Global Market Highlights
DJIA was up +1.02% on Tuesday (08/11), followed by the S&P500 (+0.56%) and the Nasdaq (+0.49%). Wall Street continued its solid gains supported by a decline in the yield on the US T-note 10Y to 4.12%. In addition, market participants tend to be optimistic ahead of the release of the Oct-22 inflation data, where the consensus estimated to be +8% YoY, or lower than the Sep-22 realization of +8.2% YoY. Today, the market will be looking toward several data releases such as: 1) US MBA Mortgage Applications; 2) US Wholesale Inventories MoM Sep; 3) Japan Eco Watchers Survey Outlook Oct.
Domestic Update
• 41 out of 54 companies under our coverage (~76% MNCS universe) have reported a compelling financial performance in 9M22. Aggregate revenue grew +25% YoY, whilst net income increased +47% YoY. MNCS Comment: The continuing growth in both top & bottom line was in-line with strengthening economic performance. Expect FY22E EPS growth >30% YoY.
• Furthermore, the national Covid-19 daily rate had increased by 6,601 active cases (08/11).
Company News
1. PTPP IJ recorded a revenue growth of +20.07% YoY in 9M22 to IDR13.46 trillion (vs IDR11.21 trillion in 9M21). Meanwhile, net profit rose +8.97% YoY to IDR141.02 billion (vs IDR129.42 trillion in 9M21) (IQ Plus). MNCS Comment: Revenue growth was supported by an increase in revenue from the construction services segment (+22.88% YoY) and property and reality (+51.15% YoY). The increase in net profit was in line with the expansionary GPM to 13.51% (vs 12.68% in 9M21). Currently, PTPP is traded at the level of 30.01x/0.51x PER/PBV.
2. ELSA IJ recorded a revenue growth in 9M22 of +49.87% YoY to IDR8.57 trillion (vs IDR5.72 trillion in 9M21). Meanwhile, net profit grew +673.74% YoY to IDR290.59 billion (vs IDR37.56 billion in 9M21) (IQ Plus). MNCS Comment: The increase in revenue was supported by an increase in revenue from the energy distribution and logistics services segment (+65.11% YoY) and upstream integrated oil and gas services (+31.57% YoY). Meanwhile, the increase in net profit was in line with the company's extensive margins, where GPM and OPM in 9M22 were recorded at 7.68%/4.46%, respectively (vs 7.34%/3.22% in 9M21). Currently, ELSA is traded at the level of 6.74x/0.65x PER/PBV.
3. TINS IJ posted a +4.97% YoY revenue growth in 9M22 to IDR10.18 trillion (vs IDR9.70 trillion in 9M21). Meanwhile, net profit grew +87.27% YoY to IDR1.15 trillion (vs IDR611.99 billion in 9M21) (Kontan). MNCS Comment: The increase in revenue was supported by the increase in tin chemical revenue segment (+35.87% YoY) and coal (+102.18% YoY). Meanwhile, the increase in net profit was in line with the company's extensive margins, where GPM and OPM in 9M22 were recorded at 22.30%/15.98%, respectively (vs 20.59%/13.40% in 9M21). TINS is currently traded at the level of 6.85x/1.47x PER/PBV.
IHSG Updates
JCI weakened -0.74% to 7,050.13 on Tuesday (08/11), followed by net foreign sell which reached IDR193.66 billion. A number of sectors weakened and weighed on the index's pace, led by the raw materials sector (-1.62%) followed by the infrastructure sector (-1.07%). On the other hand, the sectors that led the strengthening were the technology sector (+1.29%) followed by the industrial sector (+0.84%). The index weakened amid the release of the extensive consumer confidence data in Oct-22 to the level of 120.3 points (vs 117.2 points in Sep-2022). We see investors tend to wait and see ahead of the release of China's inflation data in Oct-2022, where the consensus estimated to be +2.4% YoY (vs +2.8% YoY on realization in Sep-2022). On the other hand, the Rupiah exchange rate closed higher at IDR15,698/USD. We estimate that the JCI will move in the price range of 7,011-7,090 pending the release of Retail Sales YoY Sep data. Today's recommendation: ASII, ADMR, HRUM, PTPP.
Corporate Actions
IPO: PDPP (IDR200/share), KDTN (IDR150/share)
Cum Dividend: SMSM (IDR25/share)
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