MNCS Morning Navigator

16 Mei 2023

MNCS Morning Navigator May 16, 2023

Global Market Highlights
DJIA strengthened +0.14% on Monday (15/05), followed by the S&P500 (+0.30%) and the Nasdaq (+0.65%). Wall Street managed to rebound along with market optimism regarding the settlement of the US debt ceiling, after the President and the House of Representatives had met to reach an agreement. Today, the market will be looking toward several data releases such as: 1) US Retail Sales MoM Apr; 2) Germany ZEW Economic Sentiment Index May; 3) UK Unemployment Rate Mar.

Domestic Update
Indonesia's trade balance returned to a surplus in Apr-2023 of USD3.9 billion, but shrank compared to Apr-2022 of USD7.5 billion, accompanied by a contraction in imports/exports -29.40%/-22.32% YoY. MNCS Comment: The downward trend in the surplus will continue in the coming months in line with falling commodity prices, weak demand from China, the appreciation of the Rupiah and increasing imports driven by strengthening domestic demand and depleting industrial supplies.

Company News
1. ISAT IJ will distribute cash dividends for the FY22 financial year of IDR2.1 trillion, or the equivalent of IDR255.7 per share (Emiten News). MNCS Comment: Therefore, we estimate ISAT will offer a dividend yield of 3.3%. DPS increased compared to FY21 of IDR248.1 per share. Meanwhile, the DPR recorded 43.6%. Currently, ISAT is traded at the level of 16.65x/2.11x PER/PBV.
2. ASII IJ recorded car sales in 4M23 reaching 184,722 units, or slightly decreased by -2.02% YoY (vs 188,541 units in 4M22) (Market Bisnis). MNCS Comment: With total domestic car sales in 4M23 reaching 341,311 units, ASII's market share was 55.2%, higher than the 3M23 period of 53.2%. Currently, ASII is traded at the level of 7.37x/1.29x PER/PBV.
3. INKP IJ plans to expand by establishing a new factory worth USD3.63 billion or equivalent to IDR57.14 trillion. Meanwhile, the capacity of the new factory will be 3.9 million tons per year (Market Bisnis). MNCS Comment: Along with this expansion, the total installed capacity can increase to 7.0 million tons/year (vs 3.1 million tons/year in FY22), where this can increase sales volume to boost profitability going forward. Currently, INKP is traded at the level of 4.96x/0.46x PER/PBV.

IHSG Updates
JCI strengthened +0.06% to 6,711.74 on Monday (15/05), followed by net foreign buy reaching IDR269.59 billion. A number of sectors experienced strengthening and boosted the index rate, led by the non-cyclical sector (+1.50%) followed by the health sector (+1.48%). On the other hand, sectors that experienced weakness were led by the property sector (-0.98%) followed by the technology sector (-0.80%). The strengthening of the index was in line with the pace of Asian stock exchanges. Investors were watching the release of trade balance data in Apr-2023 of USD3.94 billion, or higher than the consensus and Mar-2023 of USD3.38 billion/USD2.83 billion, respectively. The rupiah closed lower at IDR14,800/USD. We estimate that the JCI will move in the price range of 6,695-6,738. Today's recommendation: ACES, BIRD, TOWR, UNTR.

Corporate Actions
Cum Dividend: POWR (IDR41.69/share), SSMS (IDR74.64/share), SMBR (IDR1.91/share)

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