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Indonesia Morning Market - 27 July 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (27/07/2020). After over the past week the JCI edged up + 0.07% but was accompanied by a Foreign Investor Net Sell of Rp 973.21 billion, but at the beginning of this week * there is a chance that the JCI will continue to fall * as the DJIA fell again by -0.68% and externally namely the escalation of global geopolitical temperatures between US vs. China after closing their consular offices and sending war fleets in the South China Sea region and rising political tension between NATO vs Russia while domestic investors are not behind domestic investors awaiting the release of Q2 / 2020 issuer`s financial statements and Q2 / Indonesia GDP data 2020 which has been announced by many Indonesian parties will enter the abyss of economic recession amid the achievement of the highest number of returning victims who were infected and killed by Corvid19, where delama 3 days (Friday to Sunday) the number of victims affected by Corvid19 on a day breaking new record highs reached +5,121 people * so far Corv is infected by victims id19 reached 98,778 people (estimates of 100,000 infected) with an additional death toll for 3 days +205 people so far the death toll has reached 4,781 people, leading to 4,000 people killed in the near future, (Fatality Rate of 4.84%)*.
 
On the other hand, rising prices for some commodities such as: Oil + 0.66%, Gold + 0.54% & CPO + 2% have the potential to drive up commodity-based stocks in trading this Monday.

Knowing that IHSG has the opportunity to continue its fall 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 Gold Metal, Consumer, Cigarette, CPO, Bank sectors , Nickel Metals, Basic Industries, Automotive and Hospitals in Monday trade.

 

B. INDONESIA CORPORATE NEWS

1. PT AKR Corporindo (AKRA)

The company posted revenue of IDR 10.00 trillion up to the end of the quarter 2/2020 edged up + 2.99% from revenue of IDR 9.71 trillion in the same period in 2019. Meanwhile, until the end of the quarter 2/2020 the company posted profit for the current period attributable to the owner of the entity parent company of Rp.431.57 billion, or an increase of + 10.46% from a profit of Rp390.76 billion in the same period in 2010.

 

2. PT BFI Finance (BFIN)

Until the end of the quarter 2/2020, the company posted revenue of Rp2.44 trillion, or a slight decrease of -2.79% of revenue of Rp2.51 trillion in the same period in 2019. Meanwhile, until the end of the quarter 2/2020, the company posted a profit for the current period can be attributed to the owner of the parent entity amounting to Rp332.04 billion, down -51.89% compared to the same period in 2019 amounting to Rp690.17 billion.

 

3. PT Provident Agro (PALM)

Until the end of the quarter 2/2020, the company posted a profit attributable to the owner of the parent entity amounting to Rp17.05, up sharply + 142.11% compared to a loss of Rp40.49 billion in the same period in 2019. Meanwhile, until the end of the quarter 2/2020, The company`s revenue rose + 24.74% to Rp121.27 billion from the same period in 2019 of Rp97.12 billion.

 

4. PT Indo Tambangraya Megah (ITMG)

The company has booked 80% of sales contracts from total production in 2020. As is known, the company is targeting production volume in 2020 in the range of 19 million to 20.1 million tons with sales targets in the range of 22.4 million to 23.5 million tons. The largest sales contribution still came from China with total sales of 1.6 million tons, followed by Japan of 1.5 million tons. Domestic sales occupy the third position, amounting to 0.7 million. Furthermore, the company estimates that cash cost will decrease by around 15% compared to 2019.

 

5. PT Sarana Menara Nusantara (TOWR)

The company is optimistic to achieve revenue growth of 14% - 15% or equivalent to Rp7.3 trillion to Rp7.4 trillion in 2030, higher than Rp6.3 trillion in 2019. This growth is estimated to reach around 70% of the company`s activities organic business such as building new towers, colocation, or completing fiber optic projects for towers. Another 30% contribution came from the acquisition of 1,723 towers from XL Axiata, which is currently 95% complete.

 

6. PT Adi Sarana Armada (ASSA)

The company is aiming for revenue growth of 25-30% throughout 2020 which will be supported by expectations of growth in the express delivery and vehicle rental services business. On the other hand, the company has realized capital expenditure of Rp 350 billion until the first quarter of 2020 from this year`s total budget of Rp 2 trillion. The funds are absorbed to finance the purchase of a new fleet of cars to be leased and to strengthen the company`s logistics business, as well as investment in the express delivery business line. Until the first quarter of 2020, the company recorded a 10.86% increase in net profit to Rp 34.79 billion, compared to the same period last year of Rp 31.38 billion. The increase in net profit was in line with the increase in revenue to Rp 701.61 billion, up 37.93% from the same period last year of Rp 508.67 billion.

 

7. PT Dharma Satya Nusantara (DSNG)

The Company offered Phase I Sustainable Bonds I Year 2020 with a principal amount of Rp451 billion. The bonds consist of two series, namely series A with a total of Rp275 billion with interest of 9.60% and a term of 3 years and series B with a total of Rp176 billion and interest of 9.90% per annum and a term of 5 years. The offer period is conducted on July 27, 2020 and listing on the IDX on August 3, 2020. Pefindo assigns idA- ratings for these bonds.

 

 

C. MARKET STATISTICS

DJIA -182.4R -0.68% 26469
NASDAQ -98.24 -0.94% 10363
*GOLD +10.30 +0.54% 1900.3*
*OIL +0.27 +0.66% 41.34*
COAL (Aug/Newcastle) -0.40 -0.75% 53.10
NICKEL -62.50 -0.46% 13622.50
TIN -225 -1.26% 17605
*CPO (Aug`20) +56 +2% 2855!!*
*EIDO +0.11 +0.58% 19.06*
US 10yr +0.007 +1.20% 0.5890
INDO 10yr -0.0285 -0.40% 7.1224
INDO CDS (5yr) +5.482 +4.83% 118.985
*TLK 41.08 (3000) vs 3020 (TLKM)*
IDR (Spot) 14,610
IDR (Bloomberg, 25/07/20/Fut, 08.15) 14,610

*IDX Range : 5,040 - 5,124*
*USD/IDR Range: 14,530 - 14,660*

 

 

D. STOCK WATCHLIST

MDKA, UNVR, GGRM, AALI, BBCA, INCO, LSIP, GJTL, ASII, MIKA.

 

 

 


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