Global Market Highlights
DJIA strengthened +0.08% on Tuesday (25/07), followed by the S&P500 (+0.28%) and the Nasdaq (+0.61%). Wall Street continued its strengthening, supported by the release of the CB’s consumer confidence data in Jul-2023 which rose to a level of 117, higher than the consensus at 111.8. In addition, the release of positive earnings also boosted index strengthening. Today, the market will be looking toward several data releases such as: 1) US Fed Interest Rate Decision; 2) US New Home Sales MoM Jun-2023; 3) France Consumer Confidence Jul-2023.
Domestic Update
• Bank Indonesia (BI) has once again maintained the BI7DRR reference rate at 5.75%. MNCS Comment: BI's decision to maintain BI7DRR aligns with our prediction and consensus, despite the ongoing decrease in the inflation rate. Although the gap with the FFR continues to narrow, especially due to anticipated increments of +25 bps, we see BI's efforts to counteract these changes through liquidity and exchange rate interventions.
Company News
1. SILO IJ recorded a net profit growth of +139.4% YoY in 1H23 to IDR503.4 billion (vs IDR210.3 billion in 1H22) (Kontan). MNCS Comment: The increase in the net profit was supported by a surge in revenue of +19.8% YoY to IDR5.3 trillion (vs IDR4.4 trillion in 1H22). This was also coupled with improved efficiency, which effectively broadened margins. It was recorded that the GPM/NPM increased to 38.1%/9.5%, respectively (vs 34.1%/4.8% in 1H22). Currently, SILO is traded at the level of 25.59x/3.57x PER/PBV.
2. BJTM IJ posted a net profit of IDR720.14 billion in 1H23, or decreased -11.67% YoY (vs IDR815.36 billion in 1H22) (Kontan). MNCS Comment: The decline in net profit was driven from a decrease in net interest income by -1.26% YoY to IDR2.34 trillion (vs IDR2.31 trillion in 1H22). This decrease also occurred in line with the increase in provision expense +37.27% YoY. Meanwhile, NIM was expansive to 5.38% (vs 4.92% in 1H22). Currently, BJTM is traded at the level of 0.85x PBV.
3. BTPS IJ recorded a net profit in 1H23 of IDR752.51 billion, or decreased by -12.12% YoY (vs IDR856.28 billion in 1H22) (Kontan). MNCS Comment: The decline in net profit amid an increase in net margin income +8.07% YoY was influenced by an increase in BOPO which became 66.4% (vs 57.6% in 1H22). However, we expect a turnaround in 2H23 with an increase in the company's performance going forward. Currently, BTPS is traded at the level of 1.96x PBV.
IHSG Updates
JCI strengthened +0.27% to 6,917.71 on Tuesday (25/07), followed by net foreign buy reaching IDR636.14 billion. A number of sectors experienced strengthening and boosted the index rate, led by the raw materials sector (+0.72%) followed by the transportation sector (+0.44%). On the other hand, the sector that experienced weakness was led by the non-cyclical sector (-1.29%) followed by the health sector (-0.61%). The index strengthened along with the majority of Asian exchanges, where investors responded positively to South Korea's economic growth data in 2Q23 (+0.9% YoY) and BI's decision to keep the BI7DRR at 5.75%. The Rupiah closed higher at IDR14,993/USD. We estimate that the JCI will move in the price range of 6,857-6,940. Today's recommendation: BIRD, BRPT, INDY, PTRO.
Corporate Actions
RUPS: BOLA
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