Indonesia Market Today - 18 February 2021

A. INDONESIA MORNING MARKET REVIEW

(Thu, 18 Feb 2021).

Global Market Highlight

DJIA rose by +0.29% on Wednesday (17/02) followed by the weakening of S&P 500 (-0.03%) and Nasdaq (-0.58%). Wall Street closed at record highs for second-straight day led by Retail sales data that rebounded in January, rising 5.3% topping the consensus at 1.1%. Furthermore, the Fed signs that market-friendly monetary policy will continue for some time and in no hurry to rein in its loose monetary policy measures. Moreover, the market will look forward to several data releases today, such as: 1) US Initial Jobless Claims; 2) US FOMC Minutes; 3) Eurozone Consumer Confidence Flash.

Domestic Update

• Domestic car sales recorded a -34.22% YoY/ -7.99% MoM decrease to 52,910 units in January 2021. Izuzu recorded zero sales in January, while on the other hand ASII maintain it’s market share at 51%, same as in January 2020.

• Furthermore, there was an addition of 1,445 new Covid-19 cases in Jakarta yesterday.

IHSG Updates

JCI decreased by -1.03% to 6,227.73 on Wednesday (17/02) followed by net foreign sell reaching IDR102.50 billion. JCI dropped as almost all sector weakened except for trading sector. We see that this is a healthy correction as JCI has rallied for four days in a row. Meanwhile, the Rupiah exchange rate was weakening at IDR14,020. 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. INDY IJ

Targets coal production of 31.4 million tons from its two subsidiaries, with PT Kideco Jaya Agung at 30 million tons, while PT Multi Tambangjaya Utama (MUTU) is 1.4 million tons. In addition, capital expenditures are budgeted at USD 130.7 million.

INDY will get advantage from the coal price hike as well as the future gasification project through it`s subsidiary PT Kideco Jaya Agung. Apart from that, INDY also has a few power plant as well. Currently INDY is trading at 0.68x PBV.

2. ADHI IJ achieved new contract value worth IDR1.1 trillion in January 2021. Or an increase of 175% YoY (vs IDR400 billion in January 2020). The new contracts were obtained for construction and energy business lines amounting to 93%, property at 6%, while the rest came from other businesses.

The contract gain is quite good, but investors should continue observing the achievement throughout FY21E. ADHI is currently trading at 254.32x/0.94x PE/PBV.

3. DMAS IJ

Targets marketing sales revenue of IDR 2 trillion in 2021. This value is the same as the target of marketing sales in 2020. The target of marketing sales will be supported by the sale of industrial land.

The future foreign direct investment is expected to increase industrial land sales in FY21E. DMAS is trading at 27.49x/1.95x PE/PBV.

Corporate Action

General Shareholders Meeting: ELTY, EMTK, TELE

C. STOCK WATCHLIST

1. ADHI - Buy on Weakness (1,465)

Buy on Weakness: 1,400-1,460
Target Price: 1,630, 1,740
Stoploss: below 1,270

2. UNTR - Buy on Weakness (22,850)

Buy on Weakness: 22,300-22,800
Target Price: 25,000, 27,000
Stoploss: below 22,000

3. WOOD - Sell on Strength (620)

Sell on Strength: 630-650

4. ANTM - Sell on Strength (2,750)

Sell on Strength: 2,780-2,850

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