In today’s briefing:
- Aspirasi Hidup Indonesia (ACES IJ) – The Ace Hardware Separation Is a Rebranding Opportunity
- Bank Negara Indonesia (BBNI IJ) – A Distinctly Positive Tone
Aspirasi Hidup Indonesia (ACES IJ) – The Ace Hardware Separation Is a Rebranding Opportunity
- Ace Hardware Indonesia has been rebranded to Aspirasi Hidup Indonesia after the franchise agreement with ACE US was not renewed. Given ACES’s long-standing independence, we see this as an opportunity.
- The new names for the company will not be the brand names for the stores and Ace Hardware products are a tiny portion of the Indonesian company’s SKUs anyway.
- Concerns over the separation look overblown with ACES seeing a strong YTD performance above guidance with valuations looking attractive after recent share price weakness, with new store rollout ongoing.
Bank Negara Indonesia (BBNI IJ) – A Distinctly Positive Tone
- Bank Negara Indonesia (BBNI IJ) presented an optimistic picture from 2Q2024, with management upgrading the loan growth forecast range for the year by a notch with an improving liquidity backdrop.
- Credit costs remain low with the SME segment the only segment with lingering problems from vintage pre-2022 loans but otherwise, LAR are in decline with room to cut coverage ratios.
- BNI made a big fanfare of the launch of its brand new “wondr” banking app which is already off to a strong start with more active users. Valuations are attractive.
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