Global Market Highlights
DJIA rose by +0.56% on Friday (05/11), followed by S&P 500 (+0.37%) and Nasdaq (+0.20%). Wall Street closed higher due to the bounce back of employment data, offering more evidence that economic activity was regaining momentum early in 4Q21. The US Labor Department released its Non Farm Payrolls data which jumped to 531.000 jobs in October-21 from the previous at 312.000 on September-21. The US Unemployment Rate also fell to 4,6% in October-21 from the previous at 4.8% in September-21. Today the market will be looking forward to several data releases such as: 1) US Fed Chair Powell Speech; 2) Japan Leading Economic Index Prel; 3) Japan Coincident Index Prel.
Domestic Update
• As of November 5, vaccine jabs in Indonesia have hit >200 million doses. According to Ministry of Health data, government vaccination program coverage achieved 40% for the full dose target and 60% for the 1st dose. MNCS Comment: The additional daily cases of infection continued to drop and consistently below 1,000 cases in a day since early Nov-21 along with the vaccination rate being kept at 1.5 million doses/day. Should the government maintain the vaccination rate at current level, we expect the herd immunity could be achieved in 1H22. This should be a positive note for Indonesia's economy combined with the gradual reopening.
• Furthermore, the second dose of vaccination rate nationally reached 37.8% or equivalent to 78.68 million people.
Company News
1. SAME IJ recorded IDR986.89 billion revenue in 9M21 grew by +101.26% YoY (vs IDR490.41 billion in 9M20). COGS increased from IDR348.98 billion in 9M20 to IDR546.52 billion in 9M21. SAME recorded IDR147.18 billion net profit in 9M21 (vs net loss of IDR457.66 billion in 9M20) (Trenasia). MNCS Comment: SAME’s performance growth was driven by the increase of all segments, where the sales of medical support rose to IDR526.44 billion level in 9M21 or an increase of +75,58% YoY. Currently, SAME is trading at level 39.42x/1.92x PER/PBV.
2. LPKR IJ recorded IDR10.95 trillion revenue in 9M21 or an increase of +44,26% YoY (vs IDR7.59 trillion in 9M20). COGS increased from IDR4.27 trillion in 9M20 to IDR6.29 trillion in 9M21. LPKR recorded IDR573.29 billion net loss in 9M21 (vs net loss of IDR2.34 trillion in 9M20) (Market Bisnis). MNCS Comment: The increase in LPKR's top line contributed by the revenue of the real estate management & services segment of IDR7.93 trillion in 9M21 or up +53.98% YoY (vs IDR5.15 trillion in 9M20). The increase in the top line has successfully reduced the company's net loss, which was caused by the increase in several expenses such as operating expenses, financial expenses, company tax expenses, and a loss from the translation of financial statements of IDR2.42 trillion. LPKR is trading at the level of 0.61x PBV.
3. LPPF IJ will buy back shares phase II worth IDR500 billion by using the company's internal cash. Buyback will be implemented in stages over a three-month period, starting at November 4, 2021 to February 4, 2022 (Kontan). MNCS Comment: The Company plans to use internal cash that reflects a decent and sufficient capital and cash flow. We expect that the execution will generate a good return for the shareholder and represent the Company's market value. Currently LPPF is trading at 15.53x/8.58x levels.
IHSG Updates
JCI weakened by -0.07% to 6,581.79 on Friday (05/11) followed by net foreign buy reaching IDR1.10 trillion. JCI closed lower along with the weakest in almost all sectors led by the energy sector (-1.02%), followed by the property sector (-1.01%). On the other hand, both the tech sectors and infrastructure strengthened by +0.36%. The JCI weakening was driven by the slowdown of Indonesia's GDP growth to +3.51% YoY in 3Q21 (vs +7.07% YoY in 2Q21), as the impact of PPKM tightening in July-August 2021. On the other hand, the Rupiah strengthened at IDR14,328 level in the spot market. We estimate the JCI will move in the range of 6,550-6,627. Today's recommendations: AKRA, LSIP, IRRA, PWON.
Corporate Action
Cum right issue date: JAYA (IDR104/share), SBAT (IDR100/share), YELO (IDR50/share)
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