Global Market Highlights
DJIA rose +1.76% on Friday (27/05), followed by the S&P 500 (+2.47%) and Nasdaq (+3.33%). Wall Street continued its gains, supported by the increase of personal spending data on Apr-22 by +0.9% MoM (+0.7% MoM consensus), thus creating a positive economic outlook amidst the Fed's monetary tightening. Today, the market will be looking toward several data releases such as: 1) US Fed Waller Speech; 2) Germany Inflation Rate YoY Prel; 3) Germany Import Prices YoY.
Domestic Update
• Bank Indonesia (BI) reported M2 position was recorded at IDR7,911.3 tn (+13.6% YoY) in Apr-22, higher than Mar-22 growth of +13.3% YoY. MNCS Comment: The increase in M2 growth in Apr-22 was mainly influenced by the continued acceleration of lending. Credit disbursement in Apr-22 grew by +8.8% YoY, higher than previous month growth of +6.4% YoY.
• Furthermore, the second dose of vaccination rate nationally has reached 80.3% or equivalent to 167.32 million people.
Company News
1. TLKM IJ will distribute cash dividends of IDR14.86 trillion or IDR149.97 per share, payout ratio 60%, dividend yield 3.49% (Kontan). MNCS Comment: Dividend per share decreased -10.74% YoY compared to the previous period of IDR168.01/share, in line with the decrease in payout ratio to 60% (vs 80% in FY20). On the other hand, TLKM's net profit grew +19.02% YoY in FY21. Currently, TLKM is trading at 17.41x/3.33x PER/PBV.
2. PGAS IJ plans to distribute cash dividends of IDR3.01 trillion, or IDR124.42 per share, making the payout ratio to reach 67.8% of FY21 net profit (CNBC Indonesia). MNCS Comment: Hence, PGAS offers a dividend yield of 6.99%, after previously being absent from distributing dividends in the FY20 financial year. PGAS is currently trading at 6.34x/1.14x PER/PBV.
3. CPIN IJ underperformed in 1Q22 with the revenue increased to IDR14.29 trillion, while net profit fell -18% YoY to IDR1.19 trillion (CNBC Indonesia). MNCS Comment: This decreased performance was in line with the increase in COGS (+21.5% YoY), especially raw materials (+23.5% YoY), which was in line with rising world food commodity prices needed for animal feed. The increase in COGS was also not matched by efficiency where selling expenses increased significantly by +34.97% YoY and general expenses (+5.32% YoY). It is noted that GPM decreased to 16.7%, followed by OPM (10.8%) and NPM (8.3%). Currently, CPIN is trading at 16.93x/3.06x PER/PBV.
IHSG Updates
JCI rose +2.07% to 7,026.26 on Friday (27/05), followed by net foreign buys which reached IDR1.37 trillion. Almost all sectors experienced strengthening and boosted the index rate, led by the transportation sector (+4.76%) followed by the financial sector (+1.34%). On the other hand, the sector that experienced weakness was the health sector (-1.67%). The index's gains were in line with Wall Street and Asian bourses. The certainty that the Fed's monetary tightening will raise the FFR +50 bps in Jun-22 and Jul-22 eased market concerns and propelled the index's pace. On the other hand, the Rupiah exchange rate closed higher at IDR14,577/USD. We estimate that the JCI will move in the price range of 6,800-7,120. Today’s recommendation: AALI, TBIG, TINS, WIKA.
Corporate Action
Cum Dividend: FISH (IDR280/share), PZZA (Rp19.96/share)
RUPS: MARK
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