Global Market Highlights
DJIA rose +1.61% on Thursday (26/05), followed by the S&P 500 (+1.99%) and Nasdaq (+2.68%). Wall Street appreciated the solid retail sales outlook and data on initial jobless claims as of 21-May decreased to 210,000 (vs 218,000 previously). Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY; 2) US Michigan Consumer Sentiment Final; 3) US Personal Income MoM.
Domestic Update
• Bank Indonesia (BI) recorded banking loan disbursement grew 9.1% YoY on Apr-22, higher than 6.7% YoY on Mar-22. MNCS Comment: Bank credit continues to grow in line with the continued economic recovery and in the midst of loose banking liquidity.
• Furthermore, the second dose of vaccination rate nationally has reached 80.2% or equivalent to 167.11 million people.
Company News
1. TBIG IJ posted revenue of IDR1.64 trillion in 1Q22 or up +15.43% YoY (vs IDR1.42 trillion in 1Q21). Net profit increased +56.17% YoY to IDR415.27 billion in 1Q22 (vs IDR265.90 billion in 1Q21) (CNBC Indonesia). MNCS Comment: The company's performance improvement was driven by the increase in customer revenue such as ISAT which reached IDR579.59 billion (+35.31% YoY), followed by EXCL which reached IDR566.34 billion (+34.50% YoY). On the other hand, the company managed to achieve efficiency with operating expenses which only rose +5.61% YoY, followed by finance expenses -4.39% YoY. Currently, TBIG is trading at 38.06x/6.52x PER/PBV.
2. AMRT IJ will distribute cash dividends of IDR779.83 billion or equivalent to IDR18.78 per share. Therefore, making the dividend payout ratio to be 50% of FY21 net profit which was recorded at IDR1.95 trillion (Bisnis Indonesia). MNCS Comment: Hence, AMRT will offer a dividend yield of 1.07% or greater than the FY20 yield of 1.04%. AMRT is currently trading at 37.35x/8.29x PER/PBV.
3. SMGR IJ posted revenue of IDR8.14 trillion in 1Q22 or up +0.74% YoY (vs IDR8.08 trillion in 1Q21). Net profit increased +10.70% YoY to IDR498.57 billion in 1Q22 (vs IDR450.36 billion in 1Q21) (Kontan). MNCS Comment: The increase in top line was driven by cement sales which rose +5.75% YoY to IDR6.85 trillion in 1Q22. On the other hand, the company managed to achieve efficiency by recording a -3.60% YoY decrease in selling expenses to IDR647.64 billion, followed by general and administrative expenses which fell -9.61% YoY. Currently, SMGR is trading at the level of 19.41x/1.08x PE/PBV.
IHSG Updates
JCI weakened -0.44% to 6,883.50 on Wednesday (25/05), followed by net foreign buy which reached IDR143.54 billion. The majority of sectors experienced weakness and weighed on the index's pace, led by the basic sector (-1.38%) followed by the financial sector (-0.90%). On the other hand, the sector that experienced strengthening was the health sector (+0.68%) followed by the infrastructure sector (-0.15%). The index weakened amid Bank Indonesia's plan to accelerate and increase the Statutory Reserves (GWM). Whereas for the BUK, the Statutory Reserves will increase to 6% in June-22, then 7.5% in July-22, and 9% in Sept-22. Meanwhile, BUS Statutory Reserves rose to 4.5% in Jun-22, 6% in July-22, and 7.5% in Sept-22. On the other hand, the Rupiah exchange rate closed higher at IDR14,633/USD. We estimate that the JCI will move in the price range of 6,795-6,930 while waiting for the release of M2 Money Supply YoY APR data. Today’s recommendation: AGII, BRPT, INKP, TLKM.
Corporate Action
Cum Dividend: MPMX (IDR180/share), CSRA (Rp10/share)
IPO: ASHA (IDR100/share)
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