MNCS Morning Navigator

26 Agustus 2022

MNCS Morning Navigator August 26, 2022

Global Market Highlights
The DJIA strengthened by +0.98% on Thursday (25/08), followed by the S&P500 (+1.41%) and the Nasdaq (+1.67%). Wall Street strengthened supported by the release of data on initial jobless claims which decreased to 243,000 (vs 245,000). In addition, the decline in the yield of US T-note 10Y to the level of 3.03% was the driving force for Wall Street. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY; 2) US Fed Chair Powell Speech; 3) US Michigan Consumer Sentiment Final.

Domestic Update
• The domestic SBN market recorded an inflow of IDR19.31 trillion in the period of August 1-24, 2022. MNCS Comment: Inflow into the SBN market is a positive catalyst for the government bond market resulting in a downward trend in SBN yields. Inflows returned to the SBN market in response to BI's decision to raise the benchmark interest rate by 25 bps.
• Furthermore, the national Covid-19 daily rate had increased by 5,214 active cases (25/08).

Company News
1. BRIS IJ recorded a net profit growth in 1H22 of +41.31% YoY to IDR2.13 trillion (CNBC Indonesia). MNCS Comment: This achievement was supported by: 1) financing growth of +18.55% YoY; 2) increasing TPF by +13.07% YoY; 3) efficiency through operational costs to 74.50%. Currently, BRIS is traded at the level of 2.41x PBV.
2. ASRI IJ posted a +76.1% YoY revenue growth in 1H22 to IDR1.95 trillion (vs IDR1.11 trillion in 1H21). Moreover, ASRI managed to record a net profit of IDR216.84 billion (vs net loss of IDR244.91 billion in 1H21) (Emiten News). MNCS Comment: The increase in revenue was in line with the growth of the property development segment by +81.34% YoY. Meanwhile, net profit was achieved as the company's GPM and OPM widened to 56.22% and 45.19%, respectively (vs 49.31% and 30.31% in 1H21). ASRI is currently traded at the level of 8.16x/0.37x PER/PBV.
3. WMUU IJ posted a -1.8% YoY decline in revenue in 1H22 to IDR1.29 trillion (vs IDR1.31 trillion in 1H21). Meanwhile, net profit fell by -15.76% YoY to IDR74.45 billion (vs IDR88.38 billion in 1H21) (Emiten News). MNCS Comment: The decline in revenue was in line with the contraction of the broiler chicken revenue segment (-70.27% YoY) and eggs (-81.30% YoY) amid carcass growth as the company's largest contribution (94.72%) which was flat (+0.82% YoY). Meanwhile, the increase in general expenses (+19.63% YoY) and financial expenses (+72.80% YoY) weighed on the company's net profit performance. WMUU is currently traded at the level of 11.82x/1.36x PER/PBV.

IHSG Updates
JCI weakened by -0.28% to 7,174.21 on Thursday (25/08), followed by net foreign sell which reached IDR655.78 billion. The majority of sectors experienced weakness and weighed on the index's pace, led by the health sector (-0.75%) followed by the cyclical sector (-0.54%). On the other hand, the strengthening sectors were led by the energy sector (+1.61%) followed by the raw materials sector (+0.21%). The index underperformed compared to strengthening Asian markets, market participants tended to wait and see ahead of the results of the Jackson Hole symposium by the Fed this weekend. On the other hand, the Rupiah exchange rate closed lower at IDR14,848/USD. We estimate that the JCI will move in the price range of 7,130-7,200. Today's recommendation: BRPT, DOID, ESSA, WIRG.

Corporate Actions
Cum Dividend: ISAT (IDR248.06/share)

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