Today we estimate JCI to be bearish with the support range of 5961-5966 and

(1)

Morning Brief

Losers: Infrastructure (

-

1.55%), Basic Industry (

-

1.04%), Consumer (

-

0.95%)

The global market were bearish yesterday amid the progress of NAFTA talk. The

U.S. market also notched lower ahead of Trump’s decision in favor of the

additional tariff import of USD200 billion on China’s products.

Today’s Outlook: Trump's Stances

Today we estimate JCI to be bearish with the

support range of 5961

-

5966

and

resistance range of 6040

-

6055

. The negative sentiments re

-

arise from the

jitters of the U.S. and China trade war triggered by President Trump’s favour

with the additional tariffs of USD200 billion imposed on China’s good. The tariff

will take into effective in next week. Besides, Trump also rejected the tariff cut

proposed by European Union; he even threatened with the U.S. exclusion from

WTO.

Trump’s stances were attributable to rupiah depreciation. However, investors

needs to eye on the trend of recent

-

day foreign buy net position in the

(2)

Stocks Recommendation

ADRO

Last = 1895

Analysis

China’s Manufacture Index of August was 51.3

hiking from 51.2 in July. The figures topped

the estimated Index of 51.0. The background

signaled the positive global coal industry.

Range

1880 – 1990

Action

Trading Buy. Cut Loss If Below 1880

GGRM

Last = 73000

Analysis

GGRM posted the 2Q18 net profit of IDR1.7

trillion growing by 34.3% compared to the

2Q17 net profit of IDR1.2 trillion. The current

figure is also topped our estimated net profit

of IDR1.1 trillion.

Range

72650 – 75750

Action

Trading Buy. Cut Loss If Below 72650

AALI

Last = 13225

Analysis

CPO prices jumped by 1.4% backed by the

recovery in global demand for CPO and the

implementation of B20 mandatory in

Indonesia. Today Indonesian government is

planned to launch extension program of B20

mandatory policy.

Range

13000 – 13800

Action

Trading buy. Cut Loss If Below 13000

Source: Bloomberg

Sector Rotation

Source: Bloomberg

(3)

(4)

Company News

Domestic & Global News

Tax Revenue Reaches IDR760.57 Trillion

Until August of 2018, the tax revenue reached IDR760.57 trillion or growing 15% y

-

y or 53.41% of the 2018’s target of

IDR1,400 trillion. The Directorate General of Tax Robert Pakpahan stated that factors spurring the growth in tax revenue

derive from 4 types of tax, namely income tax, import income tax, article 25 of income tax paid by legal entity posting

increment of 20% in profit, and income tax paid by individuals or legal entity posted the significant growth topping 20%.

(Kontan)

Trump to Back $200 Billion China Tariffs

President Donald Trump wants to move ahead with a plan to impose tariffs on $200 billion in Chinese imports next week.

China has threatened to retaliate by slapping duties on $60 billion of U.S. goods. The imposition of the $200 billion tranche

would be the biggest so far and would mark a major escalation in the trade war between the world’s two largest

economies. (Bloomberg)

TBIG

: Posts Growth of 7.7% in Net Profit

TBIG posted the growth of 7.7% y

-

y in the 1H18 net profit

to IDR407.12 billion. The growth was backed by the hike of

7.1% to IDR2.07 trillion in revenues. The revenue was

contributed by PT Telekomunikasi Selular by 44.8%, ISAT

by 23.3%, and EXCL by 15.4%. Of note, the tower repairs

and maintenance expense hiked by 14.2% y

-

y to IDR74.58

billion. (Kontan)

KLBF

: Targets Overseas Revenues of IDR1 Trillion

KLBF targeted the revenue contribution of IDR1 trillion

from its overseas business. This amount is equal to 6% of

its total revenue. To reach the target, KLBF has started to

build Myanmar

-

based medicine factory worth investment

value of USD18

-

20 million and incorporate a joint

-

venture

with India

-

based company. Such joint venture is KLBF’s

strategy to perform a natural hedging relating to the

mostly imported raw materials. (Investor Daily)

MAPA

: Enjoys Growth of 23.4% in Revenue

PT MAPA posted the growth of 23.4% y

-

y to IDR2.9 trillion

in the 1H18’s sales. However, the signing of bond

subscription agreement (BSA) of IDR1.5 trillion with Asia

Sportswear Holdings Pte. Ltd suppressed the new profit

attributed to the parent entity by 61.85% y

-

y to IDR32.37

billion. In the 1H18, it launched 74 new stores. (Bisnis

Indonesia)

GGRM

: Posts Growth of 13.67% in Net Profit

GGRM enjoyed the growth of 12.57% y

-

y to IDR45.3

trillion in the 1H18 revenue. The hike underpinned the

growth of the 1H18’s net profit by 13.67% y

-

y to IDR3.55

(5)

Global Economic Calendar

Date

Country

Hour

Jakarta

Event

Period

Actual

Consensus

Monday

GER

15:00

IFO Business Climate

Aug

103.8

101.8

101.7 27 - Aug

Tuesday

EU

15:00

M3 Money Supply YoY

Jul

4.00%

4.30%

4.40%

28 -

Aug

US

21:00

Conf. Board Consumer Confidence

Aug

133.4

126.5

127.4 Wednesday

US

18:00

MBA Mortgage Applications

24 -

Aug

-

1.70%

--

4.20%

29 -

Aug

US

19:30

GDP Annualized QoQ

2Q S

4.20%

4.00%

4.10%

Thursday

GER

19:00

CPI YoY

Aug P

2.00%

30 -

Aug

US

19:30

Personal Income

Jul

0.30%

0.40%

US

19:30

Personal Spending

Jul

0.40%

US

19:30

Initial Jobless Claims

25 -

Aug

213k

--

210k

Friday

JPN

06:30

Jobless Rate

Jul

2.50%

2.40%

31 -

Aug

JPN

06:50

Industrial Production MoM

Jul P

-

0.10%

0.20%

-

1.80%

CHN

08:00

Manufacturing PMI

Aug

51.3

51

51.2 UK

13:00

Nationwide House PX MoM

Aug

0.00%

0.60%

US

20:45

Chicago Purchasing Manager

Aug

63

65.5 US

21:00

U. of Mich. Sentiment

Aug F

95.7

95.3 Source: Bloomberg

Source: Bloomberg

Domestic Economic Calendar

Date

Hour

Jakarta

Event

Period

Actual

Consensus

Prev.

Friday

Tentative

Money Supply M2 YoY

Jul

--

5.90%

(6)

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