In today’s briefing:
- Barito Renewables IPO – Power Producer with Stable Cash Flows
- 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
Barito Renewables IPO – Power Producer with Stable Cash Flows
- Barito Renewables (2306028D IJ) is looking to raise around US$228m in its Indonesian IPO.
- Barito Renewables (BR) is Indonesia’s largest geothermal power producer, and the third-largest globally by installed capacity, as per the firm.
- Its revenue has been primarily driven by electricity and steam sales to PLN as PGE’s exclusive contractor and its profitability has been on the rise over the track record period.
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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