Global Market Highlights
DJIA strengthened +0.23% on Thursday (23/03), followed by the S&P500 (+0.30%) and the Nasdaq (+1.01%). Wall Street managed to strengthen along with initial jobless claims as of March 18, 2023, which fell to 191k (vs 192k previously), as well as the release of new home sales data in Feb-2023 which rose +1.1% YoY. Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders MoM Feb; 2) US S&P Global Composite PMI Flash Mar; 3) UK S&P Global/CIPS Manufacturing PMI Flash Mar.
Domestic Update
• The incentive policy for purchasing four-wheeled electric vehicles including buses will be implemented starting April 1, with incentives in the form of a 10% VAT cut, a 20-year tax holiday for the electric vehicle industry and a super deduction tax of 300% for electric vehicle research. MNCS Comment: Until now, only the Hyundai Ioniq 5 and Wuling Air EV have met the vehicle specifications that meet TKDN 40%, but this incentive will accelerate the development of the ecosystem and national electric vehicles.
Company News
1. AKRA IJ recorded net profit growth of +116.2% YoY to IDR2.4 trillion (vs IDR1.1 trillion in FY21) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +84.9% YoY to IDR47.5 trillion (vs IDR25.7 trillion) in line with the increase in the trading and distribution segment +88.5% YoY. In addition, AKRA managed to sell 45 hectares of JIIPE land in FY22. Margins were expansive, with OPM/NPM rising to 6.5%/5.1% (vs 5.7%/4.3% in FY21). Currently, AKRA is traded at the level of 11.90x/2.61x PER/PBV.
2. STAA IJ posted a net profit of IDR1,112.6 billion, up +3.3% YoY (vs IDR1,077.2 billion in FY21) (Emiten News). MNCS Comment: Moderate increase in net profit in line with revenue growth of +2.7% YoY to IDR6.0 trillion (vs IDR5.9 trillion in FY21), which was supported by an increase in CPO sales volume +5.5% YoY. NPM edged up to 18.4% (vs 18.3% in FY21), which was influenced by a decrease in finance charges as well as an increase in finance income. Currently, STAA is traded at the level of 9.75x/2.53x PER/PBV.
3. SMDR IJ posted net profit growth of +128.6% YoY to USD212.7 million (vs USD93.0 million in FY21) (Investor ID). MNCS Comment: Net profit growth was supported by increased revenue by +71.0% YoY to USD1.2 billion (vs USD672.9 million in FY21), in line with the increase in shipping service revenue segment +84.4% YoY. In addition, margins were recorded as expansive, where GPM/NPM were 34.2%/18.5% (vs 28.2%/13.8% in FY21). Currently, SMDR is traded at the level of 1.81x/0.87x PER/PBV.
IHSG Updates
JCI closed on trading Thursday (23/03) to celebrate the holiday with Bali’s Day of Silence. Investors’ concern for the mini banking liquidity crisis in the US had started to subside in line with the stimulus that has become a positive catalyst. In addition, the Fed has raised its benchmark interest rate (FFR) +25 bps to 4.75%-5.00%, which we see as being anticipated by the market. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,345/USD. We estimate that the JCI will move in the price range of 6,639-6,694 pending the release of M2 Money Supply YoY Feb data. Today's recommendation: BBKP, BRMS, KLBF, MEDC.
Corporate Actions
Cum Dividend: BMRI (IDR529.34/share)
RUPS: LPGI, EAST
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