Global Market Highlights
DJIA rose +1.06% on Tuesday (08/02), followed by the S&P 500 (+0.84%) and the Nasdaq (+1.28%). Wall Street's appreciation was driven by the release of issuer's financial reports showing positive results with up to 76% out of the 299 issuers on the S&P 500 had earnings that exceeded the projection of around +6% above. From the release of economic data, the US trade balance for Dec-21 was a deficit of USD80.7 billion, lower than the market consensus of USD83 billion. In the same period the value of exports rose to USD228.1 billion (vs USD224.7 billion in Nov-21), followed by import value to USD308.9 billion (vs USD304 billion in Nov-21). For the Covid-19 development situation, the weekly average number of positive cases fell to a low of 265,700 after crossing a record high in mid-Jan-22 at 802,223, this also served as a driving catalyst for Wall Street to continue its rally. Today, the market will be looking toward several data releases such as: 1) US MBA Mortgage Applications; 2) US Wholesale Inventories MoM; 3) Germany Balance of Trade.
Domestic Update
• Bank Indonesia (BI) reported Indonesia FX reserves decreased by USD3.6 billion to USD141.3 billion in Jan-22. MNCS Comment: The decrease was attributable to : 1) government external debt payment and 2) lower bank's foreign currency placement in BI. Albeit declining, FX reserves position remain adequate to support the external sector resilience and maintain macroeconomic and financial system stability.
• Furthermore, the second dose of vaccination rate nationally has reached 63.2% or equivalent to 131.54 million people.
Company News
1. BBTN IJ recorded IDR13.21 trillion of net interest income as of 31 Dec-21, up +44.74% YoY (vs IDR9.12 trillion in FY20). Followed by an increase in net profit by +48.31% YoY to IDR2.34 trillion (vs IDR1.6 trillion in FY20) (IQ Plus). MNCS Comment: We see that the company's positive performance was driven by loan disbursement growth of +5.66% YoY to IDR274.83 trillion. In addition, the NPL ratio also decreased to 1.20% (vs 2.06% in FY20). BBTN is trading at the level of 9.17x/0.90x PER/PBV.
2. ACES IJ added the third new outlet this year covering an area of 650 square meters at Grand Depok City on 9 Feb-22. With the addition of these new outlets, the company's total outlets reached 218 outlets (IQ Plus). MNCS Comment: We see that the company's performance is expected to improve along with the company expansion by opening 3 new stores in early 2022. In 9M21, the company experienced a -39.03% YoY decrease in net profit to IDR322.85 billion. ACES is trading at the level of 49.60x/4.29x PER/PBV.
3. IRRA IJ recorded revenue of IDR1.32 trillion, up +134% YoY (vs IDR563.9 billion in FY20). The non-government segment as the main contributor recorded sales of IDR663.8 billion, up +247% YoY, while sales for the government segment grew +76% YoY to IDR655.1 billion (Kontan). MNCS Comment: We see that the company recorded a good performance by exceeding the growth target set by +80% until 100% YoY in FY21. This was supported by the pandemic conditions which has driven the sales of Covid-19 rapid tests to reach IDR939 billion. IRRA is trading at the level of 25.36x/5.65x PER/PBV.
IHSG Updates
JCI weakened -0.23% to 6,789.52 on Tuesday (08/02), followed by net foreign buys which reached IDR1.54 trillion. The majority of sectors experienced weakness, led by the health sector (-2.42%) followed by the raw materials sector (-1.22%). On the other hand, the financial sector strengthened +0.74% followed by the technology sector (+0.52%). The action of taking profit seems to have started after a significant strengthening in the previous trade by reviewing the implementation of PPKM level 3, especially in the Greater Jakarta area along with the spread of Covid-19. It was recorded that until (08/02) there was an addition of +37,492 new positive cases. Investors also responded to the release of data on Indonesia's foreign exchange reserves that fell in Jan-22. On the other hand, the Rupiah strengthened at IDR14,393/USD level. We estimate that the JCI will move in the range of 6,750-6,850. Today’s recommendation: AALI, AKRA, BBRI, TOWR.
Corporate Action
Cum Dividend Date: AMOR (IDR20/share)
IPO: NTBK (IDR100/share)
RUPS: ADRO
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