Global Market Highlights
DJIA strengthened +0.62% on Monday (28/08), followed by the S&P500 (+0.63%) and the Nasdaq (+0.84%). Wall Street managed to continue strengthening, where a positive catalyst came from the release of data on the Dallas Fed Manufacturing Index in Aug-2023 which rose +2.8 points to a level of -17.2, and was the highest level for the last 5 months. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence Aug-2023; 2) Germany GfK Consumer Confidence Sep-2023; 3) France Consumer Confidence Aug-2023.
Domestic Update
• Bank Indonesia (BI) reported that the M2 money supply in Jul-2023 grew +6.4% YoY. MNCS Comment: The growth of the money supply in July 2023 was more expansive compared to June 2023, which was at +6.1% YoY. This growth was supported by a surge in quasi-money at +9.4% YoY. Additionally, credit distribution also expanded to +8.5% YoY (vs+7.8% YoY in Jun-2023). This was in line with the increase in third-party funds at +7.2% YoY (vs +6.4% YoY in Jun-2023).
Company News
1. SAMF IJ targets a revenue growth to reach IDR4.4 trillion in FY23E (Kontan). MNCS Comment: In 1H23, SAMF reported a revenue of Rp2.8 trillion, marking an increase of +91.1% YoY. This figure represents 63% of the revenue target for 1H23. Meanwhile, net profit grew by +67.8% YoY to Rp236.0 billion (compared to Rp140.6 billion in 1H22). We are optimistic that the company can achieve this target, with the increase in volume and secured raw materials. Currently, SAMF is traded at the level of 8.41x/3.40x PER/PBV.
2. PRDA IJ targets a capex allocation of IDR200-300 billion for FY23E, with 50% of the capex designated for digitization (Investor ID). MNCS Comment: We view this digital acceleration as an effort by the management to drive revenue growth of 9-10% YoY in FY23E (with a realization of 48.7% in 1H23). PRDA aims for the digital business contribution to reach 18% of the total revenue. Currently, PRDA is traded at a level of 19.30x/2.55x PER/PBV.
3. SLIS IJ targets a net profit growth of +47.6% YoY to IDR64 billion in FY23E (Investor ID). MNCS Comment: In 1H23, SLIS posted a net profit of IDR10.1 billion, a decrease of -32.7% YoY due to a revenue drop of -8.5% YoY. With the aforementioned net profit growth target for FY23E, the realization for 1H23 stands at only 15.8%. We see the company's growth engine being supported by an increase in sales volume and tailwinds for EV. Currently, SLIS is traded at a level of 16.89x/1.34x PER/PBV.
IHSG Updates
JCI strengthened +0.38% to 6,921.73 on Monday (28/08), followed by net foreign buy reaching IDR1.37 trillion. Almost all sectors experienced strengthening and boosted the index rate, led by the raw materials sector (+1.45%) followed by the energy sector (+1.00%). On the other hand, the sector that experienced weakness was the transportation sector (-2.39%). The strengthening of the index was in line with other Asian stock exchanges, where investors responded positively to the results of the Jackson Hole symposium which provided a neutral view of The Fed. The Rupiah closed higher at IDR15,290/USD. We estimate that the JCI will move in the price range of 6,884-6,950. Today's recommendation: ELSA, MBMA, MDKA, SULI.
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