ASEAN (Indo) & China-focused. Ex-Deputy HoR UBS.

Johannes Salim, CFA

Equity Bottom-Up

Bank Danamon Indonesia / Equity Bottom-Up

<ul><li><a href="https://www.smartkarma.com/entities/135" target="_blank" data-smartkarma-citation="entities:135:1">Bank Danamon Indonesia Tbk (BDMN IJ)</a> has shown good fundamental improvement, especially with reduced losses of micro loans operations and lower NPL ratio.</li><li>Its loan growth is likely to remain lagged (vs. the industry) largely due to sizable loan exposure to auto industry.</li><li>Our review of latest regulation on bank ownership cap reveals that M&amp;A could go through although Mandatory Tender Offer (MTO) is not guaranteed.</li><li>Given M&amp;A story/hope, BDMN is a Trading Buy. </li></ul>

Bank Danamon Indonesia Tbk (BDMN IJ) has shown good fundamental improvement, especially with reduced losses of micro loans operations and lower NPL ratio.Its loan growth is likely to remain lagged (vs. the industry) largely due to sizable loan exposure to auto industry.Our review of latest regulation on bank ownership cap reveals that M&amp;A could go through although Mandatory Tender Offer (MTO) is not guaranteed.Given M&amp;A story/hope, BDMN is a Trading Buy. 

Bank Danamon: Fundamentals Revisited Plus Thoughts on M&A

Bank Tabungan Pensiunan Nasional / Equity Bottom-Up

<ul><li>Having revisited <a href="https://www.smartkarma.com/entities/483" target="_blank" data-smartkarma-citation="entities:483:1">Bank Tabungan Pensiunan Nasional Tbk Pt (BTPN IJ)</a>'s fundamentals, we believe that things are not as bad as 2017 headline numbers suggest.</li><li>In fact, efficiency measures that would bear fruits in lowering operating costs are praiseworthy and a testament to solid management quality.</li><li>M&amp;A angle has renewed investor interest in BTPN since recently announced <a href="https://www.smartkarma.com/entities/135" target="_blank" data-smartkarma-citation="entities:135:1">Bank Danamon Indonesia Tbk (BDMN IJ)</a> acquisition is done at a much higher PB multiple (2.0x PB).</li><li>BTPN trades attractively at 1.12x 2018 PB (46% discount to the sector average) and 10.4x 2018 PE (28% discount), the valuation that does not reflect M&amp;A angle/premium at all.</li></ul>

Having revisited Bank Tabungan Pensiunan Nasional Tbk Pt (BTPN IJ)'s fundamentals, we believe that things are not as bad as 2017 headline numbers suggest.In fact, efficiency measures that would bear fruits in lowering operating costs are praiseworthy and a testament to solid management quality.M&amp;A angle has renewed investor interest in BTPN since recently announced Bank Danamon Indonesia Tbk (BDMN IJ) acquisition is done at a much higher PB multiple (2.0x PB).BTPN trades attractively at 1.12x 2018 PB (46% discount to the sector average) and 10.4x 2018 PE (28% discount), the valuation that does not reflect M&amp;A angle/premium at all.

Bank Tabungan Pensiunan Nasional: With Fundamentals Remaining Solid, Further Upside Seen

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

MSCI Emerging Markets Index / Technical Analysis

Highlighted themes and actionable charts: Reiterating BRIC overweight. This country grouping continues to outperform broad EM, and we believe BRIC will be a primary source of outperformance relative to the MSCI EM Index moving forward.  Today’s report includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations within EM.

Highlighted themes and actionable charts: Reiterating BRIC overweight. This country grouping continues to outperform broad EM, and we believe BRIC will be a primary source of outperformance relative to the MSCI EM Index moving forward.  Today’s report includes a wide variety of bottom-up recommendations, spanning most sectors and all market capitalizations within EM.

EM Equity Strategy: Indonesia Perking Up; Overweight BRIC, Tech, and Health Care

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Mitsubishi UFJ Financial (MUFG) / Equity Bottom-Up

* Bank Danamon is additive to MUFG’s ASEAN strategy, bringing it's foreign content of EPS to 50%.* From a financial and managerial perspective, Bank Danomon is a time consuming and expensive transaction. Greater EPS accretion could be garnered more simply and without the risks execution, and being in Indonesia.   * Focus, in our view, would be better spent on repairing/restructuring the US operation (s) whose overall business appears to have stalled, and where greater EPS and price performance…

* Bank Danamon is additive to MUFG’s ASEAN strategy, bringing it's foreign content of EPS to 50%.* From a financial and managerial perspective, Bank Danomon is a time consuming and expensive transaction. Greater EPS accretion could be garnered more simply and without the risks execution, and being in Indonesia.   * Focus, in our view, would be better spent on repairing/restructuring the US operation (s) whose overall business appears to have stalled, and where greater EPS and price performance…

MUFG – Bank Danamon Deal Makes Little Sense

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

Thematic (Sector/Industry)

<h2>The Usual Traffic</h2>On my previous piece in <a href="https://www.smartkarma.com/insights/indonesian-infrastructure-unusual-suspects" target="_blank" data-smartkarma-citation="insights:14026">Indonesian Infrastructure - UnUsual Suspects</a> , I wrote about how the notorious traffic in Jakarta has surprisingly improved through the government's effort to regulate the number of cars coming into the CBD area during the week. Through various channels, the current administration seems to be determined to reduce traffic congestion.One of the few causes why the congested traffic in Indonesia is that the toll road gantries are manuallyoperated. This was…

The Usual TrafficOn my previous piece in Indonesian Infrastructure - UnUsual Suspects , I wrote about how the notorious traffic in Jakarta has surprisingly improved through the government's effort to regulate the number of cars coming into the CBD area during the week. Through various channels, the current administration seems to be determined to reduce traffic congestion.One of the few causes why the congested traffic in Indonesia is that the toll road gantries are manuallyoperated. This was…

Indonesia

PT Bank Central Asia Tbk provides banking and related services.  The Bank also provides custodianship, trusteeship, and management of pension funds of financial institutions.  Through its subsidiaries, the Bank also provides leasing and consumer financing services.

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Bank Central Asia (BBCA IJ)

Bank Danamon: Fundamentals Revisited Plus Thoughts on M&A

Bank Danamon Indonesia Tbk (BDMN IJ) has shown good fundamental improvement, especially with reduced losses of micro loans operations and lower...

Johannes Salim, CFA

Bank Tabungan Pensiunan Nasional: With Fundamentals Remaining Solid, Further Upside Seen

Having revisited Bank Tabungan Pensiunan Nasional Tbk Pt (BTPN IJ)'s fundamentals, we believe that things are not as bad as 2017 headline numbers...

Johannes Salim, CFA

EM Equity Strategy: Indonesia Perking Up; Overweight BRIC, Tech, and Health Care

Highlighted themes and actionable charts: Reiterating BRIC overweight. This country grouping continues to outperform broad EM, and we believe BRIC...

Vermilion Research

MUFG – Bank Danamon Deal Makes Little Sense

* Bank Danamon is additive to MUFG’s ASEAN strategy, bringing it's foreign content of EPS to 50%.* From a financial and managerial perspective,...

Thomas J. Monaco

E-Toll Card for Better Indo Traffic

The Usual TrafficOn my previous piece in Indonesian Infrastructure - UnUsual Suspects , I wrote about how the notorious traffic in Jakarta has...

Henry Soediarko

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