Global Market Highlights
DJIA strengthened +1.26% on Friday (31/03), followed by the S&P500 (+1.44%) and the Nasdaq (+1.74%). Wall Street solidly maintained gains as Michigan Inflation Expectations Final data was released in Mar-2023 which fell to a level of 3.6% (vs 4.1% previously). Today, the market will be looking toward several data releases such as: 1) US ISM Manufacturing PMI Mar; 2) US Construction Spending Mom Feb; 3) UK S&P Global Manufacturing PMI Final Mar.
Domestic Update
• Indonesia's Industrial Confidence Index recorded a slowdown of 0.45 points to 51.87 in Mar-2023 (vs 52.32 in Feb-2023). MNCS Comment: Indonesia's ICI is still above the level of 50 which indicates expansive industrial activity despite a dominant slowdown from 9 sectors (-2.97%), especially the textiles sector which was possibly triggered by the case of imported used clothing sales.
Company News
1. MEDC IJ posted a net profit growth of +1,029.1% YoY to USD530.9 million in FY22 (vs USD47.0 million in FY21) (Emiten News). MNCS Comment: This positive result was supported by an increase in revenue reaching +84.7% YoY to USD2.3 billion (vs USD1.3 billion in FY21), as well as an increase in profit from JV +276.3% YoY, thus making PBT margins expansive to 45.2% (vs 21.5% in FY21). Currently, MEDC is traded at the level of 3.11x/1.15x PER/PBV.
2. PTRO IJ posted a net profit of USD40.9 million, or grew +21.4% YoY (vs USD33.7 million in FY21) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +14.6% YoY to USD476.3 million (vs USD415.7 million in FY21) in line with the increase in mining segment revenue +13.8% YoY. Margins were expansive, where GPM/OPM was 20.0%/12.8% (vs 17.9%/10.8% in FY21). Currently, PTRO is traded at the level of 8.01x/1.14x PER/PBV.
3. GGRM IJ posted a -50.4% YoY drop in net profit to IDR2.8 trillion (vs IDR5.6 trillion in FY21) (Emiten News). MNCS Comment: The decrease in net profit was influenced by the increase in excise duty which also raised COGS +2.7% YoY amid relatively flat income (-0.2% YoY). Currently, GGRM is traded at the level of 25.05x/0.89x PER/PBV.
IHSG Updates
JCI closed flat -0.05% to 6,805.28 on Friday (31/03), followed by net foreign buy of IDR362.96 billion. A number of sectors weakened and weighed on the index, led by the technology sector (-0.74%) followed by the transportation sector (-0.58%). On the other hand, the sectors that experienced strengthening were the industrial sector (+0.71%) followed by the property sector (+0.61%). Investors were watching the release of China's NBS Manufacturing PMI data in Mar-2023 which was corrected to a level of 51.9 (vs 52.6 previously). Furthermore, investors also tend to wait and see ahead of the release of macroeconomic data which will be announced in early Apr-2023. The rupiah closed higher at IDR 14,995/USD. We estimate that the JCI will move in the price range of 6,800-6,840 pending the release of Inflation Rate Mar, Core Inflation Rate YoY Mar, S&P Global Manufacturing PMI Mar, and Tourist Arrivals YoY Feb. Today's recommendation: AISA, BBKP, BBRI, INDF.
Corporate Actions
Cum Stock Split: BMRI (1:2)
Cum Dividend: EAST (IDR2.36/share)
RUPS: AALI
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