Global Market Highlights
DJIA weakened -0.67% on Thursday (27/07), while the S&P500 (-0.64%) and Nasdaq (-0.55%). Wall Street declined amidst several positive macroeconomic catalysts, where the index movement was burdened by the rise in UST yield to the level of 4.0%. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY Jun-2023; 2) US Michigan Consumer Sentiment Final Jul-2023; 3) Germany Growth Rate YoY Flash Q2.
Domestic Update
• The money supply (M2) in Jun-2023 increased by +6.1% YoY, which was relatively the same as in May-2023. MNCS Comment: The money supply (M2) in Jun-2023 was primarily influenced by the deceleration of credit disbursement, which grew at +7.7% YoY (vs +9.5% YoY in May-2023). This was supported by an increase in bank home ownership credit, which rose by +10.1% YoY.
Company News
1. MAPI IJ recorded a net profit of IDR1.04 trillion in 1H23, a decrease of -5.2% YoY (vs IDR1.10 trillion in 1H22) (CNBC Indonesia). MNCS Comment: If we exclude the one-off gain from the divestment of Burger King, we estimate the core profit to have still increased by +45.1% YoY. Meanwhile, revenue also rose by +27.3% YoY to IDR15.6 trillion (vs IDR12.2 trillion in 1H22). Currently, MAPI is traded at the level of 15.87x/3.75x PER/PBV.
2. AKRA IJ recorded a net profit increase of +7.8% YoY, amounting to IDR1.0 trillion (vs IDR955.5 billion in 1H22) (Emiten News). MNCS Comment: This net profit rise occurred amidst a revenue decrease of -10.2% YoY to IDR19.9 trillion (vs IDR22.2 trillion in 1H22). This was in line with the expansive GPM of 9.1% (vs 7.3% in 1H22), which was bolstered by the industrial land segment's growth of +217.6% YoY to IDR324 billion (vs IDR102 billion in 1H22). Currently, AKRA is traded at the level of 13.69x/2.61x PER/PBV.
3. HMSP IJ has recorded a net profit growth of +23.3% YoY, reaching IDR3.75 trillion (vs IDR3.05 trillion in 1H22) (Emiten News). MNCS Comment: This increase in net profit is supported by a rise in revenue of +5.0% YoY to IDR56.2 trillion (vs IDR53.5 trillion in 1H22), in line with an increase in the ASP to counteract the rise in cigarette excise taxes. Meanwhile, the GPM has expanded to 16.5% (vs 14.8% in 1H22). Currently, HMSP is traded at a level of 14.38x/4.19x PER/PBV.
IHSG Updates
JCI weakened -0.74% to 6,896.66 on Thursday (27/07), followed by a net foreign sell reaching IDR480.44 billion. A number of sectors experienced downturns, putting pressure on the index's progress, led by the transportation sector (-1.06%), followed by the healthcare sector (-1.05%). On the other hand, sectors experiencing growth were led by the cyclical sector (+0.15%), followed by the technology sector (+0.04%). The index underperformed in comparison to Asian markets, amidst The Fed's decision to raise the benchmark interest rate (FFR) by +25 bps to 5.5%, without ruling out the possibility of similar increases in the future. The Rupiah closed higher at IDR15,000/USD. We estimate that the JCI will move in the price range of 6,884-6,921. Today's recommendation: ARTO, CPIN, DOID, TKIM.
Corporate Actions
RUPS: DPUM, MTSM
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