Global Market Highlights
The DJIA gained +1.70% on Thursday (02/11), followed by S&P500 (+1.89%) and Nasdaq (+1.78%). Wall Street continued its rally, with the decline in UST yields attributed to The Fed's expectation to conclude the era of interest rate hikes. Additionally, positive catalysts also came from the release of factory orders data in Sep-2023, showing a +2.8% MoM increase (vs +2.1% MoM consensus). Today, the market will be looking toward several data releases such as: 1) US Unemployment Rate Oct-23; 2) US ISM Services PMI Oct-23; 3) Germany Balance of Trade Sep-23.
Domestic Update
Indonesia's manufacturing PMI in Oct-2023 experienced a decrease to 51.5 (vs 52.3 in Sep-2023). MNCS Comment: This slowdown aligns with weakening demand for new goods, which led to a deceleration in production growth in Oct-2023. Additionally, rising input costs and relatively slow adjustments to selling prices are contributing factors to the decline.
Company News
1. MPMX IJ posted a net profit of IDR421.7 billion in 9M23, marking a -7.7% YoY decline (vs IDR456.7 billion in 9M22) (Emiten News). MNCS Comment: The net profit decline is due to a decrease in profit from discontinued operations in 2023. Nonetheless, revenue managed to grow by +22.7% YoY to IDR10.5 trillion in 9M23 (vs IDR8.6 trillion in 9M22). The company's GPM increased to 8.9% (vs 8.6% in 9M22). However, NPM decreased to 4.0% (vs 5.3% in 9M22). Currently, MPMX is traded at a level of 7.94x/0.74x PER/PBV.
2. INKP IJ reported a net profit decline of -50.4% YoY to USD320.9 million in 9M23 (vs USD647.2 million in 9M22) (Emiten News). MNCS Comment: The net profit decline is attributed to a -10.4% YoY decrease in revenue to USD2.7 billion (vs USD3.0 billion in 9M22), amid a +0.9% YoY increase in COGS. Furthermore, we note that GPM/NPM both decreased to 33.0%/11.9% (vs 40.5%/21.6% in 9M22). Currently, INKP is traded at a level of 7.10x/0.51x PER/PBV.
3. BRPT IJ posted a net profit of USD35.8 million in 9M23, marking a +217.3% YoY growth (vs USD11.3 million in 9M22) (Emiten News). MNCS Comment: This growth occurred despite a -11.1% YoY decrease in revenue to USD2.1 billion in 9M23 (vs USD 2.4 billion in 9M22). It was accompanied by a -17.3% YoY decrease in cost of revenue, which led to increased profitability. Notably, GPM/NPM both increased to 20.0%/1.7% (vs 13.9%/0.5% in 9M22). Currently, BRPT is traded at a level of 3.76x PBV.
IHSG Updates
The JCI strengthened by +1.64% to 6,751.39 on Thursday (02/11), followed by a net foreign sell of IDR16.21 billion. Almost all sectors experienced gains and drove the index, led by the technology sector (+3.49%), followed by the property sector (+2.39%). On the other hand, sectors that weakened included infrastructure (-1.40%) and healthcare (-0.66%). The index's upward movement aligned with Asian markets, where investors positively responded to The Fed's decision to maintain the benchmark interest rate, while also expecting the era of interest rate hikes to be over. The Rupiah closed higher at IDR15,857/USD. We estimate the IHSG will move within the price range of 6,670-6,806. Today's Recommendations: BBRI, BRPT, HRUM, JSMR.
Corporate Actions
EGMS: BATA, BIPP
Cum Dividend : SMSM (IDR30/share)
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