Global Market Highlights
The DJIA was down -0.54% on Wednesday (01/06), followed by the S&P500 (-0.75%) and the Nasdaq (-0.72%). Wall Street was pressured as the yield on the US T-note 10Y rose to 2.95%. Meanwhile, the release of data on the number of job vacancies in Apr-22 was in line with consensus, reaching 11.4 million (vs 11.85 million in Mar-22). Today, the market will be looking toward several data releases such as: 1) US ADP Employment Change; 2) US Initial Jobless Claims; 3) US Factory Orders MoM.
Domestic Update
• Indonesia's CPI is expected to rise +0.41% MoM/+3.56% YoY in May-22. On a monthly basis, the pace of inflation slowed down from +0.95% MoM in Apr-22. MNCS Comment: The rising monthly inflation will be driven by higher prices of shallots, chicken meat, eggs and transportation as May-22 also coincides with Eid Fitr festive momentum.
• Furthermore, the second dose of vaccination rate nationally has reached 80.4% or equivalent to 167.44 million people.
Company News
1. TBIG IJ will distribute cash dividends of IDR815.7 billion or IDR36 per share, payout ratio of 52.7%, and cum dividend date on June 2, 2022 (Kontan). MNCS Comment: Therefore, TBIG will offer a dividend yield of 1.22% in FY21, or smaller than FY20's 1.28%. Currently, TBIG is trading at 40.24x/6.90x PER/PBV.
2. ICBP IJ booked consolidated sales in 1Q22 of IDR17.19 trillion or grew +14% YoY. Although operating profit fell -7% YoY in line with the upward trend in commodity prices, net profit was able to grow +12% YoY to IDR1.94 trillion (vs IDR1.74 trillion in 1Q21) (Kontan). MNCS Comment: Consolidated revenue growth was supported by gains in all business segments. Gross profit slightly increased +0.07% YoY in line with rising COGS (+22.69%), due to rising prices for a number of world food commodities, especially wheat, skim milk and CPO . However, ICBP has an advantageous position thanks to related parties, namely Bogasari and SIMP. Furthermore, the increase in net profit was supported by lower finance costs (-35.73 % YoY). ICBP is currently trading at 15.65x/2.95x PER/PBV.
3. LSIP IJ recorded sales in 1Q22 of IDR765 billion, decreased by -36% YoY in line with lower sales volume of palm products due to unfavorable weather and replanting. Net profit was recorded at IDR305 billion in 1Q22 or up +2% YoY (Bisnis Indonesia). MNCS Comment: Although revenue decreased, the company's margins increased where GPM (58%), OPM (47%) and NPM (40%). Extraction rates of CPO (22.2%) and PK (6.3%) with the total planted area to be 113,352 Ha (vs 114,111 Ha in 1Q21). Currently, LSIP is trading at 9.81x/0.96x PER/PBV levels.
IHSG Updates
JCI closed commemorating Pancasila Day on Wednesday (01/06), Asian stock exchanges closed mixed. Australia posted GDP growth in 1Q22 of +0.8% QoQ/+3.3% YoY or exceeded consensus at +0.5% QoQ/+2.9% YoY. On the other hand, China reported that the manufacturing PMI for May-22 was at 48.1 points (vs. 46.0 in Apr-22), though it was still at a contraction level (Today's recommendation: ADRO, BBRI, ITMG, TOWR.
Corporate Action
Cum Dividend: CPIN (IDR108/share), SSMS (IDR80.15/share), BISI(IDR68/share)
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