Global Market Highlights
DJIA strengthened +1.11% on Monday (13/02), followed by the S&P500 (+1.14%) and the Nasdaq (+1.48%). Wall Street closed higher ahead of the release of the Jan-2023 inflation rate which is expected to slow to +6.2% YoY according to consensus (vs +6.5% YoY on Dec-2022 realization). Today, the market will be looking toward several data releases such as: 1) US Core Inflation Rate YoY Jan; 2) US Inflation Rate YoY Jan; 3) UK Unemployment Rate YoY Dec.
Domestic Update
• The Feb-2022 Coal Reference Price (HBA) fell -9.2% MoM to USD 277.05/ton (vs USD 305.21/ton in Jan-2022). MNCS Comment: The Feb-2022 HBA is still above the global spot price at ~USD226/ton, we view price movements will soften in line with relatively mild cold weather in Europe, and falling gas prices.
Company News
1. ISAT IJ recorded revenue growth of +48.9% YoY in FY22 to IDR46.8 trillion. However, net profit fell -30.0% YoY to IDR4.7 trillion (Emiten News). MNCS Comment: The increase in revenue was supported by the cellular segment which grew +58.4% YoY. Meanwhile, the decrease in revenue was in line with the increase in cost of service +55.7% YoY and depreciation expense +34.3% YoY. EBITDA increased +40.2% YoY to IDR 19.5 trillion. Currently, ISAT is traded at the level of 10.13x/1.82x PER/PBV.
2. HMSP IJ recorded a +4.8% YoY growth in cigarette sales volume in FY22 to 86.8 billion units (Market Bisnis). MNCS Comment: The increase in sales volume was slightly in line with the growth of domestic cigarettes in FY22 by +4.5% YoY to 309.6 billion units. Along with the 10% increase in tobacco excise duty in FY23E-FY24F which could lead to downtrading, HMSP has anticipated by issuing the SPT and KLM cigarette segments and has the potential to boost sales volume. Currently, HMSP is traded at the level of 18.60x/4.55x PER/PBV.
3. ANTM IJ targets gold sales volume growth of 11% YoY to 31,176 kg in FY22E (vs 28,011 kg) (Emiten News). MNCS Comment: We view that the target increase is in line with the acceleration of domestic gold consumption, as well as the government's idea to establish a Bullion Bank. It is hoped that the increase in sales volume target along with the strengthening of gold prices can boost the company's revenue. Currently, ANTM is traded at the level of 15.37x/2.39x PER/PBV.
IHSG Updates
JCI strengthened +0.29% to 6,900.14 on Monday (13/02), followed by net foreign sell reaching IDR409.22 billion. The majority of sectors experienced strengthening and boosted the index, led by the technology sector (+3.69%) followed by the cyclical sector (+1.76%). On the other hand, sectors that experienced weakness were led by the raw materials sector (-0.56%) followed by the health sector (-0.49%). Investors are paying close attention to the release of domestic car sales data for Jan-2023 which managed to grow +11.8% YoY, indicating a solid economic outlook. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,195 /USD. We estimate that the JCI will move in the price range of 6,888-6,910. Today's recommendation: BRIS, ITMG, JPFA, TLKM.
Corporate Actions
RUPS: WSKT, MGRO
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