Global Market Highlights
DJIA gained +0.33% on Friday (14/07), while the S&P500 (-0.10%) and Nasdaq (-0.18%). Wall Street had to close mixed, where investors' concerns increased after the release of Michigan inflation expectations data in Jul-2023 to a level of 3.4%, or higher than the 3.3% consensus. Today, the market will be looking toward several data releases such as: 1) US NY Empire State Manufacturing Index Jul-2023; 2) US 3-Month Bill Auction; 3) Germany 12-Month Bubill Auction.
Domestic Update
• Domestic car sales grew +6.5% YoY to 505k units in 1H23. MNCS Comment: It was recorded that domestic car sales in Jun-2023 were 82.5k units, or grew +4.7% YoY (vs 78.9k units in Jun-2022). With a sales target in FY23E reaching 1.1 million units, realization up to 1H23 reached 47.1%.
Company News
1. ADHI IJ secured a new contract value of IDR14 trillion in 1H22 (Market Bisnis). MNCS Comment: Achievement of new contract value increased +14.8% YoY (vs IDR12.2 trillion in 1H22). With a target value of new contracts in FY23E of IDR27 trillion, realization up to 1H23 reached 51.9%. Currently, ADHI is traded at the level of 121.38x/0.49x PER/PBV.
2. WEGE IJ recorded a new contract value of IDR825.5 billion in 1H23. Of the new contract portfolio, the government still dominated at 64.94%, SOE at 4.05% and the private sector at 31.02% (Kontan). MNCS Comment: With a target value of new contracts in FY23E of IDR6.6 trillion, realization up to 1H23 reached 12.3%. We notice that the realization of new contract values will increase rapidly going forward, driven by the IKN project. Currently, WEGE is traded at the level of 23.10x/0.37x PER/PBV.
3. ANTM IJ targeted for a +11% YoY increase in gold sales to 31,176 kg in FY23E (Market Bisnis). MNCS Comment: We are optimistic that ANTM can achieve this target, in line with the increase in demand in FY23E driven by the potential for a mild recession, which is expected to be able to boost the company's revenue in FY23E. As of 1Q23, the company recorded its gold sales of IDR7.0 tn through 7,223 kg sales or equivalent to 23% of the FY23E target. Currently, ANTM is traded at the level of 7.22x/1.90x PER/PBV.
IHSG Updates
JCI strengthened +0.87% to 6,869.57 on Friday (14/07), followed by net foreign buy reaching IDR622.16 billion. The majority of sectors experienced strengthening, led by the technology sector (+2.79%) followed by the energy sector (+1.57%). On the other hand, sectors that experienced weakness were led by the raw materials sector (-0.07%) followed by the industrial sector (-0.06%). The index's gain was in line with most Asian bourses, where investors were optimistic ahead of the release of the Jun-2023 trade balance data which expected a surplus of USD1.35 billion according to consensus. The Rupiah closed higher at IDR14,958/USD. We estimate that the JCI will move in the price range of 6,829-6,884 pending the release of Balance of Trade Jun-2023 data. Today's recommendation: BSDE, BUMI, CARS, JPFA.
Corporate Actions
RUPS: DEAL, TAXI
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