Global Market Highlights
DJIA weakened by -1.05% on Friday (03/06), followed by S&P500 (-1.63%) and Nasdaq (-1.09%). Wall Street was pressured with the concerns regarding the Fed's monetary tightening following the release of the addition of non-farm payrolls data for May-22 which exceeded consensus of 390K (vs 325K on consensus). Today, the market will be looking toward several data releases such as: 1) US 3 & 6 Month Bill Auction; 2) Germany New Car Registrations YoY; 3) UK New Car Sales.
Domestic Update
• Bank Indonesia (BI) reported that non-residents in the domestic financial market had a net purchase of IDR 10.37 trillion, consisting of a net purchase of 5.94 trillion on the SBN market and a net purchase of IDR 4.43 trillion in the stock market for the period 30 May - 2 June 2022. MNCS Comment: Inflow is slowly re-entering the domestic financial market, which reflects the optimism of foreign investors on the prospects for the financial market in Indonesia. We view the inflow to be a positive catalyst for both stock and government securities prices.
• Furthermore, the second dose of vaccination rate nationally has reached 80.5% or equivalent to 167.70 million people.
Company News
1. DMAS IJ recorded revenue of IDR615 billion in 1Q22, reaching 34.2% of the FY22E target of IDR1.8 trillion (Kontan). MNCS Comment: This was an increase from the realization of marketing sales in 1Q21 of IDR228 billion (+170% YoY). We see that sales of the data center sector and industrial land will continue to drive the company's performance going forward, followed by sales in the commercial and residential sectors. Currently, DMAS is trading at 1.52x PBV.
2. ANTM IJ targeted the production and sales volume of nickel (ferronicle) for FY22 to range from 24,000-25,000 tons, while nickel ore production (nickel ore) was targeted to reach 12.1 million wmt, gold sales are targeted to reach 28,011 kg and bauxite ore 1.80 million wmt. (EmitenNews). MNCS Comment: In FY21 total production and sales (unaudited), bauxite ore production reached 1.67 million wmt, gold sales reached 29,385 kg, ferronickel production reached 25,818 and nickel ore production reached 11.01 million wmt. Thus, there was an increase in the target for bauxite and nickel ore production, while there was a decrease in the target for gold sales and ferronickel production. ANTM is currently trading at 10.25x/2.69x PER/PBV.
3. KEEN IJ booked an increase in revenue to USD9.66 million (+37.38% YoY) and net profit to USD3.24 million (+145.2% YoY). The increase in revenue was supported by revenue growth of concession projects +67.7% YoY ( Emitennews). MNCS Comment: This positive performance was also supported by efficiency in COGS (-81.3% YoY) as the cost of concession projects reduced, operating profit grew +170.2% YoY boosted GPM and NPM to 83.93% and 33.56%, respectively. Currently, KEEN is trading at 17.56x/0.82x PER/PBV.
IHSG Updates
JCI strengthened by +0.48% to 7,182.96 on Friday (03/06), followed by net foreign buy which reached IDR315.50 billion. The majority of sectors experienced strengthening and supported the index's pace, led by the energy sector (+1.41%) followed by the industrial sector (+0.32%). On the other hand, the sector that experienced weakness was led by the health sector (-1.86%) followed by the transportation sector (-0.87%). The strengthening of the index was in line with the majority of Asian bourses and Wall Street. Investors saw the released data of the economic and labor in the US, thus easing concerns over the Fed's aggressive monetary tightening. On the other hand, the Rupiah exchange rate closed higher at Rp14,438/USD. We estimate that the JCI will move in the price range of 7,120-7,267. Today's recommendation: JPFA, MTEL, TKIM, ASII.
Corporate Action
Cum Dividend: HEAL (IDR6/share), MERK (IDR240/share), INTP (IDR500/share)
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