Global Market Highlights
The DJIA weakened by -0.65% on Thursday (09/11), followed by S&P500 (-0.81%) and Nasdaq (-0.94%). Wall Street contracted as the hawkish statements from The Fed hinted at the possibility of further benchmark interest rate hikes, dimming investor expectations that The Fed had already reached the peak level of rate hikes. Additionally, the increase in UST yields to 4.62% added to the negative sentiment in the index. Today, the market will be looking toward several data releases such as: 1) UK GDP Growth Rate YoY Prel Q3; 2) US Michigan Inflation Expectations Prel Nov-23; 3) US Michigan Consumer Sentiment Prel Nov-23.
Domestic Update
Bank Indonesia (BI) reported that the performance of domestic retail sales in Sep-2023 grew by +1.5% YoY. MNCS Comment: The performance of retail sales in Sep-2023 was more expansive compared to the +1.1% YoY realization in Aug-2023. This growth was supported by the performance of the clothing, spare parts and accessories, and motor fuel segments. We anticipate that retail sales performance will remain solid, driven by increased consumption in the food, beverage, tobacco, household goods, and motor fuel segments, as the holiday season and festive season in 4Q23 approach.
Company News
1. ERAA IJ recorded a -27.3% YoY decline in net profit, amounting to IDR494.8 billion in 9M23 (vs IDR680.3 billion in 9M22) (Emiten News). MNCS Comment: The drop in net profit occurred amid a +22.5% YoY increase in revenue, with a +129.1% YoY increase in financial expenses hindering ERAA's profitability. Additionally, OPEX increased by +37.2% YoY. NPM fell to 1.2% (vs 1.9% in 9M22). Currently, ERAA is traded at a level of 8.22x/0.79x PER/PBV.
2. KLBF IJ reported a -16.9% YoY decline in net profit to IDR2.1 trillion in 9M23 (vs to IDR2.5 trillion in 9M22) (Emiten News). MNCS Comment: The decrease in net profit despite a +6.5% YoY increase in revenue, was due to a +9.4% YoY increase in OPEX to IDR5.9 trillion in 9M23 (vs to IDR5.4 trillion in 9M22). Furthermore, there was a +118.2% YoY increase in financial expenses, accompanied by a +413.4% YoY increase in other operating expenses. NPM of the company dropped to 9.2% (vs to 11.7% in 9M22). Currently, CPRO is traded at a level of 27.58x/3.67x PER/PBV.
3. TRIN IJ reported an increase in net loss to IDR46.0 billion in 9M23 (vs net loss of IDR11.0 billion in 9M22) (Kontan). MNCS Comment: This increased loss is attributed to a -47.4% YoY contraction in revenue to IDR68.3 billion (vs to IDR129.9 billion in 9M22). Additionally, OPEX increased by +26.6% YoY, further impeding the company's profitability. Currently, TRIN is traded at a level of 0.79x PBV.
IHSG Updates
The JCI gained by +0.50% to 6,838.23 on Thursday (09/11), followed by a net foreign sell of IDR466.69 billion. Several sectors experienced gains, led by the infrastructure sector (+7.50%), followed by the financial sector (+0.50%). On the other hand, the sector that weakened was led by the healthcare sector (-0.32%), followed by the basic materials sector (-0.24%). The index strengthened in line with most other Asian markets, where investors positively responded to the performance of domestic retail sales in Sep-2023. The Rupiah closed lower at IDR15,655/USD. We estimate the IHSG will move within the price range of 6,800-6,880. Today's Recommendations: ADHI, ELSA, TLKM, UNVR.
Corporate Actions
Stock Split : SOHO (1:10)
Cum Dividend : BUDI (IDR6/share), DVLA (IDR43/share)
Disclaimer On
