Global Market Highlights
DJIA weakened -0.56% on Thursday (1/12), followed by S&P500 (-0.09%) while Nasdaq (+0.13%). Wall Street closed mixed, as negative sentiment came from the release of ISM Manufacturing PMI data in Nov-2022 which contracted to a recession level of 49 points, or lower than the consensus estimate of 49.8 points and Oct-2022 realization at 50.2 points. Today, the market will be looking toward several data releases such as: 1) US Non Farm Payrolls Nov; 2) US Unemployment Rate Nov; 3) Germany Balance of Trade Oct.
Domestic Update
• BPS reported that Indonesia's inflation in November 2022 was recorded +5.42% YoY. MNCS Comment: Even though the inflation rate slowed from Oct-2022 at 5.71% YoY, it was still high with the largest component contributor coming from the transportation segment with 1.86% (vs food, beverages and tobacco with 1.50%). Meanwhile, the slowdown in the inflation rate was in line with the decrease in the volatile inflation rate to 5.70% YoY (vs +7.19% YoY).
• Furthermore, the national Covid-19 daily rate had increased by 4,977 active cases (1/12).
Company News
1. MEDC IJ posted net profit growth in 9M22 of +614.37% YoY to USD 400.93 million (vs USD 56.12 million in 9M21) (Investor ID). MNCS Comment: The increase in net profit was supported by: 1) increase in revenue (+89.11% YoY); 2) increase in profits from JV entities (+259.72% YoY). It was noted that the company's margins were increasingly expansive, where GPM and NPM in 9M22 were recorded at 50.05%/22.18%, respectively (vs 39.31%/5.87% in 9M21). Currently, MEDC is traded at the level of 3.47x/1.28x PER/PBV.
2. LPPF IJ opened its 6th store this year at Citimall Bontang, East Kalimantan (IQ Plus). MNCS Comment: Thus, the total LPPF outlets currently reach 144 outlets. The company also plans to add 4 new outlets in Dec-2022, therefore by the end of FY22E, the total Matahari outlets will reach 148 units. It is hoped that through outlet expansion, the company's revenue will accelerate in the future. Currently, LPPF is traded at the level of 8.54x/27.96x PER/PBV.
3. TBLA IJ will distribute an interim dividend for the FY22E fiscal year of IDR211.07 billion, or the equivalent of IDR40 per share, with cum dividend date for the regular market and negotiations on December 9, 2022 (Emiten News). MNCS Comment: Thus TBLA will offer a dividend yield of 5.56%. With net profit in 1H22 reaching IDR381.90 billion, the payout ratio reached 55.27%. Currently, TBLA is traded at the level of 5.04x/0.56x PER/PBV.
IHSG Updates
JCI weakened -0.85% to 7,020.80 on Thursday (1/12), followed by net foreign sell which reached IDR1.12 trillion. A number of sectors weakened and weighed on the index, led by the technology sector (-1.47%) and followed by the financial sector (-1.47%). On the other hand, the sectors that experienced strengthening were the transportation & logistics sector (+1.22%), followed by the energy sector (+1.17%). The index weakened amid the strengthening of Asian stock exchanges and Wall Street. Furthermore, we see that market players tend to respond negatively to the release of data on Indonesia's inflation rate in Nov-2022 which increased 0.09% MoM (vs -0.11% MoM in Oct-2022). On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,563/USD. We estimate that the JCI will move in the price range of 6,977-7,040. Today's recommendation: INTP, KLBF, PWON, TBIG.
Corporate Actions
Cum Rights: AMAR (IDR280/share)
RUPS: ADCP, BMAS
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