Global Market Highlights
DJIA fell -0.80% on Wednesday (03/05), followed by the S&P500 (-0.70%) and the Nasdaq (-0.46%). Wall Street was under pressure as investors paid close attention to the hawkish tone of the Fed which will not make rate cuts if inflation remains too high. The Fed has also raised the FFR +25 bps to 5.00% -5.25%, or in line with market expectations. Today, the market will be looking toward several data releases such as: 1) US Balance of Trade Mar; 2) US Initial Jobless Claims Apr 29; 3) Germany HCOB Services PMI Final Apr.
Domestic Update
• The number of foreign tourists recorded visiting in Mar-2023 rose significantly by 470.4% YoY to 809k (vs 142k in Mar-2022) or increased 15.4% MoM. MNCS Comment: The number of tourists has increased in line with the lifting of the Covid-19 restriction regulations in Indonesia and visiting countries, and has exceeded the pre-pandemic number (547k in Mar-2019), rendering its potential to contribute at least 5% to the GDP growth in 2023.
Company News
1. SMGR IJ booked a net profit of IDR561.6 billion in 1Q23, up +11.1% YoY (vs IDR505.7 billion in 1Q22) (Emiten News). MNCS Comment: Improved net profit as revenue increased +4.5% YoY to IDR8.9 trillion (vs IDR8.6 trillion in 1Q22). In addition, a decrease in tax rates, financial expenses and an increase in financial income also contributed to an increase in net profit, amid a decrease in margins on GPM/OPM to 27.4%/12.3% (vs 28.6%/12.5% in 1Q22). Currently, SMGR is traded at the level of 16.70x/0.92x PER/PBV.
2. KLBF IJ will distribute cash dividends of IDR1.76 trillion, or the equivalent of IDR38 per share (Emiten News). MNCS Comment: So, KLBF will offer a dividend yield of up to 1.8%. DPS recorded an increase compared to last year at IDR35 per share, in line with the growth in net profit +6.2% YoY, as well as an increase in the DPR which is estimated to be 52.67% (vs 51.53% in FY21). Currently, KLBF is traded at the level of 28.21x/4.55x PER/PBV.
3. ACES IJ posted a +3.2% YoY increase in net profit to IDR158.4 billion in 1Q23 (vs IDR153.5 billion in 1Q22) (Emiten News). MNCS Comment: Note, revenue in 1Q23 managed to grow +4.7% YoY where SSSG in 3M23 increased +0.8% YTD. Operating profit is relatively flat +0.0% YoY. Meanwhile, the increase in net profit was influenced by; 1) decrease in minority interest; and 2) decrease in financial burden. Currently, ACES is traded at the level of 12.18x/1.28x PER/PBV.
IHSG Updates
JCI weakened -0.74% to 6,812.72 on Wednesday (03/05), followed by net foreign sell reaching IDR131.83 billion. The majority of sectors experienced weakening and weighed on the index, led by the energy sector (-1.45%) followed by the industrial sector (-1.33%). On the other hand, sectors that experienced strengthening were led by the non-cyclical sector (+1.17%) followed by the property sector (+0.46%). The index weakened as investors waited and saw ahead of the Fed's FOMC decision, and paid close attention to issuers' earnings releases in 1Q23. The rupiah closed higher at IDR14,685/USD. We estimate that the JCI will move in the price range of 6,800-6,835. Today's recommendation: AGII, BEST, CARS, HMSP.
Corporate Actions
Cum Dividend: ASII (IDR552/share), INDY (IDR208/share), MCOL (IDR650/share)
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