Global Market Highlights
DJIA weakened -0.34% on Thursday (10/03), followed by S&P 500 (-0.43%) and Nasdaq (-0.95%). Wall Street contracted after the rise in T-note 10y yields pushed energy stocks into the red zone. In addition, negative catalysts also came from the release of economic data which showed that the inflation rate for February-22 was 7.9% YoY and initial jobless claims as of 5'Mar-22 also rose to 227 thousand. Investors highlighted the persistently persistent inflation rate and feared that the Fed would be more aggressive in tightening its monetary policy amid global uncertainty over commodity prices that remain high. Today, the market will be looking toward several data releases such as: 1) US Michigan Consumer Sentiment Prel; 2) UK GDP YoY; 3) Germany Inflation Rate YoY Final.
Domestic Update
• Retail sales in Indonesia grew 15.2% YoY in Jan-22 and is expected to be 14.5% YoY on Feb-22. MNCS Comment: The decline that occurred in the main groups, such as the Cultural and Recreational Goods, Spare Parts and Accessories, and Motor Vehicle Fuels, was in line with the decline in public demand, more limited supply, and unfavorable weather conditions and the spread of daily cases of Covid - 19 in Indonesia.
• Furthermore, the second dose of vaccination rate nationally has reached 71.6% or equivalent to 149.12 million people.
Company News
1. MTEL IJ recorded a revenue growth of +11% YoY to IDR6.87 trillion (vs IDR6.18 trillion in FY20). Net profit was recorded at IDR1.38 trillion, up +129.4% YoY in FY21 (vs IDR602 billion in FY20) (Kontan). MNCS Comment: We see that this performance increase was supported by the company's expansion, where in FY21, the company has added 796 towers and 2,376 tenants organically. In addition, the company also acquired 8,139 Telkomsel towers and 8,215 tenants inorganically. MTEL is trading at the level of 2.93x/0.30x PER/PBV.
2. ELSA IJ prepares capex of IDR700 billion in FY22E, up +14% from the Company’s Budget Plan for capex in FY21. This budget will be used to strengthen the company’s core business in optimizing sustainable strategy through portfolio diversification to improve its financial performance in FY22E (Bisnis Indonesia). MNCS Comment: We see that the company's optimism is supported by its good performance in FY21. In FY22E the company hopes to improve its performance through portfolio diversification strategy in upstream oil and gas service segment, energy distribution and logistics, also oil and gas support services. ELSA is trading at the level of 20.54x/0.59x PER/PBV.
3. BMRI IJ has determined 60% of FY21's consolidated net profit or around IDR16.82 trillion as dividend for shareholders, or IDR360.5/share. This value is higher than last year's Rp10.27 trillion (Investor Daily). MNCS Comment: The Company provided a higher dividend yield than the previous year, where in FY21 the yield was 4.70% (vs 3.45% in FY20). BMRI is trading at the level of 12.78x/1.75x PER/PBV.
IHSG Updates
JCI rose +0.87% to 6,924.01 on Thursday (10/03), followed by net foreign buys which reached Rp183.92 billion. A number of sectors supported the strengthening of the JCI, led by the cyclical sector (+3.25%) followed by the technology sector (+2.35%). On the other hand, the sector that led the decline was the energy sector (-2.19%) followed by the industrial sector (-0.52%). Investors are still in euphoria after the imposition of a ceasefire in the Russia-Ukraine geopolitical crisis, encouraging other Asian bourses to strengthen and easing concerns about future uncertainty in the global economy. In addition, market participants also seem to positively welcome the inflow that has been recorded again. From the development of the Covid-19 pandemic, it was recorded that on (10/03) the addition of positive cases had decreased from the previous day to 21,311 cases. On the other hand, the Rupiah weakened at IDR14,388/USD level. We estimate that the JCI will move in the range of 6,758-6,940. Today’s recommendation: ANTM, BBCA, BSDE, SAME.
Corporate Action
Cum Dividend: BBTN (IDR22.44/share)
RUPS: MSIN, IIKP
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