Global Market Highlights
The DJIA strengthened by+0.06% on Thursday (18/08), followed by the S&P500 (+0.23%) and the Nasdaq (+0.21%). Wall Street strengthened, supported by: 1) US T-note 10Y yield which weakened to 2.88%; 2) Initial jobless claims as of 13-Aug'22 were down to 250,000 (vs 252,000 previously) and were below consensus at 265,000. Today, the market will be looking toward several data releases such as: 1) US Fed Barkin Speech; 2) UK Public Sector Net Borrowing; 3) UK Retail Sales YoY.
Domestic Update
• New loans disbursed by banks recorded a positive growth despite relatively slowing from the previous month, as reflected in the Weighted Net Balance (WBT) for new lending of 54.6%. MNCS Comment: The main factors influencing new loan disbursement are: 1) prospects for future monetary and economic conditions & 2) demand for financing from customers. We estimate that bank credit growth in 3Q22 will continue to grow positively but moderate in line with the liquidity normalization policy implemented by the central bank.
• Furthermore, the national Covid-19 daily rate had increased by 4,039 active cases (18/08).
Company News
1. ISAT IJ will distribute a final cash dividend of IDR2 trillion or equivalent to IDR248.06 per share from net income for the FY21 fiscal year (Kontan). MNCS Comment: Thus, ISAT will offer a dividend yield of 3.39%. Currently, ISAT is traded at the level of 9.06x/2.04x PER/PBV.
2. INTP IJ posted a +3.67% YoY increase in revenue in 1H22 to IDR6.91 trillion (vs IDR6.34 trillion in 1H21). Meanwhile, net profit fell by -50.3% YoY to IDR291.54 billion (vs IDR586.57 billion in 1H21) (Emiten News). MNCS Comment: Revenue growth was supported by the increase in cement sales segment by +2.59% YoY (contribution: 91.82%) and mix concrete by +17.63% YoY. The decrease in net profit was in line with the increase in COGS by +12.45% YoY, where energy costs (fuel and power) increased by +39.68% YoY and raw materials by +4.30% YoY, resulted in a shrinking of the company's margin where GPM and OPM to 25.59% and 4.84%, respectively (vs 31.41% and 9.62% in 1H21). Currently, INTP is traded at the level of 58.71/1.87x PER/PBV.
3. ITMG IJ targeted a coal production volume to range from 17.5-18.8 million tons in FY22E. Meanwhile, sales volume is targeted to range from 20.5 to 21.5 million tons (Emiten News). MNCS Comment: In 1H22, ITMG reported sales volume of 8.1 million tons or the realization of the target of 37.67%-39.51%. Meanwhile, in the same period, coal production reached 7.7 million tons or the realization of the target of 40.96%-44.00%. With the high price of coal (~USD400/ton) and the remaining sales and production targets that are still wide open, it has the potential to increase the company's revenue in FY22E. Currently, ITMG is traded at the level of 3.04x/1.88x PER/PBV.
IHSG Updates
JCI strengthened by +0.74% to 7,186.56 on Thursday (18/08), followed by net foreign buy which reached IDR1.08 trillion. The majority of sectors experienced strengthening and pushed the index rate, led by the energy sector (+1.21%) followed by the industrial sector (+1.15%). On the other hand, the weakening sectors were led by the raw materials sector (-0.57%) followed by the health sector (-0.48%). The movement of the index outperforms with the compact Asian markets corrected. We see that investors are optimistic ahead of the release of Indonesia's current account data in 2Q22, which is estimated to remain in surplus. On the other hand, the Rupiah exchange rate closed lower at IDR14,833/USD. We estimate that the JCI will move in the price range of 7,100-7,200 pending the release of Current Account Q2 and Loan Growth YoY Jul data. Today's recommendation: ANTM, MEDC, UNVR, BBCA.
Corporate Actions
Cum Stock Split: EKAD (1:5)
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