Global Market Highlights
The DJIA strengthened by +1.40% on Wednesday (13/12), followed by S&P500 (+1.37%) and Nasdaq (+1.38%). Wall Street gained significantly, with investors responding positively to The Fed's signals at the FOMC regarding the end of the interest rate hike era and a projected 75 bps rate cut in FY24F. Meanwhile, the release of the Nov-2023 PPI data recorded a flat +0% MoM, lower than the consensus of +0.1% MoM. Today, the market will be looking toward several data releases such as: 1) US Retail Sales MoM Nov-23; 2) US Fed Interest Rate Decision; 3) Japan Capacity Utilization MoM Oct-23.
Domestic Update
Domestic 4W unit sales in Nov-2023 reached 84.4k, experiencing a +5.0% MoM rebound. Meanwhile, on a cumulative basis, domestic 4W unit sales stood at 920.5k units, a decrease of -2.4% YoY. MNCS Comment: We assess the decline in 11M23 4W unit sales in line with the high base in FY22, attributed to incentive programs until 9M22. We are quite optimistic that domestic 4W unit sales in FY23E can approach 1 million units, supported by end-of-year momentum.
Company News
1. PTPP IJ recorded new contract values of IDR30.2 trillion in 11M23 (Market Bisnis). MNCS Comment: We note that new contract values increased by +9.9% YoY (vs IDR27.5 trillion in 11M22). With the target for new contract values in FY23E reaching IDR34 trillion, the realization until 11M23 reached 88.8%. We are optimistic that the company can achieve this target, given the nature of the business where new contract acquisitions can significantly increase towards the end of the year. Currently, PTPP is traded at 9.99x/0.28x PER/PBV.
2. ASII IJ recorded 4W unit sales of 513.1k units until 11M23, or slipped by -1.2% YoY (Kontan). MNCS Comment: The decline in 4W unit sales aligns with the industry's -2.4% YoY decline. However, with domestic 4W unit sales reaching 920.5k units, ASII maintains a market share of 55.7% in 11M23. Currently, ASII is traded at 6.53x/1.17x PER/PBV.
3. DCII IJ will build a data center with a capacity of 82 MW and scalability of 1k MW, intended for artificial intelligence (AI) needs (Market Bisnis). MNCS Comment: We see positively the expansion of the data center supporting the development of the latest technology (AI), making it attractive to potential clients. Additionally, we anticipate better performance from the company with the addition of data center capacity. Currently, DCII is traded at 51.19x PBV.
IHSG Updates
The JCI declined by -0.70% to 7,075.34 on Wednesday (13/12), followed by net foreign sell of IDR819.17 billion. Most sectors weakened and slowed the index down, led by the technology sector (-2.22%) and followed by industrial sector (-1.13%). On the other hand, some sectors strengthened, led by healthcare sector (+0.64%) and followed by consumer non-cyclicals sector (+0.34%). Asian markets tending to close mixed, whereas investors are wait and see ahead of the expected FOMC decision to maintain the benchmark interest rate level. Meanwhile, Asian markets mixed as China’s loans and money supply data fell slightly below the market expectations. The Rupiah closed lower at IDR15,660/USD. We estimate the IHSG will move within the price range of 7,032-7,130. Today's Recommendations: HMSP, HRUM, PTRO, WIFI.
Corporate Actions
Cum Dividend : TOWR (IDR6/share)
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