Indonesia Market Today - 10 March 2021

A. INDONESIA MORNING MARKET REVIEW

(Mon, 10 March 2021)

Global Market Highlight

DJIA increased by +0.10% on Tuesday (09/03) followed by S&P 500 (+1.42%) and Nasdaq (+3.69%).Wall Street closed higher as higher-valued tech stocks rode the retreat in US rates. Beyond tech, consumer discretionary stocks were sharply higher as investors bet on a wave of consumer spending to come as US households’ bank accounts will get another boost from the stimulus. The energy sector was the biggest decliner as oil prices continued to retreat. Moreover, the market will look forward to several data releases today, such as: 1) US Core Inflation Rate; 2) China Inflation Rate; 3) US MBA Mortgage Application.

Domestic Update

• BI released Indonesian Retail sales which tumbled by 16.4% YoY in January 2021. This is in line with the holiday seasonality post Christmas and New year. On a monthly basis, retail sales declined by 4.3% in January. While retail sales in February 2021 is expected to be improving along with the demand on Chinese New Year.

• Furthermore, there was an addition of 867 new Covid-19 cases in Jakarta yesterday.

IHSG Updates

JCI dropped by -0.78% to 6,199.65 on Tuesday (09/03) followed by net foreign sell reaching IDR782.69 billion. JCI continued to fall while Asian Indices were closed indifferently. We believe the drop on JCI was due to lack of domestic catalysts as the new Corona Virus called B117 was already spotted in Indonesia, increasing concern on a prolonged pressure on the economy. Meanwhile, the Rupiah exchange rate was weakening at IDR14,405. We estimate JCI will move in the range of 6,180-6,300 while waiting for balance of trade data release.

Support: 6,154, 6,090
Resistance: 6,400, 6,505

B. INDONESIA CORPORATE NEWS

1. MIKA IJ

Recorded revenue of IDR3.42 trillion in FY20 (+6.69% YoY, vs IDR3.21 trillion in FY19). The largest contribution came from inpatient income with IDR2.24 trillion and this value increased by 13.42% YoY (vs IDR1.98 trillion in FY19). In FY20, MIKA posted a net profit of IDR923.47 (+16.69% YoY, vs IDR791.42 billion in FY19).

Performance improvement was due to gradual recovery of occupancy which increased in 3Q20-4Q20. MIKA also plans to continue expanding by adding several hospital units, so that performance will be more optimal in FY21E. Currently MIKA is trading at 46.04x/7.88x PE/PBV.

2. SRTG IJ

Succeeded in increasing the investment portfolio value from the net asset value in FY20 by +39% YoY or recorded at IDR31.70 trillion. So that in FY20 SRTG managed to book a net profit of IDR8.82 trillion or +20% YoY.

We see that SRTG is quite successful to capture the market in the pandemic condition, reflected on the increased net asset value which has managed to boost SRTG`s bottom line. SRTG is currently trading at 1.64x/0.46x PE/PBV.

3. GJTL IJ

Recorded revenue of IDR10 trillion in FY20 (-15.71% YoY, vs IDR15.94 trillion in FY19) but on the other hand, GJTL managed to reduce sales expenses by 29.4% YoY to IDR725.32 billion, so that GJTL`s net profit grew to IDR320.37 billion in FY20 (+19.02% YoY, vs IDR269.1 billion in FY19).

GJTL`s top line fell along with the 50% drop on car sales. On the other hand, GJTL`s efficiency strategy was proven to be successful as GJTL`s bottom line`s performance is quite stellar. We hope the PPnBM exemption will also be a positive sentiment for GJTL this year. GJTL is trading at 9.52x/0.45x PE/PBV.

Corporate Action

General Meeting of Shareholders : BEKS, BBTN

C. STOCK WATCHLIST

1. ANTM - Buy on Weakness (2,230)

Buy on Weakness: 2,000-2,180
Target Price: 2,520, 2,800
Stoploss: below 1,900

2. ICBP - Buy on Weakness (8,325)

Buy on Weakness: 8,200-8,325
Target Price: 8,550, 8,925
Stoploss: below 7,975

3. ASII - Spec Buy (5,525)

Spec Buy: 5,425-5,525
Target Price: 6,000, 6,500
Stoploss: below 5,350

4. BBRI - Sell on Strength (4,580)

Sell on Strength: 4,580-4,650

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