Global Market Highlights
DJIA was down -0.24% Tuesday (01/11), followed by the S&P500 (-0.41%) and the Nasdaq (-0.89%). Wall Street was under pressure as market participants grew worried about the potential for more aggressive Fed monetary tightening, after the release of JOLTs Job Openings data in Sep-2022 recorded at 10.72 million, or higher than consensus and Aug-2022 at 10.28 million/10 million, respectively. Today, the market will be looking toward several data releases such as: 1) US ADP Employment Change Oct; 2) Germany Unemployment Change Oct; 3) Germany Unemployment Rate Oct.
Domestic Update
• BPS reported inflation rate in Oct-22 to be -0.11% MoM/+5.71% YoY. MNCS Comment: The decline in inflation was triggered by a volatile price drop to +7.19% (vs +9.02% in Sep-2022), driven from the food, beverage and tobacco components which fell by -0.97% MoM including chili which decreased by -2.26% MoM.
• Furthermore, the national Covid-19 daily rate had increased by 4,707 active cases (01/11).
Company News
1. JPFA IJ recorded a revenue growth in 9M22 of +12.16% YoY to IDR36.79 trillion (vs IDR32.80 trillion in 9M21). Meanwhile, net profit fell by -5.24% YoY to IDR1.43 trillion (vs IDR1.51 trillion in 9M21) (IQ Plus). MNCS Comment: The increase in revenue was supported by the increase in revenue from the commercial livestock segment (+11.83% YoY) and animal feed (+7.15% YoY). Meanwhile, the decline in net profit was influenced by the still high raw material prices, as indicated by the GPM shrinking to 16.70% (vs 18.10% in 9M21). Currently, JPFA is traded at the level of 8.71x/1.30x PER/PBV.
2. SMGR IJ recorded a -0.20% YoY decline in revenue in 9M22 to IDR25.28 trillion (vs IDR25.33 trillion in 9M21). Meanwhile, net profit rose by +18.92% YoY to IDR1.65 trillion (vs IDR1.39 trillion in 9M21) (IQ Plus). MNCS Comment: The decrease in revenue was due to a decrease in the clinker segment revenue by -29.47% YoY. Meanwhile, the increase in net profit was in line with the decrease in operating expenses by -6.92% YoY and financial expenses by -24.04% YoY. SMGR is currently traded at the level of 21.63x/1.28x PER/PBV.
3. ASSA IJ posted a +22.85% YoY revenue growth in 9M22 to IDR4.27 trillion (vs IDR3.48 trillion in 9M21). Furthermore, net profit rose by +63.65% YoY to IDR131.28 billion (vs IDR80.22 billion in 9M21) (IQ Plus). MNCS Comment: The increase in revenue was supported by the increase in the delivery service segment (+46.82% YoY) and used car sales (+91.26% YoY). ASSA is currently traded at the level of 22.72x/2.41x PER/PBV.
IHSG Updates
JCI weakened -0.66% to 7,052.30 on Tuesday (01/11), followed by net foreign buy which reached IDR594.44 billion. The majority of sectors experienced weakness and weighed on the index's pace, led by the energy sector (-2.97%) and followed by the transportation & logistics sector (-1.19%). On the other hand, the sectors that experienced strengthening were the cyclical sector (+0.89%) followed by the technology sector (+0.49%). The weakening of the index was in line with Wall Street. Investors responded negatively to the release of RI core inflation data in Oct-2022 which rose +3.31% YoY or higher than Sep-2022 at +3.21% YoY. On the other hand, the Rupiah exchange rate closed lower at IDR15,628/USD. We estimate that the JCI will move in the price range of 7,000-7,100. Today's recommendation: ASII, BBNI, JPFA, SIDO.
Corporate Actions
Cum Dividend: DVLA (IDR41/share)
RUPS: WIFI
Public Expose: BNGA
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