Global Market Highlights
Wall Street closed on Monday (27/05) in observance of Memorial Day. Market will remain focused on betting for rate cut implementations with the reading of macroeconomic data this week. Today the market will be looking forward to several data releases such as: 1) US CB Consumer Confidence May-2024; 2) US House Price Index Mar-2024; 3) Australia Retail Sales MoM Preliminary Apr-2024.
Domestic Update
Bank Indonesia reported a +6.9% YoY growth in money supply in a broad sense (M2) position, reaching IDR8,928.0 trillion in Apr-2024. MNCS Comment: This figure marked an all-time high, amid its rise weakened from the previous growth at +7.2% YoY. The growth is primarily influenced by the development of credit distribution +12.3% YoY (vs +11.9% YoY in Mar-2024) and the net bill to the Central Government at +25.8% YoY (vs +17.9% YoY in Mar-2024). Meanwhile the net foreign assets contracted by -1.1% YoY, remained unchanged from the previous month.
Company News
1. BBLD IJ will distribute dividends for FY23 amounting to IDR32.92 billion, or IDR20 per share. The cum dividend date for the regular market on May 30, 2024 (Emiten News). MNCS Comment: We estimate a potential dividend yield of approximately ~3.3%. The DPS FY23 is higher than FY22, which was IDR16 per share, in line with the increase in the payout ratio for FY23 to 31.34% (vs 30.11% in FY22). Thisa net profit growth in FY23 of +20.07% YoY. BBLD is currently trading at 10.22x/0.70x PER/PBV.
2. WIIM IJ will distribute dividends for FY23 amounting to IDR222 billion, or IDR107.1 per share (Emiten News). MNCS Comment: After booked a spike in net profit +98.26% YoY in FY23, WIIM will distribute dividends with higher DPS in FY23 equivalent to IDR107.1/share (vs 72.9 per share in FY22). However, dividend payout ratio for FY23 declined to 44.91% (vs 60.58% in FY22). We estimate a potential yield of approximately ~9.04%. WIIM is currently trading at 6.87x/1.29x PER/PBV.
3. CMRY IJ will add 8 new business activities through its business entity, PT Macoprima Panganutama (Emiten News). MNCS Comment: The eight new business lines include: 1) cooking seasoning and flavoring; 2) other food product; 3) other water biota; 4) macaroni, noodle, and similar product; 5) bakery and pastry; 6) warehousing and storage; 7) cold storage activity; 8) poultry butcher and meat packaging. The management expects to maintain innovation and sustainability to its business by this development. In 1Q24, the company successfully booked 18.4% YoY revenue growth and +30.0% rise in net income, driven by the advances in dairy products (+6.4% YoY) and consumer foods segment (+30.3% YoY). CMRY is currently trading at 6.26x PBV.
IHSG Updates
The JCI declined by -0.64% to 7,176.42 on Monday (27/05), followed by a net foreign sell reaching IDR1.31 trillion. Most sectors experienced declines, weighing down the index, led by the property sector (-1.68%) and followed by the basic materials sector (-1.52%). On the other hand, the sectors that strengthened were led by the technology sector (+2.36%) and followed by the non-cyclical sector (+0.07%). The index weakened amid rising Asian markets, as investors observed the performance of M2 and M1 money supply, which slowed in Apr-2024 to +6.9% YoY/+5.5% YoY (vs +7.2% YoY/+7.9% YoY in Mar-2024). This reflects purchasing power that remains relatively weak during the festive Lebaran period. The Rupiah closed lower at IDR16,065/USD. We estimate that the JCI will move in the price range of 7,186-7,254. Today's recommendations: ADRO, ARTO, HOKI, JPFA.
Corporate Actions
Cum dividend: KLBF(IDR31/share), MIDI (IDR4.65/share), DLTA (IDR281/share)
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