Global Market Highlights
DJIA rose by +0,39% on Tuesday (02/11), followed by S&P 500 (+0.37%) and Nasdaq (+0.34%). Wall Street ended higher as a strong earnings season continued to lift sentiment for equities, while investors were looking ahead to the outcome of a critical Federal Reserve meeting this Wednesday. Meanwhile, Germany released its Markit Manufacturing PMI Final data which fell slightly to 57.8 in October-21 from previously at 58.4 level in September-21. On the other hand, Canada Building Permits MoM rose significantly by 4.3% in September-21 from previously contracted -2% in August-21 led by higher construction intentions of multi-family residential units. Today the market will be looking forward to several data releases such as: 1) US Factory Orders MoM; 2) US ISM Non-Manufacturing PMI; 3) Eurozone Unemployment Rate.
Domestic Update
• Bank Indonesia (BI) reported domestic digital payment has grown significantly in 2021. As of November 1, the number of merchants that adopt QRIS has reached 12 million. The number has increased substantially from 5.8 million by the end of 2020. MNCS Comment: Going forward, merchants' adoption of QRIS will likely continue to grow fostering a more inclusive finance along with the development of the digital economy in Indonesia that despite being relatively small in size yet growing significantly on the back of e-commerce and ride hailing industry.
• Furthermore, the second dose of vaccination rate nationally reached 35.7% or equivalent to 74.44 million people.
Company News
1. ANTM IJ recorded 5.76 million wmt nickel ore sales in 9M21, an increase of +376% YoY (vs 1.21 million wmt in 9M20). Meanwhile, ferronickel sales were 6,812 TNi in 9M21 or rose by +5% YoY. ANTM recorded gold sales growth of 34% YoY in 9M21 to 638,867 troy ounces (Market Bisnis). MNCS Comment: We see the increase in nickel ore sales potentially improve ANTM’s performance in FY21E, the number was in line with the domestic nickel processing industry growth as well as the post-pandemic economic recovery. Currently, ANTM is trading at level 23.92x/2.80x PER/PBV.
2. MIKA IJ recorded IDR3.41 trillion revenue in 9M21 or an increase of +47,18% YoY (vs IDR2.32 trillion in 9M20). COGS increased from IDR1.22 trillion in 9M20 to IDR1.62 trillion in 9M21. MIKA recorded IDR882.77 billion net profit in 9M21, rose by +68.01% YoY (vs net profit of IDR525.44 billion in 9M20) (Kontan). MNCS Comment: MIKA’s performance growth was driven by the increase of all segments sales, where the sales of drugs and medical equipment as the main contributor of MIKA’s revenue driver was worth IDR1.01 trillion in 9M21 or an increase of +50.03% YoY. MIKA is trading at the level of 25.56x/5.66x PER/PBV.
3. SMBR IJ recorded IDR1.21 trillion revenue in 9M21 or an increase of +5.49% YoY (vs IDR1.15 trillion in 9M20). COGS decreased from IDR701.47 billion in 9M20 to IDR651.65 billion in 9M21. SMGR recorded IDR16.62 billion net profit in 9M21 (vs net loss of IDR112.60 billion in 9M20) (Kontan). MNCS Comment: The increase in SMBR’s top line was obtained by the increase of sales cement bagging worth IDR1.04 trillion in 9M21 or up +2.98% YoY (vs IDR1.01 trillion in 9M20). Meanwhile, the increase in bottom line was due to COGS efficiency (-7.10% YoY) and a decrease in financial expenses (-2.73% YoY). SMBR is currently trading at level 329.43x/2.14x PER/PBV.
IHSG Updates
JCI weakened by -0.91% to 6,493.28 on Tuesday (2/11) followed by net foreign sell reaching IDR146.14 billion. JCI closed lower in almost all sectors, led by the energy sector (-2.03%), followed by the industrial sector (-1.99%). On the other hand, the health sector strengthened at +0.10%. The weakening of the JCI was driven by investor concerns about the risk of stagflation, amidst higher inflation risk which impacted several countries. Currently, there is pent up demand along with the supply limitation which has boosted the increase of China's Producer Price Index (PPI). On the other hand, the Rupiah weakened at IDR14,253 level in the spot market. We estimate the JCI will move in the range of 6,450-6,600. Today's recommendations: ASRI, BIRD, INKP, MAPA.
Corporate Action
RUPS: DADA
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