Global Market Highlights
DJIA strengthened +1.58% on Monday (12/12), followed by the S&P500 (+1.43%) and the Nasdaq (+1.26%). Wall Street rallied ahead of the release of Nov-2022 inflation data which is estimated to decline to +7.3% YoY according to consensus (vs +7.7% YoY Oct-2022 realization). Today, the market will be looking toward several data releases such as: 1) US Inflation Rate YoY Nov; 2) US Core Inflation Rate YoY Nov; 3) Germany Inflation Rate YoY Final Nov.
Domestic Update
• Domestic car sales in Nov-2022 reached 91,086 units, down from 93,197 units in Oct-2022. MNCS Comment: Although it decreased -2.3% MoM, cumulatively up to 11M22, total domestic car sales has reached 942,449 units, up +19.2% YoY (vs 790,529 units in 11M21). With a sales target in FY22E of 960,000 units, the realization up to 11M22 reached 98.2%.
• Furthermore, the national Covid-19 daily rate had increased by 1,225 active cases (12/12).
Company News
1. EXCL IJ will conduct rights issue by issuing 2.40 billion new shares, with exercise price of IDR2,080 per share (Kontan). MNCS Comment: The number of new shares offered is equivalent to 18.31% of the issued capital. With the exercise price of IDR2,080, the company has the potential to obtain funds of IDR4.99 trillion. With the proceeds from the rights are used to pay off debt, this has the potential to increase the company's profitability in line with reduced financial costs, yet reducing FY22E Annualized EPS from IDR122.0 to IDR99.7. Currently, EXCL is traded at the level of 16.97x/1.08x PER/PBV.
2. ALDO IJ targets 2x revenue growth in FY23F (Investor ID). MNCS Comment: With guidance on revenue growth in FY22E reaching +30% YoY to IDR1.46 trillion, it is estimated that the FY23F revenue will be IDR3.79 trillion. This increase was mainly supported by the increase in the company's production capacity from 80k/year to 220k/year. Currently, ALDO is traded at the level of 13.55x/1.45x PER/PBV.
3. PPRE IJ recorded the acquisition of a new contract value of up to 11M22 reaching IDR5 trillion (Kontan). MNCS Comment: Acquisition of new contract value fell -5.7% YoY (vs IDR 5.3 trillion in 11M21). With the target of acquiring new contracts in FY22E reaching IDR5.9 trillion, realization up to 11M22 was 84.7%. Currently, PPRE is traded at the level of 12.48x/0.57 PER/PBV.
IHSG Updates
JCI strengthened +0.29% to 6,734.45 on Monday (12/12), followed by net foreign sell which reached IDR1.55 trillion. The majority of sectors experienced strengthening and boosted the index rate, led by the non-cyclical sector (+1.21%) and followed by the transportation & logistics sector (+1.06%). On the other hand, the sectors that experienced weakness were the technology sector (-2.35%) and followed by the infrastructure sector (-0.24%). The index rallied amid the announcement that Japanese producer prices slowed to 9.3% YoY (vs 9.4% YoY in Oct-2022 realization), higher than the consensus estimate (8.9% YoY). On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,583/USD. We estimate that the JCI will move in the price range of 6,676-6,799. Today's recommendation: INDF, IPPE, ITMG, KRYA.
Corporate Actions
Cum Dividend: HRUM (IDR75.1/share)
Cum Rights: BVIC (IDR150/share), BRIS (IDR1,000/share)
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