Global Market Highlights
The DJIA weakened by -0.11% on Monday (04/12), followed by S&P500 (-0.54%) and Nasdaq (-0.84%). Wall Street contracted as the UST yield rose to 4.28%, investors wait-and-see ahead of labor data release this week. Additionally, investors noted a decline of -3.6% MoM in Oct-2023 factory orders (vs +2.3% MoM in Sep-2023), falling below the consensus estimate of -2.8% MoM. Today, the market will be looking toward several data releases such as: 1) US ISM Services PMI Nov-23; 2) EU PPI YoY Oct-23; 3) China Caixin Services PMI Nov-23.
Domestic Update
Indonesia's Manufacturing PMI in Nov-2023 stood at 51.7. MNCS Comment: The manufacturing PMI slightly increased from the Oct-2023 realization of 51.5, maintaining an expansionary level for 27 consecutive months. The uptick is supported by an increase in new orders, aligning with growing demand. Looking ahead, we expect Indonesia's manufacturing PMI to sustain its expansion, supported by a stable macroeconomic environment.
Company News
1. BYAN IJ reported a net profit decline of -44.1% YoY to USD910.5 million in 9M23 (vs USD1.6 billion in 9M22) (Market Bisnis). MNCS Comment: The decrease in net profit is attributed to a -17.7% YoY drop in revenue to USD2.8 billion in 9M23 (vs USD3.3 billion in 9M22) due to coal ASP contraction. Furthermore, we note the company's GPM and NPM decreased to 48.0%/33.0% in 9M23 (vs 68.9%/48.6% in 9M22). Currently, BYAN is traded at a level of 33.95x/19.98x PER/PBV.
2. ITMG IJ recorded coal sales volume of 15.3 million tons in 9M23 (Emiten News). MNCS Comment: ITMG saw a +10.9% YoY increase in coal sales volume (vs 13.8 million tons in 9M22). With a target sales volume of 21.1 million tons, the realization by 9M23 achieves 72.5% of the FY23E target. Currently, ITMG is traded at a level of 3.31x/1.06x PER/PBV.
3. INTP IJ acquired PT Semen Grobogan (SGB) worth IDR1.49 trillion (Emiten News). MNCS Comment: We assess the acquisition positively given the ample cash level of the company. With this acquisition, we anticipate an increase in capacity to 28.0-28.4 million tons of cement with utilization at 60-65%. The acquisition also strengthens the company's footprint and enhances market share, especially on Java Island. We expect this acquisition to drive better company performance in the future. Currently, INTP is traded at a level of 20.37x/1.70x PER/PBV.
IHSG Updates
The JCI closed higher by +0.48% at 7,093.60 on Monday (04/12), Most sectors experienced gains, led by the technology sector (+1.29%), followed by the basic materials sector (+0.97%). On the flip side, sectors experiencing declines were led by the non-cyclical sector (-0.28%), followed by the cyclical sector (-0.13%). The index outperformed as Asian markets tended to weaken, supported by investor optimism about The Fed's dovish stance going forward. Meanwhile, the decline in Asian markets reflects investor wait-and-see sentiment ahead of the US labor market data release and inflation data in several Asian countries (Japan, Thailand, and the Philippines). The Rupiah closed higher at IDR15,455/USD. We estimate the IHSG will move within the price range of 7,062-7,083. Today's Recommendations: ASSA, BBCA, ESSA, UNVR.
Corporate Actions
EGMS : HKMU, RMKE, SSMS
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