MNCS Morning Navigator

24 Juni 2022

MNCS Morning Navigator June 24, 2022

Global Market Highlights
DJIA strengthened by +0.64% on Thursday (23/06), followed by the S&P 500 (+0.95%) and Nasdaq (+1.62%). Wall Street's rebound was supported by: 1) US T-note 10Y yield decline to 3.0%; 2) decrease in initial jobless claims as of June 18th to 229,000 (vs 231,000 in the previous period). Today, the market will be looking toward several data releases such as: 1) US Michigan Consumer Sentiment Final; 2) US New Home Sales MoM; 3) Germany Ifo Business Climate.

Domestic Update
BI maintains its domestic economic growth forecast at 4.5%-5.3% in FY22E. MNCS Comment: The growth target is maintained in line with the fiscal space to carry out a number of pro-stability policies, as well as to refocus the budget through energy subsidies and social assistance to maintain people's purchasing power.
Furthermore, the national Covid-19 daily rate had increased by 1,907 active cases (23/06).

Company News
1. ERAA IJ will distribute cash dividends of Rp362.48 billion or equivalent to IDR22.8 per share, with the payout ratio reaching 35.81% of the FY21 net profit of IDR1.01 trillion (Kontan). MNCS Comment: Therefore, ERAA will offer a dividend yield of 4.6%. Payout ratio increased from the FY20 fiscal year of 7.26%. ERAA is currently traded at 6.76x/1.24x PER/PBV.
2. IPCM IJ will distribute a final cash dividend of IDR91.1 billion or equivalent to IDR17.27 per share, having previously distributed an interim cash dividend of IDR18.2 billion or equivalent to IDR3.44 per share (Market Bisnis). MNCS Comment: Thus, IPCM will offer a dividend yield of 5.8% for the distribution of final cash dividends. The total distribution of interim and final dividends reached IDR109.3 billion or a payout ratio of 80% of the FY21 net profit of IDR136.58 billion. IPCM is currently traded at 10.51x/1.33x PER/PBV.
3. EXCL IJ had officially completed the acquisition of 66.03% of LINK IJ's shares with Axiata Group Berhad, with a transaction value of IDR 8.72 trillion (CNBC). MNCS Comment: It is hoped that this acquisition will create synergies that will improve EXCL's performance in providing wireless services, backbone and transmission networks, and opportunities for the corporate segment. EXCL is currently traded at 51.47x/1.41x PER/PBV.

IHSG Updates
JCI strengthened by +0.20% to 6,998.27 on Thursday (23/06), followed by net foreign sell which reached IDR1.70 trillion. A number of sectors experienced strengthening and boosted the index rate, led by the infrastructure sector (+1.81%) followed by the health sector (+1.18%). On the other hand, the sector that experienced weakness was led by the transportation sector (-3.16%) followed by the energy sector (-1.57%). The strengthening of the index was in line with the majority of other Asian bourses. Positive catalyst came from Bank Indonesia (BI) which maintained the benchmark interest rate (BI7DRR) at 3.5%, in line with BI's monetary policy focus of pro-stability and maintaining the momentum of economic recovery amid global uncertainty. On the other hand, the Rupiah exchange rate closed higher at IDR14,838/USD. We estimate that the JCI will move in the price range of 6,900-7,030. Today's recommendation: ANTM, GOTO, LAND, TBIG.

Corporate Action
Cum Dividend: POWR (IDR40.28/share), AMFG (IDR80/share), DLTA (IDR300/share)

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