Global Market Highlights
DJIA strengthened +0.85% on Tuesday (29/08), followed by the S&P500 (+1.45%) and the Nasdaq (+1.74%). Wall Street continued its gains, with investors optimistic that the Fed will hold its benchmark rate policy at the FOMC Sep-2023, following the release of weak employment market data. It was noted that JOLTs job openings in Aug-2023 were recorded at 8.8 million, or lower than the consensus of 9.5 million. Today, the market will be looking toward several data releases such as: 1) US GDP Growth Rate QoQ 2nd Est 2Q23; 2) US ADP Employment Change Aug-2023; 3) Germany Inflation Rate YoY Prel Aug-2023.
Domestic Update
• The Financial Services Authority (OJK) reported that the amount of undisbursed loans as of May 2023 is IDR1.996,5 trillion, marking an increase of +17.6% YoY. MNCS Comment: We observe that the rise in undisbursed loans is influenced by debtors closely monitoring the developments in the benchmark interest rate. Moreover, the upcoming elections cause debtors to adopt a "wait and see" approach.
Company News
1. PTBA IJ recorded a decrease in net profit -54.9% YoY in 1H23 to IDR2.8 trillion (vs IDR6.2 trillion in 1H22) (IQ Plus). MNCS Comment: Decrease in net profit amid an increase in revenue +2.4% YoY. This aligns with the COGS, which surged by 46.5% YoY, adversely impacting the company's profitability. Production volume rose by 18.2% YoY to 18.8 million tons (vs 15.9 million tons in 1H22). NPM contracted to 14.7% (vs 33.4% in 1H22). Currently, PTBA is traded at the level of 6.14x/1.86x PER/PBV.
2. CNMA IJ recorded a total of 36.9 million visitors up to 1H23 (Market Bisnis). MNCS Comment: The number of visitors increased by +22.6% YoY, contributing to the company's revenue in 1H23, which grew by +22.0% YoY to IDR2.4 trillion. With 65% of the IPO funds allocated for cinema development and expansion, we anticipate CNMA will continue its positive performance in the future. Currently, CNMA is traded at the level of 44.63x/9.20x PER/PBV.
3. OMED IJ reported a net profit of IDR110.6 billion in 1H23, marking an -11.2% YoY decrease (vs IDR124.6 billion in 1H22) (Emiten News). MNCS Comment: This decline in net profit occurred amidst a relatively flat revenue growth of -0.3% YoY and an increase in OPEX by 40.1% YoY, both of which hindered the company's profitability. The GPM saw a slight increase to 32.5% (vs 32.3% in 1H22), while the NPM contracted to 13.6% (vs 15.3% in 1H22). Currently, OMED is traded at the level of 18.71x/2.01x PER/PBV.
IHSG Updates
JCI strengthened +0.52% to 6,957.84 on Tuesday (29/08), followed by net foreign sell reaching IDR1.63 trillion. A number of sectors experienced strengthening and boosted the index rate, led by the infrastructure sector (+1.81%) followed by the technology sector (+1.56%). On the other hand, the sectors that experienced weakening were led by the cyclical sector (-0.29%) followed by the transportation sector (-0.21%). The strengthening of the JCI was in line with Asian stock exchanges, where positive catalysts came from consensus predicting The Fed to maintain its dovish policy at the FOMC Sep-2023, as well as China providing stimulus to its stock market to minimize outflows. The Rupiah closed higher at IDR15,260/USD. We estimate that the JCI will move in the price range of 6.930-6.977. Today's recommendation: AUTO, HMSP, IPCC, SMRA.
Corporate Actions
RUPS: UNVR
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