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MNCS Morning Navigator

15 Oktober 2021

MNCS Morning Navigator October 15, 2021

Global Market Highlights

DJIA rose by +1.56% on Thursday (14/10) followed by S&P 500 (+1.71%) and Nasdaq (+1.73%). Wall Street closed higher as some companies, including Morgan Stanley, reported strong 3Q21 reports. Data on the labor market soothes market’s concern as the number of US new jobless claims reached the lowest point since March 2020 at 293,000 filings last week. On the other hand, China released its Inflation Rate data which fell slightly to 0.7% from the previous at 0.8% level in August-21. In addition, Japan’s Industrial Production YoY Final fell from previously at the level of 11.6% in August-21 to 8.8% in September-21. Today the market will be looking forward to several data releases such as: 1) US Retail Sales MoM; 2) US Michigan Consumer Sentiment Prel; 3) Eurozone Balance of Trade.

Domestic Update
• Statistics Indonesia will release September-21 international trade data today. MNCS Comment: We expect the trade surplus to continue with exports rising by 47.49% YoY and imports to increase by 45.95% YoY for September-21 causing a surplus of USD3.7 billion.
• Furthermore, there was an addition of 113 new Covid-19 cases in Jakarta yesterday.

Company News
1. SMGR IJ through its subsidiary PT Semen Padang realized 377.812 metric tons (MT) export in 9M21 or exceeded 484% of the FY21E cement export target of 198.600. Cement and clinker export destinations are Sri Lanka (26.000 MT), Maldives (64.000 MT), Australia (15.000 MT), and Bangladesh (clinker export) (Iqplus). MNCS Comment: We assess that PT Semen Padang’s export performance, which exceeded the FY21E target, was driven by the global economic recovery that was starting to recover, thus boosting demand for cement and clinker in export destination countries for infrastructure development. SMGR is currently trading at level 33.33x/1.56x PER/PBV.
2. IRRA IJ through PT Oneject Indonesia allocated 100-150 million ADS syringes for Covid-19 vaccination in Indonesia until the end of the year. Those ADS syringes will be distributed by IRRA. As of October 12, the number of vaccines that have been given to the Indonesian community was recorded at 160.7 million doses with the target by the end of the year reaching 70% or as many as 208 million doses of vaccine (Kontan). MNCS Comment: We see that with the completion of Oneject factory in Cikarang, it has the potential to increase the production capacity of ADS & Safety Needle, amid increasing global demand for syringes in line with the Covid-19 vaccination program until 2022. IRRA is trading at the level of 28.77x/10.61x PER/PBV.
3. ELSA IJ obtained a new contract for upstream oil and gas Seismic Survey services in several locations of Indonesia. 3D seismic survey in Pulau Panjang and Sungai Buluh. Also, 2D seismic survey projects in West Java, Central Java, and East Java. The contract period varies depending on the area, with the longest period being 19 Months (Market Bisnis). MNCS Comment: We believe that the new contract project has the potential to support ELSA’s revenue and improve the company’s performance in the future. Currently, ELSA is trading at level 30.17x/0.64x PER/PBV.

IHSG Updates
JCI rose by +1.36% to 6,626.11 on Thursday (14/10) followed by net foreign buy reaching IDR1.58 trillion. JCI closed higher in almost all sectors, led by the technology sector (+4.15%), followed by the basic industrial sector (+2.82%). On the other hand, the transportation sector is -1.45%, followed by the industrial sector (-1.24%). The strengthening of the JCI was again driven by the large number of foreign investors entering the big caps stocks. Investors are increasingly optimistic and look forward to the release of the performance of issuers that are likely to show an increase. On the other hand, the Rupiah strengthened at IDR14,118 level in the spot market. We estimate the JCI will move in the range of 6,500-6,670 while waiting for the release data Indonesia Trade Balance. Today's recommendations: AUTO, BFIN, MEDC, MYOR.

Corporate Action
RUPS: ADMF, MBSS, POWR

Disclaimer On

AUTO BFIN MEDC MYOR SMGR IRRA ELSA

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