MNCS Morning Navigator

20 Januari 2023

MNCS Morning Navigator January 20, 2023

Global Market Highlights
DJIA fell -0.76% on Thursday (19/01), followed by the S&P500 (-0.76%) and the Nasdaq (-0.96%). Wall Street continues to weaken as investors worry about a potential recession. Prel's Dec-2022 Building Permits data fell -1.6% MoM to 1.33 million, or below the consensus estimate of 1.37 million and Nov-2022 of 1.35 million. Today, the market will be looking toward several data releases such as: 1) US Existing Home Sales MoM Dec; 2) UK Retail Sales YoY Dec; 3) Germany PPI YoY Dec.

Domestic Update
• Bank Indonesia (BI) increased the 7-day reverse repo rate +25 bps to 5.75% in the RDG 18-19 January 2023. MNCS Comment: This increase is in line with our estimates and consensus. Amidst the downward trend of inflation, inflows of foreign capital, and the peak of the global benchmark interest rate policy, we view that BI has room for another +25 bps increase in interest rates to 6.00% in 1H23.

Company News
1. CLEO IJ targets a capex allocation of IDR300 billion in FY23E (Kontan). MNCS Comment: Capex allocation increased +36.4% YoY from the FY22 target of IDR220 billion, where the capex will be allocated for factory construction and distribution channel improvement. It is hoped that through the increase in capex it can boost the company's performance, with a target of revenue growth and net profit of +30% YoY in FY23E. Currently, CLEO is traded at the level of 27.78x/4.90x PER/PBV.
2. INTP IJ recorded domestic cement sales volume of 15 million tons in 11M22 (Kontan). MNCS Comment: This achievement fell -3.2% YoY (vs 15.5 million tons in 11M21) due to a decrease in domestic cement consumption -3% YoY. It is hoped that the IKN project and the election year in FY23F can drive sales volume going forward. Currently, INTP is traded at the level of 29.16x/1.97x PER/PBV.
3. MTEL IJ realized the acquisition of 6,088 towers and 6,012 km of fiber optic in FY22 (Market Bisnis). MNCS Comment: This realization has brought MTEL to own 34,294 towers by FY22 and around 15,000 km of fiber optic cables, which are expected to support the company's performance going forward. Currently, MTEL is traded at the level of 35.50x/1.75x PER/PBV.

IHSG Updates
JCI strengthened +0.80% to 6,819.91 on Thursday (19/01), followed by net foreign buy which reached IDR708.60 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the industrial sector (+2.19%) and followed by the health sector (+1.62%). On the other hand, the sector that experienced weakness was the transportation sector (-0.08%). Index strengthening occurs amid weakening Wall Street and some Asian stock exchanges. We see investors responding positively to the increase in the benchmark interest rate (BI7DRR) of +25 bps. On the other hand, the Rupiah exchange rate closed lower at the level of IDR15,104/USD. We estimate that the JCI will move in the price range of 6,788-6,870. Today's recommendation: ITMG, SMRA, TBIG, UNTR.

Corporate Actions

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