Global Market Highlights
DJIA fell -0.49% on Monday (19/12), followed by the S&P500 (-0.90%) and the Nasdaq (-1.49%). Wall Street was corrected as the yield of the US T-note 10Y increased to 3.57% and the release of the Dec-2022 NAHB Housing Market Index data which fell to a level of 31 points (vs 33/34 points on the Nov-2022 realization/consensus). Today, the market will be looking toward several data releases such as: 1) US Building Permits Prel Nov; 2) US Housing Starts MoM Nov; 3) Japan BoJ Interest Rate Decision.
Domestic Update
• Based on the Bank Indonesia Price Monitoring Survey in the 3rd week of Dec-2022, inflation is expected to be +0.44% MoM. MNCS Comment: The increase in inflation towards the end of the year occurred in line with the festive season which increased the demand for food and jewelry, as well as the gradual adjustment in cigarette prices due to the increase in excise rates in FY23F.
• Furthermore, the national Covid-19 daily rate had increased by 809 active cases (19/12).
Company News
1. CLEO IJ will continue the expansion of the construction of a new factory in FY23F (Market Bisnis). MNCS Comment: CLEO will build 3 new factories in Lampung, Manado and Pekanbaru. Through the construction of the 3 factories, production capacity will increase by +33%, and is expected to boost the company's performance going forward. Currently, CLEO is traded at the level of 29.22x/5.15x PER/PBV.
2. LPKR IJ targets a marketing sales of IDR4.8-5.2 trillion in FY22E (Market Bisnis). MNCS Comment: As of 9M22, marketing sales reached IDR3.5 trillion, or the realization of the company's target in FY22E of 67.9% -73.5%. To boost its marketing sales, the company will offer a variety of new projects ranging from low-rise to high-rise. Currently, LPKR is traded at 0.35x PBV.
3. IPCC IJ will distribute an interim cash dividend for the FY22E fiscal year of IDR22.7 billion or equivalent to IDR12.49 per share. Cum dividend date on the Regular and Negotiation market on 26 December 2022 (Emiten News). MNCS Comment: Therefore, IPCC will offer a dividend yield of up to 2.1%. With net profit up to 9M22 reaching IDR 108.9 billion, the payout ratio is 20.9%. Currently, the IPCC is traded at the level of 7.39x/0.95 PER/PBV.
IHSG Updates
JCI weakened -0.48% to 6,779.70 on Monday (19/12), followed by net foreign sell which reached IDR180.05 billion. The majority of sectors experienced weakening and weighed on the index, led by the technology sector (-2.04%) and followed by the raw materials sector (-1.64%). On the other hand, the sectors that experienced strengthening were the infrastructure sector (+0.52%) and the cyclical sector (+0.20%). The weakening of the index was in line with the weakening of Wall Street and Asian stock exchanges. We see that market players tend to wait and see ahead of the announcement of Japan's benchmark interest rate which is estimated by consensus to remain at -0.1%. On the other hand, the Rupiah exchange rate unchanged 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: BFIN, BIRD, ITMG, MDKA.
Corporate Actions
Cum Stock Split: BEBS (1:5)
RUPS: NOBU, DSSA
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