Global Market Highlights
DJIA gained +0.10% on Friday (2/12), while the S&P500 (-0.12%) and Nasdaq (-0.18%). Wall Street closed mixed as investors looked at the release of the Non Farm Payrolls data for Nov-22 which was quite solid at 263K, or above the consensus at 200K. As a result, this increased investors' concerns over the possibility of aggressive monetary tightening by The Fed in the future. Today, the market will be looking toward several data releases such as: 1) US ISM Non-Manufacturing PMI Nov; 2) US S&P Global Composite PMI Final Nov; 3) UK S&P Global/CIPS UK Services PMI Final Nov.
Domestic Update
• Based on transaction data from November 28 to December 1, 2022, non-residents on the domestic financial market bought IDR9.64 trillion net, consisting of net buy of IDR8.76 trillion on the SBN market and net buy of IDR0.88 trillion on the stock market. MNCS Comment: We see that the high buying activity on SBN compared to the stock market reflects attractive yields and investors who anticipate moderating earnings on the stock market going forward.
• Furthermore, the national Covid-19 daily rate had increased by 2,548 active cases (4/12).
Company News
1. AGII IJ recorded a decrease in net profit in 9M22 by -59.2% YoY to IDR70.4 billion (vs IDR172.5 billion in 9M21) (Kontan). MNCS Comment: The decrease in net profit was due to: 1) decreased revenue to -8.3% YoY; 2) gross profit margin contracted -141 bps YoY to 44.8%; 3) increase in G&A expenses to +11.6% YoY. Currently, AGII is traded at the level of 74.18x/1.97x PER/PBV.
2. WMPP IJ posted a net loss of IDR10.3 billion in 9M22 (vs net profit of IDR175.1 billion in 9M21) (Investor ID). MNCS Comment: Net loss was driven from the decrease in company's revenue by -26.4% YoY to IDR3.3 trillion in 9M22 (vs IDR 4.5 trillion in 9M21). Meanwhile, the decline in revenue was due to the decreased sales of the cattle segment -61.4% YoY as the 2nd biggest sales contribution after carcass, triggered by the PMK outbreak. Currently, WMPP is traded at the level of 1.75x PBV.
3. POWR IJ will distribute an interim dividend for the FY22E financial year of IDR390.2 billion, or the equivalent of IDR24.72 per share, with cum dividend date for the regular market and negotiations on 9 December 2022 (Market Bisnis). MNCS Comment: Thus, POWR will offer a dividend yield of 3.5%. With net profit in 9M22 reaching USD58.5 million and an interim dividend of USD 24.8 million, the payout ratio reached 42.4%. Currently, POWR is traded at the level of 9.48x/1.04x PER/PBV.
IHSG Updates
JCI weakened -0.02% to 7,019.64 on Friday (2/12), followed by net foreign sell which reached IDR1.63 trillion. A number of sectors experienced weakening and weighed on the index, led by the industrial sector (-1.76%) and followed by the technology sector (-1.24%). On the other hand, the sectors that experienced strengthening were the energy sector (+1.51%), followed by the infrastructure sector (+0.16%). The weakening of the index was in line with the weakening of Asian markets and Wall Street. We see investors responding negatively to the release of the US Manufacturing PMI data in Nov-2022 which fell to a level of 47.7 points, or below the consensus estimate and Oct-2022 realization at 47.6 and 50.4 points, respectively. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,428/USD. We estimate that the JCI will move in the price range of 6,987-7,043. Today's recommendation: BBRI, LSIP, TLKM, PTBA.
Corporate Actions
IPO: NINE (IDR75/share)
RUPS: JAST
Public Expose: BYAN
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