Global Market Highlights
The DJIA strengthened by +0.17% on Thursday (07/12), followed by S&P500 (+0.80%) and Nasdaq (+1.37%). Wall Street rebounded, supported by the rise in technology stocks. Additionally, investors noted the release of initial jobless claims data as of December 2, which increased to 220k (vs 219k previously). This reinforces investor optimism regarding The Fed's dovish policy in the upcoming FOMC. Today, the market will be looking toward several data releases such as: 1) Japan GDP Growth QoQ Final Q3; 2) Germany Inflation Rate YoY Final Nov-23; 3) US Non Farm Payrolls Nov-23.
Domestic Update
Bank Indonesia (BI) reported reserves assets position in Nov-2023 at USD138.1 billion. MNCS Comment: The reserves assets increased by USD5 billion compared to the Oct-2023 realization of USD133.1 billion. This increase was driven by the issuance of global sukuk, foreign government loan withdrawals, and tax and service revenues. We anticipate the strengthening of reserves assets as a cushion for the Rupiah exchange rate towards the end of the year.
Company News
1. TRIN IJ recorded marketing sales of IDR958.1 billion in 11M23 (Emiten News). MNCS Comment: We note that marketing sales increased by +10.1% YoY (vs IDR870.3 billion in 11M22). With a marketing sales target of IDR900 billion in FY23E, the target has been exceeded with a realization of 106.5%. Currently, TRIN is traded at a level of 1.13x PBV.
2. BYAN IJ will distribute an interim dividend of USD500 million, equivalent to USD0.015 per share (Emiten News). MNCS Comment: With a net profit of USD910.5 million in 9M23, the payout ratio reaches 54.9%. Furthermore, using the Bank Indonesia middle rate (07/12) of IDR15,504/USD, the estimated DPS is IDR232.6 per share, or BYAN will offer a dividend yield of 1.2%. Currently, BYAN is traded at a level of 33.60x/19.77x PER/PBV.
3. ASSA IJ targets double-digit net profit growth for FY23E (Kontan). MNCS Comment: In 9M23, we note the company's net profit decreased by -9.9% YoY to IDR118.3 billion (vs IDR131.3 billion in 9M22). We expect flat net profit growth in FY23E, considering a turnaround in logistics services in 4Q23 supported by the festive season momentum. Currently, ASSA is traded at a level of 20.60x/1.74x PER/PBV.
IHSG Updates
The JCI strengthened by +0.67% at 7,134.62 on Thursday (07/12), followed by a net foreign sell of IDR254.77 billion. Several sectors experienced gains and propelling the index, led by the basic materials sector (+4.06%) followed by the infrastructure sector (+3.08%). On the other hand, sectors experiencing declines were led by the healthcare sector (-1.58%) followed by the property sector (-1.23%). The index solidified its gains amid a corrected Asian market, where investors positively responded to the release of domestic trade balance data in Nov-2023. The Rupiah closed lower at IDR15,515/USD. We estimate the IHSG will move within the price range of 7,080-7,150. Today's Recommendations: AGII, ERAL, KLBF, TLKM.
Corporate Actions
EGMS : ENRG, PCAR
Cum Dividend : DMAS (IDR12/share)
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