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Danareksa Equity Snapshot - 23 Januari 2020
January 23, 2020 09:28

FROM EQUITY RESEARCH

 

Bank Negara Indonesia: Steady Progress (BBNI IJ. IDR 7,625 BUY TP. IDR 9,000)

We maintain our BUY call on BBNI with a GGM-derived TP of IDR9,000 following the inline FY19 results with 8.6% yoy loans growth in 2019. Post the 100bps policy rate cuts in 2019, we expect the NIM to remain stable at 4.9% this year mainly supported by BBNI’s ability to manage its blended CoF. Our NIM estimate reflects a flat asset yield at 7.9% with a 3.2% blended CoF. In addition, we assume higher credit costs at 189bps this year with an uptick in the gross NPLs ratio to 2.4% as of December 2020F on the back of the first year’s implementation of PSAK 71. 

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MARKET NEWS

MACROECONOMY

Government prepares Omnibus Law of Financial Institutions Enhancement

Besides the Omnibus Law on Taxation and Employment Creation, the government is currently preparing the Omnibus Law for Financial Institutions Enhancement. It is one of the priorities in the National Legislation Program (Prolegnas) 2020-24 in the Parliament. The Omnibus law covers several aspects: the creation of insurance premium holders protection agency, extension of the tasks and function of the Financial System Stability Committee (KSSK) to also deal with non-bank industries, regulation formulation for financial technologies (not only regulation from FSA), and strengthening of financial authorities such as Bank Indonesia, the Financial Services Authority (FSA), and the Indonesia Deposit Insurance Corporation (LPS). (Kontan)

SECTOR

Bumi Serpong Damai: Issued USD300bn of global bond

PT Bumi Serpong Damai (BSDE) through Global Prime Capital Pte, Ltd is offering global bonds of USD300bn, with a 5.95% coupon rate and with maturity in 2025. The proceeds will be transferred to Global prime Treasury (GPT) Pte Ltd which will use the funds to refinance loans. The rest of the proceeds will be used for working capital and the general expenses of the company. The bond is rated Ba3 by Moody’s. (Investor Daily)   

PP Presisi: Targets 20%yoy growth in new contracts in 2020

PP Presisi (PPRE) booked IDR5.9tn of new contracts in 2019. The amount is up by +13.5%yoy from IDR5.2tn in 2018. PPRE targets 20%yoy growth in new contracts in 2020 to IDR7.0tn. (Kontan)

Timah: To develop a new smelter adopting ausmelt technology

PT Timah (TINS) will develop new technology in mineral processing and purification. Tin will be processed at EPCC TSL Furnace Ausmelt in Muntok, West Bangka. This development will be carried out by Wijaya Karya (WIKA), and the ground breaking will start on 30 January. The company believes that if it only uses current technology, aluvial reserves of tin will decrease. WIKA also mentioned that this project will be finished in 19 months, and in 2021 it will be operational. (Investor Daily)

Wijaya Karya: Targets new overseas contracts of IDR5.7tn in 2020

Wijaya Karya (WIKA) targets lower new overseas contracts in 2020 than in 2019. WIKA targets new overseas contracts in 2020 of IDR5.7tn or representing 8.8% of the new contracts which is targeted at IDR65.0tn (+54.4%yoy). In 2019, overseas contracts reached IDR7.0tn, contributing 16.6% of the new contracts booked at IDR42.1tn. (Bisnis Indonesia)