Global Market Highlights
The DJIA increased by +0.16% on Friday (23/02), while the S&P 500 flattened (+0.03%) and the Nasdaq declined (-0.28%). Wall Street closed mix as investors tend to wait and see after Fed policymakers’ speeches signaled that the interest rate will not be reduced until inflation rate moves sustainably toward 2%. Additionally, the minutes showed some uncertainty of the tight monetary policy stance that would depend on incoming data, including the evolving outlook and the balance of risks. Today the market will be looking forward to several data releases such as: 1) US New Home Sales Jan-2024; 2) CA Manufacturing Sales Jan-2024; 3) SG Industrial Production Jan-2024.
Domestic Update
Bank Indonesia reported that credit distribution in Jan-2024 grew +11.5% YoY (vs. +10.7% YoY in Dec-2023), reaching IDR7,009.9 trillion. MNCS Comment: We note that the largest credit growth came from investment credit (+12.8% YoY) especially from the processing industry, transport and communications sector, followed by Working Capital Credit (+12.2% YoY) from the Finance, Real Estate and Mining sectors, and finally consumer credit (+9.5% YoY), mainly coming from KPR and Motor Vehicle Loans. This pushed the M2 money supply in Jan-2024 to reach IDR8,721.9 trillion or grow +5.4% YoY.
Company News
1. BFIN IJ posted a net profit of IDR1.643 trillion in FY23 or down -9.0% YoY from IDR1.806 trillion in FY22 (Emiten News). MNCS Comment: We note that the company's revenue grew +18.0% YoY to reach IDR 6.353 trillion, supported by the sharia segment (+66.1% YoY) and financial income (+272% YoY). However, the company was burdened by the growth in total expenses of 37.6% YoY to IDR4.327 trillion from salary expenses (+10.0% YoY) and interest expenses (+52.4% YoY). BFIN is currently trading at the level of 2.24x PBV.
2. INTP IJ recorded a sales volume growth of cement reaching 1.5 million tons in 1M24, marking an increase of ~7% YoY (Kontan). MNCS Comment: We assess that this rise is primarily driven by production from PT Semen Grobogan and the company's stable market share at ~30%. Additionally, the growth in sales volume exceeds the industry's target growth for FY24E of 2%-3%. Along with post-election momentum, we expect this to sustain the company's volume growth ahead, aligning with the recovery in demand. INTP is currently trading at 19.72x/1.64x PER/PBV.
3. ASGR IJ hit IDR141 billion (+45.33% YoY) net income in FY23 (Emiten News). MNCS Comment: We view this impressive profit growth is supported by the increase in Document Solutions including machine sales, IT services, and the optimization of revenue and operational costs. The company managed to maintain the number of total assets while reducing their liabilities as much as -9.5% YoY in FY23. ASGR is currently trading at 9.08x/0.72x PER/PBV.
IHSG Updates
The JCI weakened by -0.61% to 7,295.10 on Friday (23/02), followed by a net foreign sell reaching IDR1.05 trillion. The majority of sectors experienced declines and weighing on the index, led by the financial sector (-0.94%) followed by the transportation and logistics sector (-0.54%). On the flip side, sectors showing gains were led by infrastructure (+0.53%) followed by the technology sector (+0.38%). The index weakened amid most Asian markets moving in the green, as profit-taking activities on several company that appreciated since the end of last year once again restrained the index. Moreover, investors tended to wait and see during the earnings release period. The Rupiah closed lower at IDR15,595/USD. We estimate the IHSG will move within the price range of 7,247-7,315. Today's Recommendations: ERAA, IMAS, PGEO, MAPI.
Disclaimer On
