Global Market Highlights
DJIA strengthened +0.03% on Wednesday (25/01), while the S&P500 (-0.02%) and Nasdaq (-0.18%). Wall Street closed mixed as investors paid attention to issuers' earnings releases in 4Q22. In addition, investors were also worried about the escalating Ukraine-Russia geopolitical conflict with the possibility of Germany and the US to distribute additional war equipment to Ukraine. Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM Dec; 2) US GDP Growth Rate QoQ Adv Q4; 3) US Initial Jobless Claims Jan 21.
Domestic Update
• Bank Indonesia secures SBN of up to IDR1,450 trillion which will be used for monetary operations. MNCS Comment: Monetary operations are especially needed to maintain rupiah exchange rate stability amid global economic uncertainty. BI will also carry out a twist operation to make SBN yields more attractive.
Company News
1. KOBX IJ recorded revenue (unaudited) in FY22 reaching USD168.5 million (Emiten News). MNCS Comment: Thus, the company's revenue growth has the potential to be +41.2% YoY (vs USD119.3 million in FY21). We believe the revenue growth was supported by the increase in sales volume in line with rising commodity prices. To maintain growth in FY23E, the company targets a capex allocation of USD4 million. Currently, KOBX is traded at the level of 0.74x PBV.
2. ADHI IJ recorded the acquisition of new contract values reaching IDR23.7 trillion in FY22 (Market Bisnis). MNCS Comment: Thus, the acquisition of new contracts has exceeded the target of IDR23 trillion and grew +55.9% YoY (vs IDR15.2 trillion in FY21). 27% of the value of new contracts came from the Government, followed by SOE (9%) and the rest, including the private sector, contributed 64%. Currently, ADHI is traded at the level of 0.69x PBV.
3. ASLC IJ recorded sales of used car units through Caroline of 2,481 units (Market Bisnis). MNCS Comment: Thus, the actual sales of used cars have exceeded the target in FY22 of 2,000 units. Meanwhile, the company targets the used car sales in FY23E to be 3,000-4,000 units. This will be supported by Caroline's expansion by adding 22 touch points until Oct-2022. Currently, ASLC is traded at the level of 2.04x PBV.
IHSG Updates
JCI weakened -0.45% to 6,829.93 on Wednesday (25/01), followed by net foreign sell reaching IDR222.69 billion. The majority of sectors experienced weakness and weighed on the index, led by the energy sector (-0.87%) followed by the raw materials sector (-0.58%). On the other hand, sectors that experienced strengthening were led by the transportation sector (+3.14%) followed by the financial sector (+0.57%). The index weakened as investors' attention will focus on the release of the issuer's financial reports. In addition, we see investors still tend to wait and see ahead of the release of US GDP growth in 4Q22. On the other hand, the Rupiah exchange rate closed lower at the level of IDR14,965/USD. We estimate that the JCI will move in the price range of 6,800-6,850. Today's recommendation: ARTO, BBCA, BUKA, CARE.
Corporate Actions
RUPS: NPGF
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