BBCA - Eyeing for KPR channeling of IDR122 tn

BBCA - Eyeing for KPR channeling of IDR122 tn Bank Central Asia (BBCA) aims for KPR distribution of IDR122 tn by the end of 2023. The realization of KPR distribution in the first semester of 2023, the bank has distributed financing to the KPR segment amounting to IDR114.6 tn, or growing 12% yoy. Of this amount, BBCA needs to boost the KPR segment more strongly to achieve its target at the end of this year. According to BBCA, to meet the KPR segment credit distribution target this year, the bank must at least achieve a new booking target of IDR43 tn. BBCA expects total credit can grow 10%-12% in 2023. (Source: Kontan). Comment: We expect consumer loan segment demand remain in place and thus will help BBCA to achieve its new booking target. Bank Indonesia data revealed that as of Jul23 loan channeled to KPR segment was approximately IDR670.5tn or grew 10.3% yoy. With the expectation of steady purchasing power and demand for housing, we view BBCA will become as one of the beneficiaries. What’s more, we also expect that both end user from middle to up class segment price tag and property investor segment will overall become as additional catalyst for the landed property demand growth. Maintain our BUY stance with TP IDR10,150/share, impliying 5.1x ‘23F P/B.