MNCS Morning Navigator

15 Juni 2022

MNCS Morning Navigator June 15, 2022

Global Market Highlights
DJIA weakened by -0.50% on Tuesday (14/06), followed by S&P500 (-0.38%), while Nasdaq (+0.18%). Wall Street closed mixed, investors watched the release of producer price index data for May-22 which grew +10.8% YoY below the consensus level of +10.9% YoY. On the other hand, the increase in US T-note 10Y yield to the level of 3.50% put pressure on the stock market. Today, the market will be looking toward several data releases such as: 1) US Retail Sales MoM; 2) US Business Inventories MoM; 3) US NAHB Housing Market Index.

Domestic Update
The government announced an increase in electricity rates for household customers above 3,500 VA and the government for 6,600 VA to above 200 kVA, effective from July 1, 2022. MNCS Comment: The policy to increase electricity tariffs is only for the wealthy that account to 2.09 million PLN customers or 2.5% of the total customers, therefore will not directly impact middle-low income purchasing power.
Furthermore, the national Covid-19 daily rate had increased by 327 active cases (14/06).

Company News
1. HMSP IJ will distribute cash dividends of IDR7.36 trillion or equivalent to IDR63.3 per share, from the FY21 net profit of IDR7.13 trillion with the cum dividend date on June 17, 2022 (Kontan). MNCS Comment: Thus, HMSP will offer a dividend yield of 5.97% and a dividend payout ratio of 103% of the FY21 net profit, an increase compared to the FY20 fiscal year of 98.38%. HMSP is currently trading at 16.10x/3.96x PER/PBV.
2. INKP IJ will distribute cash dividends of IDR273.5 billion or equivalent to IDR50 per share, from net profit for the FY21 financial year, cum dividend in the regular and negotiation market on 20 June 2022 (Emiten news). MNCS Comment: Therefore, INKP will offer a dividend yield of 0.6% and a dividend payout ratio of 3.6% in FY21, a decrease compared to the 6.6% FY20 fiscal year. Currently, INKP is trading at 4.32x/0.62x PER/PBV.
3. MIKA IJ prepared a capex allocation of IDR750 billion in FY22E to open 3 new hospitals, develop the procurement of Radiotherapy Center, and other facilities. The company also targets revenue growth of 1%-5% in FY22E (Emiten news). MNCS Comment: As of FY21, the company had operated 26 hospitals and 3,320 beds, and has the potential to increase to 29 hospitals and 3,420 beds in FY22E. It is hoped that the addition of these business lines can improve the company's performance, plus a positive catalyst in the form of a decrease in Covid-19 cases which can encourage the number of patient visits. Currently, MIKA is trading at 35.07x/7.40x PER/PBV.

IHSG Updates
JCI strengthened by +0.78% to 7,049.88 on Tuesday (14/06), followed by net foreign sell which reached IDR551.42 billion. The majority of sectors experienced strengthening and boosted the index rate, led by the transportation sector (+1.71%) followed by the technology sector (+1.05%). On the other hand, the weaker sectors were led by the industrial sector (-0.10%) followed by the cyclical sector (-0.10%). The index strengthened in line with investor optimism ahead of the release of Indonesia's trade balance data for May-22 which is estimated to remain in surplus. As a matter of fact, the trade balance has been maintained in a surplus for 24 months which on Apr-22 was recorded at USD7.56 billion. On the other hand, the Rupiah exchange rate closed lower at IDR14,698/USD. We estimate that the JCI will move in the price range of 7,000-7,090 pending the release of Car Sales YoY MAY data. Today's recommendation: MARK, MTEL, TBIG, INCO.

Corporate Action
Cum Dividend: ESSA (IDR5/share), MBAP (IDR523/share), SCCO (IDR200/share)

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