Global Market Highlights
DJIA strengthened +0.43% on Tuesday (13/06), followed by the S&P500 (+0.69%) and the Nasdaq (+0.83%). Wall Street continued to strengthen, as the positive catalyst came from the release of May-2023 inflation data of +4.0% YoY, or below the context estimate of +4.1% YoY. This brings hope for the Fed's benchmark to hold back the pace of interest rate hikes. Today, the market will be looking toward several data releases such as: 1) US Fed Interest Rate Decision; 2) US PPI MoM May; 3) UK GDP YoY Apr.
Domestic Update
• Bank Indonesia recorded the realization of the Real Sales Index (IPR) in Apr-2023 at the level of 242.9 (+1.5% YoY and +12.8% MoM) and is expected to remain high in May-2023 at the level of 234.2 ( +0.02% YoY and -3.6% MoM). MNCS Comment: Retail sales in the sub-category of food, clothing, beverages, tobacco and communication and information equipment in May-2023 are expected to contract on a MoM basis as a result of normalization post Ramadan and Idul Fitri periods.
Company News
1. MYOR IJ will distribute cash dividends for the FY22 financial year of IDR782.5 billion, or equivalent to IDR35 per share (Market Bisnis). MNCS Comment: With that in mind, we estimate MYOR will offer a dividend yield of 1.3% (vs the 5Y average of 1.4%). The DPS is higher compared to the previous year (IDR21 per share), in line with the increase in FY22 net profit by +63.7% YoY. Currently, MYOR is traded at the level of 21.06x/4.59x PER/PBV.
2. MDKA IJ targets the production of the Tujuh Bukit gold mine to reach 120k - 140k ounces of gold, with AISC reaching USD1,100-1,300 per ounce of gold in FY23E (Market Bisnis). MNCS Comment: The production target has increased compared to FY22 of 120k ounces of gold, with actual production reaching 125.1K ounces of gold. We view that the increase in target along with the spread between ASP (~USD1,800/oz) and AISC, has the potential to increase profitability going forward. Currently, MDKA is traded at the level of 4.91x PBV.
3. TOTL IJ recorded a new contract value of IDR1.22 trillion up to 5M23 (Kontan). MNCS Comment: Acquisition of the contract value increased +230.6% YoY (vs IDR369 billion in 5M22). Meanwhile, with the target of acquiring new contracts reaching IDR2.6 trillion in FY23E, the realization up to 5M23 was 46.9%. Currently TOTL is traded at the level of 9.48x/0.88x PER/PBV.
IHSG Updates
JCI weakened -0.05% to 6,719.01 on Tuesday (13/06), followed by net foreign sell of IDR115.10 billion. The majority of sectors experienced weakening and weighed on the index, led by the transportation sector (-1.21%) followed by the raw materials sector (-0.92%). On the other hand, the sector that experienced strengthening was the cyclical sector (+0.39%) followed by the health sector (+0.22%). The movement of indices underperformed with Asian bourses experiencing strengthening, where investors tended to wait and see ahead of the FOMC The Fed's 13-14 June, as well as the release of data on the slowdown in retail sales in Apr-2023 of +1.5% YoY. The Rupiah closed higher at IDR14,860/USD. We estimate that the JCI will move in the price range of 6,683-6,747 pending the release of Car Sales May-2023 data. Today's recommendation: APLN, CPIN, CTRA, SMGR.
Corporate Actions
Cum Dividend: PSSI (IDR50/share), ELSA (IDR25.9/share), SMAR (IDR370/share)
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