Jakarta, CNBC Indonesia – Along with the increase in the Jakarta Composite Index (JCI) to 12% in the last 3 weeks, many leading stocks whose prices have also shot up.
With the soaring share prices, many investors who have not yet entered the market feel ‘lagging behind’, even so, it turns out that there are still many leading stocks whose valuations are cheaper.
The category of leading stocks is shares that are members of the LQ45 Index. The LQ45 stock index is considered superior because the LQ45 is an index with company constituents that have healthy financial conditions, high growth prospects, and liquid transaction value.
Meanwhile, the cheap category is assessed by the valuation of net income compared to the stock price or commonly known as the Price Earnings Ratio (PER). Consider the following table.
In terms of price valuation using the PER method, the shares of the producer PT Sri Rejeki Isman Tbk (SRIL) are classified as low-cost with a PER of 3.48.
However, historically SRIL’s shares have always been valued cheaply by investors because the company made by Iwan Lukminto was once caught in a case of suspected pollution of the Begawan Solo river so that corporate governance (GCG) was questioned.
The duo of Sinarmas paper factories also made it to this list, namely PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM) and PT Indah Kiat Pulp and Paper Tbk (INKP) also made it to this list with PER of 6.95 and 8.92, respectively.
The PER valuation of the two companies looks cheap because the net profit of the two companies managed to soar in the first quarter of this year after rising demand for paper and a weakening rupiah benefited importers.
Furthermore, there was also the name of the Red Plate coal company PT Bukit Asam Tbk (PTBA), which historically is still relatively cheap at this time so it is still interesting to collect.
Reporting from Refinitiv, with a PER of 10.77 times, PTBA is better than the average coal company which has a minus PER due to losses this year due to being attacked by the corona virus pandemic.
CNBC INDONESIA RESEARCH TEAM
(trp/trp)
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