Global Market Highlights
DJIA fell -2.25% on Thursday (15/12), followed by the S&P500 (-2.49%) and the Nasdaq (-3.23%). Wall Street weakened as investors responded negatively to the release of Retail Sales data in Nov-2022 which contracted -0.6% MoM (vs +1.3% MoM in Oct-2022), and was below the consensus estimate at -0.1%. MoM. Today, the market will be looking toward several data releases such as: 1) US S&P Global Composite PMI Flash Nov; 2) UK GfK Consumer Confidence Dec; 3) UK S&P Global/CIPS Manufacturing PMI Flash Nov.
Domestic Update
• Indonesia's Nov-2022 trade balance surplus reached USD5.16 billion, a surplus that has continued for 31 consecutive months. MNCS Comment: The decrease in the trade balance surplus (vs USD 5.67 billion in Oct-2022) was in line with the -2.5% MoM decline in exports due to falling volumes in RI's leading commodities (CPO and coal) and weakening oil and gas prices.
• Furthermore, the national Covid-19 daily rate had increased by 1,785 active cases (15/12).
Company News
1. LPPF IJ realized the 9th store expansion at Bassura Mall and the 10th at Icon Mall Gresik (Investor ID). MNCS Comment: Thus, LPPF has met its target of opening 10 outlets in FY22E, bringing the total outlet units to 148 outlets. It is hoped that this expansion will accelerate the company's performance going forward. Currently, LPPF is traded at the level of 8.39x/27.49x PER/PBV.
2. ACES IJ targets 8-10% YoY revenue and net profit growth in FY23F (Market Bisnis). MNCS Comment: We project its revenue and net profit in FY23F to be IDR7.3 trillion/IDR873.0 billion, respectively, supported by SSSG +6.2% YoY and store expansion. Currently, ACES is traded at the level of 15.14x/1.30x PER/PBV.
3. SUPR IJ targets net profit in FY22E to reach IDR900 billion (Emiten News). MNCS Comment: In 9M22, the company's net profit reached IDR737.9 billion (vs IDR548.5 billion net loss in 9M21), making its target realization to reach 82%. Currently, SUPR is traded at the level of 43.36x/9.73 PER/PBV.
IHSG Updates
JCI weakened -0.73% to 6,751.86 on Thursday (15/12), followed by net foreign buy which reached IDR671.13 billion. The majority of sectors experienced weakening and weighed on the index, led by the cyclical sector (-1.03%) and followed by the financial sector (-0.80%). On the other hand, the sectors that experienced strengthening were the technology sector (+0.87%) and was followed by the transportation sector (+0.04%). The weakening of the index was in line with the weakening of Wall Street and Asian stock exchanges. We see market players responding negatively to the plan to increase the US benchmark interest rate in FY23F by +75 bps, from +25 bps in the previous projection. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,618/USD. We estimate that the JCI will move in the price range of 6,687-6,747. Today's recommendation: AKRA, BBCA, INDY, RMKE.
Corporate Actions
Cum Dividend: TSPC (IDR25/share)
RUPS: ABBA, SKRN
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