Global Market Highlights
DJIA weakened -1.62% on Friday (23/09), followed by S&P500 (-1.72%) and Nasdaq (-1.80%). Wall Street corrected amid the release of S&P Global Manufacturing PMI Flash Sep-22 which expanded to 51.8 points (vs 51.1 points on consensus). However, investors were concerned that this positive achievement will encourage more aggressive monetary tightening by the Fed and trigger a potential economic recession. Today, the market will be looking toward several data releases such as: 1) US Chicago Fed National Activity Index Aug; 2) US Dallas Fed Manufacturing Index Sep; 3) Germany Ifo Business Climate Sep.
Domestic Update
• Bank Indonesia (BI) reported that M2 position was at IDR7,849tn on Aug-22, grew 9.5% YoY, but slightly lower than the previous month with 9.6% YoY. MNCS Comment: M2 growth was influenced by credit growth (+10.4% YoY Aug-22). Positive credit growth indicates continued improvement in demand and sufficient liquidity in the economy amidst tight global liquidity conditions.
• Furthermore, the national Covid-19 daily rate had increased by 1,411 active cases (25/09).
Company News
1. PGAS IJ posted a +18.82% YoY revenue growth in 1H22 to USD1,740.18 million (vs USD1,464.56 million in 1H21). Meanwhile, net profit rose by +21.40% YoY to USD238.56 million (vs USD196.51 million in 1H21) (Emiten News). MNCS Comment: The increase in revenue was supported by the increase in the natural gas trading segment (+4.41% YoY) followed by oil and gas sales (+130.73% YoY). Meanwhile, the increase in the net profit was supported by the increase in the company's margins, where GPM and OPM were recorded at 24.19% and 19.52%, respectively (vs 19.38% and 14.38% in 1H21). PGAS is currently traded at the level of 6.09x/1.13x PER/PBV.
2. BBTN IJ posted a +57.12% YoY increase in net profit in 7M22 to IDR1.97 trillion (vs IDR1.26 trillion in 7M21) (Emiten News). MNCS Comment: The increase in profit was partly supported by the growth of the company's net interest income by +30.61% YoY, in line with the increase in credit by +6.09% YoY. Currently, BBTN is traded at the level of 0.79x PBV.
3. ASII IJ targets sales of 3.5 million EV units by issuing 30 models up to FY30F. In addition to the 4W segment, the company also plans to work on the 2W segment (Kontan). MNCS Comment: We see positively the company's efforts to diversify its business towards the EV industry, as the domestic EV trend develops. It is hoped that the continued expansion will be able to maintain the company's market share and drive future revenues. ASII is currently traded at the level of 7.96/1.57 PER/PBV.
IHSG Updates
JCI weakened -0.56% to 7,178.58 on Friday (23/09), followed by net foreign sell which reached IDR767.94 billion. The majority of sectors weakened and weighed on the index, led by the energy sector (-1.41%) followed by the property sector (-1.11%). On the other hand, the strengthening sectors were led by the non-cyclical sector (+0.70%) followed by the transportation sector (+0.50%). The index's decline was in line with Asian markets and Wall Street. Investor concerns regarding the potential for a global economic recession overshadowed the movement of the index, as the Fed plans to increase interest rates aggressively and a number of other monetary tightening in the future. On the other hand, the Rupiah exchange rate closed lower at IDR15,038/USD. We estimate that the JCI will move in the price range of 7,150-7,230 pending the release of Foreign Direct Investment YoY Q3 data. Today's recommendation: INCO, MIKA, MPMX, PNBS.
Corporate Actions
RUPS: WSKT, BGTG
Public Expose: OLIV
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