Global Market Highlights
DJIA strengthened +0.50% on Friday (10/02), followed by the S&P500 (+0.22%) while the Nasdaq (-0.61%). Wall Street closed mixed, where the positive catalyst came from Michigan Consumer Sentiment Prel data in Feb-2023 which rose to 66.4 (vs 64.9 in Jan-2023). However, the rise in UST yield to 3.74% weighed on Nasdaq's performance. Today, the market will be looking toward several data releases such as: 1) US Fed Bowman Speech; 2) US Consumer Inflation Expectations Jan; 3) US 6-Month Bill Auction.
Domestic Update
• Based on transaction data from 6-9 February 2023, non-residents on the domestic financial market sold IDR0.59 trillion net (net sold IDR3.11 trillion on the SBN market and bought IDR2.52 trillion net on the stock market). MNCS Comment: The stock market recorded net buys again for one week as investors paid close attention to the release of financial reports.
Company News
1. SIDO IJ posted a IDR1.1 trillion net profit in FY22, or decreased -12.7% YoY (vs IDR1.3 trillion in FY21) (Kontan). MNCS Comment: The decline in net profit was in line with the -3.9% YoY decrease in revenue to IDR3.9 trillion (vs IDR4.0 trillion in FY21) and also the high base effect during the pandemic. However, SIDO was still able to record net profit growth with a CAGR of 15.7% in FY17-22. Currently, SIDO is traded at the level of 21.73x/6.85x PER/PBV.
2. BTPS IJ posted a IDR1.8 trillion net profit in FY22 or grew +20.7% YoY (vs IDR1.5 trillion in FY21) (Emiten News). MNCS Comment: The increase in net profit was in line with the increase in margin income +15% YoY, the decrease in BOPO to 58.1% (vs 60.0% in FY21), and the decrease in cost to income to 37% (vs 39% in FY21). Currently, BTPS is traded at the level of 2.50x PER/PBV.
3. INCO IJ conducted a groundbreaking for the construction of the Bahodopi smelter project (Kontan). MNCS Comment: The smelter's investment value reaches IDR37.5 trillion with an additional production capacity of 73k/year. The smelter is targeted to operate in FY25F. It is hoped that through the construction of the smelter it can boost the company's performance going forward and add ESG value in line with the electricity source coming from natural gas. INCO is currently traded at the level of 20.92x/2.02x PER/PBV.
IHSG Updates
JCI weakened -0.25% to 6,880.33 on Friday (10/02), followed by net foreign buy reaching IDR754.94 billion. The majority of sectors experienced weakness and weighed on the index, led by the technology sector (-2.28%) followed by the energy sector (-1.29%). On the other hand, sectors that experienced strengthening were led by the transportation sector (+1.11%) followed by the health sector (+1.06%). The index's weakening was in line with Wall Street and some Asian bourses. Investors were watching the release of China's inflation rate data in Jan-2023 which increased to +2.1% YoY (vs +1.8% YoY in Dec-2022). On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,134 /USD. We estimate that the JCI will move in the price range of 6,850-6,927. Today's recommendation: ADRO, BIPI, ESSA, TOWR.
Corporate Actions
Cum Right Issue: YELO (IDR100/share)
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