Global Market Highlights
DJIA strengthened +2.12% on Friday (02/06), followed by the S&P500 (+1.45%) and the Nasdaq (+1.07%). Wall Street managed to close higher, as the suspension of the US debt ceiling prevented the risk of default. Meanwhile, non-farm payrolls in May-2023 were recorded at 339k, or exceeded the consensus at 190k. Today, the market will be looking toward several data releases such as: 1) US ISM Services PMI May; 2) US S&P Global Composite PMI Final May; 3) Germany Balance of Trade Apr.
Domestic Update
• Based on 29-30 May transaction data, Bank Indonesia reported a foreign net sell of IDR1.74 trillion on the domestic financial market, with a net sale of IDR2.21 trillion on the SBN market and a net purchase of IDR0.47 trillion on the stock market. MNCS Comment: On a YTD basis, foreign net purchases slowed to IDR67.79 trillion on the SBN market and stock market net purchases grew to IDR15.53 trillion, indicating a more optimistic stance on Indonesia’s economic resilience and outlook.
Company News
1. HRTA IJ will distribute cash dividends for the FY22 financial year of IDR55.3 billion, or the equivalent of IDR12 per share (Emiten News). MNCS Comment: Therefore, we estimate HRTA will offer a dividend yield of 3%. DPS increased compared to the previous year at IDR10 per share, as net profit increased by +30.7% YoY while the payout ratio was 21.8%. Currently, HRTA is traded at the level of 6.59x/1.03x PER/PBV.
2. KOBX IJ posted +12.2% YoY net profit growth to IDR63.5 billion in 1Q23 (vs IDR56.5 billion in 1Q22) (Emiten News). MNCS Comment: The increase in net profit amid a decrease in revenue (-21.3% YoY) was due to foreign exchange gains, which pushed up operating profit +13.0% YoY. Meanwhile, NPM widened to 12.1% (vs. 8.5% in 1Q22). Currently, KOBX is traded at the level of 2.06x/0.90x PER/PBV.
3. PGEO IJ posted a +49.3% YoY increase in net profit to USD47.0 million in 1Q23 (vs USD31.5 million in 1Q22) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue of +19.0% YoY to USD102.6 million (vs USD86.3 million in 1Q22) and profit on foreign exchange. Efficiencies were also shown from its expansive margins, where OPM/NPM were at 74.6%/45.8%, respectively (vs 58.8%/36.5% in 1Q22). Currently, PGEO is traded at the level of 13.38x/1.34x PER/PBV.
IHSG Updates
The JCI was closed to commemorate Pancasila Day and the Vesak Day 2567 BE, while at the end of the weekend, Asian stock exchanges closed higher, responding positively to an increase in the US debt ceiling which had reached an agreement. The market will look forward to the release of macroeconomic data, namely inflation in May-2023 which is estimated to slow down to +4.22% YoY (vs Apr-2023 realization +4.33% YoY) and manufacturing PMI for May-2023. The rupiah closed lower at IDR14,985/USD. We estimate that the JCI will move in the price range of 6,595-6,647. Today's recommendation: ADMR, ADRO, UNTR, INDF.
Corporate Actions
Cum Dividend: MPMX (IDR135/share), BSSR (IDR341.4/share), RALS (IDR50/share)
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