Global Market Highlights
DJIA weakened -0.66% on Thursday (11/05), followed by S&P500 (-0.17%) while Nasdaq (+0.18%). Wall Street weakened as the banking crisis escalated. In addition, investors also paid attention to the release of data on unemployment claims which rose +22k to 264k, or above the consensus estimate of 245k. Today, the market will be looking toward several data releases such as: 1) US Michigan Consumer Sentiment Prel May; 2) UK GDP YoY Mar; 3) UK GDP Growth Rate YoY Prel Q1.
Domestic Update
• Indonesia's trade balance in Apr-2023 is projected to grow slightly to USD3.47 billion (vs USD2.91 billion in Mar-2023), accompanied by a decrease in imports/exports of -7.7%/-18.6% YoY. MNCS Comment: Weak export and import performance are common due to the seasonal factor of increased number of holidays during Ramadan, as well as the contraction in China's import activity in Apr-2023 (-7.9% YoY) which coincides with the normalization of commodity prices from a high- base effect the previous year.
Company News
1. ADRO IJ will distribute a final cash dividend of up to USD 500 million, or the equivalent of IDR 229.8 per share (Market Bisnis). MNCS Comment: Thus, ADRO will offer a dividend yield of 8.21%. Meanwhile, the DPR recorded 40.1%. Currently, ADRO is traded at the level of 31.04x/0.97x PER/PBV.
2. SMBR IJ will distribute cash dividends for the FY22 financial year of IDR18.96 billion, or equivalent to IDR1.90 per share (Emiten News). MNCS Comment: So, we estimate SMBR will offer a dividend yield of 0.53%. We note that SMBR has again distributed dividends, where the last dividend distribution was in FY20. Currently, SMBR is traded at the level of 92.72x/1.16x PER/PBV.
3. ITMG IJ recorded a decrease in net profit -14.3% YoY to USD 182.7 million in 1Q23 (vs USD 213.3 million in 1Q22) (Emiten News). MNCS Comment: Decreased net profit amid increased revenue +7.1% YoY. Cost of revenue +37.9% YoY increased, weighing on ITMG's profitability. Margins contracted with OPM/NPM dropping to 32.2% /26.7% (vs 46.9%/33.3% in 1Q22). Currently, ITMG is traded at the level of 1.69x/1.04x PER/PBV.
IHSG Updates
JCI weakened -0.82% to 6,755.94 on Thursday (11/05), followed by net foreign sell reaching IDR911.24 billion. The majority of sectors experienced weakening and weighed on the index, led by the raw materials sector (-2.06%) followed by the energy sector (-1.99%). On the other hand, sectors that experienced strengthening were led by the cyclical sector (+0.92%) followed by the property sector (+0.36%). The index weakened along with other Asian stock exchanges, where investors were worried about the outlook for global economic growth, after observing China's inflation rate in Apr-2023 to +0.1% YoY and -0.1% MoM, which indicated a decrease in demand. The rupiah closed higher at IDR14,724/USD. We estimate that the JCI will move in the price range of 6,705-6,786. Today's recommendation: BBTN, INDF, ISAT, PTRO.
Corporate Actions
IPO: SMIL (IDR100/share)
RUPS: TBLA, BUDI
Disclaimer On
