Global Market Highlights
The DJIA strengthened by +0.38% on Tuesday (31/10), followed by S&P 500 (+0.65%), and Nasdaq (+0.48%). Wall Street successfully continued its ascent, supported by a decline in UST yield to 4.88% and positive responses to corporate earnings reports driving the gains. Additionally, investor expectations ahead of The Fed's FOMC, which is expected to maintain the interest rate at 5.5%, served as a positive catalyst for the indices. Today, the market will be looking toward several data releases such as: 1) US ISM Manufacturing PMI Oct-23; 2) China Caixin Manufacturing PMI Oct-23; 3) US JOLTs Job Openings Sep-23.
Domestic Update
Financing in the multifinance sector is expected to remain robust heading into the political year in FY24F. MNCS Comment: We believe that financing growth will be supported by Bank Indonesia's monetary policy, which aims to maintain ample liquidity. We also expect consumer purchasing power to remain stable, given the upcoming political year.
Company News
1. ADMR IJ recorded a decrease in net profit of -11.9% YoY to USD250.5 million in 9M23 (vs USD 284.3 million in 9M22) (Emiten News). MNCS Comment: The decrease in net profit occurred despite an +8.1% YoY increase in revenue, due to a +35.5% YoY rise in cost of revenue, followed by an +83.3% YoY increase in OPEX. This has pressured the company's profitability, with NPM falling to 34.8% (vs 42.7% in 9M22). Currently, ADMR is traded at a level of 8.67x/3.69x PER/PBV.
2. BSDE IJ reported net profit growth of +92.6% YoY to IDR1.8 trillion in 9M23 (vs IDR918.3 billion in 9M22) (Emiten News). MNCS Comment: The significant net profit growth was supported by a +2.3% YoY increase in revenue. Additionally, JV income increased nearly fivefold, alongside a reduction in financial expenses and FS losses, successfully boosting the company's profitability. Notably, NPM increased to 24.2% (vs 12.9% in 9M22). Currently, BSDE is traded at a level of 9.02x/0.59x PER/PBV.
3. INTP IJ posted net profit of IDR1.3 trillion in 9M23, marking a +33.8% YoY increase (vs IDR946.8 billion in 9M22) (Emiten News). MNCS Comment: The net profit increase was supported by a +10.9% YoY rise in revenue to IDR12.9 trillion (vs IDR11.7 trillion in 9M22). Additionally, margins experienced growth, with GPM/OPM in 9M23 reaching 31.6%/11.6% (vs 29.5%/9.0% in 9M22). Currently, INTP is traded at a level of 20.21x/1.68x PER/PBV.
IHSG Updates
The JCI strengthened by +0.24% to 6,752.21 on Tuesday (31/10), followed by a net foreign sell of IDR1.36 trillion. Several sectors experienced gains and bolstered the index, led by the technology sector (+2.00%), followed by the infrastructure sector (+1.87%). On the other hand, sectors that weakened were led by the healthcare sector (-0.44%) followed by the cyclical sector (-0.25%)). The index gained despite mixed Asian market performance, as investors were optimistic ahead of regional macroeconomic data releases. Furthermore, investors responded positively to the BoJ decision to maintain the interest rate at -0.1%. The Rupiah closed higher at IDR15,885/USD. We estimate the IHSG will move within the price range of 6,700-6,780. Today's Recommendations: ASRI, ELSA, ICBP, TLKM.
Corporate Actions
EGMS: BMSR, POLU
Cum Dividend : MBAP (IDR245/share)
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