Global Market Highlights
The DJIA strengthened by +0.19% on Wednesday (11/10), followed by the S&P500 (+0.43%) and Nasdaq (+0.71%). Wall Street rallied amid the rise in producer price inflation in Sep-2023 by +0.5% (vs +0.3% consensus). The market responded positively to the drop in UST yield to 4.54% in line with the dovish tone from The Fed. Today, the market will be looking toward several data releases such as: 1) US FOMC Minutes; 2) US Inflation YoY Sep-2023; 3) UK GDP MoM Aug-2023.
Domestic Update
The Financial Services Authority (OJK) is optimistic that banking credit growth will reach double digits by the end of the year. MNCS Comment: We foresee future credit growth being supported by positive monetary policy and ample liquidity in the banking sector. Bank Indonesia targets credit growth for FY23E between 9% YoY-11% YoY. On the other hand, credit growth has been rebounding since Jun-2023.
Company News
1. PJAA IJ reported a net profit growth of +130.7% YoY in 9M23 to IDR170.8 billion (vs IDR74.0 billion in 9M22) (Emiten News). MNCS Comment: This significant net profit increase is supported by rising revenues and well-maintained cost control. Notably, revenue increased by +43.2% YoY to IDR902.6 billion in 9M23. Furthermore, efficiency is evident with the expansive GPM/OPM of 54.5%/37.4% in 9M23 (vs 54.4%/27.9% in 9M22). Currently, PJAA is traded at a level of 6.89x/0.94x PER/PBV.
2. MDKA IJ reported exploration costs of USD20 million in 3Q23, or equivalent to IDR312.5 billion. Exploration activities were concentrated in three locations: Tujuh Bukit, Pulau Wetar, and Pani (Emiten News). MNCS Comment: We note a +3.6% YoY increase in exploration costs (vs IDR301.6 billion in 3Q22). We view these exploration efforts positively as they have the potential to enhance the company's operational quality. Currently, MDKA is traded at a level of 4.46x PBV.
3. BELI IJ will focus on the company's core business, as previously BELI divested its ownership of 7.23% in Halodoc (Kontan). MNCS Comment: We view the company's efforts to focus on its core business positively, as this can accelerate the company's pursuit of future targets. Currently, BELI is traded at a level of 6.25x PBV.
IHSG Updates
The JCI grew by +0.14% to 6,931.75 on Wednesday (11/10), followed by a net foreign sell of IDR367.07 billion. Several sectors saw gains and driving the index, led by the infrastructure sector (+3.50%), followed by the property sector (+1.08%). On the flip side, sectors that weakened were led by the technology sector (-1.47%), followed by the health sector (-0.79%). The index's rise coincided with the overall positive trend in most Asian stock markets, where investors were optimistic ahead of the release of US inflation data in Sep-2023, which is expected to moderate. The Rupiah closed higher at IDR15,693/USD. We estimate the IHSG will move within the price range of 6,930-6,970. Today's Recommendations: BEST, JPFA, MEDC, UNTR.
Corporate Actions
Cum Dividend: AUTO (IDR40/share), VICI (IDR3.5/share)
EGMS: MPPA
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