Global Market Highlights
DJIA strengthened +0.12% on Monday (06/03), followed by the S&P500 (+0.07%) while the Nasdaq (-0.11%). Wall Street closed mixed, where investors responded positively to the release of Eurozone retail sales data in Jan-2023 which managed to grow +0.3% MoM (vs -1.7% MoM previously). Meanwhile, the increase in the UST yield to 3.98% was a burden on the Nasdaq rate. Today, the market will be looking toward several data releases such as: 1) US Fed Chair Powell Testimony; 2) US Wholesale Inventories MoM Jan; 3) US Consumer Credit Change Jan.
Domestic Update
• Incentives for purchasing electric vehicles have been confirmed to be distributed by the government effective March 20, 2023. MNCS Comment: The distribution of incentives is bound to boost sales of companies selling electric vehicles with 40% TKDN, including WIMA (Gesits), PT Volta Indonesia Semesta (Volta), PT Champion Bike (Selis) for 2W, as well as the IBC consortium (MIND ID, ANTM, Pertamina and PLN) in collaboration with Hyundai Motors for 4W.
Company News
1. MTEL IJ posted net profit growth of +29.3% YoY to IDR1.8 trillion in FY22 (vs IDR1.4 trillion in FY21) (Kontan). MNCS Comment: Net profit growth was supported by a +12.5% YoY increase in revenue to IDR7.7 trillion (vs IDR6.9 trillion in FY21), which was supported by the tower segment (+16.3% YoY). In addition, margins were recorded as expansive where GPM/OPM were 47.3%/40.8%, respectively (vs 46.9%/39.9% in FY21). Currently, MTEL is traded at the level of 32.52x/1.72x PER/PBV.
2. ASRI IJ posted marketing sales of IDR3.2 trillion in FY22 (Market Bisnis). MNCS Comment: Marketing sales revenue grew +8.8% YoY (vs IDR 2.96 trillion in FY21) and realization reached 94.9% of the target set by management. Going forward, we see the Astha cluster as a driving force for ASRI's marketing sales, with a land site area of up to 7 hectares. Currently, ASRI is traded at the level of 22.33x/0.33x PER/PBV.
3. ROTI IJ posted a net profit of IDR432.2 billion in FY22, or grew +52.4% YoY (vs IDR283.6 billion in FY21) (Kontan). MNCS Comment: Solid net profit growth was supported by revenue increase +19.7% YoY, in line with the growth of the white bread segment +11.4% YoY. Although GPM fell to 53% (vs 54.4% in FY21) as raw material prices increased, OPM/NPM rose to 16.2%/11.0% (vs 12.5%/8.6) respectively % in FY21). Currently BREAD is traded at the level of 22.04x/3.55x PER/PBV.
IHSG Updates
JCI weakened -0.10% to 6,807.00 on Monday (06/03), followed by net foreign sell reaching IDR250.74 billion. The majority of sectors experienced weakening and suppressed the index, led by the raw materials sector (-0.93%) followed by the energy sector (-0.90%). On the other hand, sectors that experienced strengthening were led by the non-cyclical sector (+0.71%) followed by the transportation sector (+0.37%). The weakening of the index occurred amid strengthening Wall Street and Asian stock exchanges, where investors tended to wait and see ahead of the release of data on foreign exchange reserves for Feb-2023. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,295/USD. We estimate that the JCI will move in the price range of 6,797-6,834 pending the release of Foreign Exchange Reserves Feb data. Today's recommendation: ELSA, ERAA, HRUM, ITMG.
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