Global Market Highlights
DJIA weakened by -0.43% on Friday (22/07), followed by the S&P 500 (-0.93%) and the Nasdaq (-1.87%). Negative sentiments weighing on Wall Street's performance include: 1) the release of S&P Global Manufacturing PMI Flash Jul-22 which slightly corrected to 52.3 points (vs 52.7 in Jun-22); 2) disappointing 2Q22 financial performance reports of several companies accompanied by declining revenue projections in line with global economic uncertainty. Today, the market will be looking toward several data releases such as: 1) US Chicago Fed National Activity Index; 2) US Dallas Fed Manufacturing Index; 3) Germany Ifo Business Climate.
Domestic Update
• Money supply in a broad sense (M2) in June 2022 grew +10.6% YoY (vs 12.1% YoY in May 2022). MNCS Comment: The growth of M2 money supply in June 2022 was driven by: 1) credit growth Jun-22 +10.3% YoY; 2) increase in M1 money supply Jun-22 +16.6% YoY; 3) Jun-22 quasi money increase +3.3% YoY.
• Furthermore, the national Covid-19 daily rate had increased by 4,071 active cases (24/07).
Company News
1. INDF IJ will distribute dividends of IDR278 per share with the dividend payment date on 24-Aug (CNBC Indonesia). MNCS Comment: Therefore, INDF will offer a dividend yield of 3.94%. The allocation of dividend distribution funds reached IDR2.44 trillion, while the payout ratio reached 31.94%, lower than the payout ratio for the FY20 fiscal year of 37.82% with a DPS of IDR278, the same as the FY21 financial year. Currently, INDF is traded at 6.56x/1.19x PER/PBV.
2. SIMP IJ will distribute dividends of IDR205.66 billion or equivalent to IDR13 per share (Kontan). MNCS Comment: Thus, SIMP will offer a dividend yield of 2.79% and a payout ratio of 20.89%. The amount of DPS is higher than the FY20 financial year of IDR3 per share with the payout ratio of 20.25%. Currently, SIMP is traded at 3.69x/1.54x PER/PBV.
3. LPPF IJ recorded sales growth in 1H22 of +5.37% YoY to IDR3.76 trillion (vs IDR3.57 trillion in 1H21). Meanwhile, net profit grew 72.46% YoY to IDR918.37 billion (vs IDR532.48 billion) (Kontan). MNCS Comment: The increase in sales was in line with SSSG +10.9%, the growth of the consignment sales segment +14.83% YoY and shared by the Eid momentum. GPM increased to 68.11% (vs. 63.69% in 1H21). Operating profit increased +74.16% YoY in line with reduced operating expenses -7.12% YoY. NPM recorded an increase to 24.41% (vs 14.92% in 1H21). Currently, LPPF is traded at 21.73x/25.31x PER/PBV.
IHSG Updates
JCI strengthened by +0.33% to 6,886.96 on Friday (22/07), followed by net foreign sell which reached IDR379.62 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the technology sector (+2.86%) followed by the raw materials sector (+2.21%). On the other hand, the sector that experienced weakness was led by the health sector (-0.41%) followed by the transportation sector (-0.32%). Investors were also watching the release of M2 money supply data Jun-22 which grew +10.6% YoY (vs +12.1% YoY in May-22). Furthermore, Japan's inflation data in Jun-22 grew at a slower pace of +2.4% YoY (vs. 2.5% YoY in May-22) triggers reduced fears of recession risk. On the other hand, the Rupiah exchange rate closed lower at IDR15,033/USD. We estimate that the JCI will move in the price range of 6,757-6,940. Today's recommendation: ESSA, MYOR, SMGR, UNTR.
Corporate Action
Cum Dividend: WOOD (IDR6.5/share), STAA (IDR10/share)
IPO: KRYA (IDR125/share)
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