Global Market Highlights
DJIA fell -1.02% on Friday (24/02), followed by the S&P500 (-1.05%) and the Nasdaq (-1.69%). Wall Street closed lower as positive macroeconomic data continued, thus increasing speculation about the potential for The Fed to continue raising its benchmark interest rate at the FOMC March/May/June by +25 bps each. Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM Jan; 2) US Pending Home Sales YoY Jan; 3) France Unemployment Benefit Claims Jan.
Domestic Update
• The broad money supply (M2) in Jan-2023 recorded an increase of +8.2% YoY, or reached IDR8,271.7 trillion, driven by growth in all lending segments; working capital credit (+10.1% YoY), investment credit (+11.4% YoY), consumption credit (+9.3% YoY), property loans (+7.4% YoY) and MSME loans (+9.3% YoY). MNCS Comment: We see that the increasing growth in economic liquidity to match pre-pandemic levels, indicates the interest of business owners and investors who have recovered and are ready to support economic growth.
Company News
1. SMCB IJ recorded net profit growth of +17.7% YoY to IDR839.3 billion in FY22 (vs IDR713.3 billion in FY21) (Emiten News). MNCS Comment: Net profit growth was supported by revenue increase +9.3% YoY to IDR12.3 trillion (vs IDR11.2 trillion in FY21), where readymix segment posted +42.1% YoY growth while cement segment +6.7% YoY. However, GPM and OPM declined to 23.9%/15.4%, respectively (vs 25.4%/16.8% in FY21). On the other hand, NPM was recorded to have increased to 6.8% (vs. 6.4% in FY21) supported by a decrease in financial costs of -37.9% YoY. Currently, SMCB is traded at the level of 15.26x/1.04x PER/PBV.
2. ANTM IJ targets bauxite and alumina ore production volume growth of +21.2% YoY/+4.0% YoY to 2 million wmt/131k wmt respectively in FY23E (Market Bisnis). MNCS Comment: We view the company's production growth target going forward to anticipate a surge in demand for smelter operations and downstream industries projects, which are expected to bring the company's better performance going forward. Currently, ANTM is traded at the level of 13.72x/2.13x PER/PBV.
3. AALI IJ recorded a decrease in net profit -12.4% YoY to IDR1.7 trillion (vs IDR2.0 trillion in FY22) (Emiten News). MNCS Comment: Decrease in net profit was in line with decreased revenue by -10.3% YoY to IDR21.8 trillion (vs IDR 24.3 trillion), as well as an increase in OPEX +4.4% YoY. We assess that the age of the plants which are no longer primed and the slow replanting activity causes a decrease in yield productivity and contributes to the company's performance. Currently, AALI is traded at the level of 9.34x/0.74x PER/PBV.
IHSG Updates
JCI strengthened +0.25% to 6,856.58 on Friday (24/02), followed by net foreign buys reaching IDR77.13 billion. The majority of sectors experienced strengthening and drove the index rate, led by the technology sector (+1.09%) followed by the health sector (+0.75%). On the other hand, the sectors that experienced weakness were led by the property sector (-0.48%) followed by the non-cyclical sector (-0.46%). The JCI movement was in line with Wall Street, where investors were watching the growth in the M2 money supply in Jan-2023 which grew +8.2% YoY. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,225/USD. We estimate that the JCI will move in the price range of 6,837-6,870. Today's recommendation: AGII, DOID, TBIG, BBTN.
Corporate Actions
IPO: FUTR (IDR100/share)
RUPS: HAIS, PTSN
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