Global Market Highlights
DJIA rose +0.15% on Tuesday (24/05), while the S&P 500 (-0.81%) and Nasdaq (-2.35%) weakened. Wall Street closed mixed. Investors are looking again at the outlook for global economic growth after UBS and JPMorgan Chase cut China's 2022 GDP forecast. Meanwhile, Apr-22 new home sales data declined to 0.59 million (vs 0.75 million by consensus). Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM; 2) Germany GDP Growth Rate YoY Final; 3) Germany GfK Consumer Confidence.
Domestic Update
• Bank Indonesia maintains the BI 7-Day Reverse Repo Rate benchmark at 3.5% according to consensus estimates. MNCS Comment: BI's decision to keep interest rates at a steady rate is in line with the need to boost economic growth. We estimate the BI 7-Day Reverse Repo Rate at the end of the year at 4.25%.
• Furthermore, the second dose of vaccination rate nationally has reached 80.2% or equivalent to 166.97 million people.
Company News
1. PTBA IJ plans to distribute cash dividends of IDR7.9 trillion, equivalent to the total FY21 net profit, thus making the dividend payout ratio to reach 100% (CNBC Indonesia). MNCS Comment: With a dividend of IDR686.52 per share, the yield offered reaches 15.60%. The amount of dividend yield is higher than 3.04%. Currently, PTBA is trading at 5.57x/1.93x PER/PBV.
2. ANTM IJ plans to distribute cash dividends of IDR930.87 billion or around IDR38.74 per share. Therefore, making the dividend payout ratio to be 50% of FY21 net profit of IDR1.86 trillion (CNBC Indonesia). MNCS Comment: Hence, ANTM will offer a dividend yield of 1.51% or greater than the FY20 yield of 0.72%. ANTM is currently trading at 10.54x/2.77x PER/PBV.
3. PWON IJ recorded revenue of IDR1.31 trillion in 1Q22 or up +17.11% YoY (vs IDR1.12 trillion in 1Q21). Net profit increased +56.57% YoY to IDR370.61 billion in 1Q22 (vs IDR236.69 billion in 1Q21) (Kontan). MNCS Comment: The company's performance improvement was driven by the increase in rental income by +38.26% YoY to IDR340.11 billion in 1Q22. On the other hand, the company managed to achieve efficiency with COGS which only rose +5.37% YoY to IDR628.95 billion, followed by general and administrative expenses which fell -6.24% YoY. Currently, PWON is trading at the level of 16.24x/1.47x PE/PBV.
IHSG Updates
JCI rose +1.07% to 6,914.14 on Tuesday (24/05), followed by net foreign sell which reached IDR54.65 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the transportation sector (+6.42%) followed by the energy sector (+2.23%). On the other hand, the sector that experienced weakness was the technology sector (-1.15%) followed by the non-cyclical sector (-0.22%). The index strengthened amid the release of the benchmark interest rate (BI-7DRR) which was in line with market expectations of 3.5%. This shows Indonesia's macro resilience which is responded positively by investors. On the other hand, the Rupiah exchange rate closed low at IDR14,658/USD. We estimate that the JCI will move in the price range of 6,795-6,930. Today’s recommendation: PGAS, ADMR, BMRI, UNVR.
Corporate Action
Cum Dividend: TUGU (IDR71.2/share)
RUPS: AMRT, FILM
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