Global Market Highlights
DJIA closed flat at +0.04% on Wednesday (26/06), while the S&P 500 (+0.16%) and Nasdaq (+0.49%). Wall Street tended to close higher, supported by the release of corporate earnings and guidance reports. Meanwhile, new home sales data for May-2024 contracted by -11.3% MoM to 619k units (vs consensus: 640k units). Furthermore, final building permits data for May-2024 also showed a contraction of -2.8% MoM, which was more moderate than the consensus expectation of -3.8% MoM. Today the market will be looking forward to several data releases such as: 1) Japan Retail Sales YoY May-2024; 2) EA Economic Sentiment Jun-2024; 3) US Durable Goods Orders MoM May-2024.
Domestic Update
Bank Indonesia reported that Third Party Funds (DPK) growth in May-2024 rose by +8.5% YoY, which is more expansive compared to Apr-2024's +8.1% YoY. MNCS Comment: The growth of DPK in May-2024 was supported by demand deposits which increased by +14.7% YoY, followed by time deposits at +6.9% YoY, and savings accounts at +4.9% YoY. Although expansive, we are concerned about the credit growth rate exceeding the growth of DPK. Notably, credit distribution in May-2024 grew by +11.4% YoY. The credit growth rate not matched by DPK growth could increase loan to deposit ratio (LDR), which was recorded at 84.49% in April 2024 (vs 80.84% in April 2023), potentially tightening liquidity.
Company News
1. IMPC IJ acquired 100% ownership stake in Mulford Holdings Pty Ltd (Emiten News). MNCS Comment: Management is optimistic that this acquisition will contribute to increase the revenue by IDR400 billion. Furthermore, the company has signed a loan agreement with Bank BCA (Time Loan Revolving 2) with a credit limit of IDR150 billion for financing other acquisition plans. Additionally, the company is eyeing for a net profit of IDR 550 billion (+27.75% YoY) for FY24E. IMPC is currently trading at 7.85x PBV.
2. MITI IJ will distribute cash dividends for FY23 amounting to IDR 10.62 billion, or equivalent to IDR3/share (Kontan). MNCS Comment: We note a lower payout ratio compared to the previous year, at 27.58% (vs. 35.56% in FY22). However, the dividend distributed for FY23 is higher than previous year +99.96% YoY (vs. IDR 5.31 billion or equivalent to IDR1.5/share in FY22) in line with a jump in net profit of +157.79% YoY propelled by a rise in revenue (+151 .87% YoY) in all segments, including stevedoring (+605.39% YoY), ship management and agency services (+74.03% YoY), and ship charter services (+8.63% YoY) in FY23. Additionally, we estimate that MITI will offer a dividend yield of approximately ~2.04%. Cum date in the negotiated market and regular market on July 1st, 2024. MITI is currently trading at 1.3x PBV.
3. CLPI IJ will distribute cash dividends for FY23 amounting to IDR39.28 billion, or equivalent to IDR 128.25/share (Kontan). MNCS Comment: We estimate a potential dividend yield of ~10.91%. DPS and payout ratio is higher than the previous year at 74.55% (vs. 53.08% in FY22), in line with an increase in net profit (+48.7% YoY) amidst a decline in revenue (-2.96% YoY) in FY23. CLPI is currently trading at 5.41x /0.63x PER/PBV.
IHSG Updates
The JCI rose by +0.33% to 6,905.64 on Wednesday (26/06), despite a net foreign outflow of IDR313.82 billion. Most sectors strengthened and drove the index up, led by the basic materials sector (+1.14%) and followed by the energy sector (+0.51%). On the other hand, the transportation & logistic sector led the loss (-1.45%) and followed by the technology sector (-0.47%). The index climbed along with most of the Asian markets, amidst the wait of several key macroeconomic indicators from Japan and US releasing this week. The Rupiah closed lower at IDR16,413/USD. We estimate that the JCI will move in the price range of 6,843-6,944. Today's recommendations: ESSA, MAPI, PANI, ULTJ.
Corporate Actions
Cum Dividend: CTRA (IDR21/share), ERAA (IDR17/saham)
AGMS: KKGI
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