Global Market Highlights
DJIA gained +0.15% on Thursday (10/08), followed by the S&P500 (+0.03%) and the Nasdaq (+0.12%). Wall Street managed to rebound following the release of inflation data in Jul-2023 of +3.2% YoY, or still below the consensus estimate of +3.3% YoY (vs Jun-2023: 3.0% YoY). In addition, claims Initial unemployment as of 5-Aug increased to 248k (vs 230k on consensus). Today, the market will be looking toward several data releases such as: 1) US PPI MoM Jul-2023; 2) US Michigan Consumer Sentiment Prel Aug-2023; 3) UK GDP Growth Rate YoY Prel 2Q23.
Domestic Update
• The fulfillment of the 40% domestic component level for electric cars may be delayed from its original target in 2024 to 2026. MNCS Comment: In our opinion, the relaxation of the set targets aims to attract more investment into the country. This decision considers the readiness of local manufacturers, who have yet to meet the required domestic component levels. We expect heightened competition in the future due to this extended timeframe.
Company News
1. PANI IJ plans to conduct a right issue by issuing 8 billion new shares with a nominal value of IDR100 (Emiten News). MNCS Comment: With a target transaction value of IDR9.4 trillion, PANI will be better positioned to acquire other assets and pursue more aggressive development. We anticipate that these actions will enhance the company's performance in the future. Currently, PANI is trading at the level of 58.98x/11.14x PER/PBV.
2. ADHI IJ recorded a new YTD contract value of IDR14 trillion in 1H23 (Investor ID). MNCS Comment: Therefore, the value of the company's new contracts grew +20% YoY. With a target value of new contracts in FY23E of IDR27 trillion, realization up to 1H23 reached 56% of the target. Currently, ADHI is traded at the level of 0.43x PBV.
3. PTPP IJ announced that it has secured new contracts worth IDR15.68 trillion up to 7M23. The composition of these new contracts includes 34% from the government, 31% from SOE and the remaining 35% from the private sector (Investor ID). MNCS Comment: The value of the new contract value in 7M23 increased +15.7% YoY (vs IDR13.55 trillion in 7M22). With a target of obtaining a new contract value in FY23E of IDR34 trillion, realization up to 7M23 reached 46.1%. Currently, PTPP is traded at the level of 17.36x/0.30x PER/PBV.
IHSG Updates
JCI strengthened +0.26% to 6,893.28 on Thursday (10/08), followed by net foreign sell reaching IDR17.9 trillion. A number of sectors experienced strengthening and boosted the index rate, led by the energy sector (+1.51%) followed by the transportation sector (+0.81%). On the other hand, sectors that experienced a decline were led by the industrial sector (-0.65%) followed by the property sector (-0.27%). The index strengthened along with the majority of other Asian exchanges, where investors were watching the release of Japanese PPI data in Jul-2023 which slowed to +3.6% YoY, as well as wait and see ahead of US inflation data. The Rupiah closed higher at IDR15,185/USD. We estimate that the JCI will move in the price range of 6,873-6,915. Today's recommendation: BMRI, ENRG, ITMG, JSMR.
Corporate Actions
Cum Dividend: EAST (IDR1.8/share)
RUPS: SOCI
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