Global Market Highlights
The DJIA declined by -0.12% on Wednesday (08/11), while S&P500 (+0.10%) and Nasdaq (+0.08%). Wall Street closed mixed, as investors wait and see ahead of Federal Reserve Chair Jerome Powell's speech and monitored the release of the wholesale inventories data in Sep-2023, which increased by +0.2% MoM. On the other hand, the drop in the UST yield to 4.52% supported the index's performance. Today, the market will be looking toward several data releases such as: 1) China Inflation Rate YoY Oct-23; 2) Japan Current Account Sep-23; 3) US Initial Jobless Claim Nov/04.
Domestic Update
Bank Indonesia (BI) reported that the consumer confidence index (IKK) in Oct-2023 reached 124.3, up from the Sep-2023 figure of 121.7. MNCS Comment: Rising consumer confidence at an optimistic level is supported by an acceleration in the current economic conditions index (IKE) and the consumer expectations index (IEK). Notably, IEK increased to 114.4 (vs 112.2 in Sep-2023), followed by IKE, which rose to 134.2 (vs 131.3 in Sep-2023). Going forward, we expect solid consumer confidence at an optimistic level, with inflation being well-maintained and government stimulus measures aimed at sustaining purchasing power.
Company News
1. SILO IJ recorded a net profit growth of +91.2% YoY, reaching IDR858.9 billion in 9M23 (vs IDR449.2 billion in 9M22) (Emiten News). MNCS Comment: Net profit growth was supported by a +19.0% YoY increase in revenue to IDR8.2 trillion in 9M23 (vs IDR6.9 trillion in 9M22). Effective cost management also contributed to margin expansion, with the GPM/NPM increasing to 39.2%/10.4%, respectively (vs 35.9%/6.5% in 9M22). Currently, SILO is traded at a level of 27.82x/4.21x PER/PBV.
2. CPRO IJ managed to report a net profit of IDR45.8 billion in 9M23, compared to a net loss of IDR 51.0 billion in 9M22 (Emiten News). MNCS Comment: The net profit growth was driven by a +9.5% YoY increase in revenue to IDR6.8 trillion in 9M23 (vs IDR6.2 trillion in 9M22). A decrease in financial expenses (-8.2% YoY) also boosted the company's profitability. It is worth noting that the NPM increased slightly to 4.8% (vs 4.6% in 9M22). Currently, CPRO is traded at a level of 7.51x/0.92x PER/PBV.
3. CPIN IJ is set to distribute an interim dividend for the FY23E amounting to IDR1.6 trillion, or equivalent to IDR100 per share (Kontan). MNCS Comment: Hence, we estimate that CPIN will offer a dividend yield of 1.8%. With net profit reaching IDR2.7 trillion in 9M23, the payout ratio stands at 60.9%. Currently, CPIN is traded at a level of 26.09x/3.21x PER/PBV.
IHSG Updates
The JCI weakened by -0.58% to 6,804.11 on Wednesday (08/11), followed by a net foreign sell of IDR728.93 billion. Most sectors experienced declines and weighed on the index, led by the basic materials sector (-1.55%), followed by the energy sector (-1.45%). On the other hand, the healthcare sector saw gains (+0.69%). The index's decline is in-line with Asian markets, where investors are wait and see ahead of the release of China's inflation data for Oct-2023, which serves as a proxy for consumer demand. The Rupiah closed lower at IDR15,650/USD. We estimate the IHSG will move within the price range of 6,734-6,842. Today's Recommendations: AMRT, AUTO, BSDE, INKP.
Corporate Actions
Cum Dividend : TSPC (IDR50/share)
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