ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

In Equity Sales and Research for more than 25 years covering Asian markets. Possesses in-depth knowledge of a wide range of companies, economies, and markets in Asia. Over his career, he has specialised in HK/China and ASEAN markets at various different Investment Banks, most recently heading equities in Indonesia for Bank of America Merrill Lynch in Jakarta for more than three years. Whilst in Jakarta, he produced a well-read daily and weekly product on the Indonesian market, which included company visits, as well as political, economic and sector commentary. A former racing skier, who enjoys ultra-marathons and surfing in his spare time.

ASEAN Insight Provider

Adi Sarana Armada (ASSA IJ) - Auto Leasing, Logistics, and the Last Mile

The Week That Was in ASEAN@Smartkarma - Indonesian Property Boon, Philippine NPLs, and Drugs

BFI Finance Indonesia (BFIN IJ) - High-Quality AutoPlay with a Digital Twist?

Indonesia Banks - Exceptional ROA Still Unrecognized at PT BFI Finance

BFI Finance Indonesia (BFIN IJ) - Loan Largely Restructured and Back to Business

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/bfi-finance-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:8447:1" rel="noopener">BFI Finance Indonesia (BFIN IJ)</a> was quick to react to the onset of COVID-19 with a virtual halt to new bookings in 2Q2020 and an immediate focus on restructuring its existing loans. 
The company began lending again in a measured way as the market picked up in 3Q2020, with credit costs and NPLs coming down versus 2Q2020.
Management suggests that this recovery is likely to continue into 4Q2020, with a much more pronounced recovery in 2021, when we could see new bookings double versus this year. 
<a href="https://www.smartkarma.com/entities/bfi-finance-indonesia-tbk-pt" target="_blank" data-smartkarma-citation="entities:8447:1" rel="noopener">BFI Finance Indonesia (BFIN IJ)</a> is well funded through bank and bond issues unlike a lot of smaller multi-finance companies, which are finding it difficult to source funding in the current environment. 
Apart from its focus on providing loans for the non-dealer space, which makes up 84% of new bookings, the company also provides top-up loans to existing customers, which now make up 40%-50% of the loan book and help the company generate higher returns.
Valuations do not look stretched with the company trading on 0.9X FY20E PBV versus its 3-year average of 1.5x and on an FY21E PER of 6.2x with forecast EPS growth of +36.2%.

BFI Finance Indonesia (BFIN IJ) was quick to react to the onset of COVID-19 with a virtual halt to new bookings in 2Q2020 and an immediate focus on restructuring its existing loans. 
The company began lending again in a measured way as the market picked up in 3Q2020, with credit costs and NPLs coming down versus 2Q2020.
Management suggests that this recovery is likely to continue into 4Q2020, with a much more pronounced recovery in 2021, when we could see new bookings double versus this year. 
BFI Finance Indonesia (BFIN IJ) is well funded through bank and bond issues unlike a lot of smaller multi-finance companies, which are finding it difficult to source funding in the current environment. 
Apart from its focus on providing loans for the non-dealer space, which makes up 84% of new bookings, the company also provides top-up loans to existing customers, which now make up 40%-50% of the loan book and help the company generate higher returns.
Valuations do not look stretched with the company trading on 0.9X FY20E PBV versus its 3-year average of 1.5x and on an FY21E PER of 6.2x with forecast EPS growth of +36.2%.

BFI Finance Indonesia (BFIN IJ) - Changing up a Gear