Indonesia Market Today - 21 September 2020

A. INDONESIA MORNING MARKET REVIEW

Monday (21/09/2020). After a week ago the JCI strengthened by + 0.85% but was accompanied by a Net Foreign Sell of IDR -3.84 trillion (so that the contribution & ownership of domestic investors in shares increased to nearly 75% and in my opinion it is good because it makes the JCI more stable going forward), so early this week. Investors should focus on commodity-based stocks whose prices are increasing, such as: Coal strengthens + 1.59% (MBAP, ADRO, PTBA, ITMG, HRUM), CPO increases + 3.44% (LSIP, AALI) or Gold increases + 0.37% (MDKA) , ANTM, PSAB *) because * JCI is estimated to have the opportunity to be depressed this Monday * amid the attainment of the highest number of victims infected and killed due to Corvid19, where for 3 days (Friday to Sunday) there was an increase of around +12,048 people (up + 5.18%) infected Corvid * so that so far the number of victims infected by Corvid19 has reached 244,676 people with the addition of the death toll for 3 days of +331 people (up + 3.59%) so that so far the death toll has reached apai 9,553 people, towards 10,000 people killed in the near future (Fatality Rate of 3.90%).

B. INDONESIA CORPORATE NEWS

1. PT Waskita Beton Precast (WSBP)

The company is targeting new contracts of around Rp 5 trillion by the end of 2020. In order to pursue this target, the company is pursuing 5 projects with a total value of Rp 2.47 trillion, namely: The five projects, namely, the Prambulih - Muara Enim Toll Road project with a value of around Rp 360 billion. Then the Binjai Pangkalan - Brandan Toll Road project with a value of around Rp 270 billion. Furthermore, there is the Becakayu Toll Road Section 2B project with a value of approximately Rp. 900 billion, the Pekanbaru - Bangkinang Toll Road project with a value of Rp. 740 billion, and the Banda Aceh - Sigli Toll Road project with a value of Rp. 200 billion. Meanwhile, until July 2020 the value of new contracts (NKB) that was successfully obtained was IDR 1.13 trillion or a decrease of 65.65% compared to the same period in 2019 of IDR 3.29 trillion.

2. PT Pratama Widya (PTPW)

In early September 2020, the company won a new contract with a total value of IDR 141.13 billion. The majority of these contracts, as much as 70.4%, came from infrastructure projects that were still running during the pandemic, such as from PTPP and WIKA. With the achievement of this new contract, the company has reached 86% of the targeted contract target in 2020, which is IDR 164 billion. With these new contracts, the company targets revenues of around Rp 185 billion with a net profit of over 20 percent. As for this year, the company has budgeted a capex of IDR 103.76 billion.

3. PT Dian Swastatika Sentosa (DSSA)

The company posted a decrease in revenue of 7.27% to US $ 771.60 million by June 2020, compared to the same period last year of US $ 832.08 million. The decline was triggered by weakening performance in the construction and service sectors. Furthermore, until the end of semester 1/2020, the company booked US $ 22.45 million in profit for the current period attributable to owners of the parent company, or decreased by 39.36% YoY.

4. PT Kimia Farma (KAEF)

The company is ready to realize the plan to build a factory that specifically produces paracetamol drugs in the country to reduce the import rate. The construction of the paracetamol factory itself is a concrete step of the government`s efforts to increase the absorption of local raw materials in accordance with the rules for the domestic component level (TKDN). In the early stages of 2020, the company hopes to reduce 2.72% of the use of imported raw materials.

5. PT Hexindo Adiperkasa (HEXA)

The company targets to sell 1,319 units of heavy equipment for the 2020 fiscal year ending March 31, 2021. Furthermore, total sales of heavy equipment units for the 2020 fiscal year, namely the period 1 April 2020 - 31 March 2021 amounted to 1,319 units with a sales value of US $ 144.2 million. Meanwhile, HEXA`s net profit is estimated to fall 16.31% yoy to US $ 32.16 million on March 31, 2021 from the realization in the 2019 fiscal year of US $ 38.43 million. In the period 1 April - 31 July 2020, HEXA just recorded a net profit of US $ 9.30 million.

6. PT Indika Energy (INDY)

The company plans to issue global bonds worth up to US $ 650 million on the Singapore Stock Exchange. This means that this will be the 4th global bond issued by the company amidst the ongoing period of the previous debt securities. Currently, the company has 3 bonds in progress. The bonds are Energy Finance II bonds maturing in 2023 with a value of US $ 285 million, bonds issued by Indika Energy Capital II Pte Ltd worth US $ 265 million which will mature in 2022. Furthermore, the bonds issued by Indika Energy Capital III Pte Ltd. with a value of US $ 575 million which will mature in 2024.

C. MARKET STATISTICS

DJIA -244.5 -0.88% 27657
NASDAQ -116.9 -1.07% 10793
*GOLD +7.20 +0.37% 1957.10*
*OIL +0.01 +0.02% 40.98*
*COAL (Okt/Newcastle) +0.90 +1.59% 57.40*
NICKEL -257.5 -1.70% 14850
*TIN +50 +0.28% 18125*
*CPO (Nov`) +103 +3.44% 3099*
EIDO -0.09 -0.50% 18.06
*TLK 19.22 (2832) vs 2890 (TLKM)*
US 10yr +0.010 +1.46% 0.6940
INDO 10yr +0.0471 +0.67% 7.0297
*INDO CDS (5yr) -0.554 -0.59% 92.637*
IDR (Spot) 14,735

*IDX Range : 5,023 - 5,107*
*USD/IDR Range: 14,660 - 14,800*

D. STOCK WATCHLIST

JPFA, MBAP, CPIN, ACES, BSDE, LSIP, TLKM, SILO, INTP, SMRA.

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