๐๐ฎ๐ ๐ฎ๐ฌ๐ญ ๐๐, ๐๐๐๐
* ๐๐ก๐ ๐๐๐ ๐ญ๐ซ๐๐๐ข๐ง๐ ๐ซ๐๐ง๐ ๐:ย ๐,๐๐๐๐ฉ๐ญ – ๐,๐๐๐๐ฉ๐ญย (๐ ๐ซ๐ข๐๐๐ฒ ๐๐ฅ๐จ๐ฌ๐:ย ๐,๐๐๐๐ฉ๐ญ)
* ๐๐๐ฅ๐ฅ ๐๐ญ๐ซ๐๐๐ญ ๐๐ฅ๐จ๐ฌ๐๐ ๐ก๐ข๐ ๐ก๐๐ซ ๐๐ฒ ๐๐ฅ๐จ๐ฌ๐ ๐ญ๐จ ๐% ๐จ๐ง ๐๐๐ญ๐ ๐ซ๐๐ฅ๐๐๐ฌ๐ ๐๐ง๐ ๐ฆ๐จ๐ง๐๐ญ๐๐ซ๐ฒ ๐ฉ๐จ๐ฅ๐ข๐๐ฒ ๐ฆ๐จ๐ฆ๐๐ง๐ญ๐ฎ๐ฆ
* ๐๐ก๐ ๐๐๐ ๐ข๐ฌ ๐๐ฑ๐ฉ๐๐๐ญ๐๐ ๐ญ๐จ ๐ญ๐ซ๐๐ง๐ ๐ก๐ข๐ ๐ก๐๐ซ ๐๐ฆ๐ข๐ ๐๐๐ฎ๐ญ๐ข๐จ๐ฎ๐ฌ ๐๐จ๐ซ ๐๐จ๐ฏ๐ข๐-๐๐ ๐ฌ๐ฉ๐ซ๐๐๐ ๐ก๐๐ง๐๐ฅ๐ข๐ง๐
Morning,
The Jakarta Composite Index (JCI) today (31/8) is expected to be within the range of 5,300pt โ 5,425pt by support of stable USDIDR and oil close. ย Meanwhile, last Friday (28/8) in Wall Streetย theย DJIAย ended higher byย 162 points or 0.6%ย at 28,654pt , while the S&P500 and the Nasdaq both closed higher byย 0.7% and 0.6%, respectively.ย With the last close, the DJIA was up by 0.4% for 2020 mainly driven by consumersโ Walmart and Coca-Cola, For the S&P500, Tech and energy were the best-performing sectors. On the data front,ย The United States (US) ย spending rose 1.9% in July, topping a Reuters forecast of a 1.5% gain. Meanwhile, Personal income was also stronger than expected, rising 0.4% while economists had forecast a drop of 0.2%.
๐ฐ๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐
๐๐๐๐ ๐๐๐๐ ๐๐๐ฏ๐ข๐๐ฐ: ๐ฆ๐จ๐๐๐ซ๐๐ญ๐๐ฅ๐ฒ ๐ก๐ข๐ญ ๐๐ฒ ๐ ๐ช๐ฎ๐๐ซ๐ญ๐๐ซ ๐จ๐ ๐ฅ๐ข๐ฆ๐ข๐ญ๐๐ ๐ฅ๐จ๐๐ค-๐๐จ๐ฐ๐ง ๐ข๐ง ๐ญ๐ก๐ ๐๐๐๐
Ultrajaya Milk Industry & Trading Company (ULTJ) reported ย financial performances for the first six month ended June this year (1H20) with net profit of IDR555.0bn as compared to IDR508.6bn in the same period last year (1H19), or representing an annual increase of 9.1%.ย Bottom line during the 1H20 ย was backed by an increase of net sales value by 1.6% YoY to IDR3.0tr, and by tamed cost of goods sold the led to higher gross margins to 37.4% as compared to 36.8% in the 1H19 (1Q20: 38.9%, 2Q20: 35.7%).
Operating margins during the 1H20 was recorded at 23.8% vs. 20.9% in the 1H19 (2Q20: 10.9%, 1Q20: 35%). During the 1Q20, ULTJ recorded gain on of sale of foreign exchange of IDR176bn (1H20: IDR45.5bn, 1H19: loss of IDR24.2bn) which propelled operating marginย to 35%. Excluding this account in the 1Q20, operating margins would have been recorded at 24.1%. Overall, net profit margin during the 1H20 was recorded at 18.4% vs. 17.1% in the 1H19.ย ULTJ ย financials was overall being supported by its net-cash position both in the 1H and 1Q this year.
๐๐๐๐ ๐ฉ๐ข๐๐ญ๐ฎ๐ซ๐
During the 2Q20, net sales value was recorded at IDR1.4 tr, or representing 9.1% ย YoY decline as compared to the same quarter last year ย (2Q19). At the other end, compared to the preceding quarter of 1Q20, net sales value declined by 13.0%. ย Limited lock-down has hurt the companyโs sales through lower volume, especially along the closing of all schools, we reckon.
๐๐๐ฅ๐ฎ๐๐ญ๐ข๐จ๐ง๐ฌ
At yesterday closing price of IDR1,805, ULTJ is trading at 18.9 times this yearโs annualized earnings, which is a substantial discount both to that of consumer sector and the general market of 33 times trailing earnings.
We view ULTJ as a fundamentally prudent consumer counter both in terms of financial management and of being involved in strategic domestic beverages industry. ULTJ main product, for example of UHT milk of 200ml come in at retail price of around IDR5,000/pack which we consider very much afforded by the population of per capita income of USD4,451 last year.ย We further suspect that ULTJ mostly benefitted from the young demographic profile of the country whereby the population of 0-15 years accounted of some 27% (Europe of 17%:ย USA 19%) and thus milk is considered a necessary nutrition. ULTJ has room to grow in the adult segment consumers of 15-64 years in Indonesia, as for this segment, daily milk consumption has not been an established tradition, we observed.
At the other end, WTI price closed at USD42.9 or lower by 0.2% in Friday. ย ย Meanwhile the ย USDIDR ย closed ย at IDR14.702 ย vs. IDR14.714 the previous one.
We advise the following recommendations, for both trading and longer-time investment purpose. ๐๐๐๐, ๐๐๐๐ (๐ฌ๐๐๐ญ๐จ๐ซ ๐จ๐ ๐๐จ๐ณ๐ช, ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐๐ฌ๐ญ๐ข๐จ๐ง ๐๐ฏ๐ฅ๐ฆ๐ณ๐ธ๐ฆ๐ช๐จ๐ฉ๐ต ), ๐๐๐๐, ๐๐๐๐, ๐๐๐๐, ๐๐๐๐ (๐ฌ๐๐๐ญ๐จ๐ซ ๐จ๐ ๐๐ฐ๐ข๐ญ ๐๐ช๐ฏ๐ช๐ฏ๐จ, ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐๐ฌ๐ญ๐ข๐จ๐ง ๐๐ข๐ณ๐ฌ๐ฆ๐ต-๐ธ๐ฆ๐ช๐จ๐ฉ๐ต), ๐๐๐๐, ๐๐๐๐, ๐๐๐๐ (๐ฌ๐๐๐ญ๐จ๐ซ ๐จ๐ ๐๐ฐ๐ฏ๐ด๐ถ๐ฎ๐ฆ๐ณ, ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐๐ฌ๐ญ๐ข๐จ๐ง ๐๐ท๐ฆ๐ณ๐ธ๐ฆ๐ช๐จ๐ฉ๐ต ), ๐๐๐๐ (๐ฌ๐๐๐ญ๐จ๐ซ ๐จ๐ ๐๐ถ๐ต๐ฐ๐ฎ๐ข๐ต๐ช๐ท๐ฆ, ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐๐ฌ๐ญ๐ข๐จ๐ง ๐๐ข๐ณ๐ฌ๐ฆ๐ต-๐ธ๐ฆ๐ช๐จ๐ฉ๐ต), ๐๐ง๐ ๐๐๐๐, ๐๐๐๐, ๐๐๐๐ (๐ฌ๐๐๐ญ๐จ๐ซ ๐จ๐ ๐๐ณ๐ข๐ฅ๐ฆ, ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐๐ฌ๐ญ๐ข๐จ๐ง ๐๐ท๐ฆ๐ณ๐ธ๐ฆ๐ช๐จ๐ฉ๐ต),๐๐ง๐ ๐๐๐๐ (๐ฌ๐๐๐ญ๐จ๐ซ ๐จ๐ ๐๐ข๐ด๐ช๐ค ๐๐ฏ๐ฅ๐ถ๐ด๐ต๐ณ๐บ, ๐๐ฅ๐ฅ๐จ๐๐๐ญ๐ข๐จ๐ง ๐ฌ๐ฎ๐ ๐ ๐๐ฌ๐ญ๐ข๐จ๐ง ๐๐ข๐ณ๐ฌ๐ฆ๐ต-๐ธ๐ฆ๐ช๐จ๐ฉ๐ต).
Cheers,