Global Market Highlights
DJIA fell -1.48% on Friday (17/12) followed by S&P 500 (-1.03%) and Nasdaq (-0.07%). Wall Street closing was mixed along with the increase in US Covid-19 cases and the increasingly aggressive spread of the Omicron variant is feared to disrupt business. On the other hand, the Fed's decision to accelerate tapering and withdraw stimulus made the central bank to raise interest rates faster than expected next year. Today, the market will be looking toward several data releases such as: 1) US CB Leading Index MoM; 2) China Loan Prime Rate; 3) Germany Bundesbank Monthly Report.
Domestic Update
• Throughout Dec-21, the average value of Jakarta Interbank Spot Dollar Rate (JISDOR) was at IDR14,368/USD. The domestic currency has depreciated 0.68% against USD from Nov-21 average. MNCS Comment: The depreciation of IDR was in line with outflows >IDR20 trillion from government bond and equity market amid rising concern of Omicron variant spread and interest rates hike in 2022. However, the depreciation is considered to be minimum and IDR remained traded within its fundamental value. We expect the end year 2021F value of IDR to be at IDR14,325/USD.
• Furthermore, the second dose of vaccination rate nationally has reached 51.3% or equivalent to 106.87 million people.
Company News
1. MTDL IJ estimates that FY21E revenue will grow +25% with a nominal IDR17.4 trillion and net profit up to +40% or IDR510 billion compared to FY20. This value has exceeded the initial growth target in FY21 with +8% revenue and +10% net profit. Going forward, MTDL targets the company’s revenue in FY22E to grow +15% to IDR20 trillion and net profit to increase by +20% to IDR612 billion next year (Bisnis Indonesia). MNCS Comment: We see that the company is optimistic it will achieve the double digit target in FY22E driven by economic recovery and high-demand for technology equipment. To achieve the target, various strategies have been prepared by expanding the development of distribution channels and portfolios. MTDL is trading at the level of 19.28x/3.48x PER/PBV.
2. MPPA IJ targeting sales growth above +20% and expanding by opening 15 new stores in FY22E. The company growth will be supported by increased sales through omnichannel both online and offline. MPPA allocates capex of IDR75 billion next year for store expansion and renovation. (Bisnis Indonesia). MNCS Comment: In the recovery period next year, the company targets offline outlets to reopen massively to reach the company’s target. MPPA is preparing a strategy by changing the Hypermart concept to open stand-alone outlets that are located closer to housing and consumers rather than to the malls. Currently, MPPA is trading at level 123.02x PBV.
3. WSKT IJ has signed a Memorandum of Understanding (MOU) with PT Bibu Panji Sakti in the context of the construction plan for North Bali International Airport (Kontan). MNCS Comment: We see the new infrastructure development cooperation will increase the effectiveness of aviation and tourism in Bali as well as be beneficial for the Indonesia communities henceforward. WSKT trading at the level of 30.41/1.30x PER/PBV.
IHSG Updates
JCI slightly rose by +0.11% to 6,601.93 on Friday (17/12) followed by net foreign buy reaching IDR130.66 billion. JCI closed higher led by the energy sector (+1.83%), followed by the basic industry sector (+0.44%). On the other hand, the cyclical sector weakened by -1.38%, followed by the health sector (+1.31%). At the trading time last Friday, the JCI strengthened limitedly in line with market concentration which tends to be more conservative on the update of the Omicron variant case and the implementation of tapering by the Fed followed by a hawkish policy. On the other hand, the Rupiah strengthened at 14,355/USD level in the spot market. We estimate the JCI will move in the range of 6,570-6,620. Today's recommendations: MTEL, MARI, BBCA, AALI.
Corporate Action
IPO: DRMA (IDR500/share)
RUPS: TOWR, AKRA
Disclaimer On
