Global Market Highlights
The DJIA went up +0.23% on Friday (01/03), followed by S&P 500 (+0.80%) and Nasdaq (+1.14%). Wall Street continued its upward trend amid solid expectations of a future slowdown in inflation, with the release of the ISM Manufacturing PMI data in Feb-2024 dropping to 47.8 points (vs consensus of 49.5 points). Additionally, the Michigan Consumer Sentiment Final also contracted to 76.9 points (vs consensus of 79.6 points). Today, the market will await several data releases, including: 1) South Korea S&P Global Manufacturing PMI Feb-2024; 2) Australian Building Permits MoM Prel Feb-2024; 3) US Fed Harker Speech.
Domestic Update
Bank Indonesia conveyed the transaction data from 26-29 February 2024 with non-residents in the domestic financial market recorded a net sale of IDR2 trillion. These transactions consisted of a net sale of IDR0.82 trillion in the SBN market, a net sale of IDR2.64 trillion in the stock market, and a net purchase of IDR1.46 trillion in the SRBI. MNCS Comment: We note that on a YTD basis up to February 29th, 2024, foreign transactions have recorded a net outflow of IDR4.93 trillion in the SBN market, a net buy of IDR20.02 trillion in the stock market, and a net purchase of IDR 25.51 trillion in SRBI YTD up to February 29th. The reversal in foreign flows coincided with the increase in the 10Y UST yield to 4.250%.
Company News
1. PANI IJ reported a total net profit of IDR273 billion in FY23 or jumped 96.8% YoY vs IDR136 billion in FY22 (Kontan). MNCS Comment: We note that the revenue was reported at IDR2.1 trillion or soared +274% YoY, vs IDR578 billion in FY22. Their inventories have climbed up +23.8% YoY to IDR26.2 trillion on accelerated construction of their pre-sales products and other PIK 2 products, with their year-end land bank reported to be 1,607 ha valued at IDR26.2 trillion. Currently PANI is trading at 6.34x PBV.
2. MYOR IJ recorded a net profit of IDR3.2 trillion in FY23, surge by +64.4% YoY (vs IDR1.9 trillion in FY22) (Market Bisnis). MNCS Comment: This significant increase in net profit is supported by a +2.7% YoY rise in revenue amid a -3.2% YoY decrease in COGS, resulting in a +22.9% YoY increase in gross profit. Additionally, OPEX also experienced a decrease by -6.8% YoY, driving a +76.7% YoY increase in operating profit. Meanwhile, the margin climbed up, with NPM in FY23 hovered at 10.1% (vs 6.3% in FY22). MYOR is currently trading at 17.29x/3.67x PER/PBV.
3. EXCL IJ signed a collaboration with Huawei on AI business (Emiten News). MNCS Comment: We view this agreement as an innovation from management to improve its digital business operations and produce better service personalization and customer experiences. Additionally, this collaboration will also develop opportunities in optimizing cloud systems and software. The company recorded double-digits growths of top (+10.91% YoY) and bottom line (+14.56% YoY) in FY23. EXCL is currently trading at 26.05x/1.26x PER/PBV.
IHSG Updates
The JCI closed flat -0.06% to 7,311.91 on Friday (01/03), followed by foreign net sell reaching IDR 388.4 billion. Most sectors posted slim gains, led by the infrastructure sector (+0.67%) followed by the property sector (+0.50%). On the other hand, the sectors experiencing weakness were led by the technology sector (-0.77%) and the transportation sector (-0.73%). The index consolidated amidst strengthening in other Asian markets, in line with a wait-and-see attitude regarding developments in macroeconomic data this week which will clarify the probability of the Fed cutting interest rates. The Rupiah closed stronger at IDR15,700/USD. We estimate that the JCI will move in the price range of 7,267-7,337. Today's recommendations: ADRO, PTRO, SMGR, TKIM.
Corporate Actions
AGMS: BBNI
Cum Dividend: PJAA (IDR32/share)
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