Global Market Highlights
The DJIA declined by -0.93% on Friday (19/07), followed by the S&P 500 (-0.71%) and the Nasdaq (-0.81%). Wall Street slid as investors seemed to wait and see whether the 1H24 earnings releases will beat the market estimates, especially from the mega-caps companies that have been rallying since the start of FY24. The Fed Balance Sheet was reported at USD7.2 trillion as of July 17th, 2024, slightly declined from USD7.22 trillion in the previous period. Today the market will be looking forward to several data releases such as: 1) Indonesia M2 Money Supply Jun-2024; 2) Indonesia Foreign Direct Investment 2Q24; 3) China Foreign Direct Investment Jun-2024.
Domestic Update
Bank Indonesia reported based on transactions from July 15-18, 2024, non-residents in the domestic financial market recorded a net buy of IDR0.69 trillion. The transactions were accumulated from a net outflow of IDR0.38 trillion in the SBN market, a net inflow of IDR0.67 trillion in the stock market, and a net buy of IDR0.40 trillion in SRBI. MNCS Comment: YTD until July 18th, 2024, foreign transactions have recorded a net sale in the SBN market amounting to IDR31.10 trillion, a net outflow in the stock market amounting to IDR2.98 trillion, and a net buy of IDR162.15 trillion in SRBI. We note that the foreign flows in both the SBN and SRBI markets still show heavy outflow, meanwhile the stock market has indicated positive recovery (vs outflow of IDR6.75 trillion until July 11th).
Company News
1. ROTI IJ recorded net profit growth of +21.8% YoY in 1H24 (Kontan). MNCS Comment: This growth was driven by an increase in top-line of +5.6% YoY or reached IDR1.9 trillion in 1H24 (vs. IDR1.8 trillion in 1H23), almost all types of product sales increased, namely white bread (+1.9% YoY), sweet bread (+7.3% YoY), and others (+111.2% YoY), except cakes which experienced a slight decline of -0.2% YoY. ROTI is currently trading at 3.07x PBV.
2. MIKA IJ posted revenue reaching IDR2.5 trillion in 1H24 or grew by +19.7% YoY (Kontan). MNCS Comment: This rise was in line with the increase in the volume of inpatient and outpatient visits, increasing by +7.4% YoY or amounting to 805,000 visits in 2Q24 (vs. 747 thousand in 2Q24). As a result, EBITDA increased by +29.6% YoY and net profit rose by +32.2% YoY. Additionally, as of 1H24, the company has absorbed capex of IDR379 billion or equivalent to 37.9% of the capex allocation in FY24E. MIKA is currently trading at 7.04x PBV.
3. ASRI IJ recorded marketing sales reaching IDR1.2 trillion in 1H24 or an increase of +20% YoY (Kontan). MNCS Comment: This marketing sales achieved 42.9% of the target in FY24E, where the residential segment contributed 84% of total marketing sales or IDR996 billion in 1H24, in line with the launch of two new clusters, namely the Cassia cluster in Ayodhya and Agra cluster in Suvarna Sutra. ASRI is currently trading at 16.09x/0.24x PER/PBV.
IHSG Updates
The JCI corrected by -0.36% to 7,294.50 on Friday (19/07), amid a net foreign buy of IDR86.17 billion. The majority of sectors experienced declines, pressuring the index, led by the basic materials sector (-1.37%) and followed by the technology sector (-0.93%). On the flip side, the healthcare sector (+0.72%) experienced gains. The index's decline was in line with contractions in Asian markets. Investors tended to wait-and-see ahead of the release of domestic macroeconomic data, including the growth rate of money supply (M2) in Jun-2024 and foreign direct investment data for 2Q24. The Rupiah closed lower at IDR16,157/USD. We estimate that the JCI will move in the price range of 7,209-7,317. Today's recommendations: ROTI, SMDR, UNVR, WINS.
Corporate Actions
EGMS: JATI
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