MNCS Morning Navigator

29 November 2023

MNCS Morning Navigator November 29, 2023

Global Market Highlights
The DJIA strengthened by +0.24% on Tuesday (28/11), followed by S&P500 (+0.10%) and Nasdaq (+0.29%). Wall Street rebounded as the UST yield dropped to 4.34%. Additionally, investors responded positively to The Fed's dovish tone, solidifying optimism regarding the end of the benchmark interest rate hike era. Today, the market will be looking toward several data releases such as: 1) US GDP Growth QoQ 3Q23 2nd Est; 2) Germany Inflation Rate YoY Oct-23; 3) US EIA Crude Oil Stocks Change Nov/24.

Domestic Update
Bank Indonesia (BI) extended credit card relaxation until mid-2024. MNCS Comment: We view this extension of relaxation as a measure to stimulate the purchasing power of the public, aligning with the ample liquidity in the banking sector. Furthermore, the extension of relaxation is supported by Indonesia's solid macroeconomics, underpinned by effective macroprudential policies.

Company News
1. TUGU IJ will distribute interim dividends amounting to IDR90.7 billion or equivalent to IDR150 per share (Market Bisnis). MNCS Comment: We estimate that TUGU will offer a dividend yield of 13.4%. With a net profit of IDR1.1 trillion in 9M23 (vs IDR235.1 billion in 9M22), the payout ratio is 8.1%. Currently, TUGU is traded at a level of 2.66x/0.42x PER/PBV.
2. BSDE IJ is optimistic about achieving its marketing sales target of IDR8.8 trillion in FY23E (Market Bisnis). MNCS Comment: We note that the realization of marketing sales until 9M23 reached IDR6.8 trillion, reflecting 76.7% of the FY23E target. We are optimistic that the company can reach this target, supported by VAT incentives and existing projects in BSD City. Currently, BSDE is traded at a level of 9.51x/0.62x PER/PBV.
3. MTEL IJ acquires fiber optics owned by PT Power Telecom along 967.1 km with 1,144.7 km of billable length (Investor ID). MNCS Comment: We assess positively MTEL's effort to expand its coverage area and connectivity quality through this acquisition. We note that the company has successfully expanded its optical fiber network to ~29k km in 9M23 (vs 5.8k km in 9M22). We expect this to be a key driver for the company's performance ahead. Currently, MTEL is traded at a level of 30.45x/1.74x PER/PBV.

IHSG Updates
The JCI gained by +0.39% to 7,041.07 on Tuesday (28/11), followed by a net foreign sell of IDR131.80 billion. Several sectors experienced gains and drove the index, led by the infrastructure sector (+2.83%), followed by the basic material sector (+1.57%). On the other hand, sectors that experienced declines were led by the technology sector (-1.26%), followed by the cyclical sector (-0.94%). The index's movement outperformed with mixed closures in Asian markets, as investors tended to be optimistic ahead of the release of domestic and regional macroeconomic data at the beginning of the month. The Rupiah closed higher at IDR15,435/USD. We estimate the IHSG will move within the price range of 7,000-7,050. Today's Recommendations: AMMN, ANTM, BRMS, EXCL.

Corporate Actions
Cum Dividend : MEDC (IDR15/Share)

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