Global Market Highlights
DJIA closed flat -0.01% on Thursday (22/06), while the S&P500 (+0.37%) and Nasdaq (+0.95%). Wall Street closed mixed as the Fed's hawkish tone and the release of data on initial jobless claims as of June 12, which amounted to 264k, or still higher than the consensus at 260k. Today, the market will be looking toward several data releases such as: 1) US S&P Global Manufacturing PMI Flash June; 2) UK S&P Global/CIPS Manufacturing PMI Flash June; 3) Germany HCOB Manufacturing PMI Flash June.
Domestic Update
• Bank Indonesia (BI) extended the credit card stimulus until the end of FY23E, with a minimum payment limit of 5% and a maximum delay of 1% of total bills. MNCS Comment: We view these efforts to increase the acceleration of domestic credit growth by double-digits in FY23E, taking into account the condition of banking liquidity which is still quite ample and maintaining the momentum of economic growth.
Company News
1. UNVR IJ will distribute a final cash dividend for the FY22 fiscal year of IDR2.7 trillion, or equivalent to IDR71 per share (Market Bisnis). MNCS Comment: In this way, UNVR will offer a dividend yield of 1.7%. Cumulatively, FY22's total DPS reached IDR140 per share (interim IDR69 per share), or decreased -6.7% YoY (vs IDR150 per share in FY21), as performance declined in FY22. Currently, UNVR is traded at the level of 28.84x/30.35x PER/PBV.
2. RALS IJ targets revenue growth of 3%-5% YoY in FY23E (Kontan). MNCS Comment: Therefore, RALS has the potential to record revenues estimated to be IDR3.1 trillion in FY23E, yet still lower than pre-pandemic levels. We view that this target tends to be conservative, as the low-mid segment is pressured by the high inflation rate, thus tending to divert people’s income to food and beverage items. Currently, RALS is traded at the level of 33.81x/1.10x PER/PBV.
3. LSIP IJ will distribute dividends for the FY22 fiscal year reaching IDR593.97 billion, or the equivalent of IDR53 per share (Market Bisnis). MNCS Comment: Thus, we estimate that LSIP will offer a dividend yield of 5.1%. The amount of DPS increased compared to the previous year (IDR51 per share), along with an increase in net profit +4.4% YoY. Currently, LSIP is traded at the level of 15.69x/0.64x PER/PBV.
IHSG Updates
JCI weakened -0.75% to 6,652.26 on Thursday (22/06), followed by net foreign sell of IDR163.37 billion. Almost all sectors experienced weakening and weighed on the index, led by the technology sector (-2.07%) followed by the infrastructure sector (-1.06%). On the other hand, the sector that experienced strengthening was the financial sector (+0.18%). The index weakened along with the majority of Asian exchanges, amid Bank Indonesia's decision to maintain the BI7DRR at 5.75%. The Fed's hawkish tone still overshadows market movements and becomes negative sentiment, in which The Fed reinforces the view that the inflation rate is still high so that it anticipates a future increase in the FFR. The Rupiah closed higher at IDR14,940/USD. We estimate that the JCI will move in the price range of 6,660-6,675. Today's recommendation: ADMR, ERAA, TINS, UNTR.
Corporate Actions
Cum Dividend: ANTM (IDR79.50/share), PTBA (IDR1,094.05/share), TINS (IDR41.95/share)
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