Global Market Highlights
DJIA rose +1.02% on Thursday (24/03), followed by the S&P 500 (+1.43%) and the Nasdaq (+1.93%). The optimism of market players towards the US economic outlook has encouraged Wall Street to strengthen as indicated by the release of a number of economic data, including: 1) initial jobless claims as of 19'Mar-22 fell to 187 thousand from 215 thousand; 2) Markit Manufacturing PMI Flash Mar-22 which rose to 58.5 points from 57.3; 3) Durable Goods Orders Feb-22 which fell -2.2% MoM; 4) the current account deficit narrowed in 4Q21 to USD217.9 billion. Today, the market will be looking toward several data releases such as: 1) US Michigan Consumer Sentiment Final; 2) Germany Ifo Business Climate; 3) UK Retail Sales YoY.
Domestic Update
• Broad money supply (M2) grew +12.5% YoY to IDR7,672.4 trillion in Feb-22. M1 rose +18.3% YoY while quasi money increased +5.9% YoY during the same period. MNCS Comment: The increase in money supply was influenced by credit expansion (+5.9% YoY). Given the recent easing mobility, we believe this would translate into higher money velocity. Along with higher commodity prices, this would result in higher inflation in the near future.
• Furthermore, the second dose of vaccination rate nationally has reached 75.0% or equivalent to 156.25 million people.
Company News
1. ITMG IJ plans to distribute 70% of the company's net profit as dividend in FY21, or equivalent to IDR4.79 trillion with a value of IDR3,040 per share. Cum Dividend is scheduled on 1 April-22 (CNBC Indonesia). MNCS Comment: The company provided a higher dividend yield than the previous year, where in FY21 the yield was 10.93% (vs 3.92% in FY20). ITMG is trading at the level of 4.59x/1.81x PER/PBV.
2. INTP IJ recorded a revenue of IDR14.77 trillion in FY21, up +4.13% YoY (vs IDR14.18 trillion in FY20). Meanwhile, net profit was recorded at IDR1.78 trillion in FY21, slightly down -0.99% YoY (vs IDR1.80 trillion in FY20) (Kontan). MNCS Comment: We see the improvement in company's performance along with the cement sales as the main contributor which rose +2.3% YoY to 16.56 million tons in FY21. INTP is trading at the level of 22.59x/1.96x PER/PBV.
3. MYOR IJ targets a +30% MoM sales increase during the FY22E Ramadhan period. The company's optimism is in line with the increase in sales of almost all products in FY21 (Bisnis Indonesia). MNCS Comment: We see that the company can take advantage of this moment to increase its sales in FY22E. In addition, the company is optimistic that its performance might improve this year along with the improvement of economic activity in Indonesia. MYOR is trading at the level of 28.64x/3.45x PER/PBV.
IHSG Updates
JCI rose +0.77% to 7,049.68 on Thursday (24/03), followed by net foreign buys which reached IDR1.85 trillion. The majority of sectors experienced strengthening, led by the raw materials sector (+1.73%) followed by the property sector (+1.51%). Meanwhile, only 2 sectors experienced a decline, namely the transportation sector (-0.73%) followed by the infrastructure sector (-0.31%). The JCI recorded a new all-time high, driven by strong foreign inflows in line with the growing optimism for the domestic economy. The potential for an escalation of the Russia-Ukraine crisis is expected to increase, as seen from the mobility of NATO troops. Therefore, it might push up commodity prices and become a positive catalyst for the market. On the other hand, the Rupiah exchange rate closed lower at IDR14,347/USD. We estimate that the JCI will move in the price range of 7,000-7,100. Today’s recommendation: BBNI, TINS, KLBF, TBIG.
Corporate Action
Cum Dividend: BBCA (IDR120/share), BJTM (IDR52.11/share)
RUPS: BDMN
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