Global Market Highlights
DJIA fell -0.86% on Thursday (04/05), followed by the S&P500 (-0.72%) and the Nasdaq (-0.49%). Wall Street closed lower again as negative sentiment from the market's growing concern over the US banking crisis returned. Moreover, initial jobless claims as of 29-Apr also rose to 242k (vs 229k previously). Today, the market will be looking toward several data releases such as: 1) US Non Farm Payrolls Apr; 2) US Unemployment Rate Apr; 3) UK S&P Global/CIPS Construction PMI Apr.
Domestic Update
• Market consensus assesses that Indonesia's GDP in 1Q23 will experience a moderate growth of 4.95% YoY (vs 5.01% YoY in 4Q22) and slow down -1% QoQ (vs 0.36% QoQ in 4Q22). MNCS Comment: This slowdown is to be caused by the decline in coal and CPO commodity prices, but will be offset by increased population’s mobility following the lifting of Covid-19 restrictions, the momentum of the month of Ramadan, increasing household consumption due to controlled inflation and maintained food supplies, and positive trade balance performance.
Company News
1. PTRO IJ posted net profit growth of +41.3% YoY to USD3.0 million in 1Q23 (vs USD2.1 million in 1Q22) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +33.8% YoY to USD128.2 million (vs USD95.8 million in 1Q22), where mining segment revenue increased +40.2% YoY. Meanwhile, costs were relatively manageable making the margins maintained. Currently, PTRO is traded at the level of 26.32x/1.03x PER/PBV.
2. ANTM IJ posted a net profit of IDR1.7 trillion in 1Q23, an increase of +13.5% YoY (vs IDR1.5 trillion in 1Q22) (Emiten News). MNCS Comment: The increase in net profit was supported by revenue growth +18.9% YoY to IDR11.6 trillion (vs IDR9.7 trillion in 1Q22), amid slightly corrected margins, where GPM/OPM became 24.6%/16.5% (vs 25.1%/16.6% in 1Q22). Currently, ANTM is traded at the level of 7.69x/2.02x PER/PBV.
3. INKP IJ recorded a net profit of USD133.2 million in 1Q23, or decreased by -24.5% YoY (vs USD176.5 million in 1Q22) (Emiten News). MNCS Comment: Decrease in net profit amid an increase in revenue +6.1% YoY, in line with the loss on foreign exchange, as well as an increase in financial costs which reduced the operating profit which grew +20.5% YoY to USD311.2 million. Currently, INKP is traded at the level of 4.91x/0.46x PER/PBV.
IHSG Updates
JCI strengthened +0.46% to 6,844.03 on Thursday (04/05), followed by net foreign sell reaching IDR59.89 billion. The majority of sectors experienced strengthening and drove the index rate, led by the technology sector (+1.38%) followed by the infrastructure sector (+1.29%). On the other hand, sectors that experienced weakness were led by the energy sector (-0.79%) followed by the financial sector (-0.14%). The index strengthened along with several Asian stock exchanges, in line with investor optimism ahead of the release of GDP data in 1Q23, as well as the ending of the Fed's benchmark interest rate hike sentiment which had been decided at +25 bps. The rupiah closed higher at IDR14,680/USD. We estimate that the JCI will move in the price range of 6,822-6,874 pending the release of GDP Growth Rate Q1 data. Today's recommendation: ASII, ASSA, BRPT, MYOR.
Corporate Actions
RUPS: EXCL, TOWR, INCO
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