise price of IDR1,345/share (Emitennews). MNCS Comment: BNBA’s right issue aims to fulfill the minimum capital of IDR2 trillion for 2021 and strengthen the company’s capital structure. The funding obtained in the future, 80% will be used for lending to customers and 20% for capex in developing the company's digital banking. BNBA trading at the level of 169.35x/4.89x PER/PBV.

IHSG Updates
JCI strengthened by +1.17% to 6,583.82 on Thursday (02/12) followed by net foreign buy reaching IDR90.43 billion. JCI closed higher, led by the industrial sector (+3.19%), followed by the energy sector (+2.27%). On the other hand, the property sector weakened by -0.46%, followed by the transportation sector (-0.14%). The strengthening of the JCI was driven by the news that the majority spread of Omicron Covid-19 variant has shown mild initial symptoms and was not classified as critical until today, although this variant has spread to 24 countries. Meanwhile, another negative sentiment came from the Fed which is rumored to be accelerating the pace of tapering. On the other hand, the Rupiah weakened at IDR14,378 level in the spot market. We estimate the JCI will move in the range of 6,550-6,600. Today's recommendations: UNTR, BBCA, TOWR, SMGR.

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