Logo Minnapadi
aboutusmpi.png
<< Back To Daily Report

Morning Dew 24 March 2020

FOCUS

FDI REALIZATION IN 1Q20* UP BY 4% -5% (Y/Y)

The Investment Coordinating Board (BKPM) from the beginning of the year until Monday (3/23) recorded the realization of Foreign Direct Investment (FDI) of Rp202.9 - 204.85 Trillion. This achievement, when compared to the total FDI + Domestic Direct Investment (DDI), recorded growth of 4-5% (Y/Y) or has reached 23% of the 2020 target of Rp866 Trillion.

 

With preliminary data, the FDI realization performance in 1Q20 is supported by existing investments, the investment has been realized approximately 50 - 60%. Secondly, BKPM has succeeded in releasing around Rp200 trillion investment which had previously been halted. Furthermore, BKPM also changed the pattern, from before only waiting for incoming investment and now changing to becoming more active to pick up investments with good future prospects.

 

According to the Head of BKPM Bahlil Lahadalia, investment realization that should have reached 100% fell to 60 - 70% due to the spread of COVID-19. Furthermore, BKPM hopes that with the easing of COVID-19 in May, the investment realization will reach 100% in July.

 

Furthermore, BKPM has prepared several scenarios related to the possibility of a decrease in the value of investment caused by the presence of COVID-19, considering that FDI contributors came from Singapore, China, Japan, and South Korea who also experienced unfavorable economic situations also due to the existence of COVID-19. 

* Temporary data

 

JCI

JCI on Monday trading session (3/23) was again tossed as a result of massive selloff and trading was temporarily halted for 30 minutes after breaching the -5% threshold. The index ended by falling -205.4 points (-4.9%) to 3,989.5. Transaction volume was recorded at 6.6 billion shares with a trading value amounting to Rp5.6 trillion. Foreign investors posted a net sell of Rp36 billion, resulting in the year-to-date accumulation of foreign net sell of Rp10.2 trillion.

 

All sectors fell, with the deepest were experienced by basic industry (-5.87%), manufacturing (-5.77%), and consumer goods (-5.75%). Stocks supporting JCI were TAMU (+33.3%), CARE (+25.4%), and ADRO (+4.0%). On the contrary, stocks weighing the JCI down were BBCA (-6.4%), BBRI (-6.8%), and TLKM (-6.9%).

 

U.S. NEWS  

U.S. stocks closed sharply lower as Congress fails a second time to agree on a nearly US$2 Trillion fiscal stimulus plan, aimed at supporting individuals and businesses as measures to combat the epidemic batter the U.S. economy. Moreover, the rapidly rising number of COVID-19 forced more U.S. states into lockdown, overshadowing the Federal Reserve’s pledge to purchase an unlimited amount of Treasuries and mortgage-backed securities, as needed, to support  flow of credit into the economy. The Fed initially said it would buy totally US$700 Billion of assets, with US$375 Billion of U.S. government paper and US$250 Billion of agency mortgage bonds this week alone. The DJIA was down 3.12% at 18,576.04. The S&P 500 tumbled 2.93% to 2,237.40. The Nasdaq Composite dropped 0.27% to 6,860.67.

 

U.S. Treasury yields continue to fall despite the Fed’s action to add liquidity to the market, while at the same time, less short-term optimism was seen. The benchmark 10-year notes rose 56/32 to yield 0.76% and the 2-year notes were up 4/32, yielding 0.30%, the 30-year bonds rose 198/32 to yield 1.32%.

 

Oil prices rose, Brent crude rose +0.9%, to US$27.23/barrel and WTI crude rose +3.4%, to US$23.40/barrel.

 

COMPANY UPDATE 

BLTZ STOPPED 14 OF ITS CINEMAS’ OPERATIONS

PT Graha Layar Prima, Tbk. (BLTZ) stopped 14 of its cinemas’ operations for two weeks in Bekasi and Jakarta in order to minimize the impact of global pandemic outbreak. The company, however, could see its revenue lower, although BLTZ will have to pay operational costs.  

 

ICBP RECORDED SALES AMOUNTING TO Rp2.3T IN 2019

PT Indofood CBP Sukses Makmur Tbk (ICBP) booked sales amounting to Rp42,30T (10%,Y/Y) in 2019. While operating profit was recorded amounting to Rp7,40T (+​​15%,Y/Y), and operating profit margin increased by 17.5%. Yearly attributable profit to the parent entity was amounting to Rp5.04T with a stable net profit margin by 11.9%. ICBP also recorded a 22% increase in Core profit (Rp5,16T) compared to the previous year. ICBP will undertake several business strategies such as strengthening brand equity, encouraging product innovation, increasing product availability, exporting sales & food services and diversifying the source of raw materials.

 

MDLN LAUNCHED ITS THIRD PROJECT

PT Modernland Realty, Tbk. (MDLN) launched its third project, namely,  Kota Baru Modernland CIlejit, which has an area of 1,000 Ha, including Rumah Sederhana, Real Estate (RE), and RE shophouse & Rumah Usaha types. The project includes two clusters, and it will be sold starting from Rp186 million, although the price could be hiked in April. Another advantage is that MDLN has signed an MoU with PT Kereta Api Indonesia (Persero) (KAI), so that CIlejit station could become Transit Oriented Development (TOD) hub station for Modernland CIlejit.

 

LTLS TO MERGE TWO SUBSIDIARIES

PT Lautan Luas, Tbk. (LTLS) will merge two of its subsidiaries, i.e. PT Liku Telaga and PT Dunia Kimia Utama, in order to manage resources more efficiently. The two companies operate in the same industry, i.e. producing sulphuric acid, aluminium sulfate, and sodium silicate, and are owned by LTLS with 53.38% stake, respectively. PT Liku Telaga will be the receiving company in this merger, whereas PT Dunia Kimia Utama will end before law without liquidation.

 

SIDO PRODUCTS WILL BE EXPORTED TO VIETNAM & MYANMAR

PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) will expand its export markets to the Vietnam and Myanmar markets. SIDO will still continue to export its products to Malaysia, Nigeria and the Philippines. It targeted the export contribution between 5% and 6% of total 2020 sales. The contribution of SIDO’s exports has increased in the last two years in line with the addition of new export destinations including Nigeria in 2019. SIDO also targeted sales in the local market through the availability of products in the market modern channel and strength sales in east Indonesia. Until 2019, SIDO's net sales will increase 11% (Y/Y). Others strategy is to approach below the line to maintain stability of the Company’s sales volume (promotions, gifts & souvenirs). SIDO provided CAPEX amounting to Rp180B from its internal cash which will be used to support maintenance activities (70%) & completion of several ongoing projects (30%). The fund is targeted to achieve double digit growth: top line (10%) & bottom line (10%) in 2020.

 

GIAA WILL REFINANCING ITS DEBT BECAUSE OF COVID-19

PT Garuda Indonesia Tbk (GIAA) will negotiate with several banks for refinancing its debt amounting to US$500M that will mature on June 3, 2020. The GIAA business is badly affected by COVID 19. GIAA has also cut several flights to Singapore to three/day from 10 times/day. GIAA will also cancel 49 Boeing Co 737 Max jets orders that have been delayed for a year. GIAA will focus on Boeing & Airbus SE aircraft. It will also move its 18 Bombardier Inc CRJ1000 aircraft.

 

PTBA & PERTAMINA WILL COOPERATE TO PRODUCE METHANOL FROM COAL 

Pertamina and PT Bukit Asam Tbk (PTBA) will work together to process the conversion of coal material into methanol which can be used as an alternative energy fuel in Indonesia. This collaboration is also expected to reduce raw coal exports and use it for domestic consumption. PTBA will provide a source of coal which turns into an alternative energy commodity gasoline A20 for Pertamina (equivalent of Diesel B20). Pertamina & PTBA will finalize several  agreements, including  the coal  volume and the coal price & purchases.

 

SRIL WILL TEMPORARILY CLOSE HOTLINE MASK ORDER

PT Sri Rejeki Isman Tbk (SRIL) will temporarily close the mask ordering hotline service from Saturday (03/21/2020) starting at 17:00 WIB to Monday (03/23). The Company will finalize the recapitulation of incoming orders. The delivery time will take from seven days to ten days after payment. SRIL scheduled that the masks will be received on March 27, 2020. SRIL officially published the sale of non-medical masks with a pre-order system (hotline), however, the Company is overwhelmed by the large demand of non-medical masks. Demand for masks (Min 1000 pieces) come from private parties & government agencies including the National Disaster Management Agency (BNPB). SRIL also launched non-medical masks that can be washed & reused. It has two layers: anti-bacterial cloth and waterproof cloth.

 

TECHNICAL OUTLOOK

JCI IS NEGATIVE, WITH EXPECTED RANGE OF 3,845to 4,200.

JCI closed lower at 3,989 breaching its nearest Support at 4,035, so the next Support lay at 3,945/845 while the Resistance hangging at 4,330/410. Stochastic, MACD, and RSI trun negative again. PSAR red dot still appears along with EMA 5,20 & 50 still in dead cross pattern.

 

ICBP

Support            8150

Resistance        11100

Target Price     10500

 

SIDO

Support            900

Resistance        1280

Target Price     1200

 

KAEF

Support            540

Resistance        990

Target Price     1050

 

INAF

Support            480

Resistance        850

Target Price     850

 

BBNI

Support            2700

Resistance        7900

Target Price     7100

 

BBTN

Support            660

Resistance        1930

Target Price     1800

 

WEGE

Support            107

Resistance        290

Target Price     240

 

DMAS

Support            102

Resistance        296

Target Price     246

 

DISCLAIMER

This research report is prepared by PT MINNA PADI INVESTAMA SEKURITAS Tbk. for information purposes only and is not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. The report has been prepared without regard to individual financial circumstance, need or objective of person to receive it. The securities discussed in this report may not be suitable for all investors. The appropriateness of any particular investment or strategy whether opined on or referred to in this report or otherwise will depend on an investor’s individual circumstance and objective and should be independently evaluated and confirmed by such investor, and, if appropriate, with his professional advisers independently before adoption or implementation (either as is or varied).

 

Tue March 24Th, 2020

Disclaimer

En Lorem Ipsum In Eiusmod.

EN HOME LOREM IPSUM EU NISI NISI LABORE ANIM REPREHENDERIT ADIPISICING SED LABORE QUIS UT TEMPOR ESSE QUIS CILLUM VENIAM CILLUM SUNT NISI CILLUM UT FUGIAT FUGIAT UT OFFICIA ET QUIS.

En Lorem ipsum Velit sit magna adipisicing laborum eu voluptate exercitation minim sit ex incididunt exercitation ut in sunt culpa quis magna sed dolor in et amet sunt id fugiat sint laboris sed officia est id officia eiusmod eu reprehenderit ullamco sed esse aliquip ex minim occaecat amet ad nulla voluptate do officia in reprehenderit quis officia dolore pariatur in quis consectetur ut nostrud aliqua sed officia fugiat nisi incididunt anim in laborum.

Lorem ipsum Dolor dolor dolore quis magna nulla aute ea sed velit id amet ut id minim proident cupidatat anim pariatur ex do dolore ut sit mollit ex voluptate consequat sit eu esse cillum exercitation eu dolore pariatur sunt et ut est Ut dolore id voluptate qui Ut in fugiat non exercitation Excepteur sunt magna ullamco sint do quis laboris dolore dolore pariatur laboris nulla mollit nisi laboris magna in aute Ut enim Excepteur est culpa in enim officia enim ea cillum fugiat dolore proident officia eiusmod pariatur in elit et aliquip esse culpa sint in fugiat aliquip cupidatat non id aliquip sit ad reprehenderit mollit dolor aliqua Duis in amet exercitation ut ut cillum et adipisicing qui aliqua.