Global Market Highlights
DJIA weakened -1.94% on Thursday (09/06), followed by the S&P500 (-2.38%) and the Nasdaq (-2.75%). Wall Street was pressured by the release of initial jobless claims data for June 4th which rose to 229,000 (vs 202,000 previously) and exceeded the consensus of 210,000. The market will be looking toward several data releases such as: 1) US Inflation Rate YoY; 2) US Michigan Consumer Sentiment Prel; 3) Germany Bundesbank Semi-Annual Forecast.
Domestic Update
• The average propensity to consumer of Indonesian consumers has increased to 74.3% in May-22 from 73.9% in the previous month. MNCS Comment: The increase in monthly average propensity to consume was in line with the increase in consumer confidence and the decline in saving to income ratio from 16.4% to 16.0% in May-22. Along with the improvement of public mobility this should be a positive catalyst for domestic economic output, particularly for 2Q22.
• Furthermore, the second dose of vaccination rate nationally has reached 80.6% or equivalent to 167.92 million people.
Company News
1. CMRY IJ will distribute cash dividends of IDR 500 billion or equivalent to IDR 63.01 per share, a payout ratio of 63.27% of the FY21 net profit of IDR 790.19 billion (Kontan). MNCS Comment: Thus, the company will offer a dividend yield of 1.6% in FY21. CMRY is currently trading at 28.67x/6.23x PER/PBV.
2. HRUM IJ will distribute cash dividends of IDR200 billion or equivalent to IDR15.02 per share, cum dividends in the regular market and negotiations on June 14-22 (CNBC Indonesia). MNCS Comment: HRUM will therefore offer a dividend yield of 0.7%. The dividend amount is higher than the FY20 fiscal year of Rp.7.92 by considering the number of shares after the 1:5 stock split. Currently, HRUM is trading at the level of 8.18x/3,751x PER/PBV.
3. ADHI IJ recorded the acquisition of new contracts up to 4M22 of IDR8.2 trillion or +128% YoY growth from 4M21 achievement of IDR3.6 trillion (Kontan). MNCS Comment: with a target of acquiring new contract values in 2022 of IDR24-28 trillion, the realization of new contract values up to 4M22 has reached 34%-29% of the target. Currently, ADHIis trading at the level of 178.98x/1.48x PER/PBV.
IHSG Updates
JCI weakened by -0.15% to 7,182.83 on Thursday (09/06), followed by net foreign buys which reached IDR1.16 trillion. The majority of sectors experienced weakness and weighed on the index, led by the transportation sector (-1.57%) followed by the health sector (-0.84%). On the other hand, the sector that experienced strengthening was the energy sector (+0.84%) followed by the industrial sector (+0.17%). The index's weakening occurred amid the release of Consumer Confidence Index (IKK) data for May-22 of 128.9 (vs 113.1 on Apr-22). Investors seem to be waiting for the release of US May-22 inflation data, where the consensus expects an inflation rate of +8.3% YoY. On the other hand, the Rupiah exchange rate closed lower at IDR14,457/USD. We estimate the JCI will move in the price range of 7,100-7,233 while waiting for the release of Retail Sales YoY APR data. Today's recommendation: BIRD, JSMR, ZINC, ITMG.
Corporate Action
Cum Dividend: MTDL (IDR10.5/share), KMDS (IDR12.5/share), TOTL (IDR25/share)
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