Global Market Highlights
DJIA strengthened +0.43% on Thursday (30/03), followed by the S&P500 (+0.57%) and the Nasdaq (+0.73%). Wall Street continued to strengthen amid the weakening labor market and downward revisions to 4Q22 GDP, where investors were again optimistic that the banking crisis in the US-Europe will soon end. Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY Feb; 2) US PCE Price Index YoY Feb; 3) UK GDP Growth Rate YoY Final Q4.
Domestic Update
• The government has set the festival allowance for civil servants at this year's HBKN to remain accompanied by a 50% performance bonus as in 2022 on the basis of preemptive measures toward global economic challenges. MNCS Comment: The government is still focused on its inflation target of 2% and with the prevailing policies holds optimism that it will be able to roll inflation down to 3.5% in 9M23 while still balancing potential GDP growth in the range of 4.5 - 5.3% in 2023.
Company News
1. ITMG IJ will distribute a final cash dividend of USD474.6 million or equivalent to IDR6,416/share (Kontan). MNCS Comment: Therefore, we estimate ITMG will offer a dividend yield of 16.4%. Meanwhile, the payout ratio is lower at only 65% of FY22 net profit than the average payout ratio for the last 3 years of 82%. Currently, ITMG is traded at the level of 2.34x/1.44x PER/PBV.
2. SIDO IJ will distribute a final cash dividend for the FY22 financial year of IDR690 billion, or equivalent to IDR23/share, after the previous interim dividend (IDR13.5/share) was paid in Nov-2022 (Investor ID). MNCS Comment: Thus, we estimate SIDO will offer a dividend yield of 2.7%. Payout ratio reaches 99%. Currently, SIDO is traded at the level of 22.81x/7.19x PER/PBV.
3. WIIM IJ posted net profit growth of +41.1% YoY to IDR249.3 billion in FY22 (vs IDR176.7 billion in FY21) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +35.5% YoY to IDR3.7 trillion (vs IDR2.7 trillion in FY21), where WIIM has the advantage in terms of level 2 cigarette tier which is maintained so as to provide relatively low prices compared to other competitors at the tier 1 level. Currently, WIIM is traded at the level of 6.99x/1.16x PER/PBV.
IHSG Updates
JCI weakened -0.45% to 6,808.95 on Thursday (30/03), followed by net foreign buy of IDR1.20 trillion. Almost all sectors experienced weakening and weighed on the index, led by the technology sector (-1.92%) followed by the energy sector (-1.22%). On the other hand, the sector that experienced strengthening was the raw materials sector (+0.13%). The index weakened along with some Asian bourses, where investors were paying attention to developments in macroeconomic data at the beginning of the month, as well as profit-taking after a significant increase on a weekly basis. The rupiah closed higher at IDR15,047/USD. We estimate that the JCI will move in the price range of 6,744-6,824. Today's recommendation: ASII, BUKA, ERAA, INDY.
Corporate Actions
RUPS: BDMN, BNII, SQMI
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