BJTM
Contact our analyst Lingga
23% upside. BUY.
6th August 2020
Price Rp 555
Target price Rp 680
Consumer credit focus
In 1H20, BJTM posted rapid credit growth of 12.69% YoY supported by growth of commercial loans of 18.0% YoY, SME loans, 16.12%, and Consumer loans, 9.86%. Growth was helped by some infrastructure projects in East Java restarting. BJTM is focused on growing its consumer credit business this year due to lower risk compared to other segments. We estimate growth in fixed loans to be 14% by the end of this year.
CASA going up
The CASA ratio rose to 68.94% from 64.68% in 1Q20. CASA Current Accounts grew by 3.64% and Savings Accounts by 16.84%. Payment of East Java civil servant grants and partnership with the Regional Education Department is helping to support BJTM’s growth of CASA. We expect CASA deposits to be up further to 76% by the end of the year.
NPL rose on restructuring
Non Performing Loans surged to 4.27% from 3.35% in 1Q20 led by commercial segment at 11.57%, SME at 7.86%, and Consumer at 0.4%. Restructured loans account for 3.12% of total loans of IDR. 1222.5tn with 1,890 Debtors, mostly SMEs, having restructured so far.
Valuation: 23% Upside, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR. 680 or trading at 0.7x PBV which gives 23% potential upside, Buy.
In 1H20, BJTM posted rapid credit growth of 12.69% YoY supported by growth of commercial loans of 18.0% YoY, SME loans, 16.12%, and Consumer loans, 9.86%. Growth was helped by some infrastructure projects in East Java restarting. BJTM is focused on growing its consumer credit business this year due to lower risk compared to other segments. We estimate growth in fixed loans to be 14% by the end of this year.
CASA going up
The CASA ratio rose to 68.94% from 64.68% in 1Q20. CASA Current Accounts grew by 3.64% and Savings Accounts by 16.84%. Payment of East Java civil servant grants and partnership with the Regional Education Department is helping to support BJTM’s growth of CASA. We expect CASA deposits to be up further to 76% by the end of the year.
NPL rose on restructuring
Non Performing Loans surged to 4.27% from 3.35% in 1Q20 led by commercial segment at 11.57%, SME at 7.86%, and Consumer at 0.4%. Restructured loans account for 3.12% of total loans of IDR. 1222.5tn with 1,890 Debtors, mostly SMEs, having restructured so far.
Valuation: 23% Upside, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR. 680 or trading at 0.7x PBV which gives 23% potential upside, Buy.
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