Global Market Highlights
DJIA fell -0.04% on Monday (26/06), followed by the S&P500 (-0.45%) and the Nasdaq (-1.16%). Wall Street continues to weaken, as exposure from the Russia-Ukraine geopolitical conflict is feared to increase again. Investors were also watching macro data releases in China and Europe and anticipating the outlook for an economic slowdown in both regions. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence June; 2) US Durable Goods Orders MoM May; 3) US House Price Index MoM April.
Domestic Update
• Realized tax revenue up to May-2023 was 48.3% of the FY23E target, or IDR830.2 trillion. Meanwhile, growth on a YoY basis slowed to 17.7%. MNCS Comment: We see that the slowdown was in line with the high base effect last year as the economy recovers, as well as the decline in the prices of leading export commodities such as coal and CPO.
Company News
1. BIRD IJ will distribute cash dividends for the FY22 financial year of IDR180.2 billion, or the equivalent of IDR72 per share (Emiten News). MNCS Comment: Therefore, BIRD will offer a dividend yield of 3.4%. DPS increased compared to the previous year (IDR60 per share) in line with improved performance in FY22. Currently, BIRD is traded at the level of 10.61x/0.97x PER/PBV.
2. GGRM IJ will distribute cash dividends for the FY22 fiscal year of IDR2.3 trillion, or the equivalent of IDR1,200 per share. Payout ratio reached 83.1% (Emiten News). MNCS Comment: Thus, GGRM will offer a dividend yield of 4.3%, or lower than the 5Y average of 4.8%. DPS decreased compared to the previous year (IDR2,250 per share), in line with a decrease in net profit -50.4% YoY. Currently, GGRM is traded at the level of 6.81x/0.89x PER/PBV.
3. UNTR IJ realized sales of Komatsu heavy equipment units of 2,669 units up to May-2023 (Market Bisnis). MNCS Comment: Unit heavy equipment sales up to 5M23 increased +11.2% YoY (vs 2,400 units in 5M22). With a sales target of 6,000 units of heavy equipment units in FY23E, realization up to 5M23 has reached 44.5%. Currently, UNTR is traded at the level of 4.08x/0.98x PER/PBV.
IHSG Updates
JCI strengthened +0.38% to 6,664.67 on Monday (26/06), followed by a net foreign buy of IDR113.76 billion. A number of sectors experienced strengthening and boosted the index, led by the financial sector (+0.61%) followed by the infrastructure sector (+0.33%). On the other hand, the sector that led to the decline was the energy sector (-1.47%) followed by the transportation sector (-1.27%). The index managed to outperform Asian stock exchanges, as investors paid close attention to the release of M2 money supply data in May-2023 which rose +6.1% YoY (vs +5.6% in Apr-2023). The Rupiah closed lower at IDR15,015/USD. We estimate that the JCI will move in the price range of 6,642-6,681. Today's recommendation: BIRD, INKP, MEDC, MTEL.
Corporate Actions
Cum Dividend: DMAS (IDR10/share), JAYA (IDR3/share), PPGL (IDR2/share)
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