MNCS Morning Navigator

28 Juni 2024

MNCS Morning Navigator June 28, 2024

Global Market Highlights
DJIA rose slightly by +0.09% on Thursday (27/06), followed by the S&P 500 (+0.09%) and the Nasdaq (+0.30%). Wall Street closed in positive territory, supported by a decline in UST yields to 4.29%. The drop in yields was triggered by disappointing macroeconomic data releases. Notably, pending home sales in May-2024 fell by -2.1% MoM (vs consensus: +0.5% MoM). Additionally, capital goods new orders for non-defense in May-2024 contracted by -0.6% MoM (vs consensus: +0.1% MoM). Today the market will be looking forward to several data releases such as: 1) Japan Industrial Production Prel MoM May-2024; 2) US Core PCE Price Index May-2024; 3) US Michigan Consumer Sentiment Final Jun-2024.

Domestic Update
The Ministry of Industry reported that the Industrial Confidence Index (IKI) in June 2024 remained stagnant at 52.50. MNCS Comment: The IKI performance in-Jun 2024 remained at an expansionary level, although it was lower than the realization in Jun-2023, which was at 53.93. We believe the stagnant IKI performance in Jun-2024 was influenced by weak new orders attributed to the regulation of Permendag 8/2024. We also observe that the industry tends to be in a wait-and-see, awaiting the direction of new policies and government structure.

Company News
1. JSMR IJ will issue IDR932.35 billion bonds for working capital (Kontan). MNCS Comment: Funds from this bond will be used for toll road operations (70%) and toll road maintenance (30%). Additionally, the company budgets a IDR10 trillion capex for the construction of 5 new toll roads and also targets an 8%-10% YoY increase in revenue for FY24E. We note that in 1Q24 the company has achieved ~40% of the revenue target. JSMR is currently trading at the level of 15.33x/1.26x PER/PBV.
2. RDTX IJ will distribute cash dividends for FY23 amounting to IDR96.77 billion, or equivalent to IDR360/share (Emiten News). MNCS Comment: This dividend distribution will offer a dividend yield of approximately ~2.55% and DPR of 31,96%. The cum dividend in the negotiated market and regular market will be on July 2nd, 2024. In 1Q24, the net profit increased slightly by +1.27% YoY, in line with the +2.9% YoY growth in revenue. RDTX is currently trading at 14.95x/1.38x PER/PBV.
3. AMFG IJ will distribute cash dividends for FY23 amounting to IDR39.28 billion, or equivalent to IDR128.25/share (Kontan). MNCS Comment: We estimate a potential dividend yield of ~1.71% and a lower payout ratio of 5,95% (vs. 7,94% in FY22) amidst an increase in net profit of +33.36% YoY supported by the growth in revenue (+6.13% YoY) in FY23. AMFG is currently trading at 11.8x/0.48x PER/PBV.

IHSG Updates
The JCI climbed by +0.90% to 6,967.95 on Thursday (27/06), despite a foreign outflow current of IDR5.37 trillion. Most sectors strengthened and supported the index, led by the financials sector (+1.14%) and followed by the consumer cyclicals sector (+1.06%). On the other hand, the industrials sector flattened (-0.06%) and followed by the transportation & logistic sector (-0.02%). The index rose amidst the slowdown of the other Asian markets, following the government’s plan to extend the relaxation of credit restructuring until 2025, which resulted in the rebound of banking stocks. The Rupiah closed higher at IDR16,405/USD. We estimate that the JCI will move in the price range of 6,897-6,981. Today's recommendations: ASII, BBNI, CPIN, PNLF.

Corporate Actions
Cum Dividend: UNVR (IDR77/share)

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