Global Market Highlights
DJIA was up +1.31% on Monday (07/11), followed by the S&P500 (+0.96%) and the Nasdaq (+0.85%). Wall Street managed to continue its gains amid the release of Consumer Credit Change data in Sep-22 which fell to USD24.98 billion (vs USD32.24 billion in Aug-2022). We see that the planned increase in FFR in Dec-2022 by +50 bps (vs +75 bps on initial expectations) is still a positive catalyst for Wall Street's movement. Today, the market will be looking toward several data releases such as: 1) France Balance of Trade Sep; 2) Japan Leading Economic Index Prel Sep; 3) Japan Coincident Index Prel Sep.
Domestic Update
• Indonesia's economic growth in 3Q22 reached +5.72% YoY, higher than consensus and MNCS (+5.60% YoY/+5.66% YoY). MNCS Comment: Indonesia's 3Q22 economic growth was driven by: 1) public consumption (+5.39% YoY); 2) gross fixed capital formation (+4.96% YoY) and 3) exports (+21.64% YoY).
• Furthermore, the national Covid-19 daily rate had increased by 3,828 active cases (07/11).
Company News
1. EXCL IJ posted a +9.07% YoY revenue growth in 9M22 to IDR21.60 trillion (vs IDR19.80 trillion in 9M21). Meanwhile, net profit decreased by -3.46% YoY to IDR981.20 billion (vs IDR1.02 trillion in 9M21) (IQ Plus). MNCS Comment: The increase in revenue was supported by the increase in revenue from the data segment and digital services by +8.95% YoY. Meanwhile, the lower net profit was in line with the increase in finance expenses (+6.58% YoY) and interconnection and other expenses (+95.59% YoY). Currently, EXCL is traded at the level of 20.17x/1.28x PER/PBV.
2. PGAS IJ posted a +17.18% YoY revenue growth in 9M22 to USD2.64 billion trillion (vs USD2.25 billion in 9M21). Meanwhile, net profit grew +8.49% YoY to USD310.52 million (vs USD286.21 million in 9M21). MNCS Comment: The increase in revenue was supported by an increase in natural gas trading revenue of +6.20% YoY. Meanwhile, net profit increased in line with the company's expansive margins, where GPM and OPM in 9M22 were recorded at 22.98%/18.18%, respectively (vs 19.50%/14.46% in 9M21). PGAS is currently traded at the level of 7.10x/1.12x PER/PBV.
3. MORA IJ recorded a revenue growth in 9M22 of +13.40% YoY to IDR3.40 trillion (vs IDR3.00 trillion in 9M21). Meanwhile, net profit grew +16.62% YoY to IDR502.41 billion (vs IDR430.80 billion in 9M21) (Emiten News). MNCS Comment: We see that the increase in revenue was supported by a new line of income, namely VSAT worth IDR450.07 billion. Meanwhile, the increase in the bottom-line was supported by a reduced financial burden of -2.48% YoY. Currently MORA is trading at the level of 20.30x/2.39x PER/PBV.
IHSG Updates
JCI rose +0.81% to 7,102.40 on Monday (07/11), followed by net foreign buy which reached IDR643.19 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the raw materials sector (+1.24%) and followed by the infrastructure sector (+1.22%). On the other hand, the sector that experienced weakness was the technology sector (-1.16%). The strengthening of the index was in line with the strengthening of Wall Street and Asian bourses. Investors responded positively to the release of Indonesia's GDP growth in 3Q22 which grew +5.72% YoY (vs +5.45% YoY in 2Q22) and exceeded the consensus estimate of 5.60% YoY. On the other hand, the Rupiah exchange rate closed higher at IDR15,708/USD. We estimate that the JCI will move in the price range of 7,050-7,128 pending the release of Consumer Confidence Oct data. Today's recommendation: ANTM, SRTG, SSMS, TINS.
Corporate Actions
IPO: BELI (IDR450/share), OMED (IDR204/share), ZATA (IDR100/share)
Disclaimer On
