MNCS Morning Navigator

25 Oktober 2021

MNCS Morning Navigator October 25, 2021

Global Market Highlights

DJIA rose by +0.21% on Friday (22/10), meanwhile S&P 500 fell -0.11% followed by Nasdaq (-0.82%). Wall Street closed mixed as US Fed has officially announced that it is going to begin tapering as the US economy is now recovering from economic slowdown and is ready for asset purchases reduction. Meanwhile, US Markit Manufacturing PMI fell to its lowest level in 7 months, reaching 59.2 in October-21 from previously at 60.7 level in September-21. In addition, Japan Inflation Rate YoY rose from -0.4% in August-21 to 0.2% in September-21. Today the market will be looking forward to several data releases such as: 1) US Chicago Fed National Activity Index; 2) Germany IFO Business Climate; 3) Japan Coincident Index Final.


Domestic Update
Bank Indonesia (BI) decided to extend the policy on minimum credit card payment of 5% from total outstanding and reduce the value of fines for late credit card payments by 1% of the outstanding or a maximum of IDR100,000 up until June-22. MNCS Comment: This is another policy taken by the domestic central bank in order to support the economy by fostering credit growth. Despite the hawkish tone of global monetary policy in the recent time, BI has managed its pro-growth strategy by enacting the policy mix to stay accommodative.
Furthermore, the second dose of vaccination rate nationally reaching 32.5% yesterday.


Company News
1. UNVR IJ recorded IDR30.02 trillion revenue in 3Q21 or decreased by -7.48% YoY (vs IDR32.45 trillion in 3Q20). COGS decreased from IDR15.58 trillion in 3Q20 to IDR14.93 trillion in 3Q21. UNVR recorded IDR4.37 trillion net profit in 3Q21 (vs net profit of IDR5.43 in 3Q20) (Emitennews). MNCS Comment: We see a decline in performance due to a wave of Delta variants followed by PPKM in most areas in Indonesia. Then, the increase in commodity prices affects product costs which affect consumer purchases. UNVR is currently trading at level 31,69x/34,74x PER/PBV.

2. ARTO IJ posted IDR355 billion net interest income (NII) in 3Q21 rose by +478% YoY, the growth supported by the spike in loan disbursement at IDR3.73 trillion, an increase of 502% YoY. ARTO net profit was recorded at IDR14 billion in 3Q21 (CNBCIndonesia). MNCS Comment: We see tremendous performance improvement will continue to grow in the future. ARTO will become more profitable and grow sustainably in the future. ARTO is trading at the level of 9.41x/0.92x PER/PBV.

3. BBHI IJ posted IDR131.56 billion net interest income (NII) in 9M21 or up +261.55% YoY, the numbers supported by credit disbursement increase reached IDR2.04 trillion equivalent to 66.6% growth YoY . BBHI's net profit was recorded at IDR85.73 billion in 9M21 or up +77.16% YoY (vs IDR48.39 billion in 9M20) (Emitennews). MNCS Comment: The improvement of BBHI's performance driven by the increase of credit growth numbers followed by a decrease in operating expenses by 18.97% YoY to IDR58.92 billion in 9M21. In addition, BBHI's plan for a right issue worth IDR4.7 trillion has the potential to attract more investors. Currently, BBHI is trading at level 574,90x/51,06x PER/PBV.


IHSG Updates
JCI rose by +0.16% to 6,643.74 on Friday (22/10) followed by net foreign buy reaching IDR1.19 trillion. JCI ended higher along with a strengthening in several sectors led by the infrastructure sector (+1.17%), followed by the property sector (+1.07%). On the other hand, the non-cyclical consumer sector weakened by -1.40%, followed by the health sector (-1.29%). The strengthening of JCI was driven by the rise of most Asia indices and positive sentiment from BI regarding the forecast that the current account will experience a surplus in 3Q21, thereby reducing pressure on the national currency. On the other hand, the Rupiah was stagnant at IDR14,123 level in the spot market. We estimate the JCI will move in the range of 6,550-6,700 while waiting for money supply YoY data release. Today's recommendations: UNTR, WSBP, INKP, ADHI.

Corporate Action
IPO: KUAS (IDR195/share)


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