Global Market Highlights
DJIA strengthened +0.03% on Tuesday (06/06), followed by the S&P500 (+0.24%) and the Nasdaq (+0.36%). The market is watching the positive catalyst from the World Bank which raised the projected global GDP growth in FY23E to +2.1% YoY from +1.7% YoY. Today, the market will be looking toward several data releases such as: 1) US Balance of Trade Apr; 2) US MBA 30-Year Mortgage Rate June 2; 3) US Consumer Credit Change Apr.
Domestic Update
• OJK noted that the ratio of operating expenses to operating income (OER) of Indonesian banking experienced efficiency, amounting to 78.6% as of Apr-2023 (vs 79.4% as of Mar-2023). MNCS Comments: The increase in OER efficiency is in line with the growing digitalization of banking activities which is also accompanied by savings in operational costs as reflected in the decrease in the number of bank offices in Indonesia by 401 offices YTD.
Company News
1. PGEO IJ will distribute a final dividend for FY22 of USD30 million (Emiten News). MNCS Comment: Assuming an exchange rate of IDR14,890/USD, the DPS is estimated to be IDR10.8 per share, or offering a dividend yield of 1.2%. Currently, PGEO is traded at the level of 13.60x/1.36x PER/PBV.
2. ASLC IJ is optimistic for the positive earnings in FY23E (IQ Plus). MNCS Comment: In FY22, ASLC posted revenue of IDR479.9 billion or grew +170.3% YoY. We are optimistic that the company can continue its positive growth trend, in line with the momentum of used car sales which tend to be one year lagging with new car sales (+18% YoY in FY22). Currently, ASLC is traded at the level of 1.74x PBV.
3. HEAL IJ will distribute cash dividends for the FY22 fiscal year of IDR105.8 billion or equivalent to IDR7 per share (Kontan). MNCS Comment: Therefore, we estimate HEAL will offer a dividend yield of 0.5%. The amount of DPS increased compared to the previous year at IDR6 per share, amid a decrease in net profit -70.0% YoY. Currently, HEAL is traded at the level of 46.39x/5.68x PER/PBV.
IHSG Updates
JCI weakened -0.22% to 6,618.92 on Tuesday (06/06), followed by net foreign buy of IDR200.23 billion. A number of sectors experienced weakening and weighed on the index, led by the technology sector (-1.42%) followed by the non-cyclical sector (-0.32%). On the other hand, the sector that led to strengthening was the transportation sector (+1.96%) followed by the property sector (+1.82%). The index weakened amid Asian bourses which closed mixed, where investors tended to wait and see ahead of the release of foreign exchange reserves in May-2023. The rupiah closed higher at IDR14,860/USD. We estimate that the JCI will move in the price range of 6,584-6,657 pending the release of Foreign Exchange Reserves May data. Today's recommendation: ARTO, ITMG, MEDC, TLKM.
Corporate Actions
Cum Dividend: RAJA (IDR15.87/share), NRCA (IDR42/share), MLIA (IDR26/share)
Disclaimer On
