Global Market Highlights
DJIA rallied +0.02% on Wednesday (01/02), followed by the S&P500 (+1.05%) and the Nasdaq (+2.00%). Wall Street strengthened as the US T-note 10Y yield decreased to 3.40%, triggered by the Fed's dovish comments. Meanwhile, the data release of JOLTs Job Openings in Dec-2022 reached 11.0 million (vs 10.4 million previously). Today, the market will be looking toward several data releases such as: 1) US Initial Jobless Claims Jan 28; 2) UK BoE Interest Rate Decision; 3) Germany Balance of Trade Dec.
Domestic Update
• BPS reported that domestic inflation in Jan-2023 reached +5.28% YoY, lower than the BI/consensus estimate of +5.33%/+5.40% YoY, respectively. MNCS Comment: Inflation in Jan-2023 slowed down from the realization in Dec-2023 (+5.51% YoY). Meanwhile, the increase in inflation was driven by an increase in the commodity price of rice. Going forward, we estimate that the driver of the increase in inflation will be caused by seasonal factors such as Idul Fitri 1H23.
Company News
1. PTRO IJ posted net profit growth of +114% YoY in 9M22 to USD 30.8 million (vs USD 14.4 million in 9M21) (Emiten News). MNCS Comment: The increase in net profit was supported by revenue growth +9.3% YoY to USD329.7 million (vs USD301.6 million in 9M21), in line with increased mining segment revenue +5.9% YoY and construction & engineering +40.3% YoY, as well as expansion in margins, where GPM and OPM rose to 20.3%/11.4%, respectively (vs 14.4%/5.4% in 9M21). Currently, PTRO is traded at the level of 8.01x/1.14x PER/PBV.
2. BIRD IJ targets to increase the electric taxi fleet to 200 units in FY23E (Market Bisnis). MNCS Comment: We view positively the company's efforts in increasing EV units, so as to increase ESG values. Apart from that, the company also plans to add ~5,800 non-EV taxi fleets. Meanwhile, the total capex allocation reaches IDR 1.5-2 trillion. Currently, BIRD is traded at the level of 12.46x/0.84x PER/PBV.
3. PGAS IJ announced plans to share dividends with the DPR reaching 50-60% for the FY22 financial year (Market Bisnis). MNCS Comment: As of 9M22, PGAS posted a net profit of USD 310.5 million or an annualized basis in FY22 of USD414.0 million. With a potential DPR of 50-60% and an exchange rate of IDR 14,975/USD as of 1 February 2023, the potential DPS reaches IDR128-153/share. Currently, PGAS is traded at the level of 6.03x/0.95x PER/PBV.
IHSG Updates
JCI strengthened +0.34% to 6,862.26 on Wednesday (01/02), followed by net foreign buy reaching IDR189.63 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the transportation sector (+1.86%) followed by the cyclical sector (+1.27%). On the other hand, sectors that experienced weakness were led by the energy sector (-0.42%) followed by the property sector (-0.18%). The strengthening of the index was in line with the movement of Wall Street & Asian stock exchanges. We see investors responding positively to the release of Indonesia Manufacturing PMI data in Jan-2023 which was expansive to a level of 51.3 points (vs 50.9 points in Dec-2022). On the other hand, the Rupiah exchange rate closed higher at the level of IDR14,975/USD. We estimate that the JCI will move in the price range of 6,840-6,880. Today's recommendation: AISA, ASII, HRUM, JPFA.
Corporate Actions
IPO: IRSX (IDR101/share)
RUPS: GDST
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