In today’s briefing:
- Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle. Bearish
- Bank Mandiri (BMRI IJ) – Higher Returns While Livin’ It Up
- BBNI – Stock Split to Double Shares on 10 October | NPLs Are in Sharp Decline, Especially Loss Loans
Champion REIT 2778 HK: Facing Multiple Headwinds, an Uphill Battle. Bearish
- Champion REIT is facing multiple headwinds, including weakness in its office building due to upcoming office supply
- Its retail asset Langham is doing better post COVID, but not enough to offset the weakness in office
- DPU may continue to decline over time. Therefore we stay bearish until we see turn-around signal
Bank Mandiri (BMRI IJ) – Higher Returns While Livin’ It Up
- Bank Mandiri (BMRI IJ) continues to positively surprise on loans, NIMs, and credit costs, with a consequential improvement in returns, only non-interest income seeing a slowdown but likely temporary.
- Digital banking initiatives through Livin’ and KOPRA continue to grow and help the bank drive higher CASA and fee income whilst reducing costs, with smart branches also improving returns.
- Bank Mandiri remains a core holding as a proxy to the Indonesian economy with its digital initiatives driving higher returns. Valuations remain attractive on 2.2x FY2023 PBV with 20% ROE.
BBNI – Stock Split to Double Shares on 10 October | NPLs Are in Sharp Decline, Especially Loss Loans
- The bank expects its 2 new for 1 old stock split to be done on 10 October
- Total shares should move from 18.6tr to 37.3tr after the stock split
- Compared with peers, BBNI has low market cap/assets, good ROA
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