Global Market Highlights
DJIA fell -1.08% on Tuesday (02/05), followed by the S&P500 (-1.16%) and the Nasdaq (-1.08%). Wall Street was pressured by the sell-off action, where investors were watching the health of the US banking industry and the worrying debt ceiling. In addition, JOLTs Job Openings in Mar-2023 were recorded at 9.59 million, down 341k from the previous month and reflecting a weak employment market. Today, the market will be looking toward several data releases such as: 1) US Fed Interest Rate Decision; 2) UK ISM Services PMI Apr; 3) US S&P Global Composite PMI Final Apr.
Domestic Update
• Indonesia's manufacturing activity remains in an expansionary area as reflected in the Apr-2023 manufacturing PMI which was recorded at 52.7 (vs 51.9 in Mar-2023). MNCS Comment: The sharpest increase since Sep-2022 was supported by the seasonality of the month of Ramadan as reflected in shopping center visits that exceeded 120% of pre-pandemic levels and stabilization of input costs due to fuel price adjustments as reflected in the mild Apr-2023 inflation rate.
Company News
1. BUMI IJ posted net profit growth of +39.3% YoY to USD60.2 million in 1Q23 (vs USD43.3 million in 1Q22) (Emiten News). MNCS Comment: The growth in net profit was supported by an increase in revenue +30.0% YoY to USD454.9 million (vs USD349.9 million in 1Q22), supported by an increase in the coal revenue segment (+29.4% YoY). In addition, margins were recorded as expansive, where GPM/OPM were 18.5%/14.8%, respectively (vs 15.9%/8.6% in 1Q22). Currently, BUMI is traded at the level of 11.80x/1.79x PER/PBV.
2. SMSM IJ will distribute an interim cash dividend of IDR25 per share, for the financial year ending 1Q23 (Emiten News). MNCS Comment: By doing so, SMSM will offer a dividend yield of 1.51%. Meanwhile, DPR recorded 64.97% of 1Q23 net profit which reached IDR221.6 billion (+18.0% YoY). Currently, SMSM is traded at the level of 10.75x/3.07x PER/PBV.
3. PWON IJ posted a +60.6% YoY increase in net profit to IDR595.4 billion in 1Q23 (vs IDR370.6 billion in 1Q22) (Emiten News). MNCS Comment: The increase in net profit was supported by: 1) PWON's revenue increase in 1Q23 by +5.9% YoY to IDR1.4 trillion (vs IDR1.3 trillion in 1Q22); 2) expansion in margins, where OPM edged up to 43.5% (vs 43.3% in 1Q22); 3) gain on foreign exchange. Currently, PWON is traded at the level of 9.79x/1.30x PER/PBV.
IHSG Updates
JCI weakened -0.76% to 6,863.30 on Tuesday (02/05), followed by net foreign sell reaching IDR204.75 billion. The majority of sectors experienced weakening and weighed on the index, led by the energy sector (-3.01%) followed by the health sector (-2.10%). On the other hand, sectors that experienced strengthening were led by the cyclical sector (+0.32%) followed by the transportation sector (+0.17%). The index movement was in line with Wall Street and several Asian exchanges, where investors were watching the decline in commodity prices which became a Windfall in FY22, besides that investors also waited and saw ahead of the Fed's FOMC decision on 2 & 3 May-2023. The rupiah closed lower at IDR14,705/USD. We estimate that the JCI will move in the price range of 6,800-6,923. Today's recommendation: ANTM, GOTO, ISAT, PGAS.
Corporate Actions
Cum Dividend: KDTN (IDR1.22/share)
RUPS: KLBF, NICL
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