Global Market Highlights
Wall Street closed for the Christmas holiday. The Michigan Consumer Sentiment Final in December 2022 was expansive to a level of 59.7 points, higher than the consensus estimate of 59.1 points and the Nov-2022 realization of 56.8 points. Meanwhile, Personal Income grew moderately +0.4% MoM, higher than the consensus +0.3% MoM. Today, the market will be looking toward several data releases such as: 1) US Goods Trade Balance Adv Nov; 2) US House Price Index MoM Oct; 3) France Unemployment Benefit Claims Nov.
Domestic Update
• Broad money supply (M2) in Nov-2022 grew +9.5% YoY. MNCS Comment: M2 money supply growth in Nov-2022 was supported by an increase in lending in Nov-2022 of +10.8% YoY and net foreign assets which grew +1.0% YoY.
• Furthermore, the national Covid-19 daily rate had increased by 468 active cases (26/12).
Company News
1. TINS IJ reported the tin ore smelter construction process has reached 100% and is ready to operate at the start of FY23F (Market Bisnis). MNCS Comment: One of the advantages of this smelter is the cost of producing smelting which is ~25% lower and being able to process tin ore concentrate with a grade <40% or low grade. With a smelter capacity of up to 40k tons of crude tin/year, it is hoped that this will boost the company's performance going forward. Currently, TINS is traded at the level of 5.68x/1.22x PER/PBV.
2. INCO IJ targets production growth of up to 70k tons in FY23F (Market Bisnis). MNCS Comment: The production target increased by +9.4% YoY (vs 64k in FY22E), while actual nickel in matte production up to 9M22 reached 68.6%. We view the company's production target increase as Furnace 4 resumes operations, as well as supported by the allocated capex of USD110 million in FY23F. Currently, INCO is traded at the level of 20.63x/1.99x PER/PBV.
3. TOWR IJ through its entity, Protelindo, will repay the bond principal and interest payments on Protelindo Phase II 2021 Series A Sustainable Bonds worth IDR1.02 trillion (Investor ID). MNCS Comment: It is hoped that the redemption of these bonds can reduce the company's financial burden and increase profitability. Currently, TOWR is traded at the level of 16.07x/3.95x PER/PBV.
IHSG Updates
JCI strengthened +0.52% to 6,835.81 on Monday (26/12), followed by net foreign sell which reached IDR181.84 billion. A number of sectors experienced strengthening and boosted the index, led by the energy sector (+1.90%) and followed by the property sector (+0.61%). On the other hand, the sectors that experienced weakness were the technology sector (-1.27%) and the transportation sector (-0.42%). We see investors responding positively to the growth in the money supply (M2) in Nov-2022 which grew +9.5% YoY. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,633/USD. We estimate that the JCI will move in the price range of 6,784-6,877. Today's recommendation: APLN, IMAS, RALS, TKIM.
Corporate Actions
Cum Rights: TRIN (IDR900/share)
RUPS: GIAA
Public Expose: BLTZ
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