DJIA increased by +0.12% on Wednesday (03/02) followed by S&P 500 (+0.10%) while Nasdaq weakened by -0.02%. Wall Street was a little flat as technology stocks weakened even as big tech companies delivered better-than-expected earnings. Sentiment on stocks got a lift by Joe Biden`s stimulus, that although issued to be trimmed but will get the support of Republicans to approve it. Furthermore, private-sector employment rose by 174,000 in Jan-20, surpassing the 70,000 job gains expected. Moreover, the market will look forward to several data releases today, such as: 1) US Initial Jobless Claims; 2) UK Interest Rate Decision; 3) Eurozone Retail Sales.

 

• The Minister of Finance officially extended the tax incentives until June 30, 2021 to help taxpayers deal with the impact of the pandemic. The tax incentives consist of: 1) income tax (PPh) Article 21 borne by the government; 2) MSMEs receive a final income tax incentive at a rate of 0.5%; 3) incentives for Construction Services Final Income Tax; 4) incentives for exemption from collecting PPh article 22 on imports; 5) incentive for installment of Income Tax Article 25; 6) VAT incentives for taxable Entrepreneurs.

 

• 10 million doses of Covid-19 vaccine raw materials from Sinovac, China arrived yesterday. On the other hand, the Ministry of Health announced that around 500 thousand health workers or about 33% of them have been vaccinated.

 

• Furthermore, there was an addition of 3,567 new Covid-19 cases in Jakarta yesterday

 

IHSG Updates
JCI rose by +0.56% to 6,077.74 on Wednesday (03/02) followed by net foreign buy reaching IDR4.76 trillion. The increase was affected by positive sentiments from the global market as the global Covid-19 cases dropped gradually. On the other hand, the vaccine sentiments such as the arrival of raw material and the healthcare human resources vaccination have boosted some pharmaceutical stocks up. Meanwhile, the Rupiah exchange rate was strengthening at IDR14,005. We estimate JCI will move in the range of 5,920 – 6,280 while waiting for GDP Growth Rate data Release.

 

 

 

Will allocate a capital expenditure of IDR500 billion in FY21E, the funds will be used to acquire land and develop investment properties. SMRA targets marketing sales to grow to Rp3.5 trillion or an increase of 6% from the FY20 realization of Rp3.3 trillion. About 60% of the marketing sales will come from landed house sales, while the rest will be targeted from the land purchase proceeds.

SMRA`s marketing sales target can be realized if consumer goals remain on residential concept strategy and affordable prices. Currently SMRA is trading at 1.45x PBV.

 

Will spin off some of its subsidiaries in the infrastructure sector. So that it will open opportunities for global investors to invest in a subsidiary of TLKM through the Investment Authority (INA). After the spin off, TLKM plans to list its subsidiary`s initial shares on the Indonesia Stock Exchange.

We believe that the subsidiary`s spin off strategy is part of the medium-term strategy through the IPO and SWF scheme. Later, TLKM plans to open a collaboration with global investors to build fiber networks and 5G infrastructure. TLKM is currently trading at 14.43x/3.16x PE/PBV.

 

Maintains a dividend policy with a dividend payout ratio of around 45% - 55% or there is no significant change from FY19. In addition, management set the FY20 revenues target by 2% YoY, where in 9M20 KLBF recorded revenue growth of 1.6% YoY to Rp17.09 trillion and net profit increased by 5.84% YoY to Rp2.03 trillion.

KLBF still manages to maintain its FY20 performance amid the pandemic and we believe that the decision to maintain DPR will be good for investors as dividend yield would rise, currently dividend yield stood at 1.28%. KLBF is trading at 27.05x/4.29x PE/PBV.

 

 

ASII, PGAS, SIDO, TKIM.