Global Market Highlights
DJIA was up by +2.47% on Friday (21/10), followed by the S&P500 (+2.37%) and the Nasdaq (+2.31%). Wall Street solidly strengthened as the US T-note 10Y yield declined by -1.5 bps to 4.21%. Meanwhile, the decline in yields was caused by the increasing market participants' optimism that the Fed would raise the benchmark interest rate (FFR) at the Nov-22 FOMC by +75 bps, or in line with market participants' expectations and the potential for a slower FFR hike in the future. Today, the market will be looking toward several data releases such as: 1) US S&P Global Composite PMI Flash Oct; 2) US S&P Global Manufacturing PMI Flash Oct; 3) US Chicago Fed National Activity Index Sep.
Domestic Update
• Bank Indonesia (BI) reported that the value of electronic money transactions jumped 35.79% in 3Q22. MNCS Comment: The growth in the value of electronic money transactions is supported by increasing public acceptance and preference, especially in online shopping, ease of payment and acceleration of digital banking.
• Furthermore, the national Covid-19 daily rate had increased by 1,685 active cases (23/10).
Company News
1. LPPF IJ posted +21.54% YoY net revenue growth in 9M22 to IDR4.96 trillion (vs IDR4.08 trillion in 9M21). Meanwhile, net profit increased by +140.28% YoY to IDR1.05 trillion (vs IDR438.69 billion in 9M21) (IQ plus). MNCS Comment: The increase in revenue was in line with the growth in net consignment segment revenue +33.01% YoY and retail sales +14.42% YoY. Moreover, SSSG was up by +144.7% YoY in 3Q22, following the post-pandemic. The increase in net profit was in line with the company's extensive margins, where the company's GPM and OPM were recorded at 67.80%/29.62%, respectively (vs 63.66%/13.94%). LPPF is currently traded at the level of 6.06x/29.40x PBV.
2. BSDE IJ reported marketing sales of IDR6.7 trillion in 9M22 (IQ Plus). MNCS Comment: marketing sales achievement grew by +9.84% YoY (vs IDR6.1 trillion in 9M21). Meanwhile, with the marketing sales target in FY22E reaching IDR7.7 trillion, the realization up to 9M22 was recorded at 87.01%. BSDE is currently traded at the level of 20.78x/0.61x PER/PBV.
3. BTPS IJ recorded a net profit growth in 9M22 of +21.10% YoY to IDR1.33 trillion (vs IDR1.10 trillion in 9M21) (Emiten News). MNCS Comment: The increase in net profit was in line with the increase in revenue from buying and selling margin murabahah by +15.29% YoY to IDR3.73 trillion (vs IDR3.23 trillion in 9M21). Thereby, pushing up the profit sharing rights of banks by +18.86 % YoY to IDR3.71 trillion (vs IDR3.12 trillion in 9M21). More efficient operations were indicated by the BOPO which was recorded at 57.5% (vs 59.1% in 9M21). Currently, BTPS is traded at the level of 2.69x PBV.
IHSG Updates
JCI strengthened +0.53% to 7,017.77 on Friday (21/10), followed by net foreign buy which reached IDR1.17 trillion. The majority of sectors experienced strengthening and boosted the index rate, led by the financial sector (+1.53%) and followed by the infrastructure sector (+1.32%). On the other hand, the sector that experienced the biggest decline was the technology sector (-0.99%) followed by the raw materials sector (-0.89%). The index rose in line with Wall Street amid the weakness in Asian markets. Investors responded positively to BI's projection that Indonesia's trade balance will remain in surplus in 3Q22 and inflation in Oct-22 is projected to be at 5.88% YoY, lower than Sep-2022 (5.95% YoY). On the other hand, the Rupiah exchange rate closed lower at Rp15,633/USD. We estimate that the JCI will move in the price range of 6,900-7,000 pending the release of M2 Money Supply YoY Sep and Foreign Direct Investment YoY Q3 data. Today's recommendation: ADMR, HRUM, JPFA, MIKA.
Corporate Actions
Cum Dividend: SOHO (IDR118/share)
Cum Rights: ADHI (IDR550/share)
RUPS: SAPX
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