Global Market Highlights
DJIA strengthened +0.29% on Tuesday (11/04), while the S&P500 (-0.00%) and Nasdaq (-0.43%). Wall Street closed mixed again, as investors wait and see ahead of the release of Mar-2023 inflation data which is expected to slow to +5.2% YoY according to consensus. Today, the market will be looking toward several data releases such as: 1) US Inflation Rate YoY Mar; 2) US Core Inflation Rate YoY Mar; 3) US CPI Mar.
Domestic Update
• Consumer Confidence Index (CCI) improved to 123.3 for Mar-2023 (vs 122.4 in Feb-2023), supported by improvements from the Current Economic Conditions Index and the Consumer Expectations Index. MNCS Comment: The increase in the proportion of household expenditure, improved perceptions of future business activities and the availability of jobs indicate that the monetary consolidation is sufficient to support economic growth while also maintaining the inflation rate.
Company News
1. CMRY IJ will distribute cash dividends of IDR555.42 billion or equivalent to IDR70 per share (Emiten News). MNCS Comment: So we estimate CMRY will offer a dividend yield of 1.53%. Meanwhile, the payout ratio reached 52.4% of FY22 net profit, where CMRY recorded +33.8% YoY net profit growth to IDR1.06 trillion (vs IDR792.87 billion in FY21). Currently, CMRY is traded at the level of 34.34x/6.93x PER/PBV.
2. ADHI IJ posted a new contract value in 1Q23 of IDR8.9 trillion (Kontan). MNCS Comment: ADHI's new contract value increased +111.9% YoY (vs IDR4.2 trillion in 1Q22), supported by the Solo-Yogyakarta-YIA Kulonprogo Toll Road Package 1.2A project. With the target of achieving a new contract value in FY23E reaching IDR27.3-28.4 trillion, realization up to 1Q23 was 32.6%-31.3%. Currently, ADHI is traded at the level of 40.15x/0.39x PER/PBV.
3. ASRI IJ posted a net profit in FY22 reaching IDR1.08 trillion, up +645.5% YoY (vs IDR145.7 billion in FY21) (Emiten News). MNCS Comment: The significant increase in net profit was in line with the +57.8% YoY increase in total revenue to IDR4.5 trillion (vs IDR2.8 trillion in FY21), as well as IDR308.7 billion in bond buyback gains. Currently, ASRI is traded at the level of 3.08x/0.32x PER/PBV.
IHSG Updates
JCI strengthened +0.59% to 6,811.31 on Tuesday (11/04), followed by net foreign buy reaching IDR591.08 billion. The majority of sectors experienced strengthening and drove the index rate, led by the technology sector (+1.91%) followed by the property sector (+1.79%). On the other hand, the sector that led to the decline was the non-cyclical sector (-0.39%) followed by the cyclical sector (-0.33%). The strengthening of the index was in line with most Asian exchanges, where investors responded positively to the release of IKK Mar-2023 data which rose to a level of 123.3 (vs 122.4 in Feb-2023). The rupiah closed higher at IDR14,883/USD. We estimate that the JCI will move in the price range of 6,785-6,839 pending the release of Retail Sales YoY Feb-2023 data. Today's recommendation: BRMS, INDY, MMIX, SMGR.
Corporate Actions
IPO: NCKL (IDR1,250/share)
Cum Dividend: AALI (IDR319/share), ASGR (IDR21/share)
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