Global Market Highlights
DJIA weakened by -0.20% on Monday (27/06), followed by S&P500 (-0.30%) and Nasdaq (-0.72%). Wall Street weakened amid the release of May-22 durable goods orders data which grew +0.7% MoM and May-22 pending home sales index rose +0.7% MoM. The rise in US T-note 10Y yield to 3.20% weighed on Wall Street's performance. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence; 2) US House Price Index MoM; 3) Germany GfK Consumer Confidence.
Domestic Update
• BI reported broad based money (M2) grew 12.1% YoY in May-22 of , lower than the Apr-22 period of +13.6% YoY. MNCS Comment: M2 growth was influenced by the slower central government finances expansion and growth in credit disbursement.
• Furthermore, the national Covid-19 daily rate had increased by 1,445 active cases (27/06).
Company News
1. BIRD IJ will distribute cash dividends of IDR150.13 billion or equivalent to IDR60 per share for the FY21 financial year, while the distribution of this dividend comes from the allocation of retained earnings of 6.72% (IQ Plus). MNCS Comment: Thus, BIRD will offer a dividend yield of 3.4%. The company had a strong retained earnings balance, which reached IDR2.29 trillion in FY21. BIRD is currently traded at 23.29x/0.86x PER/PBV.
2. DOID IJ targets revenue growth in FY22E to USD1.3-1.5 billion. Meanwhile, EBITDA is projected to reach USD320-380 million. As for 1Q22, the company recorded a revenue growth of +108% YoY to USD332 million (Emiten News). MNCS Comment: The company's projection will be supported by the allocation of capex ranging from USD150-200 million in FY22E (vs USD169 million realized capex in FY21). It is hoped that the contract extension with BHP Billiton, Mitsubishi Alliance and Bowen Coking Coal will boost the company's performance to meet its revenue target in FY22E, in line with the increasing global coal demand. Currently, DOID is traded at -126.11x/0.87x PER/PBV.
3. TINS IJ recorded exploration costs in 1Q22 of IDR43.44 billion, including operational costs of IDR43.44 billion. Meanwhile, exploration activities were focused on tin commodities (Emiten News). MNCS Comment: Exploration costs in 1Q22 grew +7.11% YoY (vs IDR40.56 billion in 1Q21). Meanwhile, up to 5M22, the exploration cost was IDR71.82 billion or grew +2.90% YoY (vs Rp69.79 billion in 5M21). TINS is currently traded at 4.60x/1.58x PER/PBV.
IHSG Updates
JCI weakened by -0.64% to 7,016.05 on Monday (27/06), followed by net foreign sell which reached IDR1.32 trillion. A number of sectors weakened and weighed on the index, led by the energy sector (-1.35%) followed by the raw materials sector (-0.67%). On the other hand, the sector that experienced strengthening was led by the transportation sector (+5.00%) followed by the industrial sector (+0.71%). The movement of the index underperformed along with other Asian markets. Investors were also watching the release of M2 money supply data in May-22 which grew but slowed by 12.1% YoY (vs +13.6% YoY in May-21). The weakening also occurred in line with foreign investors who still recorded with outflows. On the other hand, the Rupiah exchange rate closed higher at IDR14,803/USD. Today's recommendation: ASRI, HMSP, MTEL, WIKA.
Corporate Action
Cum Dividend: MDKI (IDR10/share), GLVA (IDR8/share)
RUPS: GOTO
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