Global Market Highlights
DJIA slipped by -0.17% on Thursday (13/06), while the S&P500 rose by +0.23%, followed by the Nasdaq (+0.34%). Wall Street closed mixed again, with positive catalysts from the release of May-2024 PPI data, which showed a contraction of -0.2% MoM (vs consensus: +0.1% MoM). Meanwhile, initial jobless claims for JUN/08 increased to 242k (vs consensus: 225k) from 229k in the previous period. Both factors may prompt The Fed to take a dovish stance. Today the market will be looking forward to several data releases such as: 1) Japan BoJ Interest Rate Decision; 2) EA Balance of Trade Apr-2024; 3) US Michigan Consumer Sentiment Prel Jun-2024.
Domestic Update
The National Food Agency (Bapanas) has ensured that national food stock conditions are safe and under control, especially ahead of the Idul Adha festive period, amid the impact of climate change. The Government's Rice Reserve (CBP) as of June 7, 2024, stands at 1.7 million tons (vs the threshold of 1 million tons). MNCS Comment: We are optimistic that the maintenance of these food stocks can help stabilize prices and positively impact the inflation rate in Jun-2024. We view that the shift in the harvest period of several commodities can be a positive factor in the availability of food stocks. It is recorded that the price of garlic in mid-Jun 2024 is IDR42.4k/kg (vs IDR43.0k/kg in May-2024). The price of medium rice continues its moderating trend to IDR13.4k/kg (vs IDR13.5k/kg in May-2024).
Company News
1. BRIS IJ will distribute dividends amounting to IDR855.46 billion or equivalent to IDR18.55/share (Kontan). MNCS Comment: DPS is higher than the previous year (vs IDR9.24/share in 2023) in line with an increase in net profit of +33.88% YoY in FY23. We estimate a potential yield of ~0.81%. Additionally, the dividend payout ratio is also higher at 15% (vs. 10.04% in 2023). BRIS is currently trading at 15.4x/2.59x PER/PBV.
2. MIKA IJ will distribute dividends worth IDR478.6 billion or the equivalent of IDR34/share for the FY23 (Kontan). MNCS Comment: We estimate this dividend distribution will provide a potential yield of 1.15% and dividend payout ratio at 52.24%. Cum dividend date on the regular market and negotiation market is June 12, 2024. MIKA is currently trading at 6.88x PBV.
3. MORA IJ absorbed capex of ~30% of the total capex budget in 1Q24 (Kontan). MNCS Comment: The company budgets a capex of ~Rp1 trillion for FY24. This capex budget for FY24 is higher than FY23 capex realization (vs. IDR882.67 billion in FY23). Management explained that FY24 capex budget will be used to expand fiber optic backbone and last mile network, data center, FTTH network, and increase segmentation capacity. MORA is currently trading at 13.06x/1.59x PER/PBV.
IHSG Updates
The JCI weakened by -0.27% to 6,831.56 on Thursday (13/06), despite a net foreign buy of IDR2.98 trillion. The contracted sectors were led by the basic materials sector (-0.73%) and followed by the transportation & logistic sector (-0.26%). Meanwhile the technology sector led the gain (+1.42%) and followed by the energy sector (+1.18%). The index corrected while Asian markets closed mixed, where investors are waiting for the interest rate decision from BoJ today. The Rupiah closed higher at IDR16,270/USD. We estimate that the JCI will move in the price range of 6,800-6,860. Today's recommendations: ASII, ESSA, PTBA, UNVR.
Corporate Actions
AGMS: BRPT, DMND
Right Issue: INCO (500:8233)
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