Global Market Highlights
DJIA rallied +0.33% on Thursday (23/02), followed by S&P500 (+0.53%) and Nasdaq (+0.72%). Wall Street compactly closed higher as investors watched the release of data on initial jobless claims which fell to 192k (vs 195k before). Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY Jan; 2) US PCE Price Index YoY Jan; 3) US Michigan Consumer Sentiment Final Feb.
Domestic Update
• As of February 27, the government has set an increase in the upper limit for grain prices (IDR4,550/kg) or no more than 8-9% of the current reference limit (IDR4,200/kg). MNCS Comment: On the one hand, this policy tends to harm farmers considering the cost of production has increased amidst global uncertainty, however this policy is aimed at reducing prices at the consumer level, especially ahead of the month of Ramadan where demand and prices will soar.
Company News
1. CMRY IJ posted a net profit growth of +34.2% YoY to IDR1.1 trillion in FY22 (vs IDR790.2 billion in FY21) (Kontan). MNCS Comment: Net profit growth supported by increase of revenue +55.7% YoY to IDR6.4 trillion (vs IDR4.1 trillion in FY21), as consumption food segment increased +96.9% YoY followed by dairy segment +33 .3% YoY. However, the increase in raw material costs also pressured margins, where GPM/NPM fell to 41.8%/16.6% respectively (vs 48.2%/19.3% in FY21). Currently, CMRY is traded at the level of 34.54x/7.97x PER/PBV.
2. LPPF IJ opened a new outlet at Pollux Mall Chadstone, Cikarang, West Java. (Kontan). MNCS Comment: The realization of a new outlet in Cikarang is the opening of the second outlet this year after REVO Town Mall Bekasi. This makes the total outlets reach 150 outlets. We see that the expansion outside Jakarta, especially in industrial areas (Bekasi & Cikarang) is in line with the high consumer potential, especially ahead of the Ramadhan celebration. Currently, LPPF is traded at the level of 8.45x/27.68x PER/PBV.
3. PBID IJ targets revenue growth of 15% YoY in FY23E (Market Bisnis). MNCS Comment: We are optimistic that the company can achieve this target, supported by the acquisition of a new warehouse in East Java that will support product penetration to eastern Indonesia. In addition, we anticipate an increase in volume as consumption increases ahead of the FY23E-FY24F political year. Currently, PBID is traded at the level of 8.26x/1.27x PER/PBV.
IHSG Updates
JCI strengthened +0.43% to 6,839.45 on Thursday (23/02), followed by net foreign buy reaching IDR20.73 billion. The majority of sectors experienced strengthening and drove the index rate, led by the transportation sector (+1.24%) followed by the property sector (+1.07%). On the other hand, sectors that experienced weakening were led by the non-cyclical sector (-0.35%) followed by the raw material sector (-0.29%). The index strengthened in line with Asian stock exchanges, in line with easing investor speculation over fears of the Fed's hawkish stance, after the FOMC minutes were read out. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,202/USD. We estimate that the JCI will move in the price range of 6,819-6,852. Today's recommendation: AKRA, BBCA, TLKM, UNTR.
Corporate Actions
IPO: PGEO (IDR875/share)
RUPS: MEGA, WICO
Disclaimer On
