Global Market Highlights
DJIA was down -0.46% on Thursday (03/11), followed by the S&P500 (-1.06%) and the Nasdaq (-1.73%). Wall Street was again under pressure as the yield on the US T-note 10Y increased to 4.12%, triggered by increasing concerns over the potential for a higher FFR increase than the market participants had estimated. In addition, investors were also watching the release of the ISM Non-Manufacturing PMI data in Oct-2022 which fell to the level of 54.4 points, or lower than the consensus estimate of 55.5 points. Today, the market will be looking toward several data releases such as: 1) US Non Farm Payrolls Oct; 2) US Unemployment Rate Oct; 3) UK S&P Global/CIPS Construction PMI Oct.
Domestic Update
• IDR depreciated to IDR15,697/USD on Thursday (03/11/22). IDR continues to weaken and is approaching IDR15,700/USD. MNCS Comment: The weakening of the IDR is still overshadowed by the aggressiveness of the US monetary policy which triggers the strengthening of the USD.
• Furthermore, the national Covid-19 daily rate had increased by 4,951 active cases (03/11).
Company News
1. ITMG IJ will distribute an interim cash dividend of IDR4.68 trillion or equivalent to IDR4,128 per share. Cum dividend date for the regular market and negotiations on November 11, 2022 (CNBC Indonesia). MNCS Comment: Therefore, ITMG will offer a dividend yield of 9.47%. With the BI middle rate of IDR15,652/USD as of November 3, 2022 , the interim cash dividend reached USD299.5 million, or a payout ratio of 65.01% of net profit in 1H22. Currently, ITMG is traded at the level of 3.60x/2.23x PER/PBV.
2. CTRA IJ posted an +8.70% YoY revenue growth in 9M22 to IDR7.23 trillion (vs IDR6.65 trillion in 9M21). Meanwhile, net profit grew +50.30% YoY to IDR1.52 trillion (vs IDR1.01 trillion in 9M21) (Emiten News). MNCS Comment: The increase in revenue was mainly supported by sales of the landlots, residential and shophouses segments by +22.48% YoY and recurring income from hotels by +83.85%. Meanwhile, the increase in net profit was in line with the decrease in financial expenses by -19.30% YoY. Currently, CTRA is traded at the level of 8.40x/0.94x PER/PBV.
3. PWON IJ posted an +18.66% YoY revenue growth in 9M22 to IDR4.50 trillion (vs IDR3.79 trillion in 9M21). Meanwhile, net profit rose +65.03% YoY to IDR1.19 trillion (vs IDR721.97 billion in 9M21) (Market Bisnis). MNCS Comment: Revenue growth was supported by the increase in revenue from the office, shopping center and service apartment segments (+53.96% YoY) and hotel (+141.43% YoY). Meanwhile, the increase in net profit was in line with PBT extensive margin to 30.78% (vs. 21.45% in 9M21). PWON is currently trading at the level of 13.58x/1.26x PER/PBV.
IHSG Updates
JCI rose +0.27% to 7,034.57 on Thursday (03/11), followed by net foreign sell which reached IDR366.86 billion. The majority of sectors strengthened and pushed the index up, led by the technology sector (+1.06%) and followed by the energy sector (+1.04%). On the other hand, the sectors that experienced weakness were the infrastructure sector (-0.36%) followed by the raw materials sector (-0.22%). Investors responded positively to the release of data on the US benchmark interest rate (FFR), which increased 75 bps to 4.0%, as a step taken by the Fed to suppress US inflation. On the other hand, the Rupiah exchange rate closed lower at IDR15,697/USD. We estimate that the JCI will move in the price range of 6,940-7,090. Today's recommendation: APLN, DOID, GZCO, BBRI.
Corporate Actions
RUPS: SMGR
Public Expose: MPRO, SRAJ
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