BJTM
Contact our analyst Achmadi
25% upside. BUY.
23rd December 2022
Price Rp 705
Target price Rp 880
No significant growth in Net Income
In 9M22, BJTM profit was IDR 1.20 trillion, and only grew by +1.51% compared to 9M21. Net Interest Income and Other Operating Income grew significantly by +12.38% and +247.59% respectively,. But this growth was offset by other operating expenses which grew,+54.30% and higher provisions, which grew by +181.22%. We estimate that BJTM will grow its Net Income by only +1.70% yoy, from IDR 1.52 trillion in FY21 to IDR 1.55 trillion in FY22.
Decrease in Assets and Liabilities
As of September 2022, BJTM’s assets and liabilities decreased. Assets decreased by -2.50% compared to 9M21. Bank Placement and Marketable Securities were the biggest contributors to the negative growth with decreases of -17.65% and -7.06% respectively. But on the other hand, loans grew by +6.83%. The highest growth was from SME lending, which grew by +19.07% supported by KUR loans. Other loans like Commercial and Consumer also grew by +5.89% and +5.05% respectively. For liabilities, deposits from other banks decreased by almost -54% yoy. But on the other hand, the CASA ratio grew by +622 bps to 59.14% yoy. We forecast that in FY22, BJTM will continue to grow its loan portfolio by +11.65% yoy while the CASA ratio will also grow by +325bps yoy to 64.40% compared to FY21.
Better NPL Ratio
Although BJTM didn't grow its net profit significantly, its NPL ratio improved compared to last year. As of 9M22, BJTM's NPL ratio was 3.72%, down -68 bps from 4.40% in 9M21. Of the three segments that are served by BJTM, only SME NPLs remain stable at 0.61%. Commercial and Consumer NPL ratios decreased from 2.63% to 1.98%, and from 1.16% to 1.13% respectively. We project BJTM will continue to improve its NPL ratio, with a decline from 4.48% in FY2021 to 3.46% in FY2022.
Valuation: 25% Upside, Buy
Based on our DDM Valuation, we have a target price within one year of IDR 880 or trading at 1.1x PBV which gives 25% potential upside, Buy.
In 9M22, BJTM profit was IDR 1.20 trillion, and only grew by +1.51% compared to 9M21. Net Interest Income and Other Operating Income grew significantly by +12.38% and +247.59% respectively,. But this growth was offset by other operating expenses which grew,+54.30% and higher provisions, which grew by +181.22%. We estimate that BJTM will grow its Net Income by only +1.70% yoy, from IDR 1.52 trillion in FY21 to IDR 1.55 trillion in FY22.
Decrease in Assets and Liabilities
As of September 2022, BJTM’s assets and liabilities decreased. Assets decreased by -2.50% compared to 9M21. Bank Placement and Marketable Securities were the biggest contributors to the negative growth with decreases of -17.65% and -7.06% respectively. But on the other hand, loans grew by +6.83%. The highest growth was from SME lending, which grew by +19.07% supported by KUR loans. Other loans like Commercial and Consumer also grew by +5.89% and +5.05% respectively. For liabilities, deposits from other banks decreased by almost -54% yoy. But on the other hand, the CASA ratio grew by +622 bps to 59.14% yoy. We forecast that in FY22, BJTM will continue to grow its loan portfolio by +11.65% yoy while the CASA ratio will also grow by +325bps yoy to 64.40% compared to FY21.
Better NPL Ratio
Although BJTM didn't grow its net profit significantly, its NPL ratio improved compared to last year. As of 9M22, BJTM's NPL ratio was 3.72%, down -68 bps from 4.40% in 9M21. Of the three segments that are served by BJTM, only SME NPLs remain stable at 0.61%. Commercial and Consumer NPL ratios decreased from 2.63% to 1.98%, and from 1.16% to 1.13% respectively. We project BJTM will continue to improve its NPL ratio, with a decline from 4.48% in FY2021 to 3.46% in FY2022.
Valuation: 25% Upside, Buy
Based on our DDM Valuation, we have a target price within one year of IDR 880 or trading at 1.1x PBV which gives 25% potential upside, Buy.
Previously