Global Market Highlights
DJIA weakened -2.73% on Friday (10/06), followed by the S&P 500 (-2.91%) and the Nasdaq (-3.52%). Wall Street was depressed along with the release of May-22 inflation data which grew +8.6% YoY, and exceeded consensus at +8.3% YoY. The continued rise in inflation fueled speculation about the aggressiveness of the Fed's monetary tightening, and pushed the yield on the US T-note 10Y up to 3.17%. Today, the market will be looking toward several data releases such as: 1) UK GDP YoY; 2) UK GDP 3-Month Avg; 3) UK Goods Trade Balance.
Domestic Update
• BI recorded a net foreign sell on the SBN market of IDR99 billion and a net buy on the stock market of IDR1.50 trillion last week. MNCS Comment: Outflows in the SBN market continued throughout 2022 to coincide with the trend of rising global benchmark interest rates.
• Furthermore, the second dose of vaccination rate nationally has reached 80.7% or equivalent to 168.07 million people.
Company News
1. ACES IJ will distribute cash dividends of IDR352 billion or equivalent to IDR20.59 per share from the FY21 net profit of IDR704.38 billion (CNBC Indonesia). MNCS Comment: ACES will offer a dividend yield of 2.25%, with a FY21 net profit of IDR704.38 billion, a payout ratio of 50%, which was a decrease compared to the FY20 financial year of 74.77%. ACES is currently trading at 25.56x/2.78x PER/PBV.
2. MDKA IJ lowered its gold production target in FY22 to 100,000-120,000 ounces (vs 125,000 in FY21), in line with the deepening of mining and decreasing gold content from excavation (CNBC Indonesia). MNCS Comment: Although the gold production target decreased in FY22, we hope that through the use of the Water Treatment Plant, MDKA can increase production in the following years. Currently, MDKA is trading at the level of 28.45x/9.93x PER/PBV.
3. MEDC IJ recorded a positive performance with revenue growth in FY21 to USD1.32 billion (vs USD1.09 billion in FY20), and net profit of USD47.01 million (Kontan). MNCS Comment: MEDC managed to book a net profit after previously recording a net loss of USD192.82 million in FY20, recorded GPM of 42.76% and NPM of 3.55%. We are optimistic that the company's performance will continue to improve in line with the increase in global oil commodity prices. MEDC is currently trading at 23.24x/1.02x PER/PBV.
IHSG Updates
JCI weakened by -1.34% to 7,086.65 on Friday (10/06), followed by net foreign sell which reached IDR195.77 billion. All sectors weakened and weighed on the index, led by the transportation sector (-2.19%) followed by the industrial sector (-2.17%). The index weakened amid waiting for the release of US inflation data for May-22 which triggered the sell off action. Furthermore, investors were also looking at the release of Indonesia's retail sales data for Apr-22 which grew slower by +8.5% YoY (vs +9.3% YoY in Mar-22). On the other hand, the Rupiah exchange rate closed higher at IDR14,550/USD. We estimate that the JCI will move in the price range of 7,030-7,100. Today's recommendation: BTPS, INKP, MEDC, SMGR.
Corporate Action
Cum Dividend: LPIN (IDR15/share), LTLS (IDR50/share), BLUE (IDR17/share)
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