FROM EQUITY RESEARCH DESK
IDEA OF THE DAY
Metal Mining: 2Q24 preview: Strong qoq earnings growth on higher ASP, expect 1H24 to be mixed (OVERWEIGHT)
- We estimate the sector’s 2Q earnings to proliferate on the back of a stronger ASP and volume, yet still leading to a slightly below 1H.
- We expect TINS to be the best performer in 2Q24 as its ASP and volume improve, while NCKL has the least growth as it already had a solid 1Q24
- We reiterate our Overweight rating on the sector with TINS and NCKL as our top picks due to their stronger earnings visibility.
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MARKET NEWS
MACROECONOMY
China’s Annual Inflation Rate Edged Down to 0.2% in Jun24
China's annual inflation rate edged down to 0.2% in June 2024 from 0.3% in the prior two months, falling short of market estimates of 0.4%. It was the fifth straight month of consumer inflation but the lowest figure since March amid a fragile economic recovery. (Trading Economics)
Chair Jerome H. Powell Signals Possible Interest Rate Cuts Before Inflation Hits the 2% Target
Jerome Powell concluded his visit to Capitol Hill as part of his twice-yearly report on the state of the economy, stating that the Federal Reserve doesn’t need to see inflation return to its 2% annual target to consider lowering interest rates; waiting that long would risk pushing the economy into a recession. Powell stated that the Fed is committed to returning inflation to a 2% annual rate but could be ready to cut interest rates sooner, once officials are sufficiently confident that inflation will return to the target level. (Barron's)
CORPORATE
ASII Expects Positive Impact from GIIAS 2024
ASII remains hopeful about the positive effects of the 2024 Gaikindo Indonesia International Auto Show (GIIAS). They believe this event will help revitalise the sluggish car sales experienced throughout the year. According to ASII, the challenges in the automotive market, particularly in car sales, are attributed to the weakening purchasing power of consumers. (Bisnis)
JSMR Purchased 10% of JKC Shares from Synergy Quest
JSMR and Synergy Quest International Limited (SQIL) officially signed the Share Sale and Purchase Agreement (SPA) for 10% of PT Jasamarga Kunciran Cengkareng (PT JKC), a subsidiary of Jasa Marga that manages the Cengkareng-Batuceper-Kunciran Toll Road. After the signing, JSMR owns 88.67% of JKC, while PT Triputra Utama Selaras owns 11.01% and PT Nindya Karya owns 0.32%. (Kontan)
KLBF Collaborates with RSUD Dr. Moewardi to Launch Cell Therapy Services
KLBF officially collaborates with Dr. Moewardi Hospital, Solo, in the field of cell therapy and derivative products such as stem cells, secretomes and exosomes. The collaboration was carried out by Regenic Stem Cell, a production facility owned by KLBF's subsidiary, PT Bifarma Adiluhung (BFA). This move will expand the use of stem cell and secretome therapy, stimulate stem cell research, and create future medical breakthroughs. (Kontan)
MEDC Accelerates Dayung Facility Optimization (DFO) Gas Project
The Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), together with the Cooperation Contract Contractors (KKKS) Medco E&P Grissik (MEPG), successfully accelerated the completion of the Dayung Facility Optimization (DFO) project at the Dayung Gas Gathering Station. The DFO project was originally planned to start operations at the end of July 2024, but it achieved start-up on June 30, 2024. (Investor Daily)
PTPP Earned New Contracts Worth Rp9.65tr in 1H24
PTPP earned new contracts worth Rp9.65tr in 1H24, an increase of nearly 102% compared to the contract value in 1Q24. Most of these new contracts were still derived from infrastructure projects and building construction. As of June 2024, PTPP has 105 ongoing projects. (Kontan)
