Global Market Highlights
DJIA weakened -0.75% on Thursday (19/05), followed by S&P 500 (-0.58%) and Nasdaq (-0.26%). Wall Street continued its correction in line with the deteriorating economic outlook due to high inflation and the Fed's monetary tightening. It was also noted that the initial jobless claims as of May 14 rose to 218K (vs 200K on consensus). Today, the market will be looking toward several data releases such as: 1) UK Retail Sales YoY; 2) Germany PPI YoY; 3) Japan 20-Year JGB Auction.
Domestic Update
• Car sales in Indonesia reached 82,877 units in April-22. This figure is lower than March-22 which reached 98,536 units. MNCS Comment: Car sales in Indonesia have recovered and reached pre-pandemic levels in line with the continued strengthening of the domestic economy and the decline in Covid-19 cases, which encourages public mobility.
• Furthermore, the second dose of vaccination rate nationally has reached 79.9% or equivalent to 166.49 million people.
Company News
1. SAMF IJ recorded revenue of IDR839.49 billion or increased +182.92% YoY in 1Q22 (vs IDR296.72 billion in 1Q21). Net profit recorded an increase of +318% YoY to IDR77.13 billion in 1Q22 (Bisnis Indonesia). MNCS Comment: The increase in the top line was driven by an increase in fertilizer demand accompanied by an increase in fertilizer prices. Meanwhile, the company managed to suppress general administrative expenses which only rose +6% YoY, followed by other expenses which fell -51.34% YoY. NPM was recorded at 9.2% in 1Q22 (vs 6.2% in 1Q21). Currently, SAMF is trading at 5.83x/1.92x PER/PBV.
2. TINS IJ recorded revenue of IDR4.4 trillion, increased +80% YoY in 1Q22. The company managed to record a net profit of IDR601 billion in 1Q22 or rose +5.71% YoY (vs IDR10.3 billion in 1Q21) (Investor Daily). MNCS Comment: The improvement in TINS performance was driven by higher tin prices, with ASP rose +76% YoY. In addition, the company managed to reduce operating costs which made operating profit rose +575% YoY. TINS is currently trading at 5.28x/1.81x PER/PBV levels.
3. IPCC IJ recorded revenue of IDR150.05 billion, increased +25.12% YoY in 1Q22 (vs IDR119.92 billion in 1Q21). Net profit rose +97.09% YoY to IDR35.26 billion in 1Q22 (vs IDR17.89 billion in 1Q21) (Emitennews). MNCS Comment: The increase in top line was driven by terminal service revenue which reached IDR140.73 billion or rose +26.19% YoY. Meanwhile, the company managed to achieve efficiency by lowering COGS by -6.82% YoY to IDR71.78 billion in 1Q22. NPM grew to 23.50% in 1Q22 (vs 14.92% in 1Q21). Currently, the IPCC is trading at 7.09x/0.91x PER/PBV levels.
IHSG Updates
JCI rose +0.44% to 6,823.33 on Thursday (19/05), followed by net foreign sell which reached IDR264.24 billion. A number of sectors strengthened and pushed the index up, led by the technology sector (+1.80%) followed by the financial sector (+0.90%). On the other hand, the weaker sector was led by the energy sector (-1.63%) followed by the infrastructure sector (-1.30%). The strengthening of the index occurred amid market concerns about high inflation. Investors positively welcomed the lifting of the CPO export ban. On the other hand, the Rupiah exchange rate closed low at IDR14,733/USD. We estimate that the JCI will move in the price range of 6,700-6,900 while waiting for the release of Current Account Q1 data. Today’s recommendation: ACES, DOID, BBTN, TINS.
Corporate Action
Cum Dividend: MIKA (IDR36/share), ABMM (IDR267/share), KAEF (IDR16.33/share)
Disclaimer On
