MNCS Morning Navigator

12 Januari 2023

MNCS Morning Navigator January 12, 2023

Global Market Highlights
DJIA gained +0.80% on Wednesday (11/01), followed by the S&P500 (+1.28%) and the Nasdaq (+1.76%). Wall Street continued to strengthen as the UST yield decreased to 3.5% driven by: 1) falling inflation expectations to 6.5% YoY; 2) moderate increase in FFR +25 bps at FOMC Feb-2023. Today, the market will be looking toward several data releases such as: 1) US Inflation Rate YoY Dec; 2) US Core Inflation Rate YoY Dec; 3) US CPI Dec.

Domestic Update
Indonesia's retail sales performance in Nov-2022 grew slower +1.3% YoY. MNCS Comment: The slowdown in retail sales performance was caused by a decline in the sales of information and communication equipment (-16.3% YoY) and other household equipment (-14.2%), amidst the F&B, as well as cultural and recreational goods segments which continued to grow +4.8%/+5.8% YoY, respectively.

Company News
1. SIDO IJ targets +15% YoY revenue and net profit growth in FY23E (Investor ID). MNCS Comment: We project SIDO's revenue and net profit in FY23E to reach IDR4.1/1.2 trillion, respectively. This will be supported by IDR213 billion capex allocation and sales volume growth in line with increasing marketing penetration. Currently, SIDO is traded at the level of 22.02x/6.00x PER/PBV.
2. TRIN IJ recorded marketing sales of IDR948 billion in FY22 (Emiten News). MNCS Comment: Therefore, the company's marketing sales grew +91.9% YoY (vs IDR 494.1 billion in FY21) and the realization exceeded the target of IDR900 billion. This achievement was supported by the Sequoia Hills, Sentul and Collins Boulevard projects. Currently, TRIN is traded at the level of 1.85x PBV.
3. PWON IJ reported capex allocation in FY23E of IDR2.4 trillion (Market Bisnis). MNCS Comment: Capex allocation in FY23E decreased compared to the target in FY22 of IDR2.9 trillion. Meanwhile, IDR1.5 trillion will be used for land expansion needs in Batam, Central Java and Bali. Currently, PWON is traded at the level of 13.40x/1.26x PER/PBV.

IHSG Updates
JCI weakened -0.57% to 6,584.45 on Wednesday (11/01), followed by net foreign sell which reached IDR1.29 trillion. The majority of sectors experienced weakness and weighed on the index, led by the health sector (-1.20%) and followed by the financial sector (-1.02%). On the other hand, the sectors that experienced strengthening were the transportation sector (+0.57%) and followed by the energy sector (+0.24%). The weakening of the index occurred amid the strengthening of Wall Street and Asian stock exchanges. We see that the weakening of the Index is still overshadowed by portfolio rebalancing activities, marked by capital outflows that have been ongoing since the beginning of the year. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,458/USD. We estimate that the JCI will move in the price range of 6,530-6,630. Today's recommendation: ERAA, INDF, ITMG, SMGR.

Corporate Actions

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