Indonesia Market Today - 15 September 2020

A. INDONESIA MORNING MARKET REVIEW

Tuesday (15/09/2020). JCI strengthening is expected to continue in trading this Tuesday referring to the combination of an increase in DJIA by + 1.18%, EIDO + 3.93% and increases in several commodity prices including: Gold + 0.87%, Nickel + 1.04%, Tin +0.67 % & CPO + 2.92% amidst the achievement of the highest number of victims infected and killed due to Corvid19, where on Monday there was an increase of around +3,141 people (an increase of + 1.44% and if the pattern of infection is still like this, * it is estimated that there will be 500,000 people infected with Covid in in December 2020 *) infected with Corvid * so far the number of victims infected with Corvid19 has reached 221,523 people with an additional death toll on Monday of +118 people (up + 1.35%) so far the death toll has reached 8 841 people, to 10,000 people killed in time near (Fatality Rate of 3.99%) *.

B. INDONESIA CORPORATE NEWS

One new issuer will be listed on Tuesday, September 15, 2020, namely: PLAN

1. PT Planet Properindo Jaya Tbk. (PLAN)

The company offers 267.85 million shares at a price of IDR112 per share through an IPO or worth almost IDR 30 billion. There was an oversubscribed or oversubscribed 91.33 times.

2. PT Indika Energy (INDY)

The company through its subsidiary, PT Indika Mineral Investindo, has realized a 25% stake in Phase I of PT Masmindo Dwi Area, the manager of the Awak Mas gold mine project in South Sulawesi. The company said that the US $ 15 million phase I share investment transaction was carried out on September 7, 2020. This acquisition is a continuation of the equity participation agreement between Indika Mineral, Nusantara Resources Ltd, and Masmindo on February 25, 2020.

3. PT Adhi Karya (ADHI)

During January-August 2020, ADHI posted new contracts amounting to IDR 4.7 trillion or an increase of 18% when compared to the previous month`s contract acquisition of IDR 4 trillion. Thus, the current ADHI order book value is IDR 35.2 trillion. However, when compared to the January-August 2019 acquisition of IDR 6.8 trillion, this time`s gain has shrunk by 30.88% yoy. In August 2020, the new contract that was obtained by ADHI was dominated by the preservation of the eastern Sumatra highway amounting to Rp 439.6 billion. Contribution per business line to the acquisition of new contracts in August 2020, includes the construction & energy business line by 89%, property by 10% and the rest is for other business lines.

4. PT Bumi Serpong Damai (BSDE)

The company cooperates with Mitbana Pte Ltd. This is a joint venture of Mitsubishi Corp and Surbana Jurong Pte Ltd. BSDE and Mitbana agreed to build a smart city for transit-oriented development (TOD) on an area of more than 100 hectares (ha). Taking place in BSD City, Tangerang.

5. PT Medikaloka Hermina (HEAL)

The company prepares a capex of Rp 700 billion throughout 2021. The funds will be used to finance the addition of four hospitals in 2021. In addition to adding new hospitals, capex is allocated to increase a number of operational equipment, in line with the company`s goal to increase the intensification of a number of operational tools. Meanwhile, until semester I -2020, the company has used capex of more than 50% of this year`s total capex of around Rp. 600-700 billion. Most of the capex was realized for the construction of a new hospital this year. As for 2020, the company will open a new hospital in Karawang, Manado, and in the near future in Kotabumi, Tanggerang. In addition, there is one hospital that is in the acquisition stage. As of the first semester of 2020, the company posted revenues of Rp 1.73 trillion, a slight decrease of 3.35% from the same period in 2019 valued at Rp 1.78 trillion. The decrease in income has an impact on the net profit for the current period to decrease -17.42% to Rp 134.25 billion, compared to the first semester of 2019 which reached Rp 162.58 billion. On the other hand, the company has cut its target of proceeds from bond issuance phase I to Rp 446.5 billion, compared to the original target of Rp 600 billion. The debt securities are part of the HEAL PUB Bonds with a total of IDR 1 trillion.

6. PT Radian Utama Interinsco (RUIS)

The Company targets its revenue and net profit to grow 10-15% by the end of this year. As of the first semester of 2020, the company posted revenues of IDR 822.45 billion, up 15.75% from the same period last year of IDR 710.48 billion. Net income was recorded to have increased 34.52% to Rp 18.43 billion by the end of June 2020, from the previous Rp 13.70 billion. On the other hand, optimism to pursue the target is supported by the company`s new contracts of Rp. 675 billion in the first semester of 2020, so that contracts on hand until June 2020 reached Rp. 3.9 trillion. In the second semester of 2020, the company is optimistic that it will still be able to add new projects with a contract value range of Rp 500-700 billion.

7. PT Wijaya Karya (WIKA)

The global rating agency, Fitch Ratings, downgraded construction company WIKA`s Long-Term Foreign Currency and Local Currency Rating (IDR) to `BB-` from `BB`. At the same time, Fitch Ratings Indonesia has downgraded WIKA`s National Long-Term Rating to `A (idn)`, from previously `AA- (idn)`. All ratings are placed in a Negative Rating Watch (RWN).

C. MARKET STATISTICS

*DJIA +327.69 +1.18% 27993*
*NASDAQ +203.1 +1.87% 11056*
*GOLD +17 +0.87% 1965.10*
OIL -0.13 -0.35% 37.26
COAL (Okt/Newcastle) -0.35 -0.65% 53.80
*NICKEL +157.50 +1.04% 15267.50*
*TIN +120 +0.67% 18135*
*CPO (Nov`) +82 +2.92% 2893*
*EIDO +0.70 +3.93% 18.51*
TLK 19.04 (2833) vs 2890 (TLKM)
US 10yr +0.0020 +0.30% 0.6710
INDO 10yr -0.0411 -0.58% 7.0486
*INDO CDS (5yr) -1.535 -1.649% 91.554*
IDR (Spot) 14,880

*IDX Range : 5,125 - 5,210*
*USD/IDR Range: 14,810 - 14,940*

D. STOCK WATCHLIST

BBRI, GGRM, BBNI, JPFA, MBAP, INDF, TLKM, KLBF MYOR, BSDE.

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