Global Market Highlights
DJIA weakened by -0.45% on Friday (16/09), followed by the S&P500 (-0.72%) and the Nasdaq (-0.90%), Wall Street continued its correction. Investors watched the release of data on Michigan Consumer Sentiment Prel Sep-22 at the level of 59.5 points, or below the consensus of 60 points, thus increasing investor concerns about the potential for a global economic recession. Today, the market will be looking toward several data releases such as: 1) US NAHB Housing Market Index Sep; 2) US 3-Month Bill Auction; 3) US 6-Month Bill Auction.
Domestic Update
• Exports of downstream nickel (ferronickel & derivatives) rose 48% to USD12.54 billion in the period Jan-Aug 2022. The value of downstream nickel exports rose 2.2x since 2020. MNCS Comment: Downstream nickel exports have continued to increase since the ban on nickel ore exports was implemented in 2020. The downstream nickel export market share has increased from 3.8% in 2021 to 6.7% in 2022.
• Furthermore, the national Covid-19 daily rate had increased by 1,683 active cases (18/09).
Company News
1. ASRI IJ recorded a marketing sales gain in 1H22 of IDR1.9 trillion, while the take-up rate reached 89%. One of the biggest contributors to marketing sales is the Sutera Winona and Elevee Penthouse and Residences units (Emiten news). MNCS Comment: With the marketing sales target in FY22E reaching IDR3.4 trillion, the realization up to 1H22 is 56%. ASRI is currently traded at the level of 8.52x/0.38x PER/PBV.
2. SMGR IJ targeted the acquisition of PT Semen Baturaja Tbk (SMBR) to be realized by the end of FY22E. Meanwhile, the business merger is considered as the efficiency of the clustering of cement producers in the country (Kontan). MNCS Comment: We see that with the acquisition of SMBR to strengthen the company's market share, especially in the western part of Indonesia, on Jul-22, the company's market share is estimated at ~46%. The acquisition is needed as an effort to overcome the expansion of cement producers, especially in tier-2. SMGR is currently traded at the level of 24.60x/1.12x PER/PBV.
3. MORA IJ targeted a single-digit revenue growth and a double-digit net profit in FY22E. These targets will be supported by the FTTH and FTTX businesses, namely Oxygen.id Home and Oxygen.id Enterprise (Kontan). MNCS Comment: In 1H22, the company's revenue and net profit grew by +3.62% YoY/+15.17% YoY, respectively. Meanwhile, the retail revenue segment in 1H22 was recorded at IDR414.03 billion or the realization reached 62.57% compared to FY21. Currently, MORA is traded at 2.97x PBV.
IHSG Updates
JCI weakened by -1.87% to 7,168.87 on Friday (16/09), followed by net foreign buy which reached IDR1.94 trillion. Almost all sectors weakened and weighed on the index, led by the energy sector (-2.14%) followed by the financial sector (-1.13%). On the other hand, the sector that experienced strengthening was the raw materials sector (+0.06%). The index was corrected as investors tended to wait and see ahead of the announcement week for the BI7DRR interest rate by Bank Indonesia and the FOMC by the Fed. On the other hand, the Rupiah exchange rate closed higher at IDR14,953/USD. We estimate that the JCI will move in the price range of 7,140-7,250. Today's recommendation: PTPP, SIDO, SMGR, WSKT.
Corporate Actions
RUPS: VRNA, CASH, JSKY
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