Global Market Highlights
DJIA fell -0.38% on Wednesday (05/07), followed by the S&P500 (-0.20%) and the Nasdaq (-0.18%). Wall Street closed lower overshadowed by negative sentiment from the Fed's hawkish tone ahead of the Jul-2023 FOMC. In addition, the release of factory orders data in May-2023 recorded +0.3% MoM growth, or lower than market expectations of +0.8% MoM. Today, the market will be looking toward several data releases such as: 1) US ISM Services PMI Jun-2023; 2) US Balance of Trade May-2023; 3) US Initial Jobless Claims July 1.
Domestic Update
• Indonesia officially regained its title as an upper middle-income country, as gross national income increased by +9.8% YoY in FY22. MNCS Comment: We view this positively as a catalyst for Indonesia going forward, especially at the level of global investor confidence through FDI growth amid ongoing downstream efforts.
Company News
1. CTRA IJ will distribute cash dividends for the FY22 fiscal year of IDR278 billion, or the equivalent of IDR15 per share (Emiten News). MNCS Comment: Therefore, CTRA will offer a dividend yield of 1.4%, or higher than the 5Y average of 1.11%. DPS increased from the previous year (IDR14 per share), as the positive performance was maintained. Currently, CTRA is traded at the level of 12.07x/1.05x PER/PBV.
2. SMMT IJ will distribute a final cash dividend for the FY22 financial year of IDR148.05 billion, or the equivalent of IDR47 per share (CNBC Indonesia). MNCS Comment: As a result, SMMT will offer a dividend yield of up to 5.3%. Currently, SMMT is traded at the level of 10.15x/2.75x PER/PBV.
3. DNET IJ targets to add 1,500-1,700 new Indomaret outlets in FY23E (Emiten News). MNCS Comment: Until the end of FY22, the number of Indomaret outlets reached ~21,200 units. With this target, the total number of outlets has the potential to increase to 22,700-22,900 units, which can improve DNET's performance going forward. Meanwhile, a total of 21,801 outlets were recorded per 4M23, or realization has reached 96.0% -95.2%. Currently, DNET is traded at the level of 68.61x/4.71x PER/PBV.
IHSG Updates
JCI strengthened +0.56% to 6,718.98 on Wednesday (05/07), followed by net foreign buy reaching IDR205.04 billion. All sectors experienced strengthening and boosted the index rate, led by the raw materials sector (+1.60%) followed by the energy sector (+1.49%). The index managed to outperform with Asian stock exchanges which closed lower, where investors tended to be optimistic ahead of the release of data on foreign exchange reserves for Jun-2023. The Rupiah closed lower at IDR15,015/USD. We estimate that the JCI will move in the price range of 6,690-6,730. Today's recommendation: BBNI, INKP, INTP, PNLF.
Corporate Actions
Cum Dividend: INDF (IDR257/share), ICBP (IDR188/share), PANS (IDR250/share)
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