Global Market Highlights
DJIA strengthened +1.16% on Monday (07/08), followed by the S&P500 (+0.99%) and the Nasdaq (+0.61%). Wall Street managed to rebound where investors responded positively to the results of corporate earnings releases, in which 80% of companies exceeded EPS estimates from the consensus (vs 76% last year). Today, the market will be looking toward several data releases such as: 1) US Balance of Trade Jun-2023; 2) Germany Inflation Rate YoY Final Jul-2023; 3) France Balance of Trade Jun-2023.
Domestic Update
• Bank Indonesia (BI) reported that foreign exchange reserves in Jul-2023 amounted to USD137.7 billion, a slight increase compared to the position in June-2023 of USD137.5 billion. MNCS Comment: This increase was supported by tax and service revenues. The position of foreign exchange reserves is equivalent to financing 6.2 months of imports, or 6.0 months of imports and servicing foreign debt.
Company News
1. TRIN IJ recorded marketing sales gains in 1H23 reaching IDR400-500 billion (Kontan). MNCS Comment: Thus, the realization of marketing sales (MS) has reached 40%-50% of the FY23E target. We notice that Collins Boulevard is expected to drive MS's performance going forward. Currently. TRIN is traded at the level of 1.16x PBV.
2. CENT IJ through its entity PT Centratama Menara Indonesia (CMI) acquired 397 tower units from PT Anugerah Communication (PTAC). The transaction value reached IDR1.2 trillion (Emiten News). MNCS Comment: It is hoped that through this expansion it can boost the company's performance going forward. In 5M23, the total CENT tower portfolio reached 9.4k units, with 15.3k tenants and 1.63x tenancy ratio.
3. AISA IJ posted a net loss of IDR5.1 billion in 1H23, or less from a net loss in 1H22 of IDR25.0 billion (Kontan). MNCS Comment: The net loss was in line with revenue which fell -4.0% YoY to IDR828.4 billion (vs IDR862.8 billion in 1H22). Meanwhile, the decrease in net loss was driven from the surplus of the operating profit at IDR 17.0 billion (vs a deficit of IDR5.3 billion in 1H22), in line with efficiency in COGS (-9.9% YoY). Currently, AISA is traded at the level of 1.69x PBV.
IHSG Updates
JCI strengthened +0.49% to 6,886.37 on Monday (07/08), followed by net foreign buy reaching IDR808.11 billion. A number of sectors experienced strengthening and boosted the index, led by the financial sector (+0.80%) followed by the technology sector (+0.64%). On the other hand, sectors that experienced a weakening were led by the health sector (-0.71%) followed by the infrastructure sector (-0.38%). The index strengthened amid mixed Asian stock exchanges, where investors responded positively to Indonesia's GDP growth in 2Q23 of +5.17% YoY (vs +5.00% on consensus). The Rupiah closed lower at IDR15,185/USD. We estimate that the JCI will move in the price range of 6,879-6,910 pending the release of Consumer Confidence Jul-2023 data. Today's recommendation: HRTA, MEDC, PGAS, PNLF.
Corporate Actions
IPO: ERAL (IDR390/share), CYBR (IDR100/share), GRIA (IDR120/share)
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