Global Market Highlights
DJIA fell -0.42% on Friday (14/04), followed by the S&P500 (-0.21%) and the Nasdaq (-0.35%). Wall Street corrected as investors' concerns grew about the upcoming mild recession, following the release of Mar-2023 retail sales data which fell -1% MoM (vs -0.4% MoM on consensus). Today, the market will be looking toward several data releases such as: 1) US NAHB Housing Market Index Apr; 2) US Net Long-Term TIC Flows Feb; 3) US NY Empire State Manufacturing Index Apr.
Domestic Update
• BI's Prompt Manufacturing Index recorded an increase of 69 bps QoQ to 50.75% and is still in an expansionary phase in the first quarter of 2023, in line with an increase in the weighted net balance (SBT) of 34 bps QoQ to 11.05%. MNCS Comment: Improved performance came from the agriculture, forestry and fisheries sectors in line with the historical pattern of the harvest season. The performance of the mining sector, wholesale and retail trade as well as automotive repair have also increased due to increased domestic demand in line with increased mobility of the population.
Company News
1. BRMS IJ posted a +14.5% YoY increase in net profit to USD2.1 million in 1Q23 (vs USD1.9 million in 1Q22) (Emiten News). MNCS Comment: Increase in net profit was supported by increased revenue +95.7% YoY to USD5.8 million (vs USD3.0 million in 1Q22), in line with gold production growth +92% YoY to 79Kg. Going forward, we anticipate continued growth in line with the increasing capacity of CPM's new factory and the relatively high price of gold. Currently, BRMS is traded at the level of 1.31x PBV.
2. PGAS IJ recorded a net profit of USD 326.2 million in FY22, an increase of +7.4% YoY (vs USD 303.8 million in FY21) (Emiten News). MNCS Comment: We see this positive result supported by a +17.5% YoY increase in revenue to USD3.6 billion in FY22 (vs. USD3.0 billion in FY21). However, NPM contracted to 9.1% (vs. 10.0% in FY21) due to the burden of provision for LNG contracts and write-offs. Currently, PGAS is traded at the level of 5.34x/0.84x PER/PBV.
3. BIRD IJ plans to expand its EV vehicle line to 200-500 units this year (Market Bisnis). MNCS Comment: Notely, this target has increased from the previous plan where BIRD planned to add an EV fleet of ~ 200 units. We believe that the company's turnaround along with the relaxation of Covid-19 and sustainable business commitments can be a positive catalyst going forward. Currently, BIRD is traded at the level of 11.45x/0.78x PER/PBV.
IHSG Updates
JCI strengthened +0.49% to 6,818.57 on Friday (14/04), followed by net foreign buys reaching IDR1.83 trillion. The majority of sectors experienced strengthening and drove the index rate, led by the financial sector (+0.65%) followed by the raw materials sector (+0.52%). On the other hand, the sector that led to the decline was the transportation sector (-1.04%) followed by the industrial sector (-0.89%). The index strengthened as investors viewed positively ahead of the release of Mar-2023 Domestic Trade Balance data which is expected to maintain a surplus. The rupiah closed higher at IDR14,700/USD. We estimate that the JCI will move in the price range of 6,790-6,820 pending the release of Imports, Exports, and Balance of Trade Mar-2023 data. Today's recommendation: BBKP, EXCL, HMSP, KRYA.
Corporate Actions
Cum Dividend: DRMA (IDR20.94/share), CSAP (IDR11/share), CMRY (IDR70/share)
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