Global Market Highlights
DJIA strengthened +0.55% on Thursday (8/12), followed by the S&P500 (+0.75%) and the Nasdaq (+1.13%). Wall Street strengthened as market players were optimistic for the release of the Nov-2022 PPI data which is expected to fall according to consensus to +7.2% YoY (vs +8.0% YoY in Oct-2022). Today, the market will be looking toward several data releases such as: 1) US PPI MoM Nov; 2) US Michigan Consumer Sentiment Prel Dec; 3) US Wholesale Inventories Oct.
Domestic Update
• Bank Indonesia (BI) reported Consumer Confidence Index (CCI) decreased 1.2 points to 119.1 in Nov-2022 (vs 120.3 in Oct-2022). MNCS Comment: Despite remaining optimistic on the domestic economy, consumer sentiment weakens particularly driven by income & economic outlook.
• Furthermore, the national Covid-19 daily rate had increased by 2,977 active cases (8/12).
Company News
1. WEGE IJ reported that the acquisition of new contracts up to 11M22 reached IDR4.24 trillion (IQ Plus). MNCS Comment: Therefore, the value of new contracts increased +109.9% YoY (vs IDR2.02 trillion in 11M21), with the portion of the value of the majority of new contracts came from the private sector 43.71%, the government 32.81% and SOE 23.48%. Meanwhile, realized capex reached IDR315.50 billion. With the target of achieving a new contract value in FY22E of IDR7.1 trillion, realization up to 11M22 had only reached 59.7%. Currently, WEGE is traded at the level of 12.18x/0.64x PER/PBV.
2. JSMR IJ recorded revenue growth of 20.6% YoY to 10M22 (IQ Plus). MNCS Comment: The increase in revenue was supported by the toll road revenue segment (+20.0% YoY) where traffic volume grew +18.76% YoY. In addition, improved mobility also contributed to the company's performance. It is hoped that the existence of the Christmas and new year festive season can accelerate the company's revenue in FY22E. Currently, JSMR is traded at the level of 15.57x/0.97x PER/PBV.
3. TRIN IJ reported marketing sales achievements of up to 11M22 of IDR870.3 billion, supported by the Sequoia Hills project (IQ Plus). MNCS Comment: Thus, marketing sales achievements increased +170% YoY. With a target of obtaining marketing sales in FY22E of IDR900 billion, realization up to 11M22 reached 96.7%. Currently, TRIN is traded at the level of 2.34x PBV.
IHSG Updates
JCI weakened -0.21% to 6,804.23 on Thursday (8/12), followed by net foreign sell which reached IDR2.02 trillion. A number of sectors weakened and weighed on the index, led by the transportation & logistics sector (-1.57%) and followed by the industrial sector (-1.06%). On the other hand, the sectors that experienced strengthening were the basic industry sector (+1.52%) followed by the infrastructure sector (+1.06%). The weakening of the index was in line with the weakening of most of the Asian bourses and Wall Street. We see that market players have responded negatively to the release of Indonesia's consumer confidence data for Nov-2022, which declined to 119.1 points (vs 120.3 points in Oct-2022). In addition, we also see that investors tend to wait and see ahead of the announcement of China's inflation rate in Nov-2022 which is estimated by consensus to be at 1.6% YoY (vs 2.1% in Oct-2022). On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,621/USD. We estimate that the JCI will move in the price range of 6,725-6,830 pending the release of Retail Sales YoY Oct data. Today's recommendation: CTRA, HRUM, MYOR, SMGR.
Corporate Actions
Cum Dividend: POWR (IDR24.72/share), TBLA (IDR40/share)
IPO: ISAP (IDR96/share)
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