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BRIS - Strong earnings likely to continue, raising our ‘24F EPS

Akhmad Nurcahyadi 01 November 2023

BRIS: Strong earnings likely to continue, raising our ‘24F EPS           
(Maintain BUY; TP: IDR2,050)

•    BRIS 9M23 earnings beating ours and street expectation by 82%/78% (hist average at 75%) and we believe the growth to continue backed by shariah market strong prospects. We like BRIS continuing strong financing growth at 15.9% yoy, thanks to strong pick up on consumer segment (+17.6% yoy) on the back of auto loan, mortgage and payroll-based financing.

•    Key ratios continue to solid, with NIM reported at 5.93% and closed to ‘23F management upper guidance of 6% (5.7%-6%). BRIS should continue to enjoy high yield loan from its consumer segment (10.02% in Sept23). That said, any potential profit-sharing expenses that could continue to take place in 4Q23, NIM is likely to remain reaches within BRIS target.

•    We revisit our model and made some adjustment to accommodate with better-than-expected 9M23. We also believe BRIS solid prospects growth will remain intact. As such our new ‘23F/‘24F loan growth forecast is 12%/13% yoy from around 10%/11% previously. We raised our ‘23F/’24F EPS growth by 2.4%/2.1%.

•    Maintain BUY with higher rolled-over TP of IDR2,050. We raised our TP for BRIS as we revised up our EPS forecasts and rolled over valuation to ‘24F. Our new TP of IDR2,050 is 5.1% higher (previous TP: IDR1,950), pegged at 2.2x ‘24F PB, while currently it’s trading at 1.8x ‘24F P/B, or slightly above its -1SD historical mean of 1.6x.

Regards,
Akhmad Nurcahyadi - KBVS Research

Unduh

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