Global Market Highlights
DJIA fell -0.43% on Friday (04/08), followed by the S&P500 (-0.53%) and Nasdaq (-0.36%). Wall Street weakened amid the dovish tone of the Fed which said an increase in the FFR was no longer needed. Meanwhile, investors were also watching the company’s earnings release in 2Q23. Today, the market will be looking toward several data releases such as: 1) US Consumer Credit Change Jun-2023; 2) Japan Coincident Index Prel Jul-2023; 3) Japan Leading Economic Index Prel Jul-2023.
Domestic Update
• Bank Indonesia (BI) reported, based on transaction data 31-Jul – 3-Aug-2023, non-residents in the domestic financial market bought IDR5.33 trillion net, consisting of IDR1.90 trillion net buy on the domestic bond market and IDR3.43 trillion net buy on the equity market. share. MNCS Comment: We see higher net foreign buys on the equity market compared to the previous position, influenced by investors responding positively to the earnings release in 2Q23 as well as the single transaction on CNMA shares last week.
Company News
1. INKP IJ posted a net profit in 1H23 of USD268.5 million, or decreased by -32.1% YoY (vs USD395.3 million in 1H22) (Kontan). MNCS Comment: The decline in net profit was in line with: 1) relatively flat revenue (-0.5% YoY); 2) increase in COGS (+4.4% YoY); 3) foreign exchange loss; and 4) increase in interest expenses. Currently, INKP is traded at the level of 6.28x/0.58x PER/PBV.
2. AVIA IJ posted a +3.8% YoY increase in net profit in 1H23 to IDR806.6 billion (vs IDR777.1 billion in 1H22) (Kontan). MNCS Comment: The increase in net profit was supported by an increase in revenue +3.8% YoY to IDR3.5 trillion (vs IDR3.4 trillion in 1H22), as well as cost management where COGS fell -3.4% YoY. GPM recorded expansive growth at 45.2% (vs 41.0% in 1H22). Currently, AVIA is traded at the level of 23.62x/3.88x PER/PBV.
3. SMSM IJ will distribute an interim dividend of IDR143.96 billion or equivalent to IDR25 per share (Kontan). MNCS Comment: Thus, SMSM will offer a dividend yield of 1.2%. Meanwhile, the payout ratio reached 33.5% of net profit in 1H23. Currently, SMSM is traded at the level of 13.61x/3.88x PER/PBV.
IHSG Updates
JCI weakened -0.66% to 6,852.84 on Friday (04/08), followed by net foreign sell reaching IDR469.08 billion. A number of sectors experienced weakening and weighed on the index, led by the technology sector (-1.91%) followed by the health sector (-1.00%). On the other hand, sectors that experienced strengthening were led by the property sector (+0.98%) followed by the transportation sector (+0.48%). The movement of the index underperformed the strengthening Asian exchanges, where investors tend to wait and see ahead of the release of data on foreign exchange reserves for Jul-2023 and GDP growth in 2Q23. The Rupiah closed higher at IDR15,170/USD. We estimate that the JCI will move in the price range of 6,840-6,874 pending the release of GDP Growth Rate 2Q23 and Foreign Exchange Reserves Jul-2023 data. Today's recommendation: DOID, DSNG, SMRA, TOWR.
Corporate Actions
IPO: FOLK (IDR100/share), HBAT (IDR108/share)
Cum Dividend: SMSM (IDR25/share)
Disclaimer On
