Global Market Highlights
DJIA rose by +0,25% on Friday (29/10), followed by S&P 500 (+0.19%) and Nasdaq (+0.33%). Wall Street ended higher as investors continue to focus on corporate earnings while keeping an eye on how companies are managing persistent supply chain delays and rising inflation. The US PCE Price Index rose by +4.4% YoY in September-21 from previously at 4.2% YoY level on August-21. On the other hand, Eurozone inflation rate hit a new 13-year high in October-21 at 4.1% YoY due to surging energy prices. Today the market will be looking forward to several data releases such as: 1) US ISM Manufacturing PMI; 2) US Markit Manufacturing PMI Final; 3) Germany Retail Sales YoY.
Domestic Update
• Indonesia Manufacturing PMI recorded its highest level in 5 years on October-21. Manufacturing PMI increased to 57.2 from 52.2 in Sep-21, marking a two consecutive month of expansion. MNCS Comment: The PMI figure on October-21 remained on track on the recovery path. We believe that this was attributable to improving domestic pandemic conditions. We expect 4Q21 Indonesia GDP growth would accelerate further should this trend continue.
• Furthermore, the second dose of vaccination rate nationally reached 35.2% or equivalent to 73.39 million people.
Company News
1. GGRM IJ recorded IDR92.07 trillion revenue in 9M21, an increase of +10.43% YoY (vs IDR83.38 trillion in 9M20). COGS increased from IDR70.39 trillion in 9M20 to IDR81.67 trillion in 9M21. GGRM recorded IDR4.13 trillion net profit in 9M21 or decreased by -26,72% YoY (vs net profit of IDR5.65 trillion in 9M20) (CNBC Indonesia). MNCS Comment: The net profit declined and increased COGS due to the increase in customs, VAT and cigarette taxes which rose by +20% YoY to IDR70.12 trillion in 9M21. On the other hand, the increase in sales was driven by the domestic market which still dominates at IDR90.66 trillion in 9M21 (vs IDR81.97 trillion in 9M20). Currently, GGRM is trading at level 11.69x/1.12x PER/PBV.
2. INCO IJ recorded USD686.43 million revenue in 9M21 or an increase of +20.21% YoY (vs USD571.02 million in 9M20). COGS increased from USD486.03 million in 9M20 to IDR516.79 million in 9M21. INCO recorded USD122.94 million net profit in 9M21, rose by +60.41% YoY (vs net profit of IDR76.64 million in 9M20) (Trenasia). MNCS Comment: We see INCO’s top-line growth driven by an increase in nickel matte sales by +8% YoY and an increase in nickel prices during the 3Q21 period. Meanwhile, the bottom-line growth was caused by COGS efficiency which increased by +6.33% YoY. INCO is trading at the level of 28.28x/1.62x PER/PBV.
3. BRIS IJ posted IDR13.83 trillion disbursement revenue for 9M21, rose by +6.47% YoY (vs IDR12.99 trillion in 9M20). Financing was able to grow +7.38% YoY to IDR163.32 trillion. BRIS recorded IDR2.25 trillion net profit in 9M21 or an increase of +37% YoY (vs IDR1.64 trillion in 9M20) (Kontan). MNCS Comment: We see the bottom line growth supported by the company’s strategy to digitize products and services into digital banking. This is reflected in the cumulative transactions of BSI Mobile which reached 72.24 million transactions or grew by +133% YoY. Net profit was also supported by an increase in third party funds (DPK) reaching IDR219.19 trillion. BMRI is currently trading at level 29.31x/3.72x PER/PBV.
IHSG Updates
JCI rose by +1.03% to 6,591.35 on Friday (29/10) with net foreign sell reaching IDR345.81 billion. JCI closed higher in all sectors, led by the basic industrial sector (+1.62%), followed by the industrial sector (+1.53%). The JCI's strengthening was driven by the strengthening of the majority of index in Asia and Wall Street. The JCI strengthened in the midst of negative global sentiment, such as the slowdown in the US economic growth and the increase of Covid-19 cases around the world. The Euro zone was the main contributor to the increase in the world's Covid-19 cases. On the other hand, the Rupiah strengthened at IDR14,168 level in the spot market. We estimate the JCI will move in the range of 6,450-6,600 while waiting for the data inflation rate release. Today's recommendations: BRMS, TINS, ERAA, BBKP.
Corporate Action
IPO: BOBA (IDR280/share)
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