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

BFI Finance Indonesia (BFIN IJ) - More than A Prudent Restart

Smartkarma Corporate Webinar | BFI Finance Indonesia - A Prudent New Normal

BFI Finance Indonesia (BFIN IJ) - Recovery in Motion

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

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

Indonesia Banks - Exceptional ROA Still Unrecognized at PT BFI Finance

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> is the best quality Multi-finance company in Indonesia and one of our highest conviction buy ideas, given the prospect of a strong recovery in new loans together with the funding in place to execute on that growth. 
The company has a focus on providing finance for used cars and other vehicles but also provides top-up financing to its existing customers with a track record at higher interest rates.
<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> has a strong track record historically with ROEs historically as high as 25% and ROA at 8%, which we think can be achieved again over the next 2-3 years.
The company is targeting to grow new loans +50% this year and already has the funding in place to do so, with credit lines mainly coming from local banks and local bond issuance.
Bank Indonesia's recent announcement of a reduction in the downpayment requirement for auto loans and a reduction in luxury tax should also provide a tailwind for growth in the sector over the next few months.
We also see the potential for collaboration in the digital space for <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>, specifically with <a href="https://www.smartkarma.com/entities/gojek" target="_blank" data-smartkarma-citation="entities:25976:1" rel="noopener">Gojek (1379371D IJ),</a> possibly with <a href="https://www.smartkarma.com/entities/bank-jago-tbk-pt" target="_blank" data-smartkarma-citation="entities:31094:1" rel="noopener">Bank Jago Tbk PT (ARTO IJ)</a> given that all three have a common shareholder in the shape of TPG Northstar.  
<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> trades on 1.4x PBV with a forecast ROE of 15.5% in 2021and 20% in 2022, with EPS forecast to grow +70% and +40% over the next two years. It is not inconceivable that the company could trade up to 2.0x FY2021 PBV given the improvements in its returns but it could trade significantly higher should it forge any digital tie-ups.

BFI Finance Indonesia (BFIN IJ) is the best quality Multi-finance company in Indonesia and one of our highest conviction buy ideas, given the prospect of a strong recovery in new loans together with the funding in place to execute on that growth. 
The company has a focus on providing finance for used cars and other vehicles but also provides top-up financing to its existing customers with a track record at higher interest rates.
BFI Finance Indonesia (BFIN IJ) has a strong track record historically with ROEs historically as high as 25% and ROA at 8%, which we think can be achieved again over the next 2-3 years.
The company is targeting to grow new loans +50% this year and already has the funding in place to do so, with credit lines mainly coming from local banks and local bond issuance.
Bank Indonesia's recent announcement of a reduction in the downpayment requirement for auto loans and a reduction in luxury tax should also provide a tailwind for growth in the sector over the next few months.
We also see the potential for collaboration in the digital space for BFI Finance Indonesia (BFIN IJ), specifically with Gojek (1379371D IJ), possibly with Bank Jago Tbk PT (ARTO IJ) given that all three have a common shareholder in the shape of TPG Northstar.  
BFI Finance Indonesia (BFIN IJ) trades on 1.4x PBV with a forecast ROE of 15.5% in 2021and 20% in 2022, with EPS forecast to grow +70% and +40% over the next two years. It is not inconceivable that the company could trade up to 2.0x FY2021 PBV given the improvements in its returns but it could trade significantly higher should it forge any digital tie-ups. 

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