Global Market Highlights
Wall Street closed mixed on Thursday (27/10), DJIA rose +0.61% while S&P500 (-0.61%) and Nasdaq (-1.63%). Positive catalysts came from the release of US GDP data in 3Q22 which grew beyond consensus with +2.6% QoQ (vs consensus target +2.4% QoQ) and US T-note 10Y yield which fell to 3.92% level. Meanwhile, investors focusing on Durable Goods Orders on Sep-22 by +0.4% MoM (vs +0.6% MoM on consensus). Today, the market will be looking toward several data releases such as: 1) US Core PCE Price Index YoY Sep; 2) US PCE Price Index YoY Sep; 3) US Michigan Consumer Sentiment Final Oct.
Domestic Update
• An increase in the benchmark interest rate by 125 bps since August-22 is expected to be followed by an increase in the banking sector interest rates. MNCS Comment: Liquidity in banking is still sufficient so that the transmission of monetary policy has a lagging period. Monetary policy transmission has begun, as reflected in IndONIA's interest rate which has reached 4.29% as of 27 October 2022 (vs. 3.85% on 3 October 2022).
• Furthermore, the national Covid-19 daily rate had increased by 3,029 active cases (27/10).
Company News
1. PTBA IJ recorded a revenue growth in 9M22 of +60.31% YoY to IDR31.07 trillion (vs IDR19.38 trillion in 9M21). Meanwhile, net profit grew by +109.76% YoY to IDR10.00 trillion (vs IDR4.77 trillion in 9M21) (IQ Plus). MNCS Comment: The increase in revenue was supported by an increase in sales volume of +12.44% YoY to 23.50 million tons (vs 20.90 million tons in 9M21). Meanwhile, the increase in net profit was partly supported by good cost leadership. Margins continued to expand, with GPM and OPM in 9M22 respectively 44.66%/38.83% (vs 42.57%/32.59%). Currently, PTBA is traded at the level of 3.55x/1.94x PER/PBV.
2. MYOR IJ posted a +11.78% YoY revenue growth in 9M22 to IDR22.23 trillion (vs IDR19.89 trillion in 9M21). Meanwhile, net profit grew by +10.93% YoY to IDR1.08 trillion (vs IDR977.83 billion in 9M21) (Kontan). MNCS Comment: The increase in revenue mainly supported by the higher packaged food segment by +17.72% YoY and contributed 60% to total revenue in 9M22. Meanwhile, higher net profit was supported by cost leadership in advertising and promotion expenses which fell by -20.01% YoY and boosted operating profit by +1.66% YoY. MYOR is currently traded at the level of 37.72x/4.65x PER/PBV.
3. UNVR IJ posted a +5.03% YoY revenue growth in 9M22 to IDR31.54 trillion (vs IDR30.03 trillion in 9M21). Meanwhile, net profit rose by +5.31% YoY to IDR4.61 trillion (vs IDR4.38 trillion in 9M21) (Market Bisnis). MNCS Comment: Revenue growth was supported by the increase in revenue in the Food and Beverage segment by +7.27% YoY. Meanwhile, the decrease in G&A expenses by -16.58% YoY and finance costs by -60.79% YoY boosted net profit. Currently, UNVR is traded at the level of 33.19x/35.62x PER/PBV.
IHSG Updates
JCI rose by +0.68% to 7,091.76 on Thursday (27/10), followed by net foreign buy which reached IDR896.74 billion. The majority of sectors strengthened and pushed up the index, led by the cyclical sector (+1.25%) and followed by the non-cyclical sector (+0.88%). On the other hand, the sectors that experienced weakness were the technology sector (-0.62%) followed by the infrastructure sector (-0.11%). The index rose amid the weakening of a number of Asian bourses and Wall Street. Investors were showing optimism ahead of the release of US GDP growth 3Q22 data which is expected to grow +2.4% QoQ by consensus (vs -0.6% QoQ di 2Q22). On the other hand, the Rupiah exchange rate closed higher at IDR15,568/USD. We estimate that the JCI will move in the price range of 7,000-7,130. Today's recommendation: ADRO, INTP, MDKA, MPMX.
Corporate Actions
RUPS: MRAT
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