Global Market Highlights

The DJIA rose by +0.78% on Friday (17/01), followed by the the S&P 500 (+1.00%) and Nasdaq (+1.51%). Wall Street rebounded, driven by positive housing market data. Housing starts grew by +15.8% MoM to 1.50 million in Dec-2024, surpassing the consensus estimate of 1.32 million. Additionally, building permits were solid at 1.48 million in Dec-2024, exceeding the consensus expectation of 1.46 million. Today the market will be looking forward to several data releases such as: 1) China Loan Prime Rate 1Y & 5Y Jan-2025; 2) Japan Machinery Orders Nov-2024; 3) Germany PPI Dec-2024.

Domestic Update

Ministry of Energy and Mineral Resources Targets 2025 Coal DMO to Reach 239.7Mt. MNCS Comment: This figure represents an increase 24.36% YoY. This target is based on the results of a meeting with coal industry players and the 2025 Electricity Supply Business Plan (RUPTL). It is also part of the government's effort to ensure the domestic coal supply remains secure, especially for electricity and other industrial needs. Although there is a push to transition to renewable energy, coal is still considered a primary energy source in Indonesia.

Company News

1. BOAT IJ allocates USD1 Million Capex for Fleet Modernization. MNCS Comment: This is in line with the positive growth outlook for the Oil and Gas industry, which is expected to be driven by global economic recovery. Modernization has a significant impact on the quality of service provided to customers. This allows the company to operate more modern and efficient ships, potentially reducing operational costs and improving service speed. Additionally, it can meet higher quality standards, thereby increasing customer trust. BOAT is currently trading at 2.37x PBV.

2. DEWA IJ converts Debt Through Private Placement Worth IDR1.11 Trillion. MNCS Comment: Through this corporate action, the company issued 17.16 billion new Series B shares with a nominal value of IDR50/share, representing around 44% of the issued and paid-up capital. This action is being carried out to settle the company’s obligations to creditors, namely PT Andhesti Tungkas Pratama (ATP) and PT Madhani Talatah Nusantara (MTN). As a result, this corporate action will improve the company’s capital structure with a lower DER and reduce financial liabilities. DEWA is currently trading at 0.73x PBV.

3. SPRE IJ has utilized IPO proceeds amounting to IDR27.1 billion as of Dec 31, 2024. MNCS Comment: We note that the funds have primarily been allocated to working capital (IDR25 billion), followed by IDR1.4 billion for operational vehicles, and IDR720.1 million for machinery purchases. Thus, SPRE has utilized 98.1% of the total IPO proceeds, with the remaining funds of IDR514.8 million placed in a deposit account earning an interest rate of 3.25% p.a. SPRE is currently trading at 2.32x PBV.

IHSG Updates

The JCI rose by +0.66% to 7,154.66 on Friday (17/01), with a net foreign buy of IDR240.2 billion. The index's gain was led by the cyclical sector (+2.17%) and the property and real estate sector (+1.74%). On the other hand, the sectors that experienced declines were led by the transportation and logistic sector (-0.78%), followed by the healthcare sector (-0.77%). The index outperformed other Asian markets, as investors positively responded to PMI-BI data which expanded to 51.58% in 4Q24 (vs 51.54% in 3Q24). The rupiah closed lower at IDR16,365/USD. We estimate that the JCI will move in the price range of 7,086-7,175. Today’s recommendations: BUMI, CMRY, MAPI, SIDO.

Corporate Actions

AGMS: SMGR

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