Global Market Highlights
DJIA strengthened +0.28% on Tuesday (20/12), followed by the S&P500 (+0.10%) and the Nasdaq (+0.01%). Wall Street managed to rebound as investors responded positively to the release of Housing Starts Nov-2022 data of 1.43 million units, although it fell -0.5% MoM but was still above the consensus estimate of 1.40 million units. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence Dec; 2) US Existing Home Sales MoM Nov; 3) Germany GfK Consumer Confidence Jan.
Domestic Update
• Realized tax revenues up to December 14, 2022, reached 110% of the target. MNCS Comment: Realized revenues that exceeded this target were supported by the ongoing recovery of the domestic economy along with the trend of commodity prices for coal and CPO which had a positive impact on export revenues.
• Furthermore, the national Covid-19 daily rate had increased by 1,297 active cases (20/12).
Company News
1. ELSA IJ targets revenue and net profit growth in FY23F to be +12%/+14% YoY, respectively (Kontan). MNCS Comment: It is estimated that the company's revenue and net profit targets in FY23F are IDR8.9 trillion/IDR228.0 billion, respectively, supported by: 1) stable value of new contracts in FY23F; 2) IDR500 billion capex allocation. Currently, ELSA is traded at the level of 5.99x/0.57x PER/PBV.
2. PTPP IJ targets the acquisition of new contracts in FY23F to reach IDR34.1 trillion (Market Bisnis). MNCS Comment: The target value of new contracts in FY23F grew 10% YoY from the FY22E target of IDR31 trillion. Meanwhile, until 11M22, the acquisition of new contracts reached IDR27.5 trillion or the realization of the target of 88.7%. Currently, PTPP is traded at the level of 5.99x/0.57x PER/PBV.
3. TBLA IJ recorded a net profit in 9M22 of IDR535.2 billion, slightly growing +1.8% YoY from 9M21 of IDR525.4 billion (Emiten News). MNCS Comment: TBLA managed to post a positive performance, with revenue growth of +6.3% YoY to IDR11.8 trillion (vs IDR11.1 trillion in 9M21), and boosted gross profit and operating profit each to +14.6%/+12.5% YoY. However, the increase in financial expenses and other expenses by +11.7%/+194.1% YoY, respectively, made just a slight increase in the net income by +1.8% YoY. Currently, TBLA is traded at the level of 5.09x/0.54 PER/PBV.
IHSG Updates
JCI weakened -0.17% to 6,768.32 on Tuesday (20/12), followed by net foreign sell which reached IDR38.88 billion. The majority of sectors experienced weakening and weighed on the index, led by the technology sector (-1.33%) and followed by the raw materials sector (-1.33%). On the other hand, the sectors that experienced strengthening were the energy sector (+1.59%) followed by the cyclical sector (+0.50%). The weakening of the index was in line with the weakening of Wall Street and Asian stock exchanges. We see that investors tend to wait and see ahead of the Bank Indonesia Board of Governors Meeting (RDG). On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,603/USD. We estimate that the JCI will move in the price range of 6,693-6,812 pending the release of Loan Growth YoY Nov data. Today's recommendation: BBRI, KLBF, INDF, INTP.
Corporate Actions
Cum Dividend: TMAS (IDR52.28/share)
RUPS: PGUN, HITS
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