Indonesia Market Today - 17 February 2021

A. INDONESIA MORNING MARKET REVIEW

(Wed, 17 Feb 2021).

Global Market Highlight

DJIA rose by +0.20% on Tuesday (16/02) followed by the weakening of S&P 500 (-0.06%) and Nasdaq (-0.34%). Wall Street was closed at another record high, led by a rally in energy stocks with oil price rising, following a very cold winter across parts of the US. Furthermore, and ongoing investor optimism over the economic recovery as Covid-19 infections continue to fall. Moreover, the market will look forward to several data releases today, such as: 1) US Retail Sales; 2) UK Inflation Rate; 3) Canada Inflation Rate.

Domestic Update

• The Minister of Finance conveyed that the economic growth projection for FY21 is in the range of 4.3% to 5.3% YoY. This figure is a shift from the previous prediction of 4.5% to 5.5% YoY. Even though the range of economic growth is getting sloping, the Minister is confident that the economic recovery will continue.

• The BPOM has issued an emergency use authorization on the Sinovac vaccine produced by Biofarma. Even though the vaccine comes from Sinovac, it still has to be given a separate license due to the processing stage from BioFarma.

• Furthermore, there was an addition of 1,861 new Covid-19 cases in Jakarta yesterday.

IHSG Updates

JCI increased by +0.35% to 6,292.40 on Tuesday (16/02) followed by net foreign sell reaching IDR378.65 billion. JCI still continues to slowly soar, supported by a vaccine approval from BPOM which drives the pharmaceutical stocks up. While agriculture and finance sectors still led the strengthening on JCI. Meanwhile, the Rupiah exchange rate was weakening at IDR13,930. We estimate JCI will move in the range of 6,156 – 6,322 while waiting for BI Interest Rate Decision.

Support: 6,156, 6,069
Resistance: 6,322, 6,505

B. INDONESIA CORPORATE NEWS

1. TBIG IJ

Will allocate a total capital expenditure of IDR5.95 trillion in FY21E, the funds will be used to acquire 3,000 towers of PT Inti Bangun Sejahtera Tbk (IBST) amounting to IDR3.95 trillion and the rest will be allocated for capex organic growth of IDR2 trillion. In addition, TBIG plans to distribute dividends taken from retained earnings as of December 31, 2019, at IDR1.54 trillion.

TBIG`s capex increased from the previous target of IDR2 trillion. TBIG targets an additional 7,400 tenants with details of 4,400 tenants coming from acquisitions and 3,000 tenants from organic expansion in FY21E. Currently TBIG is trading at 49.56x/8.25x PE/PBV.

2. AKRA IJ

Recorded the sale of the Java Integrated Industrial and Port Estate (JIIPE) land in Gresik, East Java, covering an area of 25 hectares in FY20. In addition, AKRA is optimistic that in FY21E it can sell another 30-40 hectares with the stipulation by the JIIPE government as a Special Economic Zone (KEK).

The land sales are quite good, where AKRA optimizes the sale of industrial land as one of the revenue driven in FY21E. AKRA is currently trading at 15.61x/1.63x PE/PBV.

3. ADRO IJ

Produced 54.53 million tonnes of coal in FY20, down 6% YoY and slightly exceeding the stipulated guidance of 52 million-54 million tonnes. Meanwhile, the coal sales volume recorded in FY20 reached 54.14 million tons, or decreased by 9% YoY.

ADRO`s coal volume decline will be offset by the increase in coal price. We believe ADRO would record a great performance in FY21E as they are now in a coal to methanol gasification project. ADRO is trading at 17.79x/0.71x PE/PBV.

General Meeting of Shareholders : JGLE, MEGA
Stock Split: HOKI (1:4)

C. STOCK WATCHLIST 

INDY - Buy on Weakness (1,530)

Buy on Weakness: 1,500-1,530
Target Price: 1,615, 1,720
Stoploss: below 1,455

TLKM - Buy on Weakness (3,210)

Buy on Weakness: 3,190-3,210
Target Price: 3,500, 3,800
Stoploss: below 3,160

WTON - Buy on Weakness (378)

Buy on Weakness: 368-378
Target Price: 400, 450
Stoploss: below 340

BMRI - Sell on Strength (6,475)

Sell on Strength: 6,500-6,800

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