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Indonesia Morning Market - 3 August 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (03/08/2020). After over the past week the JCI edged up by + 0.09% (accompanied by Foreign Investor`s Net Sell by Rp-1.86 trillion) and during July the JCI rose by + 3.68% (but accompanied by Foreign Investor`s Net Sell by Rp-3.27 trillion), beginning this week, Monday, specifically as the 2-day (Thursday & Friday) DJIA fall by -0.43% and the EIDO fall of -1.11% has the potential to be a negative factor for trading on this Monday and in general this week investors focus on the release of 2nd quarter GDP data / 2020 which will be announced on Wednesday, 5 August * Indonesia successfully defeated China both in terms of the number of victims affected by Covid19 to 2 August 2020 (China 84 385 vs Indonesia 111,455) and the number of deaths (China 4634 vs Indonesia 5236) despite the source of the virus Covid19 is thought to originate from China and the population of Indonesia (273.79 million people) is far less because only 19% of the population of China (1.44 billion people) *.

On the other hand, commodity prices are quite variable where Gold, CPO & Coal based stocks (such as MDKA, ANTM, AALI, LSIP, ITMG, ADRO) have the potential to strengthen following rising commodity prices, while it is necessary to anticipate the emergence of profit taking on Oil-based stocks , Nickel & Lead after the commodity weakened last week.

Knowing JCI will move in a limited range in trading this Monday amid valuations that there are quite a lot of interesting stocks to buy, we recommend being very selective if investors want to do BUY or Swing Trade so they can focus on stocks from the Cigarette, Bank, Automotive, Consumer, Telco sectors , Infrastructure and hospitals in trade Monday.

 

 

B. INDONESIA CORPORATE NEWS

1. PT Tower Bersama Infrastructure (TBIG)

The company posted a net profit of Rp 510.48 billion until semester I-2020, or an increase of 33.58% compared to semester I-2019 which was valued at Rp 382.14 billion. While the company`s revenue up to semester I-2020 increased 13.2% to Rp 2.57 trillion from Rp 2.27 trillion in the same period in 2019.

 

2. PT Mayora Indah (MYOR)

The company`s net sales realization was Rp11.08 trillion as of 30 June 2020, down 8.10% from Rp12.05 trillion in the same period in 2019. The company`s biggest sales contribution came from domestic with Rp6.88 trillion, followed by exports of Rp4.20 trillion. The amount recorded has decreased annually both at home and abroad. Meanwhile, total profit for the year attributable to owners of the parent entity was Rp938.47 billion in semester I / 2020, up 16.22% from Rp807.48 billion as of June 30, 2019.

 

3. PT PP London Sumatra (LSIP)

In Semester I / 2020 the company posted profit for the period attributable to the owners of the parent entity amounting to Rp92 billion, up sharply + 776.2% yoy because it was supported by an increase in the average selling price of palm products. Although compact production and sales volume was corrected, core Fresh Fruit Bunch (FFB) production fell 7.2% yoy to 609,728 tons and this then affected the CPO production decline by 13.7% yoy to 158,030 tons where the decline from the upstream side affected downstream performance where CPO sales volume decreased 15.7 percent yoy to 156,536 tons and palm kernel (PK) and derivative sales volume also corrected 18.7% yoy to 42,406 tons, but the average selling price of CPO and PK children the Salim Group`s business rose 21% yoy and 22% yoy. On the other hand, recorded sales of Rp1.57 trillion, down 1.9 percent yoy mainly due to a decrease in sales volume of palm and rubber products.

 

4. PT Sampoerna Agro (SGRO)

The company recorded an 18% increase in sales to Rp1.60 trillion in semester I / 2020 compared to semester I / 2019. The company posted an average selling price of palm oil products of Rp8,409 per kg or 26% higher compared to semester I / 2020 of Rp6,662 per kg. Meanwhile, CPO sales volume decreased by 9% compared to last year. But the value of sales reached Rp1, 34 trillion or 15% higher compared to the same period last year.

 

5. PT Puradelta Lestari (DMAS)

The company posted a decrease in net profit of 87.38% to Rp78.94 billion during semester I / 2020 compared to the June 2019 position of Rp625.75 billion. This also affected the decline in earnings per share from Rp12.98 per share to Rp1.64 per share. The net profit contraction was in line with the acquisition of revenue which dropped 74.36% to Rp252.59 billion in semester 1/2020. In the first semester of 2020, the company recorded marketing sales of Rp1.05 trillion, or around 53 percent of the 2020 target. The sales achievement was mainly derived from sales of industrial land, amounting to 51 hectares.

 

6. PT Ace Hardware Indonesia (ACES)

During the first half of 2020, the company recorded a decline in net sales to 7.83% yoy, to Rp 3.65 trillion from Rp 3.96 trillion. In detail, sales of household improvement products dropped 9.22% to Rp 1.87 trillion. On the other hand, sales of lifestyle products also declined 5.36% to Rp 1.59 trillion. As for sales of game products, it fell 20.25% to Rp 118.99 billion. Meanwhile, throughout the semester 1/2020 the company booked profit for the current period attributable to owners of the parent entity down 23.83% to Rp 360.16 billion from Rp 472.86 billion.

 

7. PT Kalbe Farma (KLBF)

The company revised the growth target in which sales growth to 4% -6% in 2020, with a net profit growth target of around 8% -10%. Previously, the company targeted sales of 6 to 8 percent with a projected increase in net profit of 5 to 6 percent. Nevertheless, up to semester I-2020, Kalbe Farma posted net sales of Rp 11.60 trillion, an increase of 3.8% compared to the same period last year of Rp 11.17 trillion. The total net sales were contributed by distribution and logistics division sales which rose 10.1% from Rp3.41 trillion to Rp3.75 trillion and contributed 32.4% to total net sales. The health products division posted sales of Rp 2.07 trillion, an increase of 6.6% compared to the same period last year of Rp 1.94 trillion, so health product sales contributed 17.9% to the Company`s total net sales. While net sales from the Nutrition division was recorded at Rp 3.21 trillion, accounting for 27.7% of total net sales. Then, the company`s prescription drug division posted sales of Rp 2.56 trillion, and accounted for 22.1% of Kalbe`s total net sales in the first half of 2020. The net income of owners of the parent entity reached Rp 1.38 trillion until semester I / 2020, up 10.3% compared to the same period last year of Rp 1.25 trillion.

 

8. PT Mandom Indonesia (TCID)

During the second quarter of 2020, the company recorded a net loss of Rp 52.9 billion. In line with the losses recorded, the company`s sales at the end of the quarter 2/3) 2020, also dropped 29.4% yoy to Rp 996.77 billion. Based on product categories, sales of men`s products decreased by 24.92% and women`s products decreased by 33.3%. But sales of other products actually grew 14.28% to Rp 24.23 billion.

 

 

C. MARKET STATISTICS

*(Data July 30-31,2020)*
DJIA -115 -0.43% 26424
*NASDAQ +203 +1.92% 10745*
*GOLD +29.5 +1.50% 1994!!*
OIL -0.89 -2.15% 40.43*
*COAL (Aug/Newcastle) +0.70 +1.35% 52.70*
NICKEL -147.5 -1.06% 13762.50
TIN -132.5 -0.74% 17827.50
*CPO (Aug`20) +42 +1.56% 2737*
EIDO -0.21 -1.11% 18.74
US 10yr -0.043 -7.43% 0.5360
INDO 10yr -0.0196 -0.28% 7.0555
INDO CDS (5yr) -1.91 -1.62% 115.974
*TLK 41.04 (2995) vs 3050 (TLKM)*
IDR (Spot) 14,600
IDR (Bloomberg, 31/07/20/Fut, 08.45) 14,600

*IDX Range : 5,113 - 5,198*
*USD/IDR Range: 14,520 - 14,660*

 

 

D. STOCK WATCHLIST

GGRM, BBRI, ASII, UNVR, BBCA, TLKM, PGAS, TOWR, MIKA, WIIM.

 

 


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