BBCA - BCA finance targets vehicle loan reach IDR 43 tn

BBCA - BCA finance targets vehicle loan reach IDR 43 tn Bank Central Asia (BBCA) subsidiary, namely BCA Finance, has set a target for motor vehicle credit (KKB) distribution of IDR43 tn this year or 7.5% yoy higher vs the previous year's achievement in 2023. BCA Finance is optimistic that the BCA Expoversary 2024 event, which will take place from February 29 to March 3, will attract great interest and can help the automotive industry improve its performance. This is expected to encourage overall credit growth of 10%–11%. (Source : Kontan). Comment : We think the target is achievable on the back of continuing recovery momentum and better spending confidence. Various uninterrupted promotion as well as expectation on softened loan yield will overall support the target to be achieved. Maintain BUY with a DDM-based TP of IDR11,070 (4.9x ’24F P/B), while now trading at 4.4x ‘24F P/B or at +1SD historical mean.