BJTM
Contact our analyst Achmadi
18% upside. Hold.
29th August 2022
Price Rp 720
Target price Rp 850
Decrease in NIM
In 1H22, BJTM's NIM fell 14 bps from 5.06% to 4.92%. With a lower NIM, BJTM recorded a net profit of IDR 0.82 trillion, growing only +1.49% compared to the first semester of 2021. The net profit growth was also supported by Customer Deposits, which grew by +16.41%. We estimate that BJTM will increase its net income by +18.15% from IDR 1.52 trillion in 2021 to IDR 1.80 trillion in 2022.
Total Assets grew +14.08%
BJTM’s total assets grew significantly up by +14.08% yoy from IDR 95.48 trillion to IDR 108.93 trillion. The growth was driven by SME loans which increased +12.40% yoy. Other segments grew too. Consumer lending grew +1.21% yoy, while commercial loans grew +0.26%. We forecast BJTM’s total assets and total gross loans will grow by +17.68% and +10.24% in FY2022.
Better NPL Ratio
Although BJTM didn't grow its net profit significantly, its NPL ratio improved compared to last year. In the first semester, BJTM's NPL was 4.12%, down 30 bps from 4.42% in 1H2021. Of the three segments that are served by BJTM, only SME NPLs increased. Even though NPL from SME increased from 0.62% to 0.63%, SME has the smallest NPL compared to the other two segments. NPLs from commercial and consumer were 2.33% and 1.16% respectively. We project BJTM will continue to improve its NPL ratio, decreasing from 4.48% in FY2021 to 2.98% in FY2022.
Valuation: 18% Upside, Hold
Based on our DDM Valuation, we have a target price within one year of IDR 850 or trading at 1.1x PBV which gives 18% potential upside, Hold.
In 1H22, BJTM's NIM fell 14 bps from 5.06% to 4.92%. With a lower NIM, BJTM recorded a net profit of IDR 0.82 trillion, growing only +1.49% compared to the first semester of 2021. The net profit growth was also supported by Customer Deposits, which grew by +16.41%. We estimate that BJTM will increase its net income by +18.15% from IDR 1.52 trillion in 2021 to IDR 1.80 trillion in 2022.
Total Assets grew +14.08%
BJTM’s total assets grew significantly up by +14.08% yoy from IDR 95.48 trillion to IDR 108.93 trillion. The growth was driven by SME loans which increased +12.40% yoy. Other segments grew too. Consumer lending grew +1.21% yoy, while commercial loans grew +0.26%. We forecast BJTM’s total assets and total gross loans will grow by +17.68% and +10.24% in FY2022.
Better NPL Ratio
Although BJTM didn't grow its net profit significantly, its NPL ratio improved compared to last year. In the first semester, BJTM's NPL was 4.12%, down 30 bps from 4.42% in 1H2021. Of the three segments that are served by BJTM, only SME NPLs increased. Even though NPL from SME increased from 0.62% to 0.63%, SME has the smallest NPL compared to the other two segments. NPLs from commercial and consumer were 2.33% and 1.16% respectively. We project BJTM will continue to improve its NPL ratio, decreasing from 4.48% in FY2021 to 2.98% in FY2022.
Valuation: 18% Upside, Hold
Based on our DDM Valuation, we have a target price within one year of IDR 850 or trading at 1.1x PBV which gives 18% potential upside, Hold.
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