Global Market Highlights
DJIA strengthened +0.52% on Monday (24/07), followed by the S&P500 (+0.40%) and the Nasdaq (+0.19%). Wall Street strengthened solidly with the positive catalyst coming from the release of PMI Manufacturing data in Jul-2023 which rose to a level of 49 (vs 46.3 previously), supported by the release of positive company earnings in 2Q. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence Jul-2023; 2) US House Price Index MoM May-2023; 3) Germany Ifo Business Climate Jul-2023.
Domestic Update
• The Ministry of Finance reported that the State Budget performance in 1H23 was a surplus of IDR152.3 trillion, or equivalent to 0.71% of GDP. MNCS Comment: With this surplus, debt issuance fell -42% to IDR289.9 trillion (vs IDR696.5 trillion target in FY23E) which has the potential to reduce the yield of SBN10Y as supply decreases.
Company News
1. UNVR IJ reported a decrease in net profit by -19.5% YoY to IDR 2.8 trillion in 1H23 (vs IDR 3.4 trillion in 1H22) (Emiten News). MNCS Comment: The loss in net profit corresponds with the decline in the company's revenue by -5.4% YoY to IDR 20.3 trillion (vs IDR 21.5 trillion in 1H22), driven by a decrease in domestic sales by -4.7% YoY and a drop in exports by -23.0% YoY. In addition, general and administrative expenses increased by +31.2% YoY. Meanwhile, the GPM in 1H23 increased to 49.9% (vs 48.2% in 1H22), but the NPM tends to decrease to 13.6% (vs 16.0% in 1H22). Currently, UNVR is traded at a level of 29.12x/30.63x PER/PBV.
2. BBCA IJ posted net profit growth in 1H23 of +34% YoY to IDR24.2 trillion (vs IDR18.0 trillion in 1H22) (Emiten News). MNCS Comment: Growth in net profit was in line with: 1) increase in the company's net interest income by +24.6% YoY to IDR37.1 trillion (vs IDR29.8 trillion in 1H22); 2) increase in loans +9.0% YoY; 3) as well as a decrease in provision -49.5% YoY. Currently, BBCA is traded at the level of 5.31x PBV.
3. PANI IJ posted marketing sales of IDR1.1 trillion in 1H23 (Emiten News). MNCS Comment: With the target of obtaining marketing sales in FY23E reaching IDR2.1 trillion, realization up to 1H23 has reached 52.4%. We are optimistic that the company can achieve this target, supported by sales in all segments, namely landlots, residential properties to shophouses. Currently, PANI is traded at the level of 32.21x/10.50x PER/PBV.
IHSG Updates
JCI strengthened +0.27% to 6,899.40 on Monday (24/07), followed by net foreign buy reaching IDR92.08 billion. A number of sectors experienced strengthening and boosted the index rate, led by the energy sector (+1.83%) followed by the industrial sector (+1.09%). On the other hand, sectors that experienced weakness were led by the property sector (-0.75%) followed by the technology sector (-0.52%). The index strengthened as positive catalysts from China signaled to support recovery in the property sector. In addition, investors were also optimistic ahead of Bank Indonesia's RDG decision on 25th July 2023. The Rupiah closed higher at IDR15,023/USD. We estimate that the JCI will move in the price range of 6,857-6,916 pending BI interest rate decision and the release of Loan Growth YoY Jun-2023, Lending Facility Rate Jul-2023, and Deposit Facility Rate Jul-2023 data. Today's recommendation: ADRO, MAPA, PTBA, WIIM.
Corporate Actions
IPO: MAHA (Rp118/lembar)
MNCS Research
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