Indonesia Market Today - 27 August 2020
A. INDONESIA MORNING MARKET REVIEW
Thursday (27/08/2020). The rebound in the price of gold commodities by + 1.19%, accompanied by a strengthening of Nickel prices + 1.32%, Tin + 1.01%, CPO + 0.75%, Coal + 0.10% and an increase in the DJIA by + 0.30% have the potential to be a catalyst for the increase in the JCI in this dictionary trade amidst the achievements The highest number of victims who were infected and died due to Corvid19, where on Wednesday there was an increase of around +2,306 people (up + 1.46%) infected with Corvid * so that so far the victims infected with Corvid19 reached 160,165 people with the addition of deaths on Wednesday as many as +86 people (increase + 1.25%) so that the death toll has reached 6,944 people, leading to 7,000 deaths in the near future (Fatality Rate of 4.33%) *.
B. INDONESIA CORPORATE NEWS
1. PT Transkon Jaya Tbk (TRHA)
A vehicle rental company from East Kalimantan, PT Transkon Jaya Tbk., Is preparing to make an initial public listing on the Indonesia Stock Exchange this Thursday (27/8/2020). Transkon Jaya offers 375 million new shares with a nominal value of Rp100. The offering price is priced at IDR 250 per share. Thus, the total public offering of Transkon Jaya was worth Rp. 93.75 billion. About 0.012 percent of all shares on offer is an employee stock allocation (ESA) program. Transkon Jaya explained the plan to use the funds raised from the IPO. First, around 70 percent will be used for the company`s business development, namely the down payment for the purchase of a new vehicle for the purpose of leasing it. Second, around 30 percent will be used for the company`s working capital. Transkon Jaya will use the allocation to purchase spare parts, tires and oil.
2. PT Astra Graphia (ASGR)
The company posted a consolidated net income as of 30 June 2020 of IDR 1,452 billion, only a 7% decrease YoY. The decrease in net income was contributed by the document solutions and office solutions business unit. The work from home policy of some companies in Indonesia has resulted in a decrease in income from recurring income (annuity). The decline in revenue is also caused by current economic conditions, where customers have the potential to propose changes in terms of payment, as well as postpone non-priority shopping and focus on business continuity.
3. PT Vale Indonesia Tbk (INCO)
Recorded production of 18,701 metric tons (“t”) of nickel in matte and shipments of nickel matte of 19,887 t, equivalent to sales of US $ 185.7 million in 2Q20. INCO revised its production target for nickel in matte throughout 2020 from around 71,000 t to 73,700 t, 4% higher than production in 2019. This increase was due to the delay in rebuild furnace 4 which was originally scheduled for the fourth quarter of 2020 to become the second quarter. 2021. INCO recorded EBITDA of US $ 59.4 million in 2Q20, slightly higher than in 1Q20 of US $ 54.9 million, mainly driven by higher sales. The Group also recorded a positive profit of US $ 24 million in 2Q20, down from US $ 29 million in 1Q20 mainly due to financial income and lower income tax benefits. However, profit in 1H20 was significantly higher than in the same period last year when the Group recorded a net loss of US $ 26.2 million in 1H19.
4. PT Sarana Menara Nusantara (TOWR)
The company predicts that the application of 5G network technology in Indonesia will only run in 2023-2024. Given that the government has not yet determined the 5G frequency and Indonesia is still looking for the right business model for this network technology. However, the company has prepared the infrastructure for the implementation of 5G by building a fiber optic network. Internet users in Indonesia are currently estimated to only reach around 170 million people out of a total population of 260 million. Then, around 90% of that number still use data services via mobile devices or mobile phones, and around 70% of cellphone users use 3G / 4G networks. Currently TOWR has 21,271 towers with a total tenant of 38,122, bringing the tenancy ratio to 1.79x. This figure is an increase from the tenancy ratio as of June 2019 which was 1.61x.
5. PT Summarecon Agung (SMRA)
The company has revised its sales marketing target in 2020 to Rp 2.5 trillion from Rp 4.5 trillion due to the Covid-19 pandemic. The company projects that the marketing sales achievement will be contributed by housing projects by 60 percent, shop houses 17 percent, apartments 16 percent and offices 7 percent. This year, the company budgeted capex of Rp. 600 billion, with a portion of Rp. 300 billion for land acquisition and the rest for property development. From the land acquisition plan, the company explained that only less than half of it was realized.
C. MARKET STATISTICS
*DJIA +83.5 +0.3% 28331*
*NASDAQ +198.5 +1.73% 11665*
*GOLD +23.1 +1.19% 1960.2.10*
OIL -0.01 -0.02% 43.44
*COAL (Sep/Newcastle) +0.05 +0.10% 48.85*
*NICKEL +197.5 +1.32% 15195*
*TIN +175 +1.01% 17575*
*CPO (Oct`) +20 +0.75% 2670*
EIDO Unch 20.24
US 10yr +0.0050 +0.73% 0.687
INDO 10yr -0.0204 -0.30% 6.8876
*INDO CDS (5yr) -0.417 -0.43% 96.475*
*TLK 41.08 (3015) vs 3020 (TLKM)*
IDR (Spot) 14,677.5
IDR (Bloomberg, 27/08/20/Fut, 05.15) 14,677.5
*IDX Range : 5,304 - 5,390*
*USD/IDR Range: 14,590 - 14,730*
D. STOCK WATCHLIST
SMGR, BRIS, BBKP, EXCL, BMRI, TLKM, SSIA, MYOR, ADRO, ASII.
GFS ASIA TEAM
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