Global Market Highlights
DJIA fell -0.14% on Monday (01/05), followed by the S&P500 (-0.04%) and the Nasdaq (-0.11%). Wall Street was under pressure as the UST yield increased to 3.58%, responding to the possibility of The Fed to increase FFR +25 bps with +95% probability. Meanwhile, ISM Manufacturing PMI in Apr-2023 was able to expand to a level of 47.1 (vs 46.3 previously). Today, the market will be looking toward several data releases such as: 1) US Factory Orders MoM Mar; 2) UK S&P Global/CIPS Manufacturing PMI Final Apr; 3) Germany HCOB Manufacturing PMI Final Apr.
Domestic Update
• The Industrial Confidence Index was recorded to remain expansive in Apr-2023 although it slowed down 0.49 points to 51.38 (vs 51.87 in Mar-2023). MNCS Comment: This decline was influenced by the seasonal factor in the month of Ramadan where there was an increase in inventory stocks (the value of the Product Inventory variable fell 2.67 points to 52.33), followed by a decrease in new orders (the New Orders variable fell 0.76 points to 50.57) due to short working hours, and is expected to regain momentum in the coming months.
Company News
1. INTP IJ posted a +103.4% YoY increase in net profit to IDR371.4 billion in 1Q23 (vs IDR182.6 billion in 1Q22) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +19.3% YoY to IDR4.2 trillion (vs IDR3.6 trillion in 1Q22), which was accompanied by widening margins, where GPM was expansive to 30.1% (vs 27.0% in 1Q22), as fuel load reduced by -7.0% YoY. Currently, INTP is traded at the level of 26.89x/2.00x PER/PBV.
2. CMRY IJ reported net profit in 1Q23 reaching IDR297.2 billion, or up +10.1% YoY (vs IDR269.8 billion in 1Q22) (Emiten News). MNCS Comment: Increase in net profit along with revenue growth of +24.5 % YoY to IDR1.8 trillion (vs IDR1.5 trillion in 1Q22) However, overall margins contracted as raw material increases drove COGS +34.2% YoY up and OPEX +21.1% YoY where NPM fell to 16.2% (vs 18.4% in 1Q22). Currently, CMRY is traded at the level of 31.71x/6.78x PER/PBV.
3. MAPI IJ posted a -30.6% YoY drop in net profit to IDR404.6 billion (vs IDR583.2 billion in 1Q22) (Market Bisnis). MNCS Comment: Lower net profit amid +32.5% YoY increase in revenue to IDR7.5 trillion (vs IDR5.6 trillion in 1Q22), following the divestment of Burger King Indonesia in 1Q22. Meanwhile, core profit continued to grow +46.7% YoY to IDR496 billion (vs IDR339 billion in 1Q22). Currently, MAPI is traded at the level of 31.71x/6.78x PER/PBV.
IHSG Updates
JCI closed commemorating Labor Day on Monday (01/05). Meanwhile, the majority of Asian bourses closed higher, where investors were paying close attention to the release of Japanese consumer confidence data in Apr-2023 which rose to a level of 35.4 (vs 33.9 previously). China's Manufacturing PMI in Apr-2023 contracted to a level of 49.2 (vs 51.9 previously), missing the consensus estimate of 51.4 as demand declined and a high-base effect in 1Q23. The rupiah closed at IDR14,670/USD. We estimate that the JCI will move in the price range of 6,890-6,940 pending the release of Inflation Rate Apr, Core Inflation Rate Apr, S&P Global Manufacturing PMI Apr, and Tourist Arrivals YoY Mar data. Today's recommendation: DMAS, ELSA, PTRO, TKIM.
Corporate Actions
Cum Dividend: MTEL (IDR21.38/share), GOOD (IDR6/share)
RUPS: DSSA
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