MNCS Morning Navigator

28 Maret 2024

MNCS Morning Navigator March 28, 2024

Global Market Highlights
The DJIA surged by +1.22% on Wednesday (27/03), followed by S&P 500 (+0.86%) and Nasdaq (+0.51%). Wall Street successfully rebounded as UST yield declined to 4.19%. Meanwhile, investors also positively responded to the increase in crude oil inventories to 3.2 million barrels, and gasoline recorded at 1.3 million barrels for the period ending on 22-Mar. Today, the market will await several data releases, including: 1) UK GDP Growth Rate YoY Final 4Q23; 2) US GDP Growth Rate QoQ Final 4Q23; 3) US Initial Jobless Claims 23-Mar.

Domestic Update
The Indonesian government is evaluating certain natural gas price (HGBT) policies outlined in Presidential Regulation (Perpres) No. 121 of 2020 concerning the Determination of Natural Gas Prices. MNCS Comment: Currently, this Presidential Regulation has set gas prices at USD6/MMBtu for seven industries, including fertilizer, petrochemical, oleochemical, steel, ceramic, glass and rubber gloves industries. With the implementation of this policy, Minister of Industry, Agus Gumiwang Kartasasmita, has observed a threefold multiplier effect. This is evidenced by the total value of HGBT issued for electricity from 2021 to 2023, amounting to IDR51.04 trillion, resulting in an added value for the national economy of IDR157.2 trillion. Hence, the minister is proposing the expansion of this HGBT policy to 24 other manufacturing sub-sectors.

Company News
1. PWON IJ recorded a net profit of IDR 2.38 trillion in FY23 or grew +30.1% YoY (Emiten News). MNCS Comment: This achievement is in line with revenue growth of +3.6% YoY or reached IDR 6.2 trillion. This income consists of recurring revenue of IDR 4.66 trillion and development revenue of IDR 1.53 trillion. The FY23 sales composition includes landed houses 35%, condominiums 61% and offices 4%. PWON is currently trading at 1.06x PBV.
2. BISI IJ booked a net profit of IDR595.6 billion in FY23, or an increase of +13.9% YoY (vs IDR523.1 billion in FY22) (Emiten News). MNCS Comment: The increase in net profit occurred amid a decrease in revenue by -4.9% YoY to IDR2.3 trillion (vs IDR2.4 trillion in FY22). The decline in revenue is due to other income segments which decreased by -92.1% YoY. Meanwhile, the increase in net profit was supported by a decrease in COGS by -18.6% YoY, thereby driving an increase in gross profit by +13.9% YoY. Additionally, the increase in finance income by +45.7% YoY also supported BISI's bottom line. BISI is currently trading at 10.48x/1.81x PER/PBV.
3. PANR IJ reported a net profit increase of +415.5% YoY in FY23 (Kontan). MNCS Comment: The surge in net profit is attributed to an +87.7% YoY revenue growth, reaching IDR2.86 trillion, as a result of refocusing efforts over the past two years. Additionally, management aims for a +30% YoY revenue increase for FY24, following pre-pandemic normalization and in line with global tourism trends. To achieve this target, management is actively participating in B2B exhibitions and focusing on two primary markets: Inbound for foreign tourists and Travel & Leisure for the domestic market. PANR is currently trading at 8.33x/0.74x PER/PBV.

IHSG Updates
The JCI closed lower by -0.75% to 7,310.09 on Wednesday (27/03), followed by foreign net sell of IDR862.1 billion. Some sectors experienced weakness, led by the transportation sector (-2.48%) and the technology sector (-0.97%). On the other hand, sectoral strengthening was only experienced by the financial sector (+0.07%). The index was weighed down by weakening Rupiah sentiment, sloping commodity prices and strong foreign outflows, amidst Asian stock exchanges closing mixed with the Shanghai Composite correcting -1.26%. The Rupiah closed lower at IDR 15,855/USD. We estimate that the JCI will move in the price range of 7,283-7,330. Today's recommendations: AMRT, BRIS, HRTA, MAHA.

Corporate Actions
Cum Dividend: BTPS (IDR70.15/share), ESSA (IDR5/share)

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