In today’s briefing:
- Bank Negara Indonesia (BBNI IJ) – More Than Meets the Eye
- Medikaloka Hermina (HEAL IJ) – Forging Ahead Beyond COVID
Bank Negara Indonesia (BBNI IJ) – More Than Meets the Eye
- Bank Negara Indonesia (BBNI IJ) remains the laggard amongst the top four Indonesian banks but we see this as unjustified given improving returns and falling credit costs.
- The bank continues to focus on top-tier corporate clients and large commercial clients plus growing subsidized KUR loans as well as expanding mortgages and payroll loans in the consumer segment.
- Bank Negara Indonesia continues to improve returns with its ROE back to 15% in 1H2022 and it trades on 1.2x FY2022 PBV. The bank will benefit from rising interest rates.
Medikaloka Hermina (HEAL IJ) – Forging Ahead Beyond COVID
- Medikaloka Hermina (HEAL IJ) is unique in Indonesia for its focus on women and children, which makes it a resilient performer plus more than half its patients are JKN related.
- The company booked a strong set of 1H2022 results despite coming off a high COVID base, with Inpatient and outpatient numbers already above pre-pandemic levels.
- Astra International now owns over 7% of the company in its first hospital investment and we could see this stake rising further. Valuations are attractive versus Mitra Keluarga.
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