Global Market Highlights
DJIA fell -0.17% on Monday (08/05), while the S&P500 (+0.05%) and Nasdaq (+0.18%). Wall Street closed mixed, influenced by sentiment on the US debt ceiling and an increase in UST. Today, the market will be looking toward several data releases such as: 1) US NY Fed Treasury Purchases 0 to 1 yrs; 2) France Balance of Trade Mar; 3) UK BBA Mortgage Rate Apr.
Domestic Update
• Indonesia's foreign exchange reserves edged down to USD144.2 billion in Apr-2023 (vs USD145.2 billion in Mar-2023). MNCS Comment: This is not a surprise and is in line with the repayment of the government's foreign debt (LN), the need for liquidity and imports to maintain food supplies during Ramadan coupled with decline in commodity prices, but remains at an adequate level equivalent to 6.3 months of imports and foreign debt payments.
Company News
1. MIDI IJ posted +31.8% YoY net profit growth to IDR117.5 billion in 1Q23 (vs IDR89.1 billion in 1Q22) (Emiten News). MNCS Comment: The increase in net profit was supported by an increase in revenue +12.7% YoY, as well as expansive margins, where GPM/NPM recorded at 26.9%/4.5% (vs 26.2%/4.2% in 1Q22). Currently, MIDI is traded at the level of 21.09x/4.46x PER/PBV.
2. ULTJ IJ posted a +21.7% YoY increase in net profit to IDR355.3 billion (vs IDR291.9 billion in 1Q22) (Emiten News). MNCS Comment: The net profit growth was supported by the company's revenue increase by +21.6% YoY to IDR2.2 trillion (vs IDR1.8 trillion in 1Q22). In addition, the reduction in financial expenses managed to keep NPM flat amidst a slight decline in GPM/OPM to 33.1%/20.5% (vs 33.5%/22.1% in 1Q22). Currently, ULTJ is traded at the level of 12.03x/2.81x PER/PBV.
3. CTRA IJ recorded a decrease in net profit -1.9% YoY to IDR412.9 billion (vs IDR420.7 billion in 1Q22) (Emiten News). MNCS Comment: The decrease in net profit was in line with the decrease in CTRA's revenue in 1Q23 by -4.6% YoY to IDR2.1 trillion (vs IDR2.2 trillion in 1Q22), while OPEX increased (+5.4% YoY) thereby eroding OPM to 32.4%. However, NPM was recorded to widen to 19.4% (vs 18.8% in 1Q22) as financial income increased and minority interest decreased. Currently, CTRA is traded at the level of 12.29x/1.07x PER/PBV.
IHSG Updates
JCI weakened -0.27% to 6,769.63 on Monday (08/05), followed by net foreign sell reaching IDR461.96 billion. A number of sectors experienced weakening and weighed on the index, led by the health sector (-0.63%) followed by the technology sector (-0.15%). On the other hand, sectors that experienced strengthening were led by the property sector (+2.69%) followed by the transportation sector (+1.15%). The index weakened along with several Asian bourses, as investors were watching the decline in the position of Indonesia's Foreign Exchange Reserves in Apr-2023, as well as investors' wait and see attitude ahead of the release of US inflation data in Apr-2023. The rupiah closed lower at IDR14,700/USD. We estimate that the JCI will move in the price range of 6,762-6,822 pending the release of Consumer Confidence Apr data. Today's recommendation: APLN, BEST, BIPI, LPPF.
Corporate Actions
IPO: MPXL (IDR108/share)
Cum Dividend: AKRA (IDR50/share), TUGU (IDR78.1/share)
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