Global Market Highlights
The DJIA declined by 1.08% on Thursday (21/09), followed by the S&P500 (-1.64%) and Nasdaq (-1.82%). Wall Street continued its downward trend, with the sell-off driven by an increase in the UST yield to 4.5% amid signals of a "higher for longer" policy from The Fed. Today, the market will be looking toward several data releases such as: 1) US S&P Global Services PMI Flash Sep-2023; 2) Germany HCOB Manufacturing PMI Flash Sep-2023; 3) Japan BoJ Interest Rate Decision.
Domestic Update
• Bank Indonesia (BI) maintained the BI7DRR at 5.75% for Sep-2023. MNCS Comment: BI's decision to maintain the BI7DRR at 5.75% is in line with consensus. We see the maintained interest rate as mainly supporting a pro-stability policy. Even though the spread with FFR is narrowing and potentially reaching zero spread due to signals of "higher for longer" from The Fed, the IDR has still strengthened YTD. We attribute this to interventions in the foreign exchange market and the implementation of DHE.
Company News
1. CSAP IJ has realized the expansion of Mitra10 and Atria stores in South Tangerang, Banten, with a land area of 14,000 m2. The company targets 30,000 visitors per month (Investor ID). MNCS Comment: We view the company's expansion efforts positively, which are expected to become future growth engines. The company aims to have 50 Mitra10 outlets by FY23E and 100 outlets by FY30F. Furthermore, we believe that the moderation in building material inflation could be a catalyst for the company. Currently, CSAP is traded at the level of 17.39x/1.35x PER/PBV.
2. HRTA IJ aims for double-digit growth in FY24F (Kontan). MNCS Comment: We project HRTA's revenue/net profit growth in FY24F to reach +20.0% YoY/+19.1% YoY, respectively. We believe this target will be supported by the company's expansion, especially in the export market. Moreover, product innovations through the mid-high "ARDORE'' segment have the potential to drive the company's performance forward. Currently, HRTA is traded at the level of 5.49x/1.10x PER/PBV.
3. VTNY IJ plans to expand its operational territory, with office expansion in Palembang and further expansion to Bali and Southeast Asia (Kontan). MNCS Comment: We view this expansion plan positively, which is expected to drive the company's future performance. The expansion roadmap holds strategic potential in boosting the company's business. Currently, VTNY is traded at the level of 3.94x PBV.
IHSG Updates
IHSG decreased by 0.29% to 6,991.47 on Thursday (21/09), accompanied by a net foreign sell of IDR144.88 billion. Several sectors weakened, weighing down the index, led by the technology sector (-1.24%) followed by the energy sector (-1.04%). On the other hand, sectors that strengthened were led by the cyclical sector (+1.12%), followed by the healthcare sector (+0.82%). The decline in the index aligned with movements in Asian markets, where investors negatively responded to the monetary policy signals of "higher for longer" from The Fed during the recent FOMC meeting. The Rupiah closed higher at IDR15,375/USD. We estimate the IHSG will move within the price range of 6,973-7,021. Today's Recommendations: BFIN, UNVR, WOOD, MEDC.
Corporate Actions
Cum Dividend: BPII (IDR48/share)
EGMS: WIKA, BPTR
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