Global Market Highlights
DJIA weakened -0.68% on Wednesday (26/04), followed by S&P500 (-0.38%) while Nasdaq (+0.47%). Wall Street closed mixed as investors continued to worry about the US banking crisis. In addition, investors also paid attention to the release of Durable Goods Orders data in Mar-2023 which managed to grow +3.2% MoM (vs -1.2% MoM previously). Today, the market will be looking toward several data releases such as: 1) US GDP Growth Rate QoQ Adv Q1; 2) US Pending Home Sales YoY Mar; 3) US Core PCE Prices QoQ Adv Q1.
Domestic Update
• New credit distribution in 1Q23 grew with a Weighted Net Balance (WNB) of 63.7% (vs quarter 4Q22 with a 86.3% WNB), led by the fisheries sector (53.8% WNB). MNCS Comment: The trend of increasing new lending is projected to continue in 2Q23 with a 99.7% WNB, in line with the trend of increasing demand for financing business activities, especially in the manufacturing sector, large & retail trade and financial intermediaries, as well as an increasing demand for consumer credit for property and automotive.
Company News
1. ARNA IJ recorded a decrease in net profit -14.8% YoY to IDR145.3 billion in 1Q23 (vs IDR170.6 billion in 1Q22) (Emiten News). MNCS Comment: Lower net profit was in line with ARNA's decreased revenue by -11.3% YoY to IDR659.8 billion (Vs IDR743.6 billion in 1Q22). We view that the weakening materials market since 4Q22 could continue into 1H23, and could affect the company's profitability going forward. Currently, ARNA is traded at the level of 11.75x/4.41x PER/PBV.
2. HEAL IJ posted a net profit of IDR108.9 billion in 1Q23, down -2.1% YoY (vs IDR111.2 billion in 1Q22) (Emiten News). MNCS Comment: Lower net profit amid increase in revenue +11.9% YoY to IDR1.4 trillion (vs IDR1.2 trillion in 1Q22), in line with increased cost of revenue (+19.8% YoY) and OPEX (+ 6.4% YoY) thereby reducing the company's margin, where GPM/OPM was recorded to be 37.4%/14.6% (vs 41.5%/17.5% in 1Q22). Currently, HEAL is traded at the level of 49.65x/6.08x PER/PBV.
3. AKRA IJ posted net profit of IDR607.3 billion in 1Q23, up +41.9% YoY (vs IDR428.0 billion in 1Q22) (Market Bisnis). MNCS Comment: The increase in net profit was supported by an increase in revenue +8.1% YoY which was accompanied by an expansion in margins, where GPM/OPM widened to 9.8%/7.3% (vs 7.3%/5.3 % in 1Q22). Currently, AKRA is traded at the level of 22.70x/19.67x PER/PBV.
IHSG Updates
JCI strengthened +1.29% to 6,910.15 on Wednesday (26/04), followed by IDR1.8 trillion net foreign buy. The majority of sectors experienced strengthening and drove the index rate, led by the transportation sector (+2.66%) followed by the industrial sector (+1.68%). On the other hand, the sector that experienced weakness was the technology sector (-0.20%). The movement of the index outperformed the majority of Asian exchanges, where investors tended to be optimistic ahead of the release of Foreign Direct Investment data in 1Q23. The rupiah stood at IDR14,833/USD. We estimate that the JCI will move in the price range of 6,855-6,923. Today's recommendation: ADRO, BRMS, INKP, MEDC.
Corporate Actions
Cum Dividend: UNTR (IDR6,185/share), TMAS (IDR80/share), KEJU (IDR75/share)
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