Global Market Highlights
DJIA fell -0.71% on Tuesday (20/06), followed by the S&P500 (-0.47%) and the Nasdaq (-0.16%). Wall Street weakened amid the May-2023 May-2023 release of Building Permits data which rose to 1.49 million (vs 1.42 million in Apr-2023), in which, investors were still anticipating the hawkish tone of the Fed ahead of the testimony reading. Today, the market will be looking toward several data releases such as: 1) US Fed Chair Powell Testimony; 2) US MBA Mortgage Applications June 16; 3) UK Inflation Rate YoY May.
Domestic Update
• There are indications of an increase in new loan disbursement in May-2023 from Apr-2023, reflected in the Weighted Net Balance (WNB) which was recorded at 82.6%, or higher than the Apr-2023 achievement of 68.9%. MNCS Comment: We see indications of an increase in lending supported by an increase in demand after the Eid celebration along with the distribution of THR & Bonuses. In addition, the economic outlook which is still positive amidst the era of high interest rates is also a key driver. We estimate that lending will grow by double digits in FY23E.
Company News
1. ULTJ IJ will distribute cash dividends for the FY22 financial year of IDR311.95 billion, or the equivalent of IDR30 per share (Emiten News). MNCS Comment: Therefore, ULTJ will offer a dividend yield of 1.6%. The amount of DPS increased from the previous IDR25 per share, in line with the increase in the payout ratio. Currently, ULTJ is traded at the level of 15.00x/3.50x PER/PBV.
2. KEEN IJ will distribute cash dividends for FY22 of IDR23.8 billion or equivalent to IDR6.5 per share (Emiten News). MNCS Comment: Thus, it is estimated that KEEN will offer a dividend yield of 0.9%. There was an increase in DPS from the previous year of IDR5.46 per share, in line with increased profitability. Currently, KEEN is traded at the level of 8.59x/1.07x PER/PBV.
3. TPIA IJ managed to record a net profit of USD8.6 million in 1Q23 (vs a net loss of USD11.2 million in 1Q22) (Emiten News). MNCS Comment: Increase in net profit amid declining revenue (-25.9% YoY), often with successful efficiency, where COGS fell -28.2% YoY and pushed GPM up to 6.6% (vs 3 .7% in 1Q22). In addition, NPM was recorded at 1.7%. Currently, TPIA is traded at the level of 4.28x PBV.
IHSG Updates
JCI weakened -0.38% to 6,660.46 on Tuesday (20/06), followed by a net foreign sell of IDR410.91 billion. The majority of sectors experienced weakness and weighed on the index, led by the raw materials sector (-1.64%) followed by the property sector (-1.53%). On the other hand, the sector that experienced strengthening was the health sector (+0.18%) followed by the energy sector (+0.15%). The index continues its weakening, where investors wait and see ahead of Bank Indonesia's RDG. The Rupiah closed lower at IDR15,000/USD. We estimate that the JCI will move in the price range of 6,653-6,688. Today's recommendation: ANJT, SMGR, SRTG, UNIQ.
Corporate Actions
Cum Dividend: MYOR (IDR35/share), UNIC (IDR360/share), ENAK (IDR12/share)
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