BJTM
Contact our analyst Achmadi
18% upside. HOLD.
22nd May 2024
Price Rp 570
Target price Rp 670
Small Increase in Net Income
In Q1-2024, BJTM’s net income increased slightly by 1.52% YoY compared to FY-23, which saw a decrease of -4.71% YoY, reaching IDR 310 billion. This increase occurred despite the growth in Other Operating Expenses and Provision Expenses by 12.57% YoY and 25.29% YoY, respectively. The bank still maintained growth in its Interest and Shariah Income, contributing to a 13-bps increase in the NIM ratio to 5.43%, and Other Operating Income increased by 7.36% and 25.29% YoY. We forecast that by December 2024, BJTM’s net income will experience a modest increase of 1.79% to IDR 1.5 trillion, with the NIM ratio reaching 5.86%.
Strong Loan Growth
As of March 2024, BJTM’s loan portfolio stood at IDR 57 trillion, marking an 18.76% YoY expansion. The most significant growth, 58.40%, was observed in the Small and Medium Enterprises (SMEs) within the Commercial & SME loan segment, leading to a 36.34% YoY increase in this category. Consumer loans also grew by 7.40% YoY. The highest contributions came from the Wholesale and Retail Trade sector, accounting for 33.89%, while the most substantial growth was in Agriculture, Hunting, and Forestry, which surged by 85.76% YoY. We predict BJTM will continue to expand its loan portfolio by another 14.56% YoY.
Improved NPL Ratio Compared to Last Year
BJTM’s NPL ratio improved significantly, decreasing by 22 bps to 2.82% compared to Q1-23, despite being higher than FY23's 3.04%. This improvement was particularly notable in the Commercial & SME segment, which decreased by 31 bps to 1.84%, and the Consumer Segment, which increased slightly by 2 bps to 0.98%. We anticipate that BJTM’s NPL ratio will decrease further to 2.38% in 2024.
Strong Liquidity
BJTM’s liquidity strengthened, as evidenced by a 2.65% YoY increase in the CASA ratio to 60.59%. This increase resulted from a significant 13.06% YoY growth in Savings Accounts. The LDR ratio also rose dramatically by 9.75% YoY to 70.49% due to substantial loan growth in Q1-2024. We forecast that in 2024, BJTM’s CASA Ratio and LDR will stabilize at 59.00% and 72.54%, respectively.
Valuation: 18% Upside, Hold
Based on our DDM Valuation, we have a target price of IDR 670 within one year, trading at 0.78x PBV, which offers 18% potential upside. We recommend HOLD.
In Q1-2024, BJTM’s net income increased slightly by 1.52% YoY compared to FY-23, which saw a decrease of -4.71% YoY, reaching IDR 310 billion. This increase occurred despite the growth in Other Operating Expenses and Provision Expenses by 12.57% YoY and 25.29% YoY, respectively. The bank still maintained growth in its Interest and Shariah Income, contributing to a 13-bps increase in the NIM ratio to 5.43%, and Other Operating Income increased by 7.36% and 25.29% YoY. We forecast that by December 2024, BJTM’s net income will experience a modest increase of 1.79% to IDR 1.5 trillion, with the NIM ratio reaching 5.86%.
Strong Loan Growth
As of March 2024, BJTM’s loan portfolio stood at IDR 57 trillion, marking an 18.76% YoY expansion. The most significant growth, 58.40%, was observed in the Small and Medium Enterprises (SMEs) within the Commercial & SME loan segment, leading to a 36.34% YoY increase in this category. Consumer loans also grew by 7.40% YoY. The highest contributions came from the Wholesale and Retail Trade sector, accounting for 33.89%, while the most substantial growth was in Agriculture, Hunting, and Forestry, which surged by 85.76% YoY. We predict BJTM will continue to expand its loan portfolio by another 14.56% YoY.
Improved NPL Ratio Compared to Last Year
BJTM’s NPL ratio improved significantly, decreasing by 22 bps to 2.82% compared to Q1-23, despite being higher than FY23's 3.04%. This improvement was particularly notable in the Commercial & SME segment, which decreased by 31 bps to 1.84%, and the Consumer Segment, which increased slightly by 2 bps to 0.98%. We anticipate that BJTM’s NPL ratio will decrease further to 2.38% in 2024.
Strong Liquidity
BJTM’s liquidity strengthened, as evidenced by a 2.65% YoY increase in the CASA ratio to 60.59%. This increase resulted from a significant 13.06% YoY growth in Savings Accounts. The LDR ratio also rose dramatically by 9.75% YoY to 70.49% due to substantial loan growth in Q1-2024. We forecast that in 2024, BJTM’s CASA Ratio and LDR will stabilize at 59.00% and 72.54%, respectively.
Valuation: 18% Upside, Hold
Based on our DDM Valuation, we have a target price of IDR 670 within one year, trading at 0.78x PBV, which offers 18% potential upside. We recommend HOLD.
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