Global Market Highlights
The DJIA strengthened by +1.26% on Thursday (19/09), followed by the S&P 500 (+1.70%) and the Nasdaq (+2.51%). Wall Street rebounded, reflecting the market’s initial positive response to the Fed's first rate cut in four years, with expectations for further economic stimulus. Additionally, initial jobless claims as of Sep/14 were reported at 219k, lower than consensus estimate of 230k. Today the market will be looking forward to several data releases such as: 1) Japan BoJ Interest Rate Decision; 2) Japan Core Inflation Rate Aug-2024; 3) GB Retail Sales Aug-2024.
Domestic Update
BI reported Indonesia’s Foreign Debt (ULN) position at USD414.3 billion in Jul-2024, increasing by 1.4% MoM/4.1% YoY. MNCS Comment: This performance was mainly attributable to the growth of government’s foreign debt to USD 194.3 billion (1.7% MoM/0.6% YoY), influenced by the withdrawal of foreign loans and increasing foreign inflows in the SBN market. Meanwhile the private segment was recorded at USD195.2 billion (-0.1% YoY), down from USD196.5 billion in Jun-2024. The foreign debt position reflects a ratio of 30.2% to GDP, relatively stable compared to 29.9% in Jun-2024.
Company News
1. TRIS IJ targets double digit growth in FY24E. MNCS Comment: We note the growth target in revenue of +10% YoY and net profit of +30% YoY in FY24E aligns with the company's optimism of its stable performance with export contribution >60% of the total turnover in 1H24. Furthermore, TRIS booked a revenue growth of +2.3% YoY in 1H24 with net profit reached IDR21.3 billion. TRIS is currently trading at 13.74x/1.22x PER/PBV.
2. GMTD IJ recorded a net profit reaching IDR134.9 billion (+255.6% YoY) in 1H24. MNCS Comment: This figure was mainly driven by a +86 YoY revenue increase, amounting to IDR263.9 billion in 1H24. Despite a +32.5% YoY cost of revenue rise, GMTD still managed to record a gross profit growth of +151% YoY. As a result, GPM/NPM expanded to 61%/51.1% in 1H24, respectively (vs. 45.2%/26.8% in 1H23). GMTD is currently trading at 15.8x/5.14x PER/PBV.
3. BFIN IJ plans to issue bonds with a total target fund reaching IDR6 trillion. MNCS Comment: This bond will be issued in 3 series with a maturity period from 1 to 3 years. All acquisition funds will be utilized for working capital. Additionally, the offering date on 20 Sept-24. Thus, we estimate DER will be increased to 2,1x. BFIN is currently trading at 12.05x/1.71x PER/PBV.
IHSG Updates
The JCI rose by +0.97% to 7,905.39 on Thursday (19/09), followed by net foreign buy of IDR2.08 trillion. Most sectors posted gains, boosting the index, led by the property and real estate sector (+2.23%) and followed by the infrastructure sector (+1.25%). On the other hand, the sectors that experienced losses were led by the technology sector (-0.54%) and followed by the healthcare sector (-0.40%). The index rose alongside other Asian markets, supported by solid inflows, driven by a positive catalyst from the Fed’s aggressive rate cut of 50 bps. The Rupiah closed higher at IDR15,238/USD. We estimate that the JCI will move in the price range of 7,872-7,922. Today's recommendations: ARTO, INCO, INDY, MAPA.
Corporate Actions
EGMS: FASW, WEGE
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