Global Market Highlights
DJIA rose +0.03% on Friday (20/05), followed by the S&P 500 (+0.01%) while the Nasdaq (-0.30%) weakened. Wall Street closed mixed with the positive catalyst coming from the optimism that the economy remained solid amidst the Fed's monetary tightening. Meanwhile, the weakening of the US T-note 10Y yield to a level of 2.78% also boosted the index. Today, the market will be looking toward several data releases such as: 1) US Chicago Fed National Activity Index; 2) Germany Ifo Business Climate; 3) Germany Ifo Current Conditions.
Domestic Update
• BI recorded Indonesia's current account surplus of USD221 million (0.07% GDP) in 1Q22. Indonesia's current account surplus in 1Q22 was lower than 4Q21 at USD1.5 billion (0.47% of GDP). MNCS Comment: The surplus was affected by the trade balance surplus of USD10.93 billion amidst high commodity prices such as coal & CPO. Indonesia's BOP recorded a deficit of -USD1.82 billion in 1Q22, larger than -USD844 million in 4Q21. Although the current account surplus continues, the rupiah tends to depreciate due to the external sentiment of the Fed's aggressive monetary tightening. The rupiah exchange rate weakened -2.88% YTD to the level of IDR14,675/USD.
• Furthermore, the second dose of vaccination rate nationally has reached 80.1% or equivalent to 166.79 million people.
Company News
1. INDY IJ posted revenue of USD830.79 million, up +52% YoY in 1Q22 (vs USD525.17 million in 1Q21). INDY managed to record a net profit of USD75.04 million in 1Q22 or an increase (vs net loss of USD9.36 million in 1Q21) (Bisnis Indonesia). MNCS Comment: The increase in the top line was driven by the increase in ASP, thus making the coal export sales to rise +73.61% YoY to USD590.47 million in 1Q22. Meanwhile, finance expense slightly increased +2.35% YoY to USD26.57 million, followed by amortization expense which rose +0.32% YoY to USD34.02 million in 1Q22 making INDY's performance record a net profit amidst the decline in production in 1Q22. Currently, INDY is trading at 3.45x/1.22x PER/PBV.
2. MAPI IJ posted revenue of IDR5.36 trillion, up +30.6% YoY in 1Q22 (vs IDR4.11 trillion in 1Q21). The company managed to record a net profit of IDR512.82 billion in 1Q22 or a significant increase of +1.865% YoY (vs. IDR26.09 billion in 1Q21) (Bisnis Indonesia). MNCS Comment: The increase in top line was driven by a +30.82% YoY increase in retail revenue to IDR5.20 trillion in 1Q22. Meanwhile, the significant increase in bottom line was due to the divestment of PT Sari Burger Indonesia's shares worth IDR282.75 billion. MAPI is currently trading at 6.84x/2.20x PER/PBV levels.
3. ANTM IJ recorded revenue of IDR9.75 trillion or up +5.82% YoY in 1Q22 (vs IDR9.21 trillion in 1Q21). Net profit was recorded to increase +132% YoY to IDR1.47 trillion in 1Q22 (vs IDR630.38 billion in 1Q21) (Kontan). MNCS Comment: The increase in the top line was driven by export revenue of IDR2.32 trillion or up +31.69% YoY. Meanwhile, the company managed to achieve efficiency by lowering COGS by -3.76% YoY to IDR7.30 trillion in 1Q22, followed by a slight decrease in total operating expenses by -0.22% YoY. NPM grew to 15.08% in 1Q22 (vs 6.84% in 1Q21). ANTM is currently trading at 10.21x/2.68x PER/PBV.
IHSG Updates
JCI rose +1.39% to 6,918.14 on Friday (20/05), followed by net foreign buy which reached IDR233.63 billion. All sectors strengthened and pushed up the index, led by the technology sector (+4.11%) followed by the energy sector (+2.86%). The strengthening of the index is in line with Asian markets. The positive catalyst came from the solid 1Q22 Current Account amidst global economic uncertainty, high inflation, and the Russia-Ukraine geopolitical conflict. On the other hand, the Rupiah exchange rate closed low at IDR14,652/USD. We estimate that the JCI will move in the price range of 6,860-7,000 while waiting for the release of Loan Growth YoY APR data. Today’s recommendation: CPRO, FREN, BUKA, JPFA.
Corporate Action
Cum Dividend: PSSI (IDR28/share), PBID (IDR110/share), BEBS (IDR3.67/share)
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