Global Market Highlights
DJIA weakened by -1.11% on Monday (26/09), followed by the S&P500 (-1.03%) and the Nasdaq (-1.60%). Wall Street was under pressure as the trend of rising US T-note 10Y yield continued to 3.88%. Market participants were also watching the release of the Chicago Fed National Activity Index Aug-22, which contracted to 0.0 point (vs 0.29 point in Jul-22) and the Dallas Fed Manufacturing Index Sep-22 which continued its contraction to -17.2 points (vs -12.9 points in Aug-22). Today, the market will be looking toward several data releases such as: 1) US Durable Goods Orders Mom Aug; 2) US CB Consumer Confidence Sep; 3) US New Home Sales MoM.
Domestic Update
• Indonesia's International Investment Position (PII) recorded a decrease in Net Liabilities of USD270.4 billion in 2Q22 (vs USD287.8 billion in 1Q22). MNCS Comment: The decrease in net liabilities was driven by: 1) a decrease in FFL & 2) an increase in FFA. FFL decreased due to the decline in the price of investment instruments & the strengthening of the USD. However, the decline in FFL was restrained by net inflows of direct and portfolio investment.
• Furthermore, the national Covid-19 daily rate had increased by 1,344 active cases (26/09).
Company News
1. ASSA IJ through its entity namely PT Kargo Bersama Teknologi (KBT) established PT Kargo Bersama Logistik (KBL), the total transaction value reached IDR10 billion (Emiten News). MNCS Comment: It is hoped that the establishment of this new business line will encourage the company's performance and further enhance integration in the ASSA ecosystem, especially in the ASSA Logistics segment. ASSA is currently traded at the level of 21.59x/3.03x PER/PBV.
2. JSMR IJ posted a +9.55% YoY revenue growth in 1H22 to IDR7.54 trillion (vs IDR6.88 trillion in 1H21). Meanwhile, net profit fell by -14.13% YoY to IDR734.76 billion (vs IDR855.63 billion in 1H21) (Emiten News). MNCS Comment: Revenue growth was supported by the increase in toll revenue segment (+16.10% YoY). Meanwhile, the decrease in net profit was in line with the increase in general expenses (+24.97% Yoy) amid a decline in financial income (-65.12% YoY). JSMR is currently traded at the level of 16.99x/1.19x PER/PBV.
3. DEWA IJ reported a +26.79% YoY revenue growth in 1H22 to USD193.89 million (vs USD152.91 million in 1H21). However, the bottom-line recorded a net loss of USD8.15 million (vs. net profit of USD1.51 million in 1H21) (Emiten News). MNCS Comment: Net loss was resulted from the increasing COGS (+37.96% YoY) due to higher depreciation expense and fuel, which lowered gross profit to -70.42% YoY. Furthermore, the financial burden also increased +73.95% YoY. DEWA is currently traded at the level of 0.32x PBV.
IHSG Updates
JCI weakened by -0.71% to 7,127.50 on Monday (26/09), followed by net foreign sell which reached IDR1.36 trillion. Almost all sectors weakened and weighed on the index, led by the energy sector (-3.98%) followed by the industrial sector (-2.73%). On the other hand, the only strengthened sector was the financial sector (+0.21%). The index corrected along with other Asian bourses. The weakening of the index occurred in line with investor concerns regarding the potential global economic recession and the occurring outflow. On the other hand, the Rupiah exchange rate closed lower at IDR15,128/USD. We estimate that the JCI will move in the price range of 7,000-7,170. Today's recommendation: GJTL, JPFA, LPPF, LSIP.
Corporate Actions
Public Expose: HMSP
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