Global Market Highlights
The DJIA rose by +1.58% on Monday (30/10), followed by S&P500 (+1.20%) and Nasdaq (+1.16%). Wall Street closed higher as investors responded positively to the 3Q23 earnings reports. Additionally, investors are optimistic ahead of macroeconomic data releases, with the Chicago PMI Oct-2023 is expected to increase to a level of 45, according to consensus estimates. Today, the market will be looking toward several data releases such as: 1) China NBS Manufacturing PMI Oct-23; 2) EU GDP Growth Rate QoQ Q3; 3) Germany GDP Growth Rate QoQ Flash Q3.
Domestic Update
The government plans to expand the VAT incentives for property purchases up to IDR5 billion, from IDR2 billion previously. MNCS Comment: We view this increase in the ceiling as a positive development for property companies. Although the decision is not yet final, this stimulus could serve as a buffer for property companies' marketing sales as the election year approaches.
Company News
1. MTEL IJ recorded a net profit growth of +16.6% YoY, reaching IDR1.4 trillion in 9M23 (vs IDR1.2 trillion in 9M22) (Emiten News). MNCS Comment: The increase in net profit is supported by a +11.9% YoY growth in revenue, reaching IDR6.3 trillion (vs IDR 5.6 trillion in 9M22). Additionally, we note an increase in margins, with GPM/NPM rising to 48.9%/22.8%, respectively (vs 46.4%/21.9% in 9M22). Currently, MTEL is traded at a level of 27.16x/1.55x PER/PBV.
2. PWON IJ reported net profit growth of +24.8% YoY, reaching IDR1.5 trillion in 9M23 (vs IDR1.2 trillion in 9M22) (Emiten News). MNCS Comment: The net profit growth is supported by a +1.6% YoY increase in revenue, reaching IDR4.6 trillion (vs IDR4.5 trillion in 9M22). Moreover, a +121.5% YoY increase in interest income contributed to improved profitability. NPM increased to 32.5% (vs 26.5% in 9M22). Currently, PWON is traded at a level of 9.72x/1.04x PER/PBV.
3. HMSP IJ posted a net profit of IDR6.2 trillion in 9M23, representing a +26.6% YoY increase (vs IDR4.9 trillion in 9M22) (Emiten News). MNCS Comment: The net profit increase is supported by a +4.7% YoY growth in revenue, reaching IDR87.3 trillion (vs IDR 83.4 trillion in 9M22). Furthermore, positive performance is also driven by margin improvement. GPM and NPM of the company increased to 16.5%/7.1%, respectively (vs 14.9%/5.9% in 9M22). Currently, HMSP is traded at a level of 12.93x/3.82x PER/PBV.
IHSG Updates
The JCI weakened by -0.34% to 6,735.89 on Monday (30/10)), followed by a net foreign sell of IDR370.80 billion. Most sectors saw declines, led by the healthcare sector (-2.35%), followed by the cyclical sector (-1.89%). On the other hand, sectors that gained were led by the infrastructure sector (+3.22%) followed by the industrial sector (+0.13%). The index declined as investors take a wait and see approach ahead of macroeconomic data releases in the early month. Additionally, investors are closely monitoring 3Q23 earnings releases. The Rupiah closed higher at IDR15,890/USD. We estimate the IHSG will move within the price range of 6,666-6,757. Today's Recommendations: CTRA, MDKA, PGEO, UNIQ.
Corporate Actions
EGMS: SGER
Cum Dividend : SIDO (IDR12.6/share)
IPO: UDNG (IDR100/share)
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