Global Market Highlights
The DJIA slew down by -0.10% on Thursday (16/05), followed by the S&P 500 (-0.21%) and the Nasdaq (-0.26%). Wall Street slightly lowered following the contraction in production data in Apr-2024, with manufacturing number decreased by -0.5% YoY and industrial production declined by -0.4% YoY. Additionally, the initial jobless claims fell to 222k, but still above the consensus of 220k. Current market focus still remains on the Fed’s rate cut decision. Today the market will be looking forward to several data releases such as: 1) China Retail Sales Apr-2024; 2) China Unemployment Rate Apr-2024; 3) Singapore Balance of Trade Apr-2024.
Domestic Update
Bank Indonesia presented Indonesia’s residential property price survey increasing by +1.89% YoY for 1Q24 (vs 1.74% YoY in 4Q23). MNCS Comment: This growth is mainly driven by a significant surge in residential property sales at +31.16% YoY (vs 3.37% YoY in 4Q23) in all types of homes: small houses (+2.41% YoY), medium type (1.60% YoY), and large properties (+1.53% YoY). Regionally, the property prices rose in Pontianak (+4.68% YoY), Samarinda (+2.45% YoY), and Denpasar (+1.48% YoY). From the financing standpoint, property development is mainly supported by developer funds (72.93%), while consumers mainly purchased through Home Ownership Credit (KPR) (76.25%).
Company News
1. KLBF IJ will distribute dividends of IDR1.4 trillion or equivalent to IDR31/share for FY23 (CNBC). MNCS Comment: This dividend distribution will provide a potential yield of ~2.15% with a DPR of 52%. The amount of dividends distributed is lower than in FY22 due to the decline in FY23 net profit. KLBF is currently trading at 17.68x/3.03x PER/PBV.
2. LTLS IJ reported a net profit increase of +72.5% YoY to IDR87.5 billion in 1Q24 (vs IDR50.7 billion in 1Q23) (Emiten News). MNCS Comment: This net profit increase was mainly supported by a +3.5% YoY rise in revenue. The revenue increase was driven by the distribution segment (+3.0% YoY), followed by the manufacturing segment (+4.8% YoY). Meanwhile, OPM/NPM rose to 8.1%/4.6% in 1Q24 (vs 6.6%/2.7% in 1Q23). LTLS is currently trading at 4.75x/0.60x PER/PBV.
3. MIDI IJ has absorbed IDR344 billion capex during 1Q24 (Kontan). MNCS Comment: The capex realization reflected ~24.6% of total capex budget for FY24E of IDR1.4 trillion. It will be allocated to 200 new stores expansion this year, with only 15% (30 new stores) was accomplished in 1Q24. Following this plan, the company targets 6% SSSG growth for Alfamidi in FY24E. Additionally, we assess that the revenue achieved in 1Q24 at IDR4.8 trillion (+18.7% YoY) is on track or reflecting 24.9% of the growth target at 11% YoY. MIDI is currently trading at 3.20x PBV.
IHSG Updates
The JCI rose by +0.93% to 7,246.67 on Thursday (16/05), followed by a net foreign buy reaching IDR526.58 billion. All sectors experienced gains, driving the index's pace, led by the basic materials sector (+2.69%) and followed by the property sector (+1.73%). The index solidly continued its upward movement in line with the rise in Asian markets, where investors responded positively to the slowing US inflation data for April 2024, raising expectations for a Fed rate cut. The Rupiah closed higher at IDR15,925/USD. We estimate that the JCI will move in the price range of 7,130-7,286. Today's recommendations: ASSA, CTRA, ISAT, MBMA.
Corporate Actions
AGMS: BRIS, PSSI, RALS
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