Global Market Highlights
DJIA strengthened by +0.33% on Friday (24/11), followed by S&P500 (+0.06%) while Nasdaq (-0.11%). Wall Street closed mixed, whereas negative sentiment stemmed from the release of the PMI Manufacturing Flash data in Nov-2023, contracting to the level of 49.4 (vs 50 the previous month). Additionally, the increase in UST yield to 4.47% also weighed on the index's performance. Today, the market will be looking toward several data releases such as: 1) China Industrial Profits YoY Oct-23; 2) US New Home Sales Oct-23; 3) US Dallas Fed Manufacturing Index Nov-23.
Domestic Update
Indonesia along with Australia, signed a memorandum of understanding regarding the formation of a bilateral mechanism to promote collaboration in EV vehicles between the two countries. MNCS Comment: We assess that this collaboration can accelerate the EV vehicle industry in Indonesia going forward. We anticipate a more integrated EV vehicle supply chain, coupled with continuous R&D development. Additionally, this can open up extensive B2B prospects with domestic companies.
Company News
1. BBCA IJ will distribute an interim dividend of IDR5.2 trillion, or equivalent to IDR42.5 per share (Market Bisnis). MNCS Comment: Thus, we estimate that BBCA will offer a dividend yield of 0.5%. However, with a net profit of IDR36.4 trillion in 9M23, the payout ratio is 14.4%. Currently, BBCA is traded at a level of 4.67x PBV.
2. NELY IJ will distribute an interim dividend of IDR35.3 billion, or equivalent to IDR15 per share (Market Bisnis). MNCS Comment: Hence, we estimate that NELY will offer a dividend yield of 2.9%. With a net profit of IDR178.0 billion in 9M23, the payout ratio reaches 19.8%. Currently, NELY is traded at a level of 5.15x/1.71x PER/PBV.
3. ARKO IJ will expand with 2 units of Microhydro Power Plants (PLTMH) Yaentu and Kukusan, with an allocated capex of IDR430 billion (Market Bisnis). MNCS Comment: We assess ARKO's expansion positively to increase its production capacity. With this expansion, we estimate an additional electricity production of ~317 MWh. With the added production, we anticipate improved company performance ahead. Currently, ARKO is traded at a level of 35.51x/4.84x PER/PBV.
IHSG Updates
The JCI closed flat +0.08% at 7,009.63 on Friday (24/11), followed by a net foreign buy of IDR943.48 billion. Several sectors experienced gains and drove the index, led by the technology sector (+2.01%), followed by the consumer cyclical sector (+0.96%). On the other hand, sectors that experienced declines were led by the infrastructure sector (-2.82%), followed by the healthcare sector (-0.89%). The index closed flat amid Asian markets closing mixed, where investors were scrutinizing the release of Japan's inflation data in Oct-2023, increasing to +3.3% YoY (vs 3.0% previously). Meanwhile, investors will wait and see ahead of the release of Indonesia's Money Supply (M2) data in Oct-2023. The Rupiah closed lower at IDR15,565/USD. We estimate the IHSG will move within the price range of 6,989-7,015. Today's Recommendations: BRIS, MAPI, MEDC, UNIQ.
Corporate Actions
EGMS: NASI, KBLM, TOPS
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