MNCS Morning Navigator

30 Desember 2022

MNCS Morning Navigator December 30, 2022

Global Market Highlights
DJIA strengthened +1.05% on Thursday (29/12), followed by the S&P500 (+1.75%) and the Nasdaq (+2.59%). Wall Street managed to rebound after the UST yield fell to 3.84%. In addition, investors also paid close attention to the release of initial jobless claims data as of December 24, 2022 which rose to 225k or in line with consensus estimates. Today, the market will be looking toward several data releases such as: 1) US Chicago PMI Dec; 2) UK Nationwide Housing Prices YoY Dec; 3) UK Nationwide Housing Prices MoM Dec.

Domestic Update
• Pefindo reported that the issuance of corporate bonds in FY22E reached IDR163.6 trillion. MNCS Comment: Issuance of corporate debt securities increased +44.7% YoY (vs IDR113.1 trillion in FY21), we see this supported by the positive economic outlook going forward in addition to sufficient liquidity.
• Furthermore, the national Covid-19 daily rate had increased by 685 active cases (29/12).

Company News
1. UNTR IJ will allocate capex of USD1 billion in FY23F (Investor ID). MNCS Comment: Capex allocation increased +33.3% YoY from FY22E which amounted to USD750 million. In addition, around 90% of the use of capex will be used for the coal mining contractor segment, especially in reconditioning heavy equipment. Currently, UNTR is traded at the level of 4.63x/1.24x PER/PBV.
2. WIFI IJ collaborates with EXCL in leasing fiber optic cables on the Java Island railroad (Investor ID). MNCS Comment: We positively view this collaboration as supporting the company's performance going forward, in which EXCL leases a 3,599 km telecommunications network for 10 years. Currently, WIFI is traded at the level of 17.67x/0.57x PER/PBV.
3. PPRO IJ recorded a +70% YoY growth in apartment sales in FY22E (Business Market). MNCS Comment: We see an increase in sales of the apartment segment in line with the improvement in the national property market. Meanwhile, in the future, the apartment property business will be supported by a high backlog of shortages in the supply of houses and lagging adjustment of the installment rates in accordance to the interest rates. Currently, PPRO is traded at the level of 0.77x PBV.

IHSG Updates
JCI strengthened +0.14% to 6,860.08 on Thursday (29/12), followed by net foreign sell which reached IDR1.70 trillion. A number of sectors experienced strengthening and boosted the index rate, led by the technology sector (+1.78%) and followed by the health sector (+1.25%). On the other hand, the sectors that experienced weakness were the energy sector (-1.32%) and the transportation sector (-0.42%). The index strengthened amid weakening Wall Street. We see investors responding positively to the consensus estimate of inflation in Dec-2022 at +5.4% YoY, or slightly down from the realization in Nov-2022 at 5.42% YoY. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,658/USD. We estimate that the JCI will move in the price range of 6,824-6,900. Today's recommendation: CARE, CPIN, INCO, KLBF.

Corporate Actions
Cum Dividend: ADRO (IDR249.5/share)
Public Expose: BANK, KRAS

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