MNCS Morning Navigator

28 April 2022

MNCS Morning Navigator April 28, 2022

Global Market Highlights
DJIA rose +0.19% on Wednesday (27/04), followed by the S&P 500 (+0.21%) while the Nasdaq (-0.01%) is up. Wall Street closed mixed drivenly by the release of the issuer's financial statements. Meanwhile, the increase in the yield of US T-note 10Y to the level of 2.82% as well as geopolitical tensions between Russia and Ukraine still weigh on market movements. Today, the market will be looking toward several data releases such as: 1) US GDP Growth Rate QoQ Adv; 2) Germany Inflation Rate YoY Prel; 3) Japan BoJ Interest Rate Decision.

Domestic Update
• S&P revised Indonesia’s long term sovereign rating outlook from negative to stable on Apr 27, 2022. MNCS Comment: Positive outlook indicates that Indonesia’s economic prospects remain solid going forward. The upward revision also reaffirms Indonesia’s economic resilience during Covid-19 crisis and becomes another positive catalyst for domestic financial assets.
• Furthermore, the second dose of vaccination rate nationally has reached 78.9% or equivalent to 164.23 million people.

Company News
1. ASII IJ posted revenue of IDR71.87 trillion in 1Q22 or up +39.01% YoY (vs IDR51.70 trillion in 1Q21). Net profit rose +83.91% YoY to IDR6.85 trillion in 1Q22 (vs IDR3.72 trillion in 1Q21) (CNBC Indonesia). MNCS Comment: ASII's performance growth was supported by goods sales of IDR53.75 trillion, up +50.47% YoY. This was followed by sales of services and rentals which rose +21.20% YoY. Meanwhile, COGS increased +34.57% YoY, ASII's NPM grew to 9.53% in 1Q22 (vs 7.19% in 1Q21). Currently, ASII is trading at the level of 14,28x/1.68x PER/PBV.
2. BMRI IJ recorded a net interest income of IDR20.48 trillion in 1Q22 or up +17.09% YoY (vs IDR17.49 trillion in 1Q21). Net profit increased +70% YoY to IDR10.03 trillion in 1Q22 (vs IDR5.92 trillion in 1Q21) (Bisnis Indonesia). MNCS Comment: The significant improvement in bottom line performance was driven by Pre-provisioning Operating Profit (PPOP) to IDR17.7 trillion or up +24.2% YoY. In addition, credit growth rose +8.93% YoY to reach IDR1,072.9 trillion, followed by TPF +7.42% YoY and CASA up +10.93% YoY in 1Q22. Currently, BMRI is trading at 13.69x/1.88x PER/PBV.
3. AALI IJ recorded net sales of IDR6.58 trillion in 1Q22 or +30.71% YoY (vs IDR5.04 trillion in 1Q21). Net profit increased +197.63% YoY to IDR483.45 billion in 1Q22 (vs IDR162.43 billion in 1Q21) (Bisnis Indonesia). MNCS Comment: AALI has again benefited from the increase in CPO prices, where AALI's CPO sales increased +26.68% YoY to IDR5.70 trillion in 1Q22. This was followed by other income which was recorded at IDR90.34 billion (vs other expenses of IDR216.21 billion in 1Q21). Currently, AALI is trading at 12.81x/1.17x PER/PBV levels.

IHSG Updates
JCI weakened -0.49% to 7,196.76 on Wednesday (27/04), followed by net foreign buys which reached Rp79.30 billion. The majority of sectors weakened and weighed on the index's pace, led by the transportation sector (-0.86%) followed by the property sector (-0.64%). On the other hand, the sector that experienced strengthening was led by the energy sector (+2.41%) followed by the raw materials sector (+1.12%). The index corrected in line with the action of taking profit ahead of the long holiday. Furthermore, negative sentiment from the weakening of the Wall Street market in line with the heating up of geopolitical tensions between Russia and Ukraine and the lockdown in China which has the potential to reduce the outlook for global economic growth, as well as weighed on the index's weakening pace. On the other hand, the Rupiah exchange rate closed low at IDR14,422/USD. We estimate that the JCI will move in the price range of 7,146-7,230. Today’s recommendation: ELSA, UNVR, SAME, PTBA.

Corporate Action
Cum Dividend: ASII (IDR194/share), DSNG (IDR20/share), MLBI (IDR408.45/share)

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