Global Market Highlights
DJIA weakened -2.37% on Monday (07/03), followed by S&P 500 (-2.95%) and Nasdaq (-3.62%). Market participants responded negatively to the increase in commodity and energy prices triggered by the ongoing heating up of the Russia-Ukraine geopolitical crisis, fearing that the price increase can push inflation higher and impact negatively on economic recovery. Moreover, the IMF's statement in line with this view puts more pressure on market players. Today, the market will be looking toward several data releases such as: 1) US Wholesale Inventories MoM; 2) US Balance of Trade; 3) UK BRC Retail Sales Monitor YoY.
Domestic Update
• Indonesia's FX reserves data for Feb-22 is scheduled to be released by Bank Indonesia (BI) today at 10:00 AM. MNCS Comment: We expect FX reserves position to slightly increase to USD142bn from USD141.3bn in Jan-22 on the back of: 1) strong exports performance and 2) massive inflows particularly to the equity market.
• Furthermore, the second dose of vaccination rate nationally has reached 71.0% or equivalent to 147.94 million people.
Company News
1. PTBA IJ recorded total revenue of IDR29.26 trillion in FY21, up +69% YoY (vs IDR17.33 trillion in FY20). Meanwhile, net profit increased +231% YoY to IDR7.91 trillion in FY21 (vs IDR2.39 trillion in FY20) (IQ Plus). MNCS Comment: We see that the company might maintain its positive performance this year due to the coal prices that remain strong amid the limited coal supply. In addition, the company targets a production target of 36.41 million tons of coal in FY22E (vs realized production of 30.04 million tons in FY21). PTBA is trading at the level of 5.27x/1.73x PER/PBV levels.
2. INTP IJ recorded a total cement sales volume of 1.4 million tons, up +6% YoY on Jan-22. This increase was in line with the increase in domestic cement consumption on Jan-22 which rose +7.6% YoY to 5.28 million tons (Bisnis Indonesia). MNCS Comment: We see that the company has the potential to improve its performance this year along with the economic recovery which will accelerate the infrastructure development, thus increasing the total cement consumption. INTP is trading at the level of 23.31x/1.74x PER/PBV.
3. GOOD IJ recorded net sales of IDR8.79 trillion, up +13.99% YoY in FY21 (vs IDR7.71 trillion in FY20). Meanwhile, net profit was recorded at IDR424.86 billion, up +67.48% YoY (vs IDR259.41 billion in FY20) (Bisnis Indonesia). MNCS Comment: We see that the company recorded a better performance in FY21 after acquiring PT Muliaga Raya Tbk, also supported by the increasing people's purchasing power as the economy recovers, GOOD's domestic sales rose +14.25% YoY to IDR8.40 trillion in FY21. GOOD is trading at the level of 46.03x/7.44x PER/PBV.
IHSG Updates
JCI weakened -0.86% to 6,869.07 on Monday (07/03), followed by net foreign sell which reached Rp77.50 billion. The majority of sectors experienced a decline, led by the technology sector (-2.81%) followed by the non-cyclical sector (-2.42%). On the other hand, the sector that experienced strengthening was led by the raw materials sector (+2.04%) followed by the energy sector (+1.68%). The index's decline was in line with other Asian indexes. Big caps banking stocks that moved into the red zone weighed on the index's pace. The deteriorating financial market also had an impact on the index as foreign investors began to outflow. From the development of the Covid-19 pandemic, the daily positive cases recorded continued to decline to 21,380 cases per (07/03). On the other hand, the Rupiah weakened at IDR14,388/USD level. We estimate that the JCI will move in the range of 6,758-6,940 while waiting for Foreign Exchange Reserves FEB data. Today’s recommendation: BBTN, EXCL, ADMR, TOWR.
Corporate Action
RUPS: MSIN, ARNA
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