Global Market Highlights
DJIA weakened by -0.71% on Tuesday (26/07), followed by the S&P 500 (-1.15%) and the Nasdaq (-1.87%). Wall Street was pressured by the release of New Home Sales data Jun-22 which fell -8.1% MoM to 590,000 (vs 642,000 in May-22) or missed the consensus of 660,000. In addition, the Consumer Confidence data weakened to a level of 95.7 points (vs 98.7 points in Jun-22). Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM; 2) US Goods Trade Balance Adv; 3) Germany GfK Consumer Confidence.
Domestic Update
• Government issued IDR5.87tn worth of sharia securities (SBSN) from IDR7 tn indicative target through auction on Tuesday (07/26/22). MNCS Comment: The lower than targeted issuance was also influenced by lower incoming bids value (IDR10.77 tn yesterday vs IDR12.75 tn previous auction) as investors tend to wait and see ahead of the FOMC policy meeting.
• Furthermore, the national Covid-19 daily rate had increased by 6,483 active cases (26/07).
Company News
1. LSIP IJ will distribute cash dividends of IDR347.92 billion or equivalent to IDR51 per share with the cum dividend in the regular market and negotiations on 29-Jul (Kontan). MNCS Comment: Therefore, LSIP will offer a dividend yield of 4.18%, a payout ratio of 35.10%, an increase compared to the FY20 financial year of 19.61%. The amount of DPS also increased where in FY20 it was IDR20 per share. Currently, LSIP is traded at 6.83x/0.79x PER/PBV.
2. BJTM IJ recorded a net profit growth in 1H22 of +1.49% YoY to IDR815 billion (vs IDR803 billion in 1H21). Total Assets rose +14.08% YoY to IDR108.93 trillion supported by +16.41% YoY growth in TPF (Emiten News). MNCS Comment: Net interest income grew by +5.17% YoY, while interest expense fell by -1.74% YoY. Loan disbursement grew +2.21% YoY to IDR43.54 trillion (vs IDR42.60 trillion in 1H21). However, the company's NIM fell to 4.92% (vs 5.06% in 1H21) and NPL gross declined to 4.12%. Currently, BJTM is traded at 1.03x PBV.
3. UNTR IJ recorded Komatsu heavy equipment sales in 1H22 grew +111.09% YoY to 2,873 units (vs 1,361 units in 1H21). The company changed its FY22E sales target projection from 3,700 units to 4,800 units (Kontan). MNCS Comment: Realization of heavy equipment sales in 1H22 reached 59.85% of the company's target. The momentum of the commodity boom, especially coal, became a positive catalyst for the company's heavy equipment sales. Currently, UNTR is traded at 6.60x/1.55x PER/PBV.
IHSG Updates
JCI strengthened by +0.19% to 6,871.54 on Tuesday (26/07), followed by net foreign buy which reached IDR1.58 trillion. A number of sectors experienced strengthening and boosted the index rate, led by the energy sector (+1.21%) followed by the financial sector (+0.97%). On the other hand, the weaker sectors were led by the technology sector (-2.37%) followed by the cyclical sector (-0.69%). Investors were waiting for the Fed rate announcement Jul-22, while the release of South Korea's GDP data in 2Q22 which grew +2.9% YoY, exceeded the consensus at 2.5% YoY and eased fears of global recession risk. On the other hand, the Rupiah exchange rate closed higher at IDR14,997/USD. We estimate that the JCI will move in the price range of 6,850-6,900. Today's recommendation: ARTO, ERAA, ASII, BMRI.
Corporate Action
Cum Dividend: INOV (IDR3/share), CLPI (IDR71.21/share)
Cum Stocksplit: JTPE (1:4)
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