Global Market Highlights
DJIA rose by +0.29% on Monday (08/11), followed by S&P 500 (+0.09%) and Nasdaq (+0.07%). Wall Street closed higher due to optimism about the USD1 trillion government infrastructure spending bill that would promote economic growth. US average hourly earnings hit its highest since March which rose by 4.9% on an annual basis in October-21, which will likely support spending and economic growth in the coming months. In addition, Japan’s Coincident Index Prel fell to 87.5 in September-21 from previously at 91.3 in August-21 due to slowing exports and factory output. Today the market will be looking forward to several data releases such as: 1) US Producer Price Index MoM; 2) Eurozone ZEW Economic Sentiment Index; 3) Germany ZEW Economic Sentiment Index.
Domestic Update
• The Ministry of Energy & Mineral Resources set Indonesia coal reference price (HBA) at USD215.63/ton on Nov-21. HBA increased by 33% from the previous month. MNCS Comment: The domestic coal price has stayed stubbornly high following the global trend on the back of : 1) rising demand in China and other markets as the northern hemisphere enters winter; 2) supply chain disruption in producing countries. We expect coal prices to remain high at least until the end of 2021 before moderating next year.
• Furthermore, the second dose of vaccination rate nationally reached 38.0% or equivalent to 79.04 million people.
Company News
1. BBCA IJ will distribute an interim dividend of IDR25/share or IDR3.08 trillion for the 2021 book year period. The Cum dividend date is on November, 16 2021 (Emitennews). MNCS Comment: The payout ratio stood at 21.30% from the 9M21 profit of IDR14.46 trillion. Dividend yield reached 1.40%. BBCA is trading at the level of 30.19x/4.72x PER/PBV.
2. BRPT IJ recorded USD2.31 billion revenue in 9M21 grew by +38.32% YoY (vs USD1.67 billion in 9M20). COGS increased from USD1.29 billion in 9M20 to USD1.67 billion in 9M21. BRPT recorded USD100.10 million net profit in 9M21, or rose by 407.56% YoY (vs net profit of USD19.72 million in 9M20) (Market Bisnis). MNCS Comment: BRPT’s top-line and bottom-line growth were boosted by the pent up of domestic sales recorded USD1.90 billion in 9M21 or up 44.62% YoY. On the other hand, petrochemical export sales jumped from USD350.26 million in 9M20 to USD410.94 million in 9M21. Currently, BRPT is trading at level 32.97x/4.44x PER/PBV.
3. JSMR IJ recorded IDR10.63 trillion revenue in 9M21 increased by +0.80% YoY (vs IDR10.55 trillion in 9M20). COGS decreased from IDR6.64 trillion in 9M20 to IDR6.19 trillion in 9M21. JSMR recorded IDR749.42 billion net profit in 9M21 or rose by +375.52% YoY (vs net profit of IDR157.60 billion in 9M20) (Trenasia). MNCS Comment: The increase in JSMR’s top line was obtained by the relaxation of PPKM as well as a number of new toll roads that started operating. The toll revenue recorded IDR7.60 trillion in 9M21 or grew +21.60% YoY (vs IDR6.25 trillion in 9M20). Followed by an increase in other operating income in 9M21 which rose +12.04% YoY. Meanwhile, the increase in bottom line was obtained from COGS efficiency (-7,27% YoY). JSMR is trading at the level of 18.15x/1.56x PER/PBV.
IHSG Updates
JCI rose by +0.77% to 6,632.30 on Monday (08/11) followed by net foreign buy reaching IDR463.44 billion. JCI closed higher in almost all sectors, led by the transportation sector (+1.65%), followed by the financial sector (+1.61%). On the other hand, the technology sector weakened by -1.06%, followed by the health sector (-0.15%). The strengthening of the JCI was in line with the strengthening of the Wall Street index and several stock exchanges in Asia. Followed by positive sentiment from rising prices of several commodities, especially coal, where China reported coal imports that almost doubled on October-21. On the other hand, the Rupiah strengthened at IDR14,258 level in the spot market. We estimate the JCI will move in the range of 6,550-6,656 while waiting for the release data of Retail Sales YoY. Today's recommendations: FREN, JSMR, PMMP, DOID.
Corporate Action
Cum dividend date: SMSM (IDR20/share), SMAR (IDR185/share)
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