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BJTM
Contact our analyst Lingga

25% upside. Buy.
30 November 2021
Price Rp 750
Target price Rp 940

Higher profit with strong net interest income
In 9M21, BJTM recorded a net profit of 1.8 Trillion, up 7.81% YoY. Net interest income rose 10.22% YoY. Provision Expenses increased by 14.26% YoY due to the recording of provision fees that are still in the NPL, but the colletibility has increased to the current category. LDR and CASA are quite low but can still be supported by interest income with 70% coming from loan interest and 40% from treasury proceeds. In October 2021, there will be a syndicated repayment of 500bn so that the LDR will be 47.82%, then there will be a repayment at the end of the year or next year of around 250bio so it is estimated that the LDR will be in the range of 47-48% in 2021F.

Loan and Time Deposit growth is quite strong
Loan growth was 6.57% YoY due to SME loans which increased by 13.32% YoY due to the increase in fin tech (Amartha) by around IDR 600 billion. Commercial loans  were up 10.83% YoY from a stronger construction sector (government projects). Consumer loan growth was slower at 2.97% YoY. Third Party Funds increased by 23.45% YoY with deposit growth of 58% YoY, but interest costs were still controlled with a 3Q21 COF of 2.39% from 2.93% in 3Q20.

Asset quality and restructuring progress
Gross NPLs were flat at 4.40% from 4.42% in 1H21. As of September, write-offs amounted to IDR 36.5 billion, and at the end of the year NPL is estimated to at a maximum of 4% in 2021F. Bad debts of around IDR 1.1 trillion are almost all in commercial construction. Loan restructuring has increased to IDR 43 billion from IDR 39 billion in June 2021 or 6.5% of total loans and consists of 20.68% from commercial, 5.12% from SME segment, 0.51% from Consumer segment. NPLs which have been restructured are 2.27%.

Valuation: 25% Upside, Buy.
Based on our DDM Valuation, we have a target price within one year of IDR 940 or trading at 1x PBV which gives 25% potential upside, Buy.
Download full report here
Previously
​BJTM May2021
​BJTM Nov2020
​BJTM Aug2020
​BJTM Jun2020
​BJTM Feb2020
​BJTM Sep2019
PT. Binaartha Sekuritas

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