Global Market Highlights
DJIA strengthened +0.93% on Tuesday (11/07), followed by the S&P500 (+0.67%) and the Nasdaq (+0.55%). Wall Street continued its gain as investors showed optimism ahead of Jun-2023's inflation data, where the consensus expects a slowdown to +3.1% YoY. Today, the market will be looking toward several data releases such as: 1) US Inflation Rate YoY Jun-2023; 2) US Core Inflation Rate YoY Jun-2023; 3) US CPI Jun-2023.
Domestic Update
• The Indonesian House of Representatives ratified the Draft Health Law on Tuesday, 11 July 2023. MNCS Comment: We anticipate that this ratification will have a beneficial effect on healthcare issuers, leading to an increase in specialist doctors. This is expected to boost patient visits locally, consequently reducing reliance on overseas treatment.
Company News
1. CTRA IJ reported a 1H23 marketing sales value of IDR5.1 trillion (Kontan). MNCS Comment: The marketing sales revenue rose by 27.7% YoY (vs IDR3.99 trillion in 1H22). The marketing sales target for FY23E is IDR8.9 trillion, with a 57.3% achievement reached in 1H23. Currently, CTRA is traded at the level of 12.01x/1.05x PER/PBV.
2. PTPP IJ achieved a new contract value of IDR11.62 trillion in 1H23 (Kontan). MNCS Comment: The new contract value grew by 6.3% YoY (vs IDR10.93 trillion in 1H22), with the government accounting for 45.7% of this total. The targeted value of new contracts for FY23E is IDR34 trillion, of which 34.2% has been achieved as of 1H23. Currently, PTPP is traded at the level of 26.72x/0.33x PER/PBV.
3. ELSA IJ targets FY23E net profit growth of 10% - 20% YoY (Kontan). MNCS Comment: Therefore, the projected FY23E net profits for ELSA are estimated at IDR415.9 - IDR453.7 billion. 1Q23 revenues amounted to IDR114.9 billion, representing 25.3% - 27.6% of the target. We are confident that ELSA will reach its goal through: 1) optimizing capacity, 2) securing new contracts, and 3) allocating IDR500 billion capex in FY23E. Currently, ELSA is traded at the level of 5.91x/0.64x PER/PBV.
IHSG Updates
JCI strengthened +0.98% to 6,796.92 on Tuesday (11/07), followed by net foreign buy reaching IDR39.75 billion. Almost all sectors experienced strengthening and boosted the index rate, led by the health sector (+2.88%) followed by the raw materials sector (+1.47%). On the other hand, the sector that experienced weakness was the infrastructure sector (-0.02%). The index's gain, aligned with most Asian markets, was driven by investors' expectations of positive Chinese property stimulus. The Rupiah closed higher at IDR15,140/USD. We estimate that the JCI will move in the price range of 6,770-6,803. Today's recommendation: ANTM, BRMS, PNLF, TLKM.
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