Global Market Highlight
DJIA rose by +0.44% on Thursday (29/07) followed by the S&P 500 (+0.42%) and the Nasdaq (+0.11%). Wall Street closed higher as the US economy grew solidly with US GDP growth of 6.5% in 2Q21, putting GDP levels higher than before the pandemic, but slower pace of GDP growth than economists expected. On the other hand, data on claims for unemployment benefits was less than satisfactory, which stood at 400,000 workers last week, compared to the consensus estimate of 385,000 workers. Today the market may be watching several data releases such as: 1) US Core PCE Price Index YoY; 2) Germany GDP Growth Rate YoY Flash; 3) Eurozone GDP Growth Rate QoQ Flash.
Domestic Update
• In the latest price monitoring survey, Bank Indonesia (BI) expects inflation rate to be at 0.01% MoM and 1.45% YoY in July-21. MNCS Comment: We estimate Jul-21 inflation figure will be at 1.47% YoY, slightly higher than BI forecast. We see some food staples such as chili as well as cigarette would likely to contribute to Jul-21 inflation. However overall inflationary pressure remained benign mainly driven by limited mobility in July and August-21.
• Furthermore, there was an addition of 3,845 new Covid-19 cases in Jakarta yesterday.
Company News
1. BMRI IJ recorded a net interest income of IDR35.16 trillion in 1H21 or up +21.50% YoY (vs IDR28.94 trillion in 1H20). TPF grew 19.73% YoY with NPL at 3.08% down 21 bps. BMRI recorded a net profit of IDR12.5 trillion in 1H21 or up +21.45% YoY (vs IDR10.29 trillion in 1H20) (CNBC Indonesia). MNCS Comment: BMRI's solid performance was supported by a 16.4% YoY loan growth supported by the wholesale banking segment. The net profit achievement was slightly above our estimate which reflected 53% of the total FY21E target. Currently BMRI is trading at 11.33x/1.48x PE/PBV levels.
2. ASII IJ recorded revenue of IDR107.39 trillion in 1H21 or up +19.6% YoY (vs IDR89.79 trillion in 1H20). COGS increased from IDR69.62 trillion in 1H20 to IDR84.56 trillion in 1H21. ASII recorded a net profit of IDR8.83 trillion in 1H21 or decresed-22.38% YoY (vs IDR11.38 trillion in 1H20) (Bisnis Indonesia). MNCS Comment: We see a decrease in the bottom line as a result of the profit from the sale of PT Bank Permata Tbk's investment in 2020. On a quarterly basis, net income still grew by 36.88% QoQ to Rp5.10 trillion in 2Q21 (vs IDR3.73 trillion in 1Q21). The performance itself is still in line reaching 52%/54% of the estimated top line and bottom line of MNCS. Until now, domestic car sales continue to increase in line with the extension of the relaxation of PPnBM. Currently ASII is trading at 12.48x/1.17x PE/PBV levels.
3. DMAS IJ recorded revenue of IDR579.78 billion in 1H21 or up +129.253 YoY (vs IDR252.59 billion in 1H20). COGS increased from IDR83.68 billion in 1H20 to IDR245.08 billion in 1H21. DMAS recorded a net profit of IDR288.57 billion in 1H21 or up +265% YoY (vs IDR78.94 billion in 1H20) (CNBC Indonesia). MNCS Comment: Sales of 43.3 hectares of DMAS industrial land were absorbed by the automotive and data center industries, or IDR905 billion in 1H21. Management targets to be able to increase sales by preparing 50 hectares of industrial land in 2H21. Currently AALI is trading at 16.37x/1.73x PE/PBV levels.
IHSG Updates
JCI rose by +0.53% to 6,120.71 on Thursday (29/07) followed by net foreign buy reaching IDR50.98 billion. JCI closing was higher along with most sectors led by infrastructure (+1.82%) followed by basic industry (+1.81%). On the other hand, the industrial sector fell by -1.04%, followed by health (-0.88%). Asian indices tend to close at the green zone in line with the release of financial reports in the 2Q21, subsequently, the meeting result of Federal Open Market Committee (FOMC) to hold the benchmark interest rate and Quantitative Easing Policy, gave positive sentiment to market. Meanwhile the Rupiah exchange rate was strengthening at Rp14,483. We estimate the JCI will move in the range of 6,080-6,140 while waiting for inflation rate. Today's recommendation: AGII, BFIN, INCO, AALI.
Corporate Action
Cum Dividend Date: SKBM (IDR1.24/share), SKRN (IDR10/share)
RUPS : AGII
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