Global Market Highlights
DJIA fell -0.85% on Friday (16/12), followed by the S&P500 (-1.11%) and the Nasdaq (-0.97%), Wall Street corrected as investors worried about a potential recession, after the release of PMI Manufacturing Flash data in Dec-2022 which contracted to a level of 46.2 points, lower than Nov-2022 realization and consensus at the level of 47.7 points. Today, the market will be looking toward several data releases such as: 1) US NAHB Housing Market Index Dec; 2) Germany Ifo Business Climate Dec; 3) UK CBI Industrial Trends Orders Dec.
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 860 active cases (18/12).
Company News
1. MDKA IJ recorded a net profit growth in 9M22 of +228.5% YoY to USD69.2 million (vs USD21.1 million in 9M21) (Market Bisnis). MNCS Comment: The increased net profit was in line with the company's revenue growth of +139.7% YoY. The increase was supported by an increase in production outputs: 1) gold +158.1% YoY; 2) copper +167.9% YoY; 3) and nickel production of 28.9k tons of NPI. Currently, MDKA is traded at the level of 35.95x/6.74x PER/PBV.
2. GOOD IJ targets a double digit revenue growth in FY23F (Kontan). MNCS Comment: Up to 9M22, the company's revenue has grown +22.8% YoY to IDR7.8 trillion (vs IDR6.4 trillion in 9M21). We see that the company's target in FY23 will be supported by: 1) maintained public purchasing power in line with the increase in the average UMP +7.3% YoY; 2) mobility that continues to improve, especially at the opening of educational activities in schools. Currently, GOOD is traded at the level of 55.18x/7.60x PER/PBV.
3. ANTM IJ posted a net profit growth in 9M22 of +53.6% YoY to IDR2.6 trillion (vs IDR1.7 trillion in 9M21) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +27.2% YoY to IDR33.7 trillion (vs IDR26.5 trillion in 9M21), in line with the increase in the company's sales volume, where the gold segment grew +30.5 YoY, bauxite +2.8% YoY and Alumina +21.9% YoY. Currently, ANTM is traded at the level of 15.91x/2.26 PER/PBV.
IHSG Updates
JCI strengthened +0.89% to 6,812.19 on Friday (16/12), followed by net foreign sell which reached IDR181.65 billion. The majority of sectors experienced strengthening and boosted the index, led by the raw materials sector (+1.53%) and followed by the financial sector (+0.92%). On the other hand, the sectors that experienced weakness were the cyclical sector (-0.96%) and followed by the transportation sector (-0.50%). The index strengthened amid the weakening Wall Street and Asian stock exchanges. We see market players responding positively to the release of Japan's PMI Composite Flash data in Dec-2022 which increased to a level of 50 points (vs 48.9 points in Nov-2022). 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 6,739-6,854 pending the release of Loan Growth YoY Nov data. Today's recommendation: ADMR, ASII, MYOR, PTBA.
Corporate Actions
Cum Dividend: BYAN (IDR468.72/share)
Cum Bonus: BRPT (475:2)
RUPS: BRAM
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