Global Market Highlights
DJIA fell -0.42% on Wednesday (14/12), followed by the S&P500 (-0.61%) and the Nasdaq (-0.76%). Although the Fed had raised the FFR at the FOMC Dec-2022 in line with the market expectations (+50 bps), the Fed gave a hawkish signal in the form of an increase in interest rates of +75 bps, higher than the previous estimate of +25 bps. Today, the market will be looking toward several data releases such as: 1) US Retail Sales MoM Nov; 2) US Initial Jobless Claims; 3) UK BoE Interest Rate Decision.
Domestic Update
• Fitch maintains Indonesia's outlook with a BBB rating. MNCS Comment: We view that the outlook is maintained along with the prospect of relatively stable GDP growth amidst the challenges of the global recession and a manageable debt-to-GDP ratio.
• Furthermore, the national Covid-19 daily rate had increased by 2,136 active cases (14/12).
Company News
1. PTPP IJ recorded the acquisition of up to 11M22 new contract values of IDR27.5 trillion (Market Bisnis). MNCS Comment: Thus, the achievement of new contract values grew +66.4% YoY (vs IDR16.5 trillion in 11M21). Meanwhile, with a target of obtaining a new contract value in FY22E of IDR30.0 trillion, realization up to 11M22 reached 91.6%. Currently, PTPP is traded at the level of 24.57x/0.42x PER/PBV.
2. TOTL IJ targets revenue in FY23F to reach IDR2.3 trillion (Investor ID). MNCS Comment: TOTL targeted IDR2.0 trillion in revenue in FY22E, with realization up to 9M22 reaching 87.1% (IDR1.7 trillion). To achieve revenue growth of +15.0% YoY in FY23F, the company will accelerate its net contract value acquisition by +30.0% YoY to IDR2.6 trillion in FY23F, by actively participating in various tender processes. Currently, TOTL is traded at the level of 11.86x/0.86x PER/PBV.
3. BSSR IJ will distribute interim cash dividends II in the FY22E financial year of USD97 million, cum dividend date for the regular market and negotiations on 22 December 2022 (Market Bisnis). MNCS Comment: Assuming Bank Indonesia's middle rate on 14 December 2022 is IDR15,661 and outstanding shares reach 2.6 billion, BSSR will distribute interim cash dividend II of IDR1.5 trillion, or the equivalent of IDR581 per share with a dividend yield of 11.5%. Currently, BSSR is traded at the level of 3.29x/3.15 PER/PBV.
IHSG Updates
JCI weakened -0.13% to 6,801.75 on Wednesday (14/12), followed by net foreign sell which reached IDR1.10 trillion. The majority of sectors experienced weakness and weighed on the index, led by the technology sector (-2.09%) and followed by the financial sector (-0.46%). On the other hand, the sectors that experienced strengthening were the health sector (+1.25%) and followed by the energy sector (+0.96%). We see that market players tend to wait and see ahead of the announcement of the US benchmark interest rate which is estimated by consensus to increase by 50 bps to 4.25%-4.50%. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,598/USD. We estimate that the JCI will move in the price range of 6,722-6,825 pending the release of Balance Trade Nov data. Today's recommendation: ADRO, INKP, MPMX, SMGR.
Corporate Actions
Cum Dividend: DOID (IDR9.32/share)
IPO: VTNY (IDR360/share)
RUPS: UNVR
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