In today’s briefing:
- Bank Rakyat Indonesia (BBRI IJ) – Positive Vibes on Micro Growth and Reach
- Blue Bird (BIRD IJ) – Catching the Updraft in 2023
Bank Rakyat Indonesia (BBRI IJ) – Positive Vibes on Micro Growth and Reach
- Bank Rakyat Indonesia (BBRI IJ) did not disappoint with a strong set of FY2022 results, which came in around 4% above expectations, driven by strong micro and expanding NIMS.
- The bank also saw improving credit costs and declining provisions, which helped to drive profits and returns close to pre-pandemic levels plus the bank continues its advance on digitalisation.
- Bank Rakyat will drive growth through MSME lending, which now makes up 82.5% of loans, with micro and ultra-micro having significant upsides. Valuations are attractive on 2.1x FY2023 PBV.
Blue Bird (BIRD IJ) – Catching the Updraft in 2023
- Blue Bird is an iconic brand in Indonesia, where consumers take a BlueBird not a taxi, much like taking a Gojek, and in taxi terms, it embodies trust and reliability.
- The company had a tough time through COVID but is now firmly on a recovery track, with revenue per taxi in 4Q2022 20% above pre-pandemic levels, with more to come.
- Blue Bird (BIRD IJ) is a beneficiary of the tech winter in that ride-hailing companies are spending less on promotions, easing competition. Valuations are attractive in recovery.
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