Global Market Highlights
The DJIA closed +0.07% higher on Tuesday (02/01), while the S&P 500 (-0.57%) and Nasdaq (-1.63%). Wall Street closed mixed, as the UST yield rose to 3.94%, prompting a sell-off on Nasdaq’s tech stocks. Additional negative sentiment came from the release of final Manufacturing PMI data in Dec-2023 of 47.9, weaker than the consensus estimate of 48.2. Today the market will be looking forward to several data releases such as: 1) US JOLTs Job Openings Nov-23; 2) US ISM Manufacturing PMI Dec-23; 3) Germany Unemployment Rate Dec-23.
Domestic Update
BPS reports the inflation rate in Dec-2023 at +2.61% YoY/+0.41% MoM. MNCS Comment: The inflation rate on an annual basis was influenced by inflation in the food, beverage and tobacco group of (+6.18% YoY), the personal care and other services group (+3.55% YoY) and restaurants of (+2.07% YoY). Meanwhile, the inflation rate on a monthly basis was in line with inflation in the food, beverage and tobacco group at +1.07% MoM, followed by transportation at +0.45% MoM. We assess the inflation in Dec-2023 to remain manageable amid the momentum of the festive season, and should be within Bank Indonesia's target of 3±1%. The inflation rate also slowed compared to the realization in Nov-2023 of +2.86% YoY.
Company News
1. AMRT IJ targets an increase in performance in FY24E compared to the previous year (Kontan). MNCS Comment: We expect exponential growth in the company's performance in FY24E, where the positive catalyst comes from election events which can encourage public consumption levels, which we estimate will grow by ~5% YoY. Apart from that, the aggressive expansion set out by MIDI with a SSSG growth target of +6% YoY, through the opening of 200 Alfamidi outlets and 250 Lawson outlets, is poised to be the company's growth engines in the future. Currently AMRT is trading at 41.09x/9.90x PER/PBV.
2. PANI IJ carried out the acquisition of 357k m2 of land worth IDR990.9 billion (Emiten News). MNCS Comment: We positively assess this acquisition, increasing the company's land bank portfolio. This also paves the way for better company performance in the future bolstered by the expanded scale of projects. It is noteworthy that PANI is targeting its marketing sales to reach IDR5.5 trillion in 2024 (vs IDR2.1 trillion in 2023). Currently PANI is trading at 34.48x PBV.
3. PTBA IJ is having three new coal handling facilities under way through the Tanjung Enim-Keramasan railway lines with capacities of 3,000 tons/hour for each of the two facilities and 60-100 tons/hour tons for another one (Kompas). MNCS Comment: We view this development as a positive acceleration to PTBA’s production line as one of the largest coal producers in Indonesia and potentially able to improve the inventory turnover which is at 54.40 days based on 3Q23’s performance. PTBA is currently trading at level 0.77x/0.15x PER/PBV.
IHSG Updates
The JCI grew by +0.70% to 7,323.59 on Tuesday (02/01), followed by net foreign buy of IDR463.13 billion. Most sectors strengthened and boosted the index up, led by the transportation & logistic sector (+3.34%) and followed by the energy sector (+2.00%). On the other hand, the weakened sectors were led by the healthcare sector (-1.64%) and followed by the properties & real estate sector (-0.50%). The index starts the year on a positive note, as investors observe the slowdown in domestic inflation in Dec-2023 and the release of China's Caixin Manufacturing PMI data in Dec-2023, which rose to a level of 50.8 (vs consensus at 50.4). The Rupiah closed lower at IDR15,470/USD. We estimate the IHSG will move within the price range of 7,265-7,340. Today's Recommendations: BMRI, DOID, INCO, PTRO.
Corporate Actions
Stock Split : GMTD (1:10)
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