Global Market Highlights
DJIA weakened -0.19% on Wednesday (30/03), followed by the S&P 500 (-0.63%) and the Nasdaq (-1.21%). Wall Street depreciated after hopes of a Russia-Ukraine geopolitical peace faded with Russia declaring that there was no progress in discussions. This pushed back the strengthening of oil prices and became a concern for market players. Moreover, the Fed's hawkish tone hinting at a 50 bps hike is also weighing on the market. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY; 2) UK GDP Growth Rate YoY Final; 3) Germany Unemployment Rate.
Domestic Update
• Ahead of the Ramadan fasting month, several commodity prices have been observed to increase, such as cooking oil, which is now in the range of >IDR20,000/liter. MNCS Comment: We estimate that the increase in the price of basic foodstuffs will have an impact on inflation in Mar-22. CPI potentially rises +0.59% MoM/+2.57% YoY.
• Furthermore, the second dose of vaccination rate nationally has reached 76.4% or equivalent to 159.18 million people.
Company News
1. ACES IJ recorded net sales of IDR6.54 trillion in FY21, or down -11.74% YoY (vs IDR7.41 trillion in FY20). Meanwhile, net profit was recorded at IDR704.38 billion in FY21, or down -3.39% YoY (vs IDR733.19 billion in FY20) (IQ Plus). MNCS Comment: ACES performance decline was caused by the top line which fell more than 11% YoY. This year, the company's performance is expected to improve, in line with economic recovery and increased mobility. In addition, the company also plans to expand by opening 15 new outlets this year. ACES is trading at the level of 40.84x/3.53x PER/PBV.
2. BJBR IJ plans to distribute dividends of IDR1.04 trillion, or equal to 51.77% of FY21 net profit with a value of IDR99.11 per share (CNBC Indonesia). MNCS Comment: The company provided a higher dividend yield than the previous year, where in FY21 the yield was 6.50% (vs 6.10% in FY20). BJBR is trading at the level of 7.38x/1.15x PER/PBV.
3. SIDO IJ plans to distribute dividends of IDR1.14 trillion or 90% of FY21's net profit with a value of IDR22.70 per share. Cum date is scheduled on 7 April-22 (IQ Plus). MNCS Comment: The company provided a higher cash dividend yield than the previous year, where in FY21 the yield was 2.86% (vs 2.42% in FY20). SIDO is trading at the level of 23.67x/8.60x PER/PBV.
IHSG Updates
JCI rose +0.59% to 7,053.19 on Wednesday (30/03), followed by net foreign buys which reached Rp597.85 billion. The sector that supported the index was led by the technology sector (+4.03%) followed by the non-cyclical sector (+1.84%). On the other hand, the weaker sector was led by the energy sector (-0.68%) followed by the infrastructure sector (-0.29%). The index appreciated along with the majority of other Asian markets as the Russia-Ukraine geopolitical crisis led to peace, followed by the withdrawal of Russian troops in the area of operation. On the other hand, the Rupiah exchange rate closed lower at IDR14,347/USD. We estimate that the JCI will move in the price range of 6,955-7,060. Today’s recommendation: SAME, INDF, EXCL, CENT.
Corporate Action
Cum Dividend: FASW (IDR119/share)
RUPS: AGRO, SMGR
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