Global Market Highlights
DJIA strengthened +0.41% on Friday (24/03), followed by the S&P500 (+0.56%) and the Nasdaq (+0.31%). Wall Street managed to strengthen in line with the release of the S&P global manufacturing PMI flash data in Mar-2023 which rose to a level of 49.3, or higher than the consensus level of 47.0. Today, the market will be looking toward several data releases such as: 1) Germany Ifo Business Climate Mar; 2) France Unemployment Benefit Claims Feb; 3) Japan Coincident Index Final Jan.
Domestic Update
• Broad money supply (M2) grew positive 7.9% YoY reaching IDR8,300 trillion in Feb-2023, driven by narrow money supply growth (M1) of 6.6% YoY. MNCS Comment: This growth mainly came from the development of net domestic assets which mostly came from the increase in the number of loans from corporations (11% YoY), indicating a solid business sentiment and a strong foundation for economic recovery.
Company News
1. SMRA IJ posted +93.2% YoY net profit growth to IDR625.4 billion (vs IDR323.7 billion in FY21) (Kontan). MNCS Comment: The increase in net profit was in line with moderate revenue growth of +2.7% YoY, supported by the investment property segment (+61.3% YoY) as well as leisure and hospitality (+89.0% YoY). COGS managed to suppress -8.6% YoY, resulting in expansive margins, where GPM/NPM was 52.4%/10.9%, respectively (vs 46.6%/5.8% in FY21). Currently, SMRA is traded at the level of 13.86x/0.94x PER/PBV.
2. MPMX IJ posted a net profit of IDR661.7 billion, or grew +60.7% YoY (vs IDR411.7 billion in FY21) (Emiten News). MNCS Comment: Net profit growth was supported by +7.0% YoY increase in revenue to IDR12.7 trillion (vs IDR11.9 trillion in FY21). In addition, MPMX managed to increase other income (+56.2% YoY) thereby increasing margins, where OPM/NPM was 4.1%/5.2% (vs 2.8%/3.5% in FY21 ). Currently, MPMX is traded at the level of 7.86x/0.84x PER/PBV.
3. ASSA IJ targets a capex allocation of IDR1.5 trillion in FY22, one of which is to increase the number of rental vehicles to 30k units by the end of FY23E (Investor ID). MNCS Comment: The capex allocation target is relatively the same as FY22 (IDR1.3-1.5 trillion). We look positively at the company's efforts to increase the rental fleet, in line with the relaxation of the Covid-19 which has helped increase the number of mobility and logistics businesses. Currently, ASSA is traded at the level of 14.98x/1.59x PER/PBV.
IHSG Updates
JCI strengthened +1.06% to 6,762.25 on Friday (24/03), followed by IDR207.10 billion net foreign buy. The majority of sectors experienced strengthening and supported the index, led by the technology sector (+2.42%) followed by the property sector (+1.83%). On the other hand, sectors that experienced a decline were led by the infrastructure sector (-0.43%) followed by the health sector (-0.34%). The movement of the index managed to outperform Asian stock exchanges, where investors responded positively to expectations of The Fed to pivot more quickly than previously estimated, in line with the continuing mini banking crisis in the US. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,155/USD. We estimate that the JCI will move in the price range of 6,679-6,798. Today's recommendation: DOID, EXCL, INCO, WEGE.
Corporate Actions
Cum Dividend: BBNI (IDR392.78/share), ESSA (IDR45/share), BPII (IDR60.7/share)
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