Global Market Highlights
The DJIA soared by +1.18% on Thursday (22/02), followed by the S&P 500 (+2.11%) and the Nasdaq (+2.96%). Wall Street rebounded after the initial jobless claims fell to 201k and beat the consensus of 218k in the period ending February 17th. The rising S&P Global Manufacturing PMI to 51.5 in Feb-2024 (vs 50.7/50.5 in Jan-2024/forecast) also contributed as a strengthening factor. Additionally, the impressive earning release of Nvidia has also caused a blowout in its stock price. Today the market will be looking forward to several data releases such as: 1) GB Car Production Jan-2024; 2) CN Foreign Direct Investment (FDI) Jan-2024; 3) SG Consumer Price Index (CPI) Jan-2024.
Domestic Update
Bank Indonesia reported that Indonesia's Balance of Payments (NPI) in 4Q23 recorded a surplus of USD8.6 billion (vs. deficit of USD1.5 billion in 3Q23). MNCS Comment: We note that the NPI surplus was supported by a current account deficit which was able to be kept low at USD 1.3 billion (0.4% of GDP), supported by an increase in the performance of goods exports in line with improving global demand and commodity prices which were still accommodative. . On an annual basis, the FY23 current account closed at a deficit of USD1.6 billion (vs. a surplus of USD13.2 billion in FY22). NPI performance in 2024 is expected to be solid in line with the easing of global uncertainty and pressure on the US dollar, domestic economic growth and PMA growth, although it remains overshadowed by risks from China's laggard economy.
Company News
1. AUTO IJ posted a net profit of IDR 1.84 trillion in FY23 (vs. IDR 1.33 trillion in FY22) or an increase of +38.4% YoY (Emiten News). MNCS Comment: We note that the company recorded a slight revenue increase by +0.38% YoY of IDR 18.65 trillion (vs. IDR 18.58 trillion in FY22), but business efficiency was able to hoist its GPM to the level of 16.5% (vs. 14.5% in FY22) as cost of revenue was slashed by -2.01% YoY. Currently AUTO is trading at 6.39x/0.87x PER/PBV.
2. ASII IJ reported sales of 37,984 4W units in 1M24 (Kontan). MNCS Comment: ASII's 4W sales in 1M24 experienced a decline of -25.2% YoY (vs 50,755 units in 1M23). This drop was in-line with the industry's performance, which contracted by -26.1% YoY. Meanwhile, ASII's market share in 1M24 stood at 54.6%, down from the 12M23 at 55.7%. ASII is currently trading at 6.23x/1.12x PER/PBV.
3. EAST IJ posted satisfying performance with double digit top and bottom lines growths in FY23 (Kontan). MNCS Comment: The company managed to score +23.04% YoY revenue growth and +29.16% YoY net profit growth. We note that this achievement hit the management’s target in FY23 of IDR106 billion, mainly driven by increasing room revenue and F&B segments. Company increases revenue goal up to IDR120 billion for FY24E. EAST is currently trading at 15.03x/1.25x PER/PBV.
IHSG Updates
The JCI edged down by -0.13% to 7,339.64 on Thursday (22/02), followed by a net foreign sell amounting to IDR253.08 billion. Several sectors experienced declines and weighing on the index, led by the technology sector (-1.17%) followed by the financial sector (-0.17%). On the other hand, sectors showing gains were led by the infrastructure sector (+1.64%) and followed by the basic materials sector (+1.58%). The index underperformed amid the positive movement in Asian markets. Investors scrutinized the release of the 4Q23 current account data, showing a widened deficit to USD1.3 billion (vs deficit of USD1.0 billion in 3Q23). The Rupiah closed higher at IDR15,590/USD. We estimate the IHSG will move within the price range of 7,286-7,370. Today's Recommendations: ACES, ADMR, ELSA, ESSA.
Corporate Actions
EGMS: WIFI, BEKS, PJAA
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