Global Market Highlights
DJIA strengthened +0.23% on Wednesday (26/07), while the S&P500 (-0.02%) and Nasdaq (-0.12%). Wall Street closed mixed, following the Fed’s decision to raise the benchmark FFR by +25bps to 5.5%. Additionally, the Fed hinted that it would maintain its benchmark interest rate during the FOMC meeting in Sep-2023. In other news, new home sales in Jun-2023 shrank by -2.5% MoM. Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM Jun-2023; 2) US GDP Growth Rate QoQ Adv Q2; 3) Germany GfK Consumer Confidence Aug-2023.
Domestic Update
• The government has canceled the excise duty on sweetened drinks this year. MNCS Comment: From our perspective, this regulation appears to be quite complex, necessitating a lengthy timeline for its realization. Meanwhile, we estimate that the revenue from sweetened beverages within our coverage area could account for 15 - 20% of total revenue.
Company News
1. SIDO IJ posted a net profit in 1H23 of IDR448.1 billion, or grew flat by +0.6% YoY (vs IDR445.6 billion in 1H22) (Emiten News). MNCS Comment: The flat growth of net profit in line with revenue growth of +2.6% YoY to IDR1.65 trillion (vs IDR1.61 trillion in 1H22), as well as loss on foreign exchange. Meanwhile, margins contracted slightly with GPM/NPM to 53.1%/27.1% respectively (vs 53.3%/27.6% in 1H22). Currently, SIDO is traded at the level of 22.93x/6.29x PER/PBV.
2. TMAS IJ recorded a decrease in net profit of -39.7% YoY to IDR397.8 billion (vs IDR659.8 billion in 1H22) (Emiten News). MNCS Comment: The decline in net profit was in line with contracted revenue of -9.4% YoY to IDR2.1 trillion (vs IDR2.3 trillion in 1H22), as well as increases in COGS and OPEX each +1.5% YoY/+19.5% YoY resulting in margin shrinking. Currently, TMAS is traded at the level of 20.86x/7.82x PER/PBV.
3. DRMA IJ posted a net profit growth of +140.8% YoY to IDR345.9 billion in 1H23 (vs IDR143.6 billion in 1H22) (Emiten News). MNCS Comment: The significant increase in net profit was supported by an increase in revenue +72.3% YoY to IDR2.7 trillion (vs IDR1.6 trillion in 1H22), as well as expansive margins, where GPM/NPM rose respectively to 17.7%/12.6% (vs 13.6%/9.0% in 1H22). Currently, DRMA is traded at the level of 10.82x/4.54x PER/PBV.
IHSG Updates
JCI strengthened +0.44% to 6,948.28 on Wednesday (26/07), followed by net foreign buy reaching IDR750.50 billion. A number of sectors experienced strengthening and boosted the index rate, led by the energy sector (+1.43%) followed by the transportation sector (+1.19%). On the other hand, the sectors that experienced weakness were led by the property sector (-0.82%) followed by the health sector (-0.58%). The index once again outperformed, even as the majority of Asian markets weakened in anticipation of the Fed's FOMC announcement. The strengthening of the index can be attributed to a favorable earnings release season, along with consistent, solid inflows. The Rupiah closed lower at IDR15,018/USD. We estimate that the JCI will move in the price range of 6,900-6,968 pending the release of M2 Money Supply YoY Jun-2023 data. Today's recommendation: BIPI, GOTO, SMDR, SRTG.
Corporate Actions
RUPS: PADA
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