Global Market Highlight
DJIA slipped by -0.75% on Thursday (08/07) followed by S&P 500 (-0.86%), and Nasdaq (-0.72%). The Wall Street closing was lower as investors responded to the Federal Reserve which has released the minutes of its latest monetary policy meeting. It showed the central bank not believing yet that the economy has fully recovered. The market will look forward to several data releases today, such as: 1) US Consumer Credit Change; 2) UK GDP YoY; 3) China Inflation Rate YoY.
Domestic Update
• As of 1H21, corporate bond issuance has reached IDR43.37 trillion, an increase of 44.4% YoY from the same period last year. Corporate bond issuance figure last year was IDR96.6 trillion. MNCS comment: Appetite for issuing bonds was driven by 1) lower interest rate environment ; 2) better market condition and 3) bonds maturity. The total amount of bonds issued by banks is only IDR2.43 trillion on the back of limited credit disbursement and ample liquidity. According to Pefindo there are 35 corporate bonds that will mature in July with an outstanding of IDR14.6 trillion & USD5 million.
• Furthermore, there was an addition of 12,974 new Covid-19 cases in Jakarta yesterday.
Company News
1. INTP IJ will distribute an FY20 cash dividend of IDR500/share after previously distributing an interim dividend of IDR225/share in Dec-2020. Dividends per share distributed to shareholders from the FY20 financial year amounted to IDR725/share or reached IDR1.81 trillion from the total FY20 net profit and took IDR862 billion from the retained earnings balance which has not been determined to be distributed as dividends. Schedule Cum Date July 16, 2021 (Kontan). MNCS Comment: INTP's dividend payout ratio is 147% of FY20 net profit, while the total dividend yield offered is 6.99% or an increase compared to FY19 yield of 4.21%. Currently INTP is trading at 27.18x/1.70x PE/PBV levels.
2. GGRM IJ will distribute FY20 cash dividends of around IDR2,600/share or reaching IDR5 trillion from the total FY20 net profit of IDR7.65 trillion (CNBC Indonesia). MNCS Comment: GGRM dividend payout ratio is 65.36% of FY20 net profit, while the dividend yield offered is 6.41%, this value is better than FY19 where the company did not distribute dividends for the FY19 financial year. Currently GGRM is trading at 11.17x/1.30x PE/PBV levels.
3. HOKI IJ will distribute FY20 cash dividends of around IDR1/share or IDR9.67 billion of the total FY20 net profit of IDR37.44 billion. Schedule Cum Date July 15, 2021 (Kontan). MNCS Comment: HOKI's dividend payout ratio is 26% of FY20 net profit, while the total dividend yield offered is 0.52% or down compared to FY19's yield of 7.36%. Currently HOKI is trading at 66.29x/2.78x PE/PBV levels.
IHSG Updates
JCI slipped by -0.07% to 6,039.90 on Thursday (08/07) while net foreign buy reaching IDR132.12 billion. JCI closing was lower along with most sectors, led by non-cyclical -0.98%, followed by health (-0.93%). On the other hand, the property sector strengthened by +0.84%, followed by finance (+0,48%). Most of Asian markets closed lower, followed by JCI as Asian stock markets closed lower, followed by the JCI as the market response awaited for the US central bank's monetary policy. At least the minutes of the Fed's monetary policy meeting suggest that's not going to happen anytime soon. Meanwhile the Rupiah exchange rate was strengthening at IDR14,525. We estimate the JCI will move in the range of 5,985-6,134 while waiting for balance of trade. Today's recommendation: AGII, INCO, BRMS, INTP.
Corporate Action
Stock Split: GOOD (1:5)
Public Expose: ZINC
Disclaimer On
