MNCS Morning Navigator

23 Juli 2021

MNCS Morning Navigator July 23, 2021

Global Market Highlight

DJIA rose by +0.07% on Thursday (22/07) followed by S&P 500 (+0.20%), and Nasdaq (+0.36%). Big tech helped Wall Street inch up to a higher close on Thursday, modestly building on a two-day rally as lackluster economic data and mixed corporate earnings prompted a pivot back to growth stocks. The market will look forward to several data releases today, such as: 1) US Markit Manufacturing PMI Flash; 2) Germany Markit Manufacturing PMI Flash; 3) Eurozone Markit Composite PMI Flash.

Domestic Update
• According to Bank Indonesia (BI) total value of loans in Indonesia increased 0.6% YoY in June-21. BI expects loan growth for FY21 will be at 4-6%. MNCS Comment: This was the first time of positive growth for loan disbursement in the 8 months. Positive loan growth in June-21 was in line with BI recent survey to banking industry players that stated there will be an improvement in loan disbursement for 2Q21. Rising loan growth was driven by loosening of banking lending standard index. However as we have anticipated loan growth remained limited.
• Furthermore, there was an addition of 7,058 new Covid-19 cases in Jakarta yesterday.

Company News
1. BBCA IJ recorded a net interest income of IDR28.27 trillion in 1H21 or grew +5.8% YoY (vs IDR27.25 trillion in 1H20). Third Party Funds (TPF) grew +17.5% YoY from IDR761.6 trillion in 1H20 to IDR895.2 trillion in 1H21. BBCA posted IDR14.46 trillion net profit in 1H21 growing +18.1% YoY (vs IDR12.24 trillion in 1H20) (CNBC Indonesia). MNCS Comment: BBCA's performance was quite stable although NII's growth slightly lower. The lower loan growth of -0.3% driven by limited economic activities during pandemic. Net profit is also still lower than MNCS estimate, reflecting 46% of FY21E target. Currently BBCA is trading at 26.95x/4.25x PE/PBV levels.
2. UNVR IJ recorded net sales of IDR20.18 trillion in 1H21 or down -7.32% YoY (vs IDR21.77 trillion in 1H20). COGS also decreased from IDR10.58 trillion in 1H20 to IDR9.92 trillion in 1H21. UNVR posted a net profit of IDR3.05 trillion in 1H21 down -15.85% YoY (vs IDR3.61 trillion in 1H20) (Emitennews). MNCS Comment: Revenue achievement from the HPC segment decreased by -10.7%, resulting the deep plunge on total revenue. Despite A&P costs can be tied up, the lower sales volume have not been able to compensate the decrease in bottomline figure. Currently UNVR is trading at 28.22x/29.22x PE/PBV levels.
3. APLN IJ posted marketing sales of IDR1 trillion in 1H21, an increase of 90% YoY (vs IDR532 billion 1H20). Of the total marketing sales, around 79% was obtained through the sale of Podomoro Park in Bandung, Podomoro City Deli Medan, Pakubuwono Spring and Podomoro Golf View in Cimanggis (Bisnis Indonesia). MNCS Comment: Residential sales and incentives are still the driving force for marketing sales to grow in 1H21. Currently APLN is trading at 0.36x PBV levels.

IHSG Updates
JCI rose by +1.78% to 6,137.55 on Thursday (22/07) followed by net foreign buy reaching IDR811.65 billion. JCI closing was higher along with most sectors led by the tech sector +3.34% followed by energy (+3.16%). On the other hand, the health sector weakened by -0.46%. The majority of Asian indices have strengthened, including the JCI. In addition to the improving sentiment of global market players, and the potential for easing of the Implementation of Emergency Micro Community Activity Restrictions (PPKM), or currently called PPKM Levels 3 and 4, on July 26. Meanwhile the Rupiah exchange rate was weakening at Rp14,483. We estimate the JCI will move in the range of 6,079-6,230 while waiting for M2 Money Supply YoY. Today's recommendation: SMRA, PGAS, JPFA, SSMS.

Corporate Action

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