Global Market Highlights
DJIA was up by +1.34% on Monday (24/10), followed by the S&P500 (+1.19%) and the Nasdaq (+0.86%). Wall Street continued to strengthen amid a number of negative sentiments, namely: 1) the increase in the yield on the US T-note 10Y to a level of 4.23%; 2) the release of S&P Global Manufacturing PMI Flash data in Oct-2022 which entered the recession level at 49.9 points from 52 points previously. We see that Wall Street's gains were supported by optimism ahead of the earnings season in 3Q22. Today, the market will be looking toward several data releases such as: 1) US CB Consumer Confidence Oct; 2) US House Price Index Mom Aug; 3) Germany Ifo Business Climate Oct.
Domestic Update
• BKPM reported investment realization in 3Q22 reached IDR307.8 trillion, the highest in the last 10 years. MNCS Comment: Investment realization grew by +42.1% YoY/+1.9% QoQ. Foreign Investment supported this achievement of IDR168.9 trillion, with the largest investment location being in West Java. We see that a more solid infrastructure supported by a better investment climate and more efficient regulations encourage this achievement.
• Furthermore, the national Covid-19 daily rate had increased by 1,703 active cases (24/10).
Company News
1. AKRA IJ recorded a consolidated revenue growth in 9M22 of +100.48% YoY to IDR34.58 trillion (vs IDR17.25 trillion in 9M21). Meanwhile, net profit rose by +96.22% YoY to IDR1.56 trillion (vs IDR796.99 billion in 9M21) (IQ plus). MNCS Comment: Consolidated revenue growth was supported by increasing revenue from the trading and distribution segment by +110.19% YoY to IDR33.10 trillion (vs IDR15.75 trillion in 9M21) and contributed 95.72% of the company's total revenue in 9M22. Even though the company managed to record a significant increase in net profit, we recorded a slight decrease in the company's margins, where GPM and OPM were at 7.87%/5.56%, respectively (vs 9.15%/6.25% in 9M21) . AKRA is currently traded at the level of 13.96x/2.88x PBV.
2. BBNI IJ posted a +76.76% YoY increase in consolidated net profit to IDR13.69 trillion (vs IDR7.75 trillion in 9M21) (IQ Plus). MNCS Comment: The increase in net profit was supported by: 1) increase in net interest income by +5.23% YoY, in line with loan growth of +9.11% YoY; 2) reduced provision expenses by -35.29% YoY. Meanwhile, NIM was stable at 4.8% and NPL recorded a decline to 3% (vs 3.8% in 9M21). Currently, BBNI is traded at the level of 1.34x PBV.
3. SMRA IJ reported marketing sales of IDR3.49 trillion in 9M22 (Market Bisnis). MNCS Comment: Thus, the achievement of marketing sales in 9M22 increased by +2.76% YoY (vs IDR3.40 trillion in 9M21). Meanwhile, with the marketing sales target in FY22E of IDR5 trillion, the realization up to 9M22 reached 69.88%. SMRA is currently traded at the level of 18.80x/1.07x PER/PBV.
IHSG Updates
JCI strengthened by +0.50% to 7,053.04 on Monday (24/10), followed by net foreign buy which reached IDR1.39 trillion. The majority of sectors experienced strengthening and boosted the index rate, led by the financial sector (+1.52%) and followed by the industrial sector (+1.28%). On the other hand, the sectors that experienced weakness were the technology sector (-0.84%) followed by the infrastructure sector (-0.68%). The strengthening of the index was in line with Wall Street amid the weakening of some Asian markets. Investors responded positively to the release of China's GDP growth rate data in 3Q22 which managed to grow by +3.9% YoY, or exceed the consensus estimate at +3.4% YoY and higher than the previous quarter +0.4% YoY. On the other hand, the Rupiah exchange rate closed higher at IDR15,587/USD. We estimate that the JCI will move in the price range of 6,900-7,100. Today's recommendation: ASII, DEWA, ELSA, FREN.
Corporate Actions
Cum Rights: IATA (IDR180/share)
Disclaimer On
