BBRI - Planning to buy back shares worth IDR3 tn

BBRI - Planning to buy back shares worth IDR3 tn The state-owned Bank Rakyat Indonesia (BBRI) plans to conduct a share buyback with a total value estimated at up to IDR3 tn. BRI has been conducting buybacks as part of the employee stock ownership program, and/or the Board of Directors and Board of Commissioners since 2015. The program is part of the Company's efforts to encourage employee engagement towards the sustainable improvement of the Company's performance in the long term. This year, the company plans to conduct another buyback (buyback 2025) based on POJK 29/2023, which will be submitted for approval at the 2025 annual GMS. "The Treasury Stock resulting from the 2025 Buyback will be realized as a continuation of the previous stock ownership program," he added. The estimated total value of the 2025 Buyback is a maximum of IDR 3tn, sourced from BRI's internal cash in accordance with applicable regulations. The estimated buyback value does not include costs (brokerage commissions and other fees) which are estimated to be at most 0.22% of the estimated buyback value. (Source : Cnbc Indonesia) Comment : In essence, this buyback appears to be a strategically sound move by BRI, aimed at enhancing employee engagement, rewarding shareholders, and demonstrating the company's financial strength within the regulatory framework. Furthermore, it is our assessment that this strategic corporate action, the planned share buyback, will serve as a potent catalyst for BBRI's stock, effectively counteracting the recent period of pronounced selling pressure. The buyback's signaling effect, coupled with the tangible reduction in outstanding shares, is anticipated to restore investor confidence and provide a robust foundation for renewed upward momentum. Maintain BUY BBRI with GGM based TP of IDR 5,390 (2.5x '25F P/B).