ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Bank Negara Indonesia Persero / Equity Bottom-Up

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<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> revealed some interesting views on its strategy for expansion over the next few years at a webinar hosted by <a href="https://www.smartkarma.com/profiles/daniel-tabbush" target="_blank" data-smartkarma-citation="accounts:12" rel="noopener">Daniel Tabbush</a> on Smartkarma this week, driven to a large extent by the new senior management team at the bank.</p>
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<p>Loan growth continues to be driven by lower risk areas such as corporate loans to top tier customers with the addition of some notable new high-profile clients.</p>
<p>Its micro KUR loans, SME loans, payroll, and consumer loans, mainly mortgages, also continue to grow, with medium-sized loans declining.</p>
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<p>The cost of 3rd party funds continued to fall to an all-time low in 2Q2021 given the rapid decline in time deposit rates and increasing CASA.</p>
<p>Profitability also continued to improve in 2Q2021 with PPOP rising by 24.4%, whilst net profit increased by +12.8% YoY and +7% QoQ. <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> is optimistic on the outlook for returns, targeting higher ROEs in 2022, mainly driven by higher ROA.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> continued to push forward with its digital transformation and especially with mobile banking, where it now has the highest customer rating for its app versus its peers.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> has also revealed that it is potentially open to opening a stand-alone digital bank through acquiring a smaller bank, which is a change from the previous strategy.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> continues to be a universal bank with around 70% of its business coming from wholesale lending. Management continues to see a huge opportunity in cross-selling its cash management businesses and other services.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> has revised its guidance somewhat to reflect this latest round of Emergency PPKM measures with loan growth downgraded slightly but net interest margin forecasts increased.</p>
<p>Valuations look appealing, with the bank trading on 0.7x FY2021E PBV and a forward FY22E PER of 6.5x. <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ</a>) is often seen as the bank playing catch up with its peers but maybe this time is different. </p>


Bank Negara Indonesia Persero (BBNI IJ) revealed some interesting views on its strategy for expansion over the next few years at a webinar hosted by Daniel Tabbush on Smartkarma this week, driven to a large extent by the new senior management team at the bank.




Loan growth continues to be driven by lower risk areas such as corporate loans to top tier customers with the addition of some notable new high-profile clients.
Its micro KUR loans, SME loans, payroll, and consumer loans, mainly mortgages, also continue to grow, with medium-sized loans declining.



The cost of 3rd party funds continued to fall to an all-time low in 2Q2021 given the rapid decline in time deposit rates and increasing CASA.
Profitability also continued to improve in 2Q2021 with PPOP rising by 24.4%, whilst net profit increased by +12.8% YoY and +7% QoQ. Bank Negara Indonesia Persero (BBNI IJ) is optimistic on the outlook for returns, targeting higher ROEs in 2022, mainly driven by higher ROA.
Bank Negara Indonesia Persero (BBNI IJ) continued to push forward with its digital transformation and especially with mobile banking, where it now has the highest customer rating for its app versus its peers.
Bank Negara Indonesia (BBNI IJ) has also revealed that it is potentially open to opening a stand-alone digital bank through acquiring a smaller bank, which is a change from the previous strategy.
Bank Negara Indonesia Persero (BBNI IJ) continues to be a universal bank with around 70% of its business coming from wholesale lending. Management continues to see a huge opportunity in cross-selling its cash management businesses and other services.
Bank Negara Indonesia Persero (BBNI IJ) has revised its guidance somewhat to reflect this latest round of Emergency PPKM measures with loan growth downgraded slightly but net interest margin forecasts increased.
Valuations look appealing, with the bank trading on 0.7x FY2021E PBV and a forward FY22E PER of 6.5x. Bank Negara Indonesia (BBNI IJ) is often seen as the bank playing catch up with its peers but maybe this time is different. 

Bank Negara Indonesia (BBNI IJ) - Revealing a New Digital Skin

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

<p><br/> The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.<br/></p>

  The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - September 2021 - Lucror Analytics

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3>Park Hotel Farrer Park relaunches under Holiday Inn brand</h3><p>The 300-room Park Hotel Farrer Park, owned by RB Capital and previously managed by Park Hotel Group, has been renamed Holiday Inn Singapore Little India. Its new manager, IHG Hotels &amp; Resorts, now manages three of RB Capital's Singapore hotels, totalling nearly 1,000 keys. The other two are Holiday Inn Express Clarke Quay, opened in 2014, and InterContinental Singapore Robertson Quay, opened in 2017. IHG operates 11 hotels in Singapore across a range of brands including Regent, InterContinental, Crowne Plaza, Hotel Indigo and Holiday Inn. There had been a few more years remaining on the management contract for Park Hotel Farrer Park, but due to the current situation with Park Hotel Management, RB Capital decided to sign on IHG to manage the property on a long-term basis.</p>

SingaporePark Hotel Farrer Park relaunches under Holiday Inn brandThe 300-room Park Hotel Farrer Park, owned by RB Capital and previously managed by Park Hotel Group, has been renamed Holiday Inn Singapore Little India. Its new manager, IHG Hotels &amp; Resorts, now manages three of RB Capital's Singapore hotels, totalling nearly 1,000 keys. The other two are Holiday Inn Express Clarke Quay, opened in 2014, and InterContinental Singapore Robertson Quay, opened in 2017. IHG operates 11 hotels in Singapore across a range of brands including Regent, InterContinental, Crowne Plaza, Hotel Indigo and Holiday Inn. There had been a few more years remaining on the management contract for Park Hotel Farrer Park, but due to the current situation with Park Hotel Management, RB Capital decided to sign on IHG to manage the property on a long-term basis.

<p><br/> In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults.<br/><br/> The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.<br/></p>

  In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus" section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Variable Interest Entities - Lucror Analytics

Indonesia

Bumi Serpong Damai Tbk PT develops real estate including housing infrastructure, commercial and industrial estates, golf courses, and public facilities.

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Bumi Serpong Damai (BSDE IJ)

Bank Negara Indonesia (BBNI IJ) - Revealing a New Digital Skin

Bank Negara Indonesia (BBNI IJ) has tended to be the laggard amongst the top four Indonesia banks but with a new management team and a more dynamic...

Angus Mackintosh

Asia HY Trade Book - September 2021 - Lucror Analytics

The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report...

Lucror Analytics

Asia HY Trade Book - September 2021 - Lucror Analytics

The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report...

Lucror Analytics

ASEAN Builder's Scoop (8Sep21)

Park Hotel Farrer Park relaunched under IHG; AAREIT new CEO-designate; BSDE invests in DC business; WCTHG selling non-core assets; Phils Aug...

SCCM Asia Research

Asia HY Monthly - Chinese Variable Interest Entities - Lucror Analytics

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that...

Lucror Analytics

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