Global Market Highlights
DJIA was down by -1.15% on Thursday (06/10), followed by the S&P500 (-1.02%) and the Nasdaq (-0.68%). Wall Street was under pressure as the yield of US T-note 10Y rose to 3.82%, triggered by the Fed's hawkish comments. In addition, investors were also worried for the high inflation rate, as the price of crude oil returns to near the level of USD90/bbl after OPEC+ will cut production output by 2 million bpd. Today, the market will be looking toward several data releases such as: 1) US Non Farm Payrolls Sep; 2) US Unemployment Rate Sep; 3) US Wholesale Inventories MoM Aug.
Domestic Update
• The second week of the offering period of ORI022 sold up to IDR4.25 trillion from the target of IDR10 trillion. MNCS Comment: The enthusiasm of retail investors for retail government securities continues to increase. With a coupon of 5.95% per year, ORI022 is an attractive investment choice, and we estimate that the IDR10 trillion issuance target is achievable.
• Furthermore, the national Covid-19 daily rate had increased by 1,639 active cases (06/10).
Company News
1. JSMR IJ will complete the sale transaction of 40% of the Cikampek toll flyover acquired by META. The transaction value reached IDR4.38 trillion (Market Bisnis). MNCS Comment: JSMR's ownership in the Cikampek toll road flyover is 80%, and the remaining 20% is owned by PT Ranggi Sugiron Perkasa. With this divestment, it has the potential to boost the company's financial performance in FY22E. As of 1H22, JSMR's revenue grew by +9.55% YoY, while net profit contracted by -14.13% YoY. JSMR is currently traded at the level of 16.30x/1.14x PER/PBV.
2. WSBP IJ targets the value of new contracts in FY22E to reach IDR2.5-3 trillion, while revenue is targeted to reach IDR1.8-2.2 trillion (Market Bisnis). MNCS Comment: The new contract value up to 9M22 had reached IDR1.15 trillion, or the realization of the target of 46%-38%. Meanwhile, revenue in 1H22 was IDR743.79 billion, or the realization of the target of 41%-34%. We are optimistic that the company can achieve this target, where high contract value gains usually occur towards the fourth quarter. Currently, WSBP is traded at the level of 0.88x/1.00x PER/PBV.
3. TLKM IJ strengthens the data center ecosystem through the implementation of NeutraDC and neuCentriX. Telkom Group has 28 data centers (Emiten News). MNCS Comment: It is hoped that through the increase in digital transformation, the number of customers will increase along with better interconnection, and encourage the company's performance in the future. Currently, TLKM is traded at the level of 16.49x/3.65x PER/PBV.
IHSG Updates
JCI closed up by +0.02% to 7,076.62 on Thursday (06/10), followed by net foreign buy which reached IDR4.06 trillion. The majority of sectors strengthened and pushed the index up, led by the technology sector (+0.98%) followed by the financial sector (+0.53%). On the other hand, the weakening sectors were led by the industrial sector (-0.51%) followed by the raw materials sector (-0.41%). The strengthening of the index is in line with the majority of other Asian bourses. We see that market players tend to be optimistic ahead of the release of data on Indonesia's foreign exchange reserves on Sep-22, which is expected to remain solid. On the other hand, the Rupiah exchange rate closed higher at the level of IDR15,188/USD. We estimate that the JCI will move in the price range of 7,000-7,100 pending the release of Foreign Exchange Reserves Sep data. Today's recommendation: BEST, BIRD, ICBP, ISSP.
Corporate Actions
Cum Dividend: TEBE (IDR25/share), RELI (IDR9.43/share)
RUPS: META
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