FROM EQUITY RESEARCH
Nickel: Expect NPI price to decouple and stabilize, with volume growth to be key drivers in FY24F (OVERWEIGHT) ·      While we expect LME nickel price to decline further in FY24F, we project NPI price will decouple and stabilize at US$14k/t. ·      Given view of stabilizing NPI prices and falling cost, we expect earnings outperformance for producers with volume growth. ·      We maintain sector OW and prefer nickel names with high volume growth improvements such as NCKL and MBMA. To see the full version of this report, please click here   To see the full version of this snapshot, please click here   MARKET NEWS

MACROECONOMY

Caixin China General Composite PMI Rose to 51.6 in Nov23

The Caixin China General Composite PMI rose to 51.6 in Nov23 from 50.0 in the prior month. This was the 11^th straight month of growth in private sector activity and the steepest pace since August, as factory activity unexpectedly expanded. On inflation, input prices rose the least since July, with prices charged increasing slightly. (Trading Economics)

 

US ISM Service PMI Rose to 52.7 in Nov23

US ISM Service PMI rose to 52.7 in November from 51.8, which was a 5-month low. Business activity increased, although new orders remained flat and a gauge of input inflation dipped as the lagged effects of higher interest rates start to have a greater impact. (Reuters)

 

US Job Openings Decreased by 617,000 in Oct23

The number of job openings in the US decreased by 617,000 from the previous month to 8.733mn in October 2023, marking the lowest level since March 2021 and falling below the market consensus of 9.3mn. (Trading Economics)

 

SECTOR

Technology: Import Volume via E-commerce Drops 66% in Nov23

The Director General of Customs and Excise at the Ministry of Finance said that the volume of imported goods shipped via e-commerce decreased by 66.36% in Nov23 to 0.36mn (Prev: 1.07mn). Its value also decreased from US$69.8mn in Oct23 to US$58.79mn in Nov23. (Kontan)

 

CORPORATE

AKRA Increased AKRIDA’s Capital by Rp52.6bn

AKRA increased the capital of its subsidiary, namely Anugrah Krinda Retailindo (AKRIDA), which operates in the retail sector. AKRIDA has signed a deed to increase authorized capital as well as issued and paid-up capital worth Rp52.6bn. This capital was taken and paid in full by AKRA. Thus, the issued and paid-up capital increased from Rp768.51bn to Rp821.16bn. (Kontan)

 

EXCL Adds New Business Activities

EXCL announced plans to add new business activities. EXCL plans to cater to fast internet and technology demand in housing, corporate and government settings. Through additional business activities, the Company will provide broader services and products, including Information and Communication of Technology (ICT) services for Home and Business Solutions Division solutions. The Company provides the development of these solutions in digital platforms, software, hardware, managed services, or services that are consolidated into a single solution that can be utilized for corporate businesses in all industrial sectors (private and public) and for the retail home segment. (Company)

 

GOTO: Tokopedia and TikTok to Announce Indonesian E-Commerce Deal Soon

GOTO, through Tokopedia, is deliberating with TikTok for a partnership and investment, as a deal may be announced soon. Discussions between ByteDance and GOTO have been underway since the Indonesian Government banned TikTok shop. Reportedly, there’s a possibility that TikTok will pick a small stake in Tokopedia and gradually increase it to a majority stake as GOTO has been pushing ByteDance to take over 50% and let the company run the e-commerce part of the business. (DealStreetAsia)

 

INCO’s Divestment Continuation Encouraged by the Ministry of Energy and Mineral Resources

INCO is encouraged to continue the divestment process in order for MIND ID to become the majority shareholder. The size of the portion of shares that will be divested will be discussed by INCO and MIND ID. In this divestment process, MIND ID previously revealed that the amount of funds prepared for 14% of INCO shares is Rp7tr. (Kontan)

 

TBIG: Bond Issuance Worth Rp1.51tr and Interim Dividend Distribution worth Rp25/share

TBIG announced the completion of the issuance of its Continuous Rupiah Bond VI Phase II Year 2023 (“TBIG Bond VI Phase II”) under its new Rp20tr Bond VI Program. The bond has a total issuance size of Rp1.51tr at a fixed interest rate of 6.75% for a tenor of 370 days. The TBIG Bond VI Phase II will constitute senior unsecured obligations of TBIG and have quarterly coupon payments. The use of net proceeds will be used to partially repay the Company’s existing financial liabilities, in particular the US$325mn Revolving Credit Facility. (Company, IDX)

 

In other news, TBIG will distribute an interim dividend of Rp25/share. The dividend allocation will be taken from the net profit of Rp1.11tr as of 9M23. (Emiten News)

 

UNTR Annexes Rp3.2tr Nickel Mine

UNTR completed the acquisition of shares in Stargate Pacific Resources (SPR), and PT Stargate Mineral Asia (SMA) worth Rp3.2tr. The transaction was carried out through PT. Danusa Tambang Nusantara (DTN). With details of buying 69.9991% of shares owned by Stargate Pasific Resources (SPR), and 0.0009% of Anugerah Surya Investama (ASI) shares. At the same time, DTN has made payment for the purchase of 90% of shares owned by PT Stargate Mineral Asia (SMA) The purpose of the transaction is to diversify business activities into nickel mining and processing. (Emiten News)