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Indonesia Market Today - 20 July 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (20/07/2020). After a week ago the JCI rose + 0.96% again but accompanied by a Foreign Investor Net Sell of Rp-1.13 trillion, at the beginning of this week * there is a chance that the JCI will continue to fall * as the DJIA fell by -0.23% and the EIDO decrease by -1% while awaiting the release of the Report Financial issuers in the 2/2020 quarter that have been priced in or discounted by the market will decline amid the achievement of the highest number of returning victims who were infected and killed by Corvid19, where for 3 days (Friday to Sunday) the number of victims infected with Corvid19 on a day broke new record highs reaching +4,853 people * so far Corvid19 has reached 86,521 people (estimated to 100,000 people infected) with an additional death toll for 3 days +270 people so far the death toll has reached 4,143 people, to 5,000 people killed in several time ahead, (Fatality Rate of 4.79%) *. (Worldometers Info)

Meanwhile, commodity price closing conditions were quite mixed last Friday where commodities that experienced price gains were: CPO + 3.72% & Gold + 0.66% so investors could focus on observing CPO-based stocks namely: AALI, LSIP & SIMP while from Gold commodities namely: ANTM & MDKA for trading this Monday.

Knowing that IHSG has the opportunity to be affected by continued profit taking * in trading this Monday amid valuations that many stocks are very attractive to buy, we recommend being very selective if investors want to do BOW or Swing Trade so they can focus on stocks from the CPO, Coal, Cigarettes, Retail sectors , Cement and Basic Industries in Monday trading.

 

The purchase of SBN by BI could hoist inflation to 8.15% next year.

Quoted from the working meeting document of the Minister of Finance and the Central Bank together with the Commission XI of the Indonesian House of Representatives (DPR) some time ago, BI reviewed that the purchase of SBN by BI for the economic recovery of public goods, MSMEs, and corporations in 2020 will increase inflation in 2021 to around 5.26% - 8.15%. Then, inflationary pressure is expected to move sloping in 2022 to around 3.26% - 4.13%.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Pelat Timah Nusantara (NIKL)

Up to Semester I / 2020, the company posted current year profit of USD290,053, down sharply -87.97% compared to the same period in 2019 of USD2.41 million. Meanwhile, the company`s sales up to semester 1/2020 fell 16.07% to USD69.73 million from USD83.09 million in the same period in 2019.

 

2. PT Akasha Wira International (ADES).

The company estimates net profit and revenue in the first half of 2020 to drop 25% each compared to the same period in 2019. To maintain business continuity in the midst of this pandemic, the company implements various strategies such as expanding distribution networks to new areas and improving existing distribution networks, strive for cost reduction / cost saving in all departments, pay more attention to capital expenditure in large amounts unless there is certainty of its benefits in the short term, as well as strengthening the company`s financial security.

 

3. PT Envy Technologies Indonesia (ENVY)

The company`s revenue up to March 31, 2020 decreased sharply -93.9% to Rp2.55 billion compared to revenue of Rp.41.76 billion in the same period in 2019. Meanwhile, until the end of the quarter 1/2020 the current year`s loss was Rp8.08 billion, or * decreased super sharp -877.6% * after earning current year profit of Rp.695.95 million in 2019.

 

4. PT Trans Power Marine (TPMA)

During the first quarter of 2020, the company`s revenue rose 28.28% to US $ 13.65 million from US $ 10.64 million but the net profit attributable to the parent entity declined more than 30% from US $ 1.92 million to US $ 1.19 million. On the other hand, the company postponed the target to add ships this year due to a decrease in coal demand in the period from May to June 2020 due to COVID-19. In addition, the company also adjusted its growth target, which was initially set at around 10% to 20% at the end of the year, to be the same as the previous year or only 5% this year.

 

5. PT Indospring (INDS)

As a result of the Covid 19 pandemic, sales this year are estimated to reach Rp 1.5 trillion, down from 29% last year. The impact is the achievement of the company`s net profit this year will also decrease 58% from last year to Rp 42 billion. In 2019, the company recorded sales of Rp 2.1 trillion with a net profit of Rp 101 billion. Meanwhile, until the first quarter of 2020, the company posted sales of Rp. 528 billion, down 7.8% YoY. While net profit achieved up to the first quarter of 2012 amounted to Rp 43 billion.

 

6. PT Wijaya Karya (WIKA)

The company is participating in a number of domestic and overseas construction project tenders with a value of more than Rp 17 trillion. Project tenders that were followed by the company abroad, namely the airport project in Taiwan and the railroad in the Philippines. The value of the two projects is estimated at more than Rp 2 trillion. The company has not yet finished calculating the realization of the value of new contracts as of the end of semester I-2020. While as of the end of May 2020, Wika had realized Rp. 3.14 trillion. Meanwhile, the company`s total order book as of May 2020 was Rp 80.17 trillion, which can still be produced until 2022.

 

7. PT Duta Intidaya Tbk (DAYA)

The company is targeting to open as many as 40 new Watsons outlets in 2020, even though it was stopped due to the implementation of the PSBB. To realize the plan, the company has prepared capex worth Rp 40 billion, which is sourced from internal cash. On the other hand, until the first quarter of 2020, the company posted sales of Rp 300 billion, up 38.68% from sales in the same period in 2019 valued at Rp 216.66 billion. However, due to an increase in expenses, the company posted a net loss of the current period of Rp 11.64 billion.

 


C. MARKET STATISTICS

DJIA -62.76 -0.23% 26671
*NASDAQ +29.36 +0.28% 10503*
*GOLD +11.80 +0.66% 1812.10*
OIL -0.18 -0.44% 40.57
COAL (Aug/Newcastle) -0.30 -0.55% 54.50
NICKEL -272.5 -2.03% 13120
TIN -30 -0.17% 17312.50
*CPO (Aug`20) +97 +3.72% 2702!!*
EIDO -0.19 -1.00% 18.84
US 10yr +0.016 +2.61% 0.6280
INDO 10yr +0.0122 +0.17% 7.2701
INDO CDS (5yr) -0.353 -0.27% 127.084
*TLK 42.36 (3098) vs 3100 (TLKM)*
IDR (Spot) 14,702.5
IDR (Bloomberg, 18/07/20/Fut, 04.35) 14,702.5

*IDX Range : 5,029 - 5,113*
*USD/IDR Range: 14,630 - 14,770*

 

 

D. STOCK WATCHLIST

AALI, PTBA, GGRM, ERAA, INTP, LSIP, ADRO, INKP, SIMP, MAPI

 

 

 

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