MNCS Morning Navigator

28 November 2023

MNCS Morning Navigator November 28, 2023

Global Market Highlights
The DJIA weakened by -0.16% on Monday (27/11), followed by S&P500 (-0.20%) and Nasdaq (-0.07%). Wall Street closed lower as the Dallas Fed Manufacturing Index for Nov-2023 contracted by -19.9. Additionally, new home sales in Oct-2023 declined -5.6% MoM (vs 8.6% MoM in Sep-2023). Furthermore, disappointing economic macro data from China is also feared to slow the pace of global economic growth, becoming negative sentiment for the indices. Today, the market will be looking toward several data releases such as: 1) Germany Consumer Confidence Dec-23; 2) US CB Consumer Confidence Nov-23; 3) US The Fed Speech.

Domestic Update
Bank Indonesia (BI) reported that the money supply (M2) grew by +3.4% YoY in Oct-2023. MNCS Comment: The growth of the money supply (M2) in Oct-2023 slowed compared to the realization in Sep-2023, which grew by +6.0% YoY. The performance of the money supply (M2) in Oct-2023 is supported by the growth of quasi-money by +7.8% YoY. Meanwhile, the credit grew steadily by +8.7% YoY. We anticipate expansive growth of the money supply (M2) ahead, driven by the festive season momentum and the elections in FY24F.

Company News
1. MIKA IJ plans to expand 2 new hospitals in FY24F, located in Jakarta and Surabaya (Market Bisnis). MNCS Comment: With this expansion pipeline, we anticipate the total addition of hospitals to reach 31 units with max bed capacity reaching ~4,900 units. With this expansion, we expect it to drive better company performance ahead. Currently, MIKA is traded at a level of 42.50x/6.88x PER/PBV.
2. PTBA IJ is optimistic that coal production for FY23E can reach the set target of 41 million tons (Investor ID). MNCS Comment: We note that the production realization until 9M23 reached 31.9 million tons, reflecting 77.8% of the target in FY23E. We are optimistic that the company can achieve the set production target, supported by the optimization of coal transportation infrastructure to Tarahan Port and Kertapati Pier. Currently, PTBA is traded at a level of 5.58x/1.46x PER/PBV.
3. ROTI IJ targets that the new bread factory in Pekanbaru can operate in 1H24 (Market Bisnis). MNCS Comment: We note that the factory to be operated in Pekanbaru is the 15th owned by the company. In 9M23, ROTI had a production capacity of 5.1 million bread per day. Through this expansion, we anticipate volume sales growth and efficiency in the company's supply chain ahead. Currently, ROTI is traded at a level of 23.61x/3.14x PER/PBV.

IHSG Updates
The JCI closed flat +0.05% at 7,013.41 on Monday (27/11), followed by a net foreign buy of IDR831.31 billion. Several sectors experienced gains and drove the index, led by the basic material sector (+1.32%), followed by the property sector (+1.11%). On the other hand, sectors that experienced declines were led by the technology sector (-5.72%), followed by the infrastructure sector (-0.76%). The index closed flat amid a weakening Asian market, where investors were scrutinizing the release of Indonesia's Money Supply (M2) data in Oct-2023. Meanwhile, China reported that industrial profits in Oct-2023 contracted again by -7.8% YoY, becoming an impediment to the index's movement. The Rupiah closed higher at IDR15,495/USD. We estimate the IHSG will move within the price range of 6,962-7,030. Today's Recommendations: ADRO, APLN, BMRI, INTP.

Corporate Actions
Tender Offer : BEEF (IDR123/Share)

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