BTPS
Contact our analyst Lingga
21% upside. BUY.
4th May 2021
Price Rp3330
Target price Rp4030
Stronger Net Profit
In 1Q21, Net Profit increased significantly by 40% YoY. Good cost control can be seen in the operating expenses which increased by only 3% YoY. NIM was stable at 15% on an annual basis, helped by a lower cost of funds (CoF) which fell to a record low of 4.4% in 1Q21.
Financing growth
In 1Q21, Financing grew 22% YoY, with growth driven by expansion to new customers in businesses related to basic needs and to existing customers requiring higher loan sizes. BTPS sees that loan demand in the field has returned, but they are relatively conservative in distributing new loans, and still see competitive pressure in the ultra-micro market. Seeing that financing growth recovering with the economy, our estimate is that financing will grow by 12,3% YoY in 2021F
Loan Restructured
As of March 21, 2021, BTPS has carried out a credit restructuring of IDR 7.3 trillion or 75% of total loans. Half of the restructured loans have begun to pay again while the other half are still in the process of a pending payment scheme. BTPS expects about 10% of pending payments to risk going into NPLs. BTPS also cleaned up its portfolio with write-offs of IDR 200 billion or 2.2% of the total financing in 1Q21
Valuation: 21% Upside, Buy
Based on our DDM Valuation, we have a target price within one year of IDR 4,030, or trading at 3.9x PBV which gives 21% potential upside, Buy.
In 1Q21, Net Profit increased significantly by 40% YoY. Good cost control can be seen in the operating expenses which increased by only 3% YoY. NIM was stable at 15% on an annual basis, helped by a lower cost of funds (CoF) which fell to a record low of 4.4% in 1Q21.
Financing growth
In 1Q21, Financing grew 22% YoY, with growth driven by expansion to new customers in businesses related to basic needs and to existing customers requiring higher loan sizes. BTPS sees that loan demand in the field has returned, but they are relatively conservative in distributing new loans, and still see competitive pressure in the ultra-micro market. Seeing that financing growth recovering with the economy, our estimate is that financing will grow by 12,3% YoY in 2021F
Loan Restructured
As of March 21, 2021, BTPS has carried out a credit restructuring of IDR 7.3 trillion or 75% of total loans. Half of the restructured loans have begun to pay again while the other half are still in the process of a pending payment scheme. BTPS expects about 10% of pending payments to risk going into NPLs. BTPS also cleaned up its portfolio with write-offs of IDR 200 billion or 2.2% of the total financing in 1Q21
Valuation: 21% Upside, Buy
Based on our DDM Valuation, we have a target price within one year of IDR 4,030, or trading at 3.9x PBV which gives 21% potential upside, Buy.
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