Global Market Highlights
DJIA strengthened +0.39% on Friday (17/02), while the S&P500 (-0.28%) and Nasdaq (-0.58%). Wall Street closed mixed as investors paid close attention to the Fed's hawkish comments. Today, the market will be looking toward several data releases such as: 1) France 12-Month BTF Auction; 2) France 6-Month BTF Auction; 3) Germany 12-Month Bubill Auction.
Domestic Update
• The Indonesian Shopping Center Management Association (APPBI) estimates that the level of visits to shopping centers (malls) can exceed 100%. MNCS Comment: We view that along with the relaxation of Covid-19 ahead of the Eid al-Fitr celebration, it can increase the number of visitors to shopping centers beyond FY20/FY21/FY22, so that it will have a positive impact on retail issuers.
Company News
1. BNGA IJ recorded a +19.6% YoY consolidated net profit growth in FY22 to IDR5.0 trillion (Kontan). MNCS Comment: The increase in net profit was supported by: 1) total credit growth +9.4% YoY; 2) increase in interest income by +1.3% YoY; 3) decrease in Cost of Credit -60 bps YoY. NPL fell to 2.8% (vs 3.50% in FY21). Currently BNGA is traded at 0.69x PBV.
2. ADMR IJ recorded total coal production reaching 3.37 million tons in FY22, while sales volume was 3.20 million tons (Emiten News). MNCS Comment: Coal production and sales volume increased +46.5%/39.1% YoY respectively, or exceeded management's target of 3.3 million tons. It is hoped that the operation of the Lahai Coal mine will boost the amount of coal production in FY23E. Currently, ADMR is traded at the level of 10.26x/8.01x PER/PBV.
3. INCO IJ recorded a net profit in FY22 of USD200.4 million, or an increase of +20.95% YoY (vs USD165.8 million in FY21) (Market Bisnis). MNCS Comment: The increase in net profit was supported by revenue growth +23.7% YoY to USD1.2 billion (vs USD953.2 million in FY21) as the average realized price was ~35% YoY higher. It is hoped that the return to operation of Furnace 4 this year will boost the company's performance. Currently, INCO is traded at the level of 21.57x/1.84x PER/PBV.
IHSG Updates
JCI flat +0.00% to 6,895.71 on Friday (17/02), followed by net foreign sell reaching IDR276.70 billion. The majority of sectors experienced weakness and weighed on the index, led by the property sector (-0.97%) followed by the raw materials sector (-0.78%). On the other hand, sectors that experienced strengthening were led by the health sector (+0.64) followed by the non-cyclical sector (+0.51%). The index closed flat as investors wait and see ahead of the release of 4Q22 current account data. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,203/USD. We estimate that the JCI will move in the price range of 6,880-6,920. Today's recommendation: AUTO, BEST, INDY, MARK
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