Global Market Highlights
DJIA fell -0.09% on Wednesday (10/05), while the S&P500 (+0.45%) and Nasdaq (+1.04%). Wall Street closed mixed, where investors paid attention to the inflation rate in Apr-2023 which slowed to +4.9% YoY, or was below consensus and the previous month at +5.0% YoY. Today, the market will be looking toward several data releases such as: 1) US PPI MoM Apr; 2) US Initial Jobless Claims May 6; 3) UK BoE Interest Rate Decision.
Domestic Update
• Real Sales Index (IPR) is projected to increase 1% YoY/12.2% MoM to 241.6 in Apr-2023, after recording an increase of 4,9% YoY/7,0% MoM to 215.3 in Mar-2023. MNCS Comment: The surge in IPR is in line with the seasonality of the month of Ramadan in which there was a surge in retail sales in the clothing, food, beverage and tobacco, fuel and information and communication equipment groups, amidst strategies like price cutting set by retail coupled with expeditious distribution chains.
Company News
1. EXCL IJ posted +44.4% YoY net profit growth in 1Q23 to IDR200.9 billion (vs IDR139.1 billion in 1Q22) (Market Bisnis). MNCS Comment: The increase in net profit was supported by an increase in revenue of +11.9% YoY, as well as a decrease in selling expenses, foreign exchange gain, and a decrease in the tax rate. Currently, EXCL is traded at the level of 31.04x/0.97x PER/PBV.
2. LINK IJ will distribute cash dividends for the FY22 financial year of IDR124.94 billion, or the equivalent of IDR45.41 per share (Emiten News). MNCS Comment: Therefore, we estimate LINK will offer a dividend yield of 2.32%. DPS decreased from the previous year at IDR193.05 per share, as net profit decreased by -72.8% YoY. Meanwhile, the DPR is at 52%. Currently, LINK is traded at the level of 1.14x PBV.
3. PTPP IJ posted a net profit of IDR34.2 billion in 1Q23, or grew +21.5% YoY (vs IDR28.2 billion in 1Q22) (Market Bisnis). MNCS Comment: The increase in net profit was supported by a slight increase in revenue +1.9% YoY to IDR4.4 trillion (vs IDR4.3 trillion in 1Q22), as well as an increase in profit on JV (+26.5% YoY). NPM edged up to 0.8% (vs 0.7% in 1Q22). Currently, PTPP is traded at the level of 26.04x/0.32x PER/PBV.
IHSG Updates
JCI strengthened +0.47% to 6,811.90 on Wednesday (10/05), followed by net foreign buy reaching IDR238.06 billion. A number of sectors experienced strengthening and boosted the index rate, led by the technology sector (+1.56%) followed by the industrial sector (+0.53%). On the other hand, sectors that experienced a decline were led by the property sector (-0.63%) followed by the basic material sector (-0.47%). The index strengthened as investors responded positively to Mar-2023 retail sales growth of +4.9% YoY. The rupiah closed higher at IDR14,725/USD. We estimate that the JCI will move in the price range of 6,757-6,824. Today's recommendation: ADRO, BRPT, JPFA, MEDC.
Corporate Actions
Cum Dividend: KLBF (IDR38/share), NICL (IDR3/share), TLDN (IDR13.52/share)
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