Global Market Highlights
The strengthened by +1.47% on Thursday (30/11), followed by S&P500 (+0.38%), while Nasdaq (-0.23%). Wall Street closed mixed, whereas investors responded positively to the release of the Core PCE Price Index in Oct-2023, which grew at a slower pace and in-line with the consensus estimate of +0.2% MoM. This supports investors expectations that the FFR hikes has peaked. Meanwhile, the increase in UST yield to the level of 4.36% weighed on Nasdaq's performance. Today, the market will be looking toward several data releases such as: 1) China Caixin Manufacturing PMI Nov-23; 2) US ISM Manufacturing PMI Nov-23; 3) UK PMI Manufacturing Final Nov-23.
Domestic Update
Indonesia Inflation in Nov-2023 is expected to increase compared to the realization in Oct-2023, which was +2.56% YoY. MNCS Comment: We assess that this inflation increase will mainly be driven by a rise in the prices of food and beverages, especially volatile components. However, the figure remains within Bank Indonesia's target of 3%±1%. Furthermore, we see that ongoing disruptions in the supply of basic goods will cast a shadow over future inflation rates.
Company News
1. POWR IJ will distribute an interim dividend of USD30.0 million or equivalent of IDR29,470 per share (Market Business). MNCS Comment: With net profit reaching USD76.8 million until 9M23 (vs USD58.5 million in 9M22), the payout ratio is 39.1%. We estimate POWR will offer a dividend yield of 4.1%. Currently, POWR is traded at a level of 7.36x/1.03x PER/PBV.
2. ADRO IJ targets coal production volume for FY23E at 62-64 million tons (Market Business). MNCS Comment: In 9M23, ADRO recorded a production volume growth of +11.8% YoY to 50.7 million tons (vs 45.4 million tons in 9M22). We note that coal production realization until 9M23 reached 81.8%-79.2%. We are optimistic that ADRO can achieve this target, driven by increased demand towards the end of the year. Currently, ADRO is traded at a level of 3.34x/0.80x PER/PBV.
3. CUAN IJ recorded a decrease in net profit by -30.8% YoY to IDR175.2 billion in 9M23 (vs IDR253.3 billion in 9M22) (Emiten News). MNCS Comment: The decrease in net profit amid a revenue increase of +26.4% YoY was due to: 1) rising cost of revenue by +73.6% YoY; 2) higher-than-anticipated OPEX by +88.4% YoY. Meanwhile, the margin experienced contraction, with the company's OPM/NPM to be 17.9%/15.1% (vs 45.7%/27.6% in 9M22). Currently, CUAN is traded at a level of 60.63x PBV.
IHSG Updates
The JCI closed higher by +0.63% at 7,080.74 on Thursday (30/11), followed by a net foreign sell of IDR269.49 billion. Most sectors experienced gains and drove the index, led by the infrastructure sector (+5.61%), followed by the healthcare sector (+2.28%). On the other hand, sectors experiencing a decline were led by the industrial sector (-1.14%), followed by the property sector (-0.82%). The index's strength aligns with most Asian markets that closed higher, as investors positively responded to the above-expectation GDP growth revision in the US in 3Q23 at +5.2% QoQ. Additionally, investors will wait and see ahead of the inflation data release in Nov-2023. The Rupiah closed lower at IDR15,510/USD. We estimate the IHSG will move within the price range of 7,046-7,120. Today's Recommendations: ADMR, ARTO, MDKA, PTRO.
Corporate Actions
EGMS : MTEL, SMGR
Cum Dividend : BBCA (IDR42.5/Share)
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