Global Market Highlights
DJIA fell -0.98% on Wednesday (02/08), followed by the S&P500 (-1.38%) and the Nasdaq (-2.17%). Wall Street collectively closed weaker, in line with a downgrade in the US debt rating by Fitch, as well as an increase in UST yields, which also weighed on the performance of the indices. Meanwhile, the ADP employment change for Jul-2023 was recorded at 324k, higher than the consensus estimate of 189k. Today, the market will be looking toward several data releases such as: 1) US ISM Services PMI Jul-2023; 2) US Initial Jobless Claims 29-Jul-2023; 3) UK BoE Interest Rate Decision.
Domestic Update
• Indonesia's Manufacturing PMI in Jul-2023 has risen to a level of 53.3, up from 52.5 in Jun-2023. MNCS Comment: The position of the Indonesian Manufacturing PMI in July 2023 has increased to the highest level in the last 10 months. This suggests business operators' optimism towards a positive business climate in the future. This expansive manufacturing PMI is supported by rising demand amidst increasing selling prices due to higher input costs.
Company News
1. BIRD IJ posted a net profit in 1H23 of IDR259.5 billion, or grew +77.5% YoY (vs IDR146.2 billion in 1H22) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +35.1% YoY to IDR2.1 trillion (vs IDR1.5 trillion in 1H22). In addition, margins were expansive where GPM/NPM were 31.7%/12.4%, respectively (vs 28.4%/9.4% in 1H22). Currently, BIRD is traded at the level of 10.70x/1.04x PER/PBV.
2. PTRO IJ posted a net profit in 1H23 of USD 10.8 million, a slight increase of +0.4% YoY (Emiten News). MNCS Comment: In 1H23, revenue significantly increased by 32.7% YoY, reaching USD 273.9 million, compared to USD 206.4 million in 1H22. This increase resulted in a gross profit of USD 40.7 million, a 34.6% YoY rise. However, the 35.9% YoY increase in OPEX counterbalanced the top-line growth, causing net profit to remain relatively flat. Currently, PTRO is traded at the level of 11.45x/1.06x PER/PBV.
3. AMRT IJ posted a +28.6% YoY increase in net profit to IDR1.6 trillion (vs IDR1.3 trillion in 1H22) (Emiten News). MNCS Comment: The rise in net profit was bolstered by a 12.4% YoY increase in revenue, reaching IDR53.8 trillion (vs IDR47.9 trillion in 1H22). Additionally, the growth was supported by an expansion in margins, where GPM/OPM climbed to 21.2% and 3.9% respectively (vs 20.7%/3.5% in 1H22). Currently, AMRT is traded at the level of 37.08x/10.14x PER/PBV.
IHSG Updates
JCI weakened -0.46% to 6,854.51 on Wednesday (02/08), followed by net foreign buy reaching IDR 4.86 trillion. The majority of sectors experienced weakening and weighed on the index, led by the technology sector (-1.14%) followed by the non-cyclical sector (-0.89%). On the other hand, sectors that experienced strengthening were led by the health sector (+1.59%) followed by the property sector (+0.40%). The index weakened again along with Asian bourses, in line with outflows after Fitch downgraded the US rating from AAA to AA+. In addition, investors will also tend to wait and see before the release of other macro data. The Rupiah closed lower at IDR15,175/USD. We estimate that the JCI will move in the price range of 6,818-6,866. Today's recommendation: BEST, BRMS, SMGR, JPFA.
Corporate Actions
Cum Dividend: AKRA (IDR50/share)
RUPS: ITIC, TEBE
Disclaimer On
