Global Market Highlights
DJIA strengthened by +0.20% on Tuesday (01/08), while the S&P500 (-0.27%) and Nasdaq (-0.43%). Wall Street closed mixed, with investors closely observing the release of new job openings data for Jun-2023, which declined, as well as an increase in UST yields that pressured index movements. Today, the market will be looking toward several data releases such as: 1) US ADP Employment Change Jul-2023; 2) US MBA 30-Year Mortgage Rate 28-Jul-2023; 3) US MBA Mortgage Applications 28-Jul-2023.
Domestic Update
• The Central Bureau of Statistics reported an inflation rate in Jul-2023 of +3.08% YoY and 0.21% MoM. Meanwhile, the core inflation rate rose +2.43% YoY/+0.13% MoM. MNCS Comment: The YoY inflation rate in Jul-2023 slowed compared to the Jun-2023 realization of +3.52% YoY and was below the consensus estimate of +3.10% YoY. Inflation in Jul-2023 was influenced by price increases in expenditure groups such as food, beverages and tobacco (+1.9% YoY), clothing and footwear (+1.42% YoY), up to housing, water, electricity, and household fuels (+2.03% YoY).
Company News
1. SMGR IJ reported a net profit of IDR866.2 billion in 1H23, an increase of +3.1% YoY (vs IDR840.1 billion in 1H22) (Kontan). MNCS Comment: This increase in net profit was supported by a +2.0% YoY rise in revenue, along with a slight growth in sales volume (+0.1% YoY), and a reduction in minority interest. GPM/OPM decreased to 25.9%/11.0% (vs 28.6%/11.8% in 1H22). Currently, SMGR is traded at the level of 20.21x/1.05x PER/PBV.
2. BRPT IJ recorded a net profit increase of +243.4% YoY, rising to USD30.4 million in 1H23 (vs USD8.8 million in 1H22) (Kontan). MNCS Comment: The increase in net profit amid declining revenue of -15.1% YoY, coincides with cost efficiency where COGS decreased -21.8% YoY, resulting in an expansive GPM of 20.7% (vs 13.9% in 1H22). OPEX also slightly decreased by -0.9% YoY, supporting the increase in OPM to 13.8% (vs 7.9% in 1H22). Currently, BRPT is traded at the level of 80.89x/3.08x PER/PBV.
3. TOWR IJ recorded a net profit decrease of -7.8% YoY, resulting in IDR1.6 trillion (vs IDR1.7 trillion in 1H22) (Kontan). MNCS Comment: The decline in net profit, despite revenue/operational profit increases of +8.7% YoY/+7.5% YoY respectively, was due to the rise in financial expenses by +23.0% YoY. GPM/NPM each contracted to 71.8%/27.0% (vs 72.9%/31.8% in 1H22). Currently, TOWR is traded at the level of 16.69x/3.45x PER/PBV.
IHSG Updates
JCI weakened -0.65% to 6,886.50 on Tuesday (01/08), followed by a net foreign sell reaching IDR386.94 billion. All sectors experienced a downturn, burdening the index rate, led by the healthcare sector (-3.16%) and followed by the transportation sector (-2.22%). The index downturn occurred amidst a mixed Asian market, where investors were looking at the 2Q earnings release and tending to ignore the expansive PMI data and the slowed inflation rate for Jul-2023. The Rupiah closed lower at IDR15,115/USD. We estimate that the JCI will move in the price range of 6,841-6,904. Today's recommendation: BBRI, BRPT, TKIM, WIFI.
Corporate Actions
IPO: CNMA (IDR270/share)
RUPS: WIFI
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