Our take on the MSCI inclusion: In-line with our latest MSCI rebalancing preview (18 July 2024), FILM will be included in the MSCI Small Cap Index, effective 2 September 2024. The inclusion is expected, considering FILM's free-float adjusted market cap (FFMC) had reached USD 874.3mn as of August 13, 2024, with 1-year average daily trading volume (ADTV) of USD 2.4mn. Next for FILM will be the potential inclusion in the MSCI Global Standard Index, as its FFMC is already nearing USD 1 bn, and its 1-year ADTV is quite close to USD 2.5mn. Over the past five trading days, the share price of FILM has gone up 23% on massive trading volumes. We attribute the surge in liquidity to several factors, including the company's impressive 2Q24 EPS growth of +1,480% QoQ and +22.7% YoY, as well as FILM's inclusion in the IDX SMC Composite and IDX Cyclical Economic 30 indices. Looking ahead, we anticipate FILM's 2H24 movie pipeline, which contains several blockbusters, to enhance the company's performance further. This, coupled with potential strategic partnership and expansion plans, has us convinced to maintain our positive outlook on FILM. Our BUY rating on FILM is backed by DCF-based TP of IDR 5,500, reflecting +21% upside potential from current levels. The post FILM: MSCI Small Cap Inclusion - BUY, TP: IDR 5,500 appeared first on Samuel Sekuritas Indonesia.