Global Market Highlights
The DJIA gained +0.67% on Wednesday (01/11), followed by S&P500 (+1.05%) and Nasdaq (+1.64%). Wall Street maintained its upward trajectory, as investors positively reacted to The Fed's decision to keep the interest rate at 5.5%. Additionally, investors paid attention to The Fed's statement, which hinted that the era of interest rate hikes had reached its peak. Today, the market will be looking toward several data releases such as: 1) US Initial Jobless Claims 28-Oct; 2) UK BoE Interest Rate Decision; 3) South Korea Inflation Rate YoY Oct-23.
Domestic Update
BPS reported that the inflation rate in Oct-2023 was +2.56% YoY, while core inflation was +1.91% YoY. MNCS Comment: The inflation rate has increased compared to Sep-2023 at +2.28% YoY, or relatively in line with the consensus estimate of +2.60% YoY. The inflation is attributed to food, beverages, and tobacco components, with an inflation rate of +5.41% YoY (contribution: 1.39%).
Company News
1. ASII IJ posted a net profit of IDR25.7 trillion in 9M23, marking a growth of +10.1% YoY (vs IDR23.3 trillion in 9M22) (Market Bisnis). MNCS Comment: The net profit is attributed to an increase of revenue (+8.8% YoY), especially in the automotive sector (+13.0% YoY). Additionally, a +32.0% YoY increase in JV income contributed to profitability. NPM saw an increase to 10.7% (vs 10.5% in 9M22). Currently, ASII is traded at a level of 6.85x/1.23x PER/PBV.
2. ADRO IJ reported a net profit decline of -36.0% YoY to USD1.2 billion in 9M23 (vs USD 1.9 billion in 9M22) (Market Bisnis). MNCS Comment: The decrease in net profit is due to a -15.8% YoY decrease in revenue to USD5.0 billion (vs USD5.9 billion in 9M22). The decline in revenue aligns with the decreasing ASP, following the global decline in coal prices. Furthermore, NPM decreased to 24.5% (vs 32.2% in 9M22). Currently, ADRO is traded at a level of 3.07x/0.74x PER/PBV.
3. SSMS IJ recorded a net profit of IDR513.2 billion in 9M23, marking a -66.9% YoY decline (vs IDR1.6 trillion in 9M22) (Emiten News). MNCS Comment: The drop in net profit is attributed to a -13.4% YoY decrease in revenue to IDR4.4 trillion (vs IDR5.1 trillion in 9M22). Meanwhile, the revenue decline is aligned with a -99.0% YoY decrease in CPO sales to third parties. We note that the company's GPM/NPM decreased to 25.6%/11.6% (vs 51.9%/30.4% in 9M22). Currently, INTP is traded at a level of 15.45x/1.70x PER/PBV.
IHSG Updates
The JCI weakened by -1.63% to 6,642.42 on Wednesday (01/11), followed by a net foreign sell of IDR1.09 trillion. All sectors experienced declines and weighing down the index, led by the healthcare sector (-4.12%), followed by the energy sector (-3.87%). The index dipped amid mixed performances in Asian markets, as foreign investors continued their sell-off. Furthermore, investors were closely monitoring the PMI manufacturing data for Oct-2023, which decreased to 51.5 (vs 52.3 previously). Investors also wait and see ahead of the FOMC's decision by The Fed. The Rupiah closed lower at IDR15,935/USD. We estimate the IHSG will move within the price range of 6,633-6,704. Today's Recommendations: AKRA, BRMS, HMSP, SMGR.
Corporate Actions
Right issue: BMAS (110:100)
Cum Dividend : AKRA (Rp25/lembar)
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