Global Market Highlights
The DJIA fell by -0.22% on Monday (02/10), while the S&P500 (+0.01%), and the Nasdaq (+0.67%). Wall Street closed mixed, with a positive catalyst coming from the release of the ISM manufacturing data in Sep-2023, which rose to 49 (vs 47.6 in Aug-2023). Meanwhile, The Fed's hawkish tone signaling an increase in the FFR by +25 bps weighed on the market sentiment. Today, the market will be looking toward several data releases such as: 1) US JOLTs Job Openings Aug-2023; 2) US 52-Week Bill Auction; 3) France Budget Balance Aug-2023.
Domestic Update
The Central Statistics Agency (BPS) reported a domestic inflation rate of +2.28% YoY in Sep-2023. Meanwhile, core inflation reached +2.00% YoY. MNCS Comment: The domestic inflation rate in Sep-2023 exceeded the consensus estimate of +2.2% YoY. The core inflation rate was below the consensus estimate of +2.1% YoY. Annual inflation in Sep-2023 was influenced by food, beverage, and tobacco components at +4.2% YoY, contributing 1.1%. Although the YoY inflation rate was above estimates, the impact of the increase in subsidized fuel prices in Sep-2022 has ended.
Company News
1. UNTR IJ will distribute an interim cash dividend for the FY23E fiscal year amounting to IDR2.5 trillion, or equivalent to IDR701 per share (Kontan). MNCS Comment: Hence, we estimate UNTR will offer a dividend yield of 2.5%. With net earnings in 1H23 of IDR11.2 trillion, the payout ratio is 22.7%. Currently, UNTR is traded at a level of 4.64x/1.45x PER/PBV.
2. WIKA IJ recorded new contract earnings of IDR19.98 trillion in 8M23 (Investor ID). MNCS Comment: The new contract value for WIKA in 8M23 grew by +10.8% YoY (vs IDR18.04 trillion in 8M22). With a target for new contract earnings in FY23E of IDR36 trillion, the realization up to 8M23 has reached 55.5%. Currently, WIKA is traded at a level of 0.37x PBV.
3. DOID IJ reported a net profit decrease of -13.0% YoY to USD4.9 million in 1H23 (vs USD5.7 million in 1H22) (Emiten News). MNCS Comment: The decline in net profit comes amidst a revenue increase of +18.6% YoY to USD857.1 million in 1H23 (vs USD722.9 million in 1H22), alongside rising OPEX and financial expenses. OPEX increased by +36.9% YoY, while financial expenses grew by +36.5% YoY. NPM fell to 0.6% in 1H23 (vs 0.8% in 1H22). Currently, DOID is traded at a level of 29.45x/1.16x PER/PBV.
IHSG Updates
The JCI strengthened by +0.31% to 6,961.46 on Monday (02/10), accompanied by a net foreign buy of IDR314.45 billion. Most sectors saw gains, pushing the index higher, led by the property sector (+1.09%) followed by the infrastructure sector (+0.92%). On the other hand, the energy sector (-1.05%) led the declines, followed by the raw materials sector (-0.44%). The index rose despite the majority of Asian markets weakening, as investors responded positively to several domestic macroeconomic data releases. The Rupiah closed lower at IDR15,530/USD. We estimate the IHSG will move within the price range of 6,930-6,965. Today's Recommendations: ACES, BBRI, JPFA, MAPA.
Corporate Actions
EGMS: AGRO, CITY
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