In today’s briefing:
- Unilever Indonesia (UNVR IJ) – Back to the Boil Through Consumer Discretion
- Bank Central Asia (BBCA IJ) – Dominating Transactional Banking
Unilever Indonesia (UNVR IJ) – Back to the Boil Through Consumer Discretion
- Unilever Indonesia booked a strong rebound in 1H2022 profits despite rising commodity prices with aggressive cost savings and an improving product mix.
- The company suffered during the pandemic given that personal care does have a discretionary element but that is now being reversed with great mobility and reflected in new product launches.
- Unilever Indonesia has the potential for a re-rating as growth momentum returns, helped by a new management team. Valuations are still well-below its 5-year average of 40x forward PER.
Bank Central Asia (BBCA IJ) – Dominating Transactional Banking
- Bank Central Asia booked an encouraging set of results in 1H2022, with especially strong growth in 2Q2022 for corporate loans and especially working capital loans as mobility returns.
- Transactions grew by +40% YoY driven by mobile banking and increased customer numbers, which also helped to drive CASA up by +17% YoY supporting its low cost of funds.
- Bank Central Asia‘s leading position in transactional banking continues to be cemented by its digital capabilities and the bank looks interesting in valuation terms from a historical basis.
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