Global Market Highlights
DJIA fell -1.02% on Tuesday (25/04), followed by the S&P500 (-1.58%) and the Nasdaq (-1.98%). Wall Street weakened as investors paid close attention to the release of bank issuer earnings and the release of CB Consumer Confidence data in Apr-2023 which fell to a level of 101.3 (vs 104 previously). Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM Mar; 2) US Goods Trade Balance Adv Mar; 3) Germany GfK Consumer Confidence May.
Domestic Update
• National wholesale car sales increased 7% YoY to 282,125 units in 1Q23 (vs 263,679 units in 1Q22) followed by an increase in retail sales of 13.7% YoY to 271,168 units in 1Q23 (vs 238,504 units in 1Q22). MNCS Comment: The increase in demand for cars domestically is in line with the increasing need for the population’s mobilization and the need for homebound travels during the Idul Fitri holidays, and with this trend car sales in 2023 is estimated to reach 975,000 units.
Company News
1. UNVR IJ recorded a decrease in net profit -30.5% YoY to IDR1.4 trillion in 1Q23 (vs IDR2.0 trillion in 1Q22) (Emiten News). MNCS Comment: The decrease in net profit was caused by revenue which fell -2.2% YoY accompanied by an increase in OPEX +28.1% YoY which weighed on profitability. Meanwhile, margins contracted, where OPM/NPM were 17.5%/13.3%, respectively (vs 24.4%/18.6% in 1Q22). Currently, UNVR is traded at the level of 27.26x/29.20x PER/PBV.
2. AALI IJ posted a net profit of IDR224.7 billion in 1Q23, or decreased -53.5% YoY (vs IDR483.5 billion in 1Q22) (Emiten News). MNCS Comment: The decline in net profit was in line with the decrease in the company's revenue by -27.7% YoY to IDR4.8 trillion (vs IDR6.6 trillion in 1Q22). In addition, it was recorded that OPEX experienced an increase of +10.9% YoY but was offset by an increase in other revenues +68.6% YoY. Currently, AALI is traded at the level of 16.86x/0.69x PER/PBV.
3. LPPF IJ recorded a decrease in net profit -30.2% YoY to IDR101.3 billion in 1Q23 (vs IDR145.0 billion in 1Q22) (Emiten News). MNCS Comment: Decrease in net profit was amid an increase in revenue +12.1% YoY along with an increase in OPEX +15.8% YoY and financial expenses +39.8% YoY. Currently, LPPF is traded at the level of 23.52x/20.38x PER/PBV.
IHSG Updates
JCI closed commemorating Eid Al-Fitr 1444 H. Asian stock exchanges closed mixed trading on Tuesday (25/04), where investors were watching South Korea's GDP growth in 1Q23 of +0.8% YoY, or below the consensus at +0.9% YoY and +1.3% YoY previously. Meanwhile, Bank Indonesia maintained the BI7DRR benchmark interest rate at 5.75%. The rupiah stood at IDR14,845/USD. We estimate that the JCI will move in the price range of 6,770-6,810 pending the release of Foreign Direct Investment YoY Q1 data. Today's recommendation: AGII, BRPT, HILL, JPFA
Corporate Actions
Cum Dividend: AUTO (IDR88/share), NISP (IDR58/share)
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