Global Market Highlights
DJIA gained +0.11% on Wednesday (15/02), followed by the S&P500 (+0.28%) and the Nasdaq (+0.92%). Wall Street solidly strengthened as investors responded positively to the release of Jan-2023 retail sales data which grew +3% MoM, higher than the consensus of +1.8% YoY. Today, the market will be looking toward several data releases such as: 1) US Building Permits Prel Jan; 2) US PPI MoM Jan; 3) US Philadelphia Fed Manufacturing Index Feb.
Domestic Update
• Indonesia's trade balance was a surplus of USD3.87 billion in Jan-2023 and marked a surplus for 33 consecutive months since May-2020. MNCS Comment: The trade balance surplus was higher than the consensus estimate of USD3.25 billion due to a much larger decline in imports (-7.15% MoM) than exports (-6.36% MoM).
Company News
1. BDMN IJ recorded a +110% YoY consolidated net profit growth in FY22 to IDR3.3 trillion (Investor ID). MNCS Comment: The increase in net profit was supported by: 1) total credit growth +12% YoY; 2) increase in NIM by +30 bps YoY; 3) credit cost reduction by -200 bps YoY. We expect continued credit growth as BI expects +10-12% YoY credit growth in line with ample liquidity. Currently, BDMN is traded at the level of 0.61x PBV.
2. IPCC IJ reported that the growth in the loading and unloading volume of CBU vehicles in Jan-2023 reached +86.28% YoY to 32,629 units (Kontan). MNCS Comment: The growth in loading and unloading volume was in line with the increase in domestic car sales in Jan-2023 reaching +11.9% YoY. As GAIKINDO is targeting growth in domestic car sales in FY23E, as well as downstreaming commodity products that can increase demand for heavy equipment, it is expected to continue growing loading and unloading volumes in FY23E. Currently, IPCC is traded at the level of 7.58x/0.97x PER/PBV.
3. MTEL IJ together with ISAT signed a conditional sale and purchase agreement (PJBB) to acquire 997 towers worth IDR1.64 trillion (Market Bisnis). MNCS Comment: Through the acquisition of these towers, MTEL has further strengthened its position with the most tower ownership, which we estimate has touched ~36k units. It is hoped that this expansion will boost the company's performance in FY23E. Currently, MTEL is traded at the level of 35.75x/1.76x PER/PBV.
IHSG Updates
JCI weakened -0.39% to 6,914.54 on Wednesday (15/02), followed by net foreign sell reaching IDR387.26 billion. The majority of sectors experienced weakness and weighed on the index, led by the technology sector (-1.29%) followed by the transportation sector (-1.25%). On the other hand, sectors that experienced strengthening were led by the health sector (+0.30) followed by the non-cyclical sector (+0.09%). The weakening of the JCI was in line with Asian stock exchanges, overshadowed by negative global sentiment in the form of worries about the Fed's hawkish stance as the US inflation rate in Jan-2023 was above consensus. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,204/USD. We estimate that the JCI will move in the price range of 6,857-6,932 pending BI’s interest rate decision and the release of Loan Growth YoY Jan, Lending Facility Rate Feb, and Deposit Facility Rate Feb data. Today's recommendation: DOID, JSMR, UNTR, RALS.
Corporate Actions
IPO: KING (IDR130/share)
RUPS: BKSW, MIKA
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