Global Market Highlights
The DJIA advanced by +0.32% on Monday (22/07), followed by the S&P 500 (+1.08%) and the Nasdaq (+1.58%). The solid rebound in Wall Street was primarily dragged by the advancements in mega-tech companies after sell-off actions in the previous week. Meanwhile, the market is assessing the possible stance on future fiscal and monetary policy, as well as the equity markets, from the resignation of Joe Biden from the election, endorsing Vice President Kamala Harris as a candidate and leaving Trump as one strong candidate. Today the market will be looking forward to several data releases such as: 1) Singapore Inflation Rate Jun-2024; 2) US Existing Home Sales Jun-2024; 3) US Richmond Fed Services Index Jul-2024.
Domestic Update
Bank Indonesia reported a +7.8% YoY growth in money supply in a broad sense (M2) position, reaching IDR9,026.2 trillion in Jun-2024 (vs +7.6% YoY in May-2024). MNCS Comment: We note that this advancement was mainly driven by the growth in the narrow money supply M1 at +7.0% YoY (vs +6.3% YoY in May-2024), indicating recovery signals in the key consumer purchasing power. The net foreign assets rose by +3.1% YoY (vs 0.6% YoY in May-2024). Meanwhile, the credit distribution growth was relatively flat at +11.5% YoY (vs +11.4% YoY in May-2024) and the net bill to the Central Government expanded by +14.0% YoY, softer than +22.7% YoY in May-2024.
Company News
1. BSBK IJ recorded a jump in net profit of +203.8% YoY in 1H24 (Kontan). MNCS Comment: The company's net profit reached IDR39.8 billion in 1H24 (vs IDR13.1 billion in 1H23), supported by an increase in revenue of +9.7% YoY reaching IDR170.7 billion, which driven by IKN development in Kalimantan which increased the occupancy rate of the company's two shopping centers, namely E-Walk Mall and Pentacity Mall, rose to 97.9% and 82.8% respectively as of 30 June 2024 (vs 95.8% and 79.3% in 1H23). BSBK is currently trading at 1.21x PBV.
2. HELI IJ managed to record a spike in revenue of +293.8% YoY in 1H24 (Emiten News). MNCS Comment: This increase in revenue resulted in the company achieving a net profit of IDR1.7 billion in 1H24 (vs a net loss of IDR11.1 billion in 1H23). In terms of margin, the company's GPM and NPM are at positive levels, at 11.7% and 3.0%, respectively. HELI is currently trading at 1,7x PBV.
3. MEJA IJ experienced a decline in revenue of -50.2% YoY in 1H24 (Emiten News). MNCS Comment: The decline in revenue was driven by the decrease in all revenue segments, namely construction services (-31.5% YoY) and interior services (-92.9% YoY). As a result, this put pressure on net profit, falling by -67.4% YoY or amounting to IDR2.38 billion in 1H24 (vs IDR7.31 billion in 1H24. Furthermore, GPM and NPM decreased to 38.8% and 10.5% respectively in 1H24 (vs 39.3% and 16.1% in 1H23). MEJA is currently trading at 5.62x PBV.
IHSG Updates
The JCI rebounded +0.38% to 7,321.98 on Monday (22/07), followed by net foreign buy of IDR11.51 billion. The majority of sectors experienced gains, driving the index higher, led by the energy sector (+1.51%) followed by the industrial sector (+1.30%). On the other hand, the sectors that experienced declines were led by the basic materials sector (-0.37%) and the healthcare sector (-0.31%). The index outperformed the Asian markets, which closed lower. Investors responded positively to the release of the money supply (M2) data in Jun-2024, which showed expansive growth of +7.8% YoY (vs +7.6% YoY in May-2024), reflecting a recovery in consumption levels. The Rupiah closed lower at IDR16,220/USD. We estimate that the JCI will move in the price range of 7,279-7,330. Today's recommendations: BBCA, MIDI, PNBN, PTBA.
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