Global Market Highlights
DJIA was down -1.55% on Wednesday (02/11), followed by the S&P500 (-2.50%) and the Nasdaq (-3.36%). Wall Street weakened amid the Fed's decision to raise the benchmark interest rate (FFR) +75 bps to 3.75%-4.00%. Market participants were concerned about the Fed's hawkish tone which allows the FFR to rise higher than the previous target (4.5% in FY22E and 4.7% in FY23F). Today, the market will be looking toward several data releases such as: 1) US ISM Non-Manufacturing PMI Oct; 2) US S&P Global Services PMI Final Oct; 3) UK BoE Interest Rate Decision.
Domestic Update
• Foreign tourist arrival in Indonesia hit 538k in Sep-22, the highest since Covid-19 pandemic began. MNCS Comment: Continued increase in tourist arrival since Feb-22 is boosted by further easing of COVID-19 restrictions and intense preparation for the G20 summit later this year. On top of that, the government has extended visa-free visits for tourists from ASEAN countries and other 43 countries.
• Furthermore, the national Covid-19 daily rate had increased by 4,873 active cases (02/11).
Company News
1. SMRA IJ recorded a revenue growth in 9M22 of +11.13% YoY to IDR4.21 trillion (vs IDR3.79 trillion in 9M21). Moreover, net profit grew +81.69% YoY to IDR309.68 billion (vs IDR170.44 billion in 9M21) (Market Bisnis). MNCS Comment: Revenue growth was supported by the increase in investment property segment (+75.32% YoY) and recreation and hospitality (+101.62% YoY). Meanwhile, net profit grew in line with the company's extensive margins where the GPM and OPM in 9M22 were recorded at 51.24%/30.41%, respectively (vs 45.87%/26.20% in 9M21). SMRA is currently traded at the level of 22.99x/1.07x PER/PBV.
2. INTP IJ posted a +9.92% YoY revenue growth in 9M22 to IDR11.66 trillion (vs IDR10.61 trillion in 9M21). Meanwhile, net profit fell -21.63 % YoY to IDR946.85 billion (vs IDR1.21 trillion in 9M21) (Market Bisnis). MNCS Comment: The increase in revenue was supported by the increase in cement sales segment (+8.89%) YoY and ready-mix concrete (+23.21% YoY). Meanwhile, lower net profit was in line with higher COGS (+17.13% YoY) and reduced GPM to 29.52% (vs 33.86% in 9M21). INTP is currently traded at the level of 29.45x/1.99x PER/PBV.
3. BUMI IJ posted a +109.37% YoY revenue growth in 9M22 to USD1.39 billion (vs USD666.18 million in 9M21). Moreover, net profit increased +473.77% YoY to USD365.49 million (vs USD63.70 million in 9M21) (Market Bisnis). MNCS Comment: Revenue growth was supported by the increase in revenue from the coal segment (+110.73% YoY). Furthermore, the increase in net profit was in line with the increase in return on JV by +151.15% YoY. BUMI is currently traded at the level of 8.38x PER.
IHSG Updates
JCI weakened by -0.52% to 7,015.69 on Wednesday (02/11), followed by net foreign sell which reached IDR367.37 billion. The majority of sectors weakened and weighed on the index's pace, led by the industrial sector (-1.39%) and followed by the financial sector (-0.56%). On the other hand, the sectors that experienced strengthening were the technology sector (+1.85%) followed by the cyclical sector (+0.96%). The index's weakness was in line with Wall Street. Investors tend to wait and see ahead of the release of the US benchmark interest rate data which is expected to increase 75 bps to 4.0% based on consensus. On the other hand, the Rupiah exchange rate closed lower at IDR15,648/USD. We estimate that the JCI will move in the price range of 6,940-7,090. Today's recommendation: BIRD, FREN, INTP, MDKA.
Corporate Actions
Cum Dividend: NELY (IDR5/share)
Disclaimer On
