Global Market Highlights
DJIA was up +1.26% on Friday (4/11), followed by the S&P500 (+1.36%) and the Nasdaq (+1.28%). Wall Street managed to rebound, as investors watched the release of non-farm payrolls data in Oct-2022 which was recorded at 261K, or exceeding the consensus at 200K and indicating the US economy is still likely to be solid. On the other hand, investors also responded positively to the Fed's plan to slow down the FFR increase in Dec-2022 by +50 bps, or down from +75 bps on previous speculation by market participants. Today, the market will be looking toward several data releases such as: 1) UK Halifax House Price Index MoM Oct; 2) Germany S&P Global Construction PMI Oct; 3) France S&P Global Construction PMI Oct.
Domestic Update
• We expect Indonesia’s GDP to grow +1.76% QoQ/+5.66% YoY to IDR2,975.25tn in 3Q22. MNCS Comment: We foresee the economic expansion was driven by : 1) strengthening household consumption; 2) increasing direct investment & 3) robust exports performance.
• Furthermore, the national Covid-19 daily rate had increased by 3,662 active cases (06/11).
Company News
1. HEAL IJ posted a -22.39% YoY decrease in revenue in 9M22 to IDR3.59 trillion (vs IDR4.63 trillion in 9M21). Moreover, net profit decreased -68.24% YoY to IDR245.53 billion (vs IDR773.15 billion in 9M21) (Investor ID). MNCS Comment: The decrease in revenue was caused by a decrease in inpatient income (-35.17% YoY) followed by outpatient income (-22.48% YoY). Meanwhile, the decrease in net profit was also in line with the increase in COGS (+4.51% YoY) triggered by the increase in depreciation expense by +33.27% YoY and maintenance expense by +27.27% YoY. Currently, HEAL is traded at the level of 69.59x/6.82x PER/PBV.
2. KRAS IJ posted a +14.47% YoY revenue growth in 9M22 to USD1.84 billion trillion (vs USD1.61 billion in 9M21). Furthermore, net profit grew +34.21% YoY to USD80.16 million (vs USD59.72 million in 9M21) (Kontan). MNCS Comment: The increase in revenue was supported by the increase in sales volume of Hot Rolled Coil and Cold Rolled Coil by +6.90% YoY. Meanwhile, the increase in net profit was supported by the increase in other income (+761.20% YoY) and gain on foreign exchange (+300.68% YoY). KRAS is currently traded at the level of 4.21x/0.63x PER/PBV.
3. DOID IJ posted a +92.58% YoY revenue growth in 9M22 to USD1.15 billion (vs USD596.74 million in 9M21). Meanwhile, DOID managed to record a net profit of USD20.58 million (vs net loss of USD16.10 million in 9M21) (Investor ID). MNCS Comment: We see that the increase in revenue was supported by the increase in revenue from the coal mining and mining services segment, in line with the increase in production volume of +63.50% YoY to 63.60 million tons (vs 38.90 million tons in 9M21. Meanwhile, Net profit increased as OPM expanded to 8.77% (vs 7.06% in 9M21). Currently, DOID is traded at the level of 7.96x/0.86x PER/PBV.
IHSG Updates
JCI strengthened +0.16% to 7,045.53 on Friday (04/11), followed by net foreign sell which reached IDR186.50 billion. The majority of sectors weakened and weighed on the index's pace, led by the infrastructure sector (-0.79%) and followed by the financial sector (-0.76%). On the other hand, the sectors that experienced strengthening were the raw materials sector (+1.66%) followed by the transportation & logistics sector (+1.20%). Investors responded positively to the release of the Oct-22 Japan Services PMI data which increased to 53.2 (vs 52.2 in Sep-22), exceeding the consensus estimate of 53. On the other hand, the Rupiah exchange rate closed lower at IDR15,738/ USD. We estimate that the JCI will move in the price range of 7,000-7,090 pending the release of Foreign Exchange Reserves Oct and GDP Growth Rate Q3 data. Today's recommendation: AKRA, BRMS, INCO, UNTR.
Corporate Actions
Cum Dividend: DMAS (IDR15/share), SIDO (IDR13.5/share), GEMS (IDR265.13/share)
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