Global Market Highlights
DJIA dropped -0.56% on Friday (14/01) while the S&P 500 is up +0.08% followed by the Nasdaq (+0.59%). The release of the poor big caps banking financial reports in 4Q21 was a laggard for DJIA, while the S&P 500 and Nasdaq were supported by energy and technology stocks. Negative sentiment also came from the release of retail sales data for Dec-21 which decreased by -1.9% MoM (vs +0.2% on Nov-21), export prices also declined in Dec-21 by -1.8% MoM (vs + 0.8% on Nov-21). Today, the market will be looking toward several data releases such as: 1) China GDP Growth Rate; 2) China Industrial Production YoY; 3) Japan Tertiary Industry Index MoM.
Domestic Update
• Indonesia trade balance is expected to record another surplus or USD3 billion by Dec-21. Exports is projected to grow +40.39% YoY while imports increased +39.99% YoY. MNCS Comment: Trade balance surplus is likely on the back of commodity price that remain high.
• Furthermore, the second dose of vaccination rate nationally has reached 57.4% or equivalent to 119.55 million people.
Company News
1. ASII IJ recorded a car sales growth by +56.68% YoY to 489,209 units in FY21 (vs 270,076 units in FY20). LCGC car sales also rose by +56.68% to 114,034 units in FY21. This increase was driven by the extension of PPnBM 100% incentives (Kontan). MNCS Comment: We see the company has the potential to improve its financial performance in FY22E in line with the extended PPnBM until Jun-22 and economic recovery which might increase people's purchasing power. ASII is trading at the level of 11.61x/1.39x PER/PBV.
2. PPRO IJ has budgeted IDR300 billion of capex for FY22E, or equal to +23% YoY (vs IDR243 billion in FY21). This budget will be allocated to complete the construction of malls and hotels (Kontan). MNCS Comment: We see the company is optimistic to increase its revenue this year by focusing on the landed house project development strategy. In addition, the VAT incentive for DTP was extended until Jun-22 might have a positive impact on the property industry. PPRO is trading at the level of 0.87x PBV.
3. ANTM IJ obtained a gold sales growth by +33% YoY to 29.38 tons in FY21 (vs 22.10 tons in FY20). The company also managed to record the highest precious metal sales in the domestic market, which was 28.28 tons (Kontan). MNCS Comment: The positive achievement in FY21 was driven by increased demand for nickel and rising commodity prices. We see the company's business prospects have the potential to grow in the future along with increasing demand supported by the development of the electric car battery industry, amid the cancellation of the cooperation between Indonesia Battery Corporation (IBC) and Street Scooter. ANTM is trading at the level of 20.55x/2.30x PER/PBV.
IHSG Updates
JCI rose +0.53% to 6,693.40 on Friday (14/01) followed by net foreign buy reaching IDR145.70 billion. The technology sector led the index's gains by +4.32% followed by the cyclical sector (+1.57%). On the other hand, the sectors that weakened were led by the basic materials sector (-0.82%), followed by the healthcare sector (-0.37%). The JCI movement outperformed during the weakening of Asian indices which was triggered by the South Korean Central Bank raising interest rates (+25 bps to 1.25%). The strengthening of the index was driven by investor foreign transactions that recorded a net buy of IDR2.42 trillion from Monday to Thursday (10-13 Jan 2022). On the other hand, Rupiah closed higher at IDR14,297/USD level. We estimate that the JCI will move in the range of 6,625-6,730 while waiting for the release of data balance of trade. Today's recommendations: ISAT, DNAR, ICBP, SRTG.
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