Global Market Highlights
DJIA fell -1.26% on Thursday (16/02), followed by the S&P500 (-1.38%) and the Nasdaq (-1.78%). Wall Street fell as investors watched the release of producer-level inflation data in Jan-2023 which was up +0.7% MoM, to be above consensus at +0.4% MoM. This signals the Fed to raise interest rates higher in the future. Today, the market will be looking toward several data releases such as: 1) US CB Leading Index MoM Jan; 2) UK Retail Sales YoY Jan; 3) France Inflation Rate YoY Final Jan.
Domestic Update
• Bank Indonesia (BI) maintained the 7-day reverse repo rate at 5.75% in the RDG 15-16 February 2023, in line with our expectations and consensus. MNCS Comment: The core inflation and inflation rate are expected to continue to decelerate. The base effect will soon reach in Sep-2023 after the inflation rate falls below 4%.
Company News
1. BBTN IJ recorded consolidated net profit growth of +28.15% YoY in FY22 to IDR3.04 trillion (Emiten News). MNCS Comment: The increase in net profit was supported by: 1) total credit growth +8.5% YoY; 2) increase in NIM by +41 bps YoY to 4.40%; 3) decrease in CoF Deposits -53 bps YoY. NPL fell to 3.38% (vs 3.70% in FY21). Currently, BBTN is traded at the level of 0.88x PBV.
2. ANTM IJ targets ferronickel production and sales volume growth of +12% YoY respectively, while nickel ore production is targeted to grow +31% YoY with sales increasing +36% YoY (Emiten News). MNCS Comment: We view that the growth target will be supported by a ferronickel plant in East Halmahera which is estimated to be operational in 2H23. It is hoped that through the increase in sales volume, it can encourage better company performance. Currently, ANTM is traded at the level of 14.48x/2.25x PER/PBV.
3. BRMS IJ managed to find additional new mineral reserves reaching 8 million tons of ore in Block 1 Paboya (Emiten News). MNCS Comment: Thus, mineral reserves increased to 22 million tons. The increase in reserves accompanied by an increase in the capacity of the new gold factory in Palu by 4,000 tons of ore/day is expected to increase the company's production in the future. Currently, BRMS is traded at the level of 191.29x/1.41x PER/PBV.
IHSG Updates
JCI weakened -0.27% to 6,895.66 on Thursday (16/02), followed by net foreign sell reaching IDR573.61 billion. The majority of sectors experienced weakness and weighed on the index, led by the health sector (-0.73%) followed by the energy sector (-0.54%). On the other hand, sectors that experienced strengthening were led by the technology sector (+1.04) followed by the infrastructure sector (+0.92%). The weakening of the JCI occurred amid strengthening Asian stock exchanges and Wall Street. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,157/USD. We estimate that the JCI will move in the price range of 6,857-6,917. Today's recommendation: BBKP, BRMS, BUKA, PTBA.
Corporate Actions
RUPS: MIDI
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