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Indonesia Market Today - 29 June 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (29/06/2020). After the JCI dropped over -0.77% last week accompanied by a Foreign Investor Net Sell of Rp 2.22 trillion, beginning this week when seen from a DJIA decrease of -2.84%, the fall of the EIDO by -2.54% and the potential for horizontal conflicts related to * Draft Law The Pancasila Idiology Direction (HIP) * then has the potential to be a negative sentiment pulling in the JCI down. On the other hand if referring to a tax income cut of 3% to 22% from the previous 25% for issuers who release at least 40% share ownership to the public and the existence of Window Dressing at the end of the quarter 2/2020 then it has the potential to be a positive sentiment for Monday and Tuesday trading amid achievement the highest number of victims who were infected and died due to Corvid19, where for 3 days the number of victims infected with Corvid19 continues to increase to +3,823 people * so far the Corvid19 victims have reached 54,010 people (estimated to 100,000 infected) with an additional death toll for 3 days as many as +134 people so far the death toll has reached 2,754 people to 3,000 people killed in the near future, (Fatality Rate of 5.10%) *.

On the other hand, rising prices for some commodities such as: Coal + 4.03% (* PTBA & ADRO stock options *), Gold + 0.80%, Nickel + 1.52% & Tin + 0.98% potentially * encouraging shares to rise under these commodities * in trading This monday.

Knowing quite a variety of sentiment that drives the JCI there is an opportunity * JCI moves anomaly compared to Regional Exchanges *, in trading this Monday amid valuations many stocks are very attractive to buy, we recommend being very selective if investors want to do BOW, * especially stocks that will distribute dividends * , or Swing Trade can then focus on stocks from the Coal, Consumer, Retail, Infrastructure, Pharmaceutical, Construction, Cigarette and Bank sectors in this Monday trade.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Link Net (LINK)

The Company added 73,629 Home Passed to its network, bringing the total network of the Company to 2.54 million Home Passed by the end of the first quarter of 2020. Until the end of May 2020 the company added 130,210 Home Passed to its network and made the total Home Passed Company of 2.6 million homes.

 

2. PT Lotte Chemical Titan (FPNI)

The company is targeting revenue growth of 5% -10% in 2020 after in 2019 the company posted revenue which fell 24% from 2018. The company also added, one of the products of FPNI polyethylene (PE) is one of its main applications for plastic bags, at such times the use of bags actually becomes more. FPNI`s target market share in the domestic is around 25% because there are basically 2 FPNI factories in Indonesia, but there are still many FPNI imports from abroad both from Asean and outside Asean. The company budgeted capex 2020 in the amount of USD 3 million which will be applied to several tools that FPNI has used on land 1 since 1991 and on land 2 since 1993 so it is time to rejuvenate its equipment and on land 3 it has been operating since 1998, for land 1 and 2 Distribution control system (DCS) which requires quite expensive costs, there is already rejuvenation and for land 3 there is not yet, then we will do DCS on land 3.

 

3. PT Gozco Plantation (GZCO)

Until the first quarter of 2020, the company managed to reduce losses to Rp53.57 billion from losses in the first quarter of 2019 amounting to Rp96.53 billion, down -44.49%. Meanwhile, as of the 1/2020 quarter, the company`s sales amounted to Rp74.17 billion, down 15.83% compared to the same period in 2019 amounting to Rp88.19 billion.

 

4. PT Lippo Cikarang (LPCK)

The company posted a 44% increase in revenue to Rp 574 billion in the first quarter of 2020, compared to the same period last year of Rp 399 billion. This increase was mainly derived from sales of houses and apartments from Rp 304 billion to Rp 362 billion. The increase in revenue was also contributed by sales of commercial land and shop houses and sales of Lippo Cikarang industrial land in the first quarter of 2020 amounting to Rp 57 billion and Rp 59 billion, respectively. Revenues were also supported by an increase in recurring income by the city management division of 6% annually to Rp 83 billion from Rp78 billion in the same period last year. Meanwhile, rental income decreased 23% on an annual basis to Rp13 billion from Rp17 billion in the first quarter of 2019. This is because tenants at Maxxbox Lippo Cikarang who did not continue the lease, especially PT Mahkota Sentosa Utama (MSU), moved the Meikarta marketing gallery to the District.

 

5. PT Sarana Meditama Metropolitan (SAME)

In the first quarter of 2020, the company posted a net loss of Rp17.77 billion, inversely proportional to a net profit of Rp4.16 billion in the same period in 2019. Meanwhile, until the end of the quarter 1/2020 the company recorded a net service revenue of Rp136.62 billion, down 50 , 30% compared to the same period in 2019 amounting to Rp274.94 billion.

 

6. PT Adhi Karya (ADHI)

Until the end of May 2020, the company recorded a new contract worth Rp3.2 trillion, which was dominated by construction and energy contracts. Realization of the acquisition of new contracts in May was dominated by Irrigation Development in Cipelang, West Java, valued at Rp308.1 billion and Landfill Development in Jombang, Central Java, valued at Rp168.7 billion. Compared to the acquisition of contracts up to April worth IDR 2.6 trillion, there were additional contracts of around IDR 600 billion. However, when compared to the acquisition in the same period last year, the cumulative acquisition of the company`s contract was lower by around Rp1.4 trillion. This year the company is aiming for new contracts amounting to Rp35 trillion. Meanwhile, revenues and profits are targeted to reach Rp22.7 trillion and Rp704 billion. On the other hand, the company has already cut its capital expenditure allocation first. The company estimates that capital expenditure will reach IDR1.4 trillion, down from the original projection of IDR5.5 trillion.

 

7. PT Alimindo Light Metal Industry (ALMI)

Until the first quarter of 2011, the company recorded a profit for the current period of Rp52.12 billion, improved compared to the first quarter of 2019, which recorded a loss for the current period of Rp36.29 billion. Meanwhile, operating revenues in the first quarter of 2020 amounted to Rp235.2 billion, down 74.94% compared to the end of March 2019, which was recorded at Rp938.69 billion.

 

 

C. MARKET STATISTICS

DJIA -730 -2.84% 225015
NASDAQ -259.7 -2.59% 9757
*GOLD +14.2 +0.80% 1784*
OIL -0.56 -1.45% 38.15
*COAL (July/Newcastle) +2.10 +4.03% 54.02*
*NICKEL +190 +1.52% 12667.50*
*TIN +162.50 +0.98% 16765*
CPO (Jul`20) -38 -1.51% 2474
EIDO -0.45 -2.42% 18.16
US 10yr -0.0380 -5.69% 0.6360
INDO 10yr +0.0039 +0.05% 7.3961
INDO CDS (5yr) -2.066 -1.52% 134.115
TLK 43.96 (3125) vs 3190 (TLKM)
IDR (Spot) 14,220
IDR (Bloomberg, 27/06/20/Fut, 08.45) 14,220

*IDX Range : 4,863 - 4,946*
*USD/IDR Range: 14,150 - 14,290*

 

 

D. STOCK WATCHLIST

PTBA, ICBP, MAPI, PGAS, TOWR, ADRO, PEHA, PTPP, WIIM, BBNI.

 

 

 

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