MNCS Morning Navigator

22 November 2022

MNCS Morning Navigator November 22, 2022

Global Market Highlights
DJIA was down -0.13% on Monday (11/21), followed by the S&P500 (-0.39%) and the Nasdaq (-1.09%). Wall Street was corrected as market participants concerned regarding the potential lock down in China which could potentially hamper the pace of global economic growth, after China reported 2 cases of Covid-19 deaths for the first time in 6 months. Today, the market will be looking toward several data releases such as: 1) US Fed Mester Speech; 2) UK Public Sector Net Borrowing Oct; 3) France OECD Economic Outlook.

Domestic Update
• BI Financing Supply & Demand Survey recorded that demand for corporate financing and lending grew positively in Oct-2022. MNCS Comment: Credit grew 11.95% YoY in Oct-2022 (vs 11% YoY in Sep-2022) indicating a continuing trend of economic recovery in line with improving demand for credit and sufficient liquidity in the banking system.
Furthermore, the national Covid-19 daily rate had increased by 4,306 active cases (21/11).

Company News
1. UNVR IJ will distribute an interim cash dividend of IDR2.63 trillion or equivalent to IDR69 per share. Cum dividend in the regular and negotiation markets is on November 29, 2022 (IQ Plus). MNCS Comment: Thus, UNVR will offer a dividend yield of 1.52% with the payout ratio reaching 76.3% of 1H22 net profit. Currently, UNVR is traded at the level of 28.23x/30.29x PER/PBV.
2. TMAS IJ posted a +56.06% YoY revenue growth in 9M22 to IDR3.68 trillion (vs IDR2.36 trillion in 9M21). Meanwhile, net profit increased +63.69% YoY to IDR1.02 trillion (vs IDR624.02 billion in 9M21) (IQ Plus). MNCS Comment: The increase in revenue was supported by the growth of the shipping service segment +65.34% YoY. Meanwhile, the increase in net profit was in line with the decrease in financial expenses -25.07% YoY, foreign exchange gains, and reduced tax-rate. Currently, TMAS is traded at the level of 8.13x/5.02x PER/PBV.
3. WSKT IJ reported that the acquisition of new contract values up to 10M22 reached IDR13.38 trillion (Kontan). MNCS Comment: Thus, the new contract value grew +10.67% YoY. With the target of acquiring new contracts in FY22E of IDR30 trillion, the realization up to 10M22 ad reached 44.60%. Currently, WSKT is traded at the level of 1.54x PBV.

IHSG Updates
JCI weakened -0.27% to 7,063.25 on Monday (21/11), followed by net foreign sell which reached IDR40.19 billion. A number of sectors weakened and weighed on the index's pace, led by the technology sector (-1.77%) and followed by the financial sector (-0.71%). On the other hand, the sectors that experienced strengthening were the cyclical sector (+1.04%) followed by the industrial sector (+0.74%). The weakening of the index was in line with the weakening of Wall Street and a number of Asian bourses. We see the increase in positive cases of COVID-19 in China, which surpassed the achievements of the last 6 months, became a negative sentiment for the index. On the other hand, the Rupiah exchange rate closed lower at IDR15,713/USD. We estimate that the JCI will move in the price range of 7,000-7,100. Today's recommendation: ADRO, BUMI, LSIP, PGAS.

Corporate Actions
Cum Dividend: MCOL (IDR350/share), LINK (IDR193.05/share)

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