BJTM
Contact our analyst Lingga
18% upside. HOLD.
18th May 2021
Price Rp 760
Target price Rp 900
Low LDR
In 1Q21 LDR decreased to 54.85% from 60.58% in FY20. Loan Growth experienced positive growth in 1Q21 of 8.63% YoY and 8.16% QoQ, but Third-Party Funds experienced even higher growth of 31.72% YoY and 13.08% QoQ. BJTM will gradually improve its lending function for consumers and SMEs, so we estimate LDR will reach 60% in 2021F.
Balance sheet Growth
1Q21 and FY20 saw high total asset growth of 28.6% YoY and 9% YoY as a result of the large increase in Third Party Funds in the form of Time Deposits and Current accounts from the government. This helped to keep the Cost of Funds at a low level of 2.75-2.67%. As a result of their 53.47% third party funds growth the government funding as a proportion of the total has now reached 30.11%. Lending assets did experience some growth, especially in the Commercial and SME segments.
Budget realization begins
In collaboration with Fintech player Amartha, BJTM plans this year to distribute KUR with a ceiling of IDR 1 trillion, through recruitment of new ASNs who will become new debtors. The government construction budget has started to be realized this year so commercial customers have the potential to experience growth and there will also be an impact on the growth of Third Party Funds due to transactions of Government funds through Bank Jatim.
Valuation: 18% Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR. 900 or trading at 1x PBV which gives 18% potential upside, Hold
In 1Q21 LDR decreased to 54.85% from 60.58% in FY20. Loan Growth experienced positive growth in 1Q21 of 8.63% YoY and 8.16% QoQ, but Third-Party Funds experienced even higher growth of 31.72% YoY and 13.08% QoQ. BJTM will gradually improve its lending function for consumers and SMEs, so we estimate LDR will reach 60% in 2021F.
Balance sheet Growth
1Q21 and FY20 saw high total asset growth of 28.6% YoY and 9% YoY as a result of the large increase in Third Party Funds in the form of Time Deposits and Current accounts from the government. This helped to keep the Cost of Funds at a low level of 2.75-2.67%. As a result of their 53.47% third party funds growth the government funding as a proportion of the total has now reached 30.11%. Lending assets did experience some growth, especially in the Commercial and SME segments.
Budget realization begins
In collaboration with Fintech player Amartha, BJTM plans this year to distribute KUR with a ceiling of IDR 1 trillion, through recruitment of new ASNs who will become new debtors. The government construction budget has started to be realized this year so commercial customers have the potential to experience growth and there will also be an impact on the growth of Third Party Funds due to transactions of Government funds through Bank Jatim.
Valuation: 18% Upside, Hold.
Based on our DDM Valuation, we have a target price within one year of IDR. 900 or trading at 1x PBV which gives 18% potential upside, Hold
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