ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

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

<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> released a solid set of 1H2021 results, which underlined its resilience in the face of COVID-19 but a real stand out from the numbers were the ongoing successes from its digital strategies both in terms of promoting products through online expos, as well as the continuing growth in both of transactional and digital banking franchises. </p>
<p><a href="https://www.bloomberg.com/quote/BBCA:IJ" target="_blank" rel="noopener">PT Bank Central Asia</a> recently announced that it will invest US$200m into its digital arm to fend off competition from new entrants to digital banking.</p>
<p>The bank will use the fresh funds to help Blu to increase market share ahead of an IPO within the next two years. <a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> plans to increase Blu’s capital to IDR4tn (US$278m), from around IDR1tn currently.</p>
<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> will focus on winning more merchants, partners, and customers for Blu and intends to maintain a majority stake in the entity after listing.</p>
<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> is already well ahead of its peers and any digital player on mobile banking and is Indonesia's leading bank in terms of transactional banking.</p>
<p>The bank saw 54% of all transactions by value and 86% of transactions by volume going through mobile or internet banking in 1H2021. This gives it access to high levels of CASA, providing the bank with a very low cost of funds.</p>
<p>Our view is that new digital players are more likely to take market share from smaller banks rather than <a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> and see the bank maintaining its lead in transactional banking in Indonesia. Blu also has the advantage of being backed by a well-known and trusted lender, which will help to attract new customers. </p>
<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> trades on 4x FY21E PBV and is forecast to generate an ROE of 15.5% for FY21E and 17.0% in FY22E. It is one of the best-managed banks in Indonesia with a very strong risk management culture combined with a dynamic and innovative management culture, which coupled with its lead in transactional banking, allows the bank to command a significant premium over its peers. </p>

Bank Central Asia (BBCA IJ) released a solid set of 1H2021 results, which underlined its resilience in the face of COVID-19 but a real stand out from the numbers were the ongoing successes from its digital strategies both in terms of promoting products through online expos, as well as the continuing growth in both of transactional and digital banking franchises. 
PT Bank Central Asia recently announced that it will invest US$200m into its digital arm to fend off competition from new entrants to digital banking.
The bank will use the fresh funds to help Blu to increase market share ahead of an IPO within the next two years. Bank Central Asia (BBCA IJ) plans to increase Blu’s capital to IDR4tn (US$278m), from around IDR1tn currently.
Bank Central Asia (BBCA IJ) will focus on winning more merchants, partners, and customers for Blu and intends to maintain a majority stake in the entity after listing.
Bank Central Asia (BBCA IJ) is already well ahead of its peers and any digital player on mobile banking and is Indonesia's leading bank in terms of transactional banking.
The bank saw 54% of all transactions by value and 86% of transactions by volume going through mobile or internet banking in 1H2021. This gives it access to high levels of CASA, providing the bank with a very low cost of funds.
Our view is that new digital players are more likely to take market share from smaller banks rather than Bank Central Asia (BBCA IJ) and see the bank maintaining its lead in transactional banking in Indonesia. Blu also has the advantage of being backed by a well-known and trusted lender, which will help to attract new customers. 
Bank Central Asia (BBCA IJ) trades on 4x FY21E PBV and is forecast to generate an ROE of 15.5% for FY21E and 17.0% in FY22E. It is one of the best-managed banks in Indonesia with a very strong risk management culture combined with a dynamic and innovative management culture, which coupled with its lead in transactional banking, allows the bank to command a significant premium over its peers. 

PT Bank Central Asia (BBCA IJ) - The Future Is Blu

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<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> reported a solid set of  1H2021 results earlier this week, with operating income up by +2.4% YoY and net profit rising by +18.1% YoY. </p>
<p>This was driven by loan growth of +0.8% YTD, which was supported by the corporate segment and consumer loans, and especially mortgages. Commercial and SME loans also started to pick up QoQ in 2Q2021.</p>
<p>On the funding side, CASA grew by +8.3% YTD and +21% YoY due to increasing transaction value, a larger customer base, as well as expanded digital ecosystem partnerships. </p>
<p>The bank saw its operating profit grow by +2.4% YoY, with net profit growing by +18.1% YoY mainly due to a low base in net profit last year, especially in 2Q2021 due to higher provisioning last year.</p>
<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> third party deposits remained robust with CASA growing by +21% YoY with overall deposit growth to +17.5% YoY. The bank continued to develop its digital ecosystem helping to maintain the stickiness of its CASA funds, with strong growth in transactional banking. </p>
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<p>The bank continues to push forward its digital strategy with the recent launch of the BCA Digital app called "blu" to serve the millennial segment and to cater to Indonesia's young population.</p>
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<p>The bank's cost of funds remains very low at 1.10%, which gives it an advantage over its competitors. Its NPL ratio also remains manageable at 2.4%, which is lower than the industry average.</p>
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<p><a href="https://www.smartkarma.com/entities/bank-central-asia-tbk-pt" target="_blank" data-smartkarma-citation="entities:440:1" rel="noopener">Bank Central Asia (BBCA IJ)</a> is well-positioned for the recovery and remains a core holding trading below its historical average PBV. It has been a bit more aggressive in growing its corporate loans and consumer loans from mortgages and auto loans, with its online and digital strategy yielding strong results boosted by its position as the leader in transactional banking. </p>
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Bank Central Asia (BBCA IJ) reported a solid set of  1H2021 results earlier this week, with operating income up by +2.4% YoY and net profit rising by +18.1% YoY. 
This was driven by loan growth of +0.8% YTD, which was supported by the corporate segment and consumer loans, and especially mortgages. Commercial and SME loans also started to pick up QoQ in 2Q2021.
On the funding side, CASA grew by +8.3% YTD and +21% YoY due to increasing transaction value, a larger customer base, as well as expanded digital ecosystem partnerships. 
The bank saw its operating profit grow by +2.4% YoY, with net profit growing by +18.1% YoY mainly due to a low base in net profit last year, especially in 2Q2021 due to higher provisioning last year.
Bank Central Asia (BBCA IJ) third party deposits remained robust with CASA growing by +21% YoY with overall deposit growth to +17.5% YoY. The bank continued to develop its digital ecosystem helping to maintain the stickiness of its CASA funds, with strong growth in transactional banking. 


The bank continues to push forward its digital strategy with the recent launch of the BCA Digital app called "blu" to serve the millennial segment and to cater to Indonesia's young population.

The bank's cost of funds remains very low at 1.10%, which gives it an advantage over its competitors. Its NPL ratio also remains manageable at 2.4%, which is lower than the industry average.


Bank Central Asia (BBCA IJ) is well-positioned for the recovery and remains a core holding trading below its historical average PBV. It has been a bit more aggressive in growing its corporate loans and consumer loans from mortgages and auto loans, with its online and digital strategy yielding strong results boosted by its position as the leader in transactional banking. 














Bank Central Asia (BBCA IJ) - Back to the Business of Consumption

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<p><strong><em>*Solid Result, But Challenges Ahead: </em></strong>Bank Central Asia (BBCA.IJ) [BCA] reported 2Q21 results of IDR 7.4 tn, improving IDR 376 mn (5.3%) on a linked quarter basis. BCA’s positive operating results were highlighted by non-interest income growth and a decline in operating expenses; and</p><p><strong><em>*Credit Challenges Persist, As Credit Break Re-Accelerates: </em></strong>By our calculation, we find that 2Q21 net new NPLs amounted to IDR 2.4 tn for an annualized rate of increase of 92.4%, comparing very unfavorably with 1Q21’s IDR 742 bn and 28.7%, respectively. Despite the recent acceleration in net new NPL formation, we calculate that loss reserves are likely right where they need to be given the uptick in special mention and lack of full clarity with the restructuring portfolio. Although, we worry the softness in current macro conditions.</p>

*Solid Result, But Challenges Ahead: Bank Central Asia (BBCA.IJ) [BCA] reported 2Q21 results of IDR 7.4 tn, improving IDR 376 mn (5.3%) on a linked quarter basis. BCA’s positive operating results were highlighted by non-interest income growth and a decline in operating expenses; and*Credit Challenges Persist, As Credit Break Re-Accelerates: By our calculation, we find that 2Q21 net new NPLs amounted to IDR 2.4 tn for an annualized rate of increase of 92.4%, comparing very unfavorably with 1Q21’s IDR 742 bn and 28.7%, respectively. Despite the recent acceleration in net new NPL formation, we calculate that loss reserves are likely right where they need to be given the uptick in special mention and lack of full clarity with the restructuring portfolio. Although, we worry the softness in current macro conditions.

Bank Central Asia – Good, But New Credit Challenges Ahead

Cross Asset Strategy

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<p>The week that was in <a href="mailto:ASEAN@Smartkarma" target="_blank" rel="noopener">ASEAN@Smartkarma</a> is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.</p>
<p>We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.</p>
</div><h3>Macro Insights</h3><p>In <a href="https://www.smartkarma.com/insights/the-philippines-an-uninspiring-recovery-fuelled-mainly-by-base-effects" target="_blank" data-smartkarma-citation="insights:54335" rel="noopener">The Philippines: An Uninspiring Recovery Fuelled Mainly By Base Effects</a>, <a href="https://www.smartkarma.com/profiles/nicholas-chia" target="_blank" data-smartkarma-citation="accounts:1567" rel="noopener">Nicholas Chia</a> provides his current views on the Philippine economy. </p><h3>Equity Bottom Up</h3><p>In<a href="https://www.smartkarma.com/insights/mayora-indah-myor-ij-lovely-biscuits" target="_blank" rel="noopener"> Mayora Indah (MYOR IJ) - Lovely Biscuits</a>, CrossASEAN insight provider<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> presents an initial view on Indonesian consumer staples company <a href="https://www.smartkarma.com/entities/mayora-indah-pt" target="_blank" rel="noopener">Mayora Indah (MYOR IJ)</a> after a post-results call with the management.</p><p>In<a href="https://www.smartkarma.com/insights/akr-corporindo-akra-ij-freeport-smelter-a-boon-for-jiipe" target="_blank" rel="noopener"> AKR Corporindo (AKRA IJ) - Freeport Smelter a Boon for JIIPE</a>,<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> circles back to <a href="https://www.smartkarma.com/entities/akr-corporindo-tbk-pt" target="_blank" rel="noopener"> AKR Corporindo (AKRA IJ)</a> after <a href="https://www.smartkarma.com/entities/freeport-mcmoran-inc" target="_blank" rel="noopener">Freeport Mcmoran (FCX US)</a> announced it will not proceed with plans to build a new copper smelter with China’s Tsingshan Holding Group in Indonesia but will focus on its JIIPE smelter. </p><p>In<a href="https://www.smartkarma.com/insights/bank-negara-indonesia-bbni-ij-digitally-remastered-in-style" target="_blank" rel="noopener"> Bank Negara Indonesia (BBNI IJ) - Digitally Remastered in Style</a>,<a href="https://www.smartkarma.com/profiles/angus-mackintosh" target="_blank" rel="noopener"> Angus Mackintosh</a> takes a look at <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> after a call to discuss the bank's digital strategy and what really makes it stand out from competitors.</p><p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener"></a>In <a href="https://www.smartkarma.com/insights/kimia-farma-kaef-legitimate-pharmacy" target="_blank" data-smartkarma-citation="insights:54271" rel="noopener">Kimia Farma (KAEF): Legitimate Pharmacy</a>,<a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" rel="noopener"> Henry Soediarko</a> returns to look at<a href="https://www.smartkarma.com/entities/kimia-farma-persero-tbk-pt" target="_blank" rel="noopener"> Kimia Farma Persero (KAEF IJ)</a> as the COVID cases in Indonesia are on the increase.<a href="https://www.smartkarma.com/entities/kimia-farma-persero-tbk-pt" target="_blank" rel="noopener"> Kimia Farma Persero (KAEF IJ)</a> carries the majority of what are thought to be COVID-19 related medications, such as Favipavir, Chloroquine, Hydroxychloroquine, Azithromycin, and Immunomodulator. </p><p>In<a href="https://www.smartkarma.com/insights/bukalapak-ipo-peers-valuation-betting-on-its-potential" target="_blank" rel="noopener"> Bukalapak IPO - Peers &amp; Valuation - Betting on Its Potential</a>,<a href="https://www.smartkarma.com/profiles/zhen-zhou-toh" target="_blank" rel="noopener"> Zhen Zhou, Toh</a> looks at<a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" rel="noopener"> Bukalapak (BUKA IJ)</a>'s valuations as the company moves towards its IPO.  </p><p><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener"></a>In<a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-almost-like-a-single-asset-reit-covid-hasn-t-been-kind" target="_blank" rel="noopener"> Filinvest REIT IPO - Almost like a Single Asset REIT, COVID Hasn't Been Kind</a>,<a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" rel="noopener"> Sumeet Singh</a> takes a closer look at<a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" rel="noopener"> Filinvest Reit (FILRT PM)</a> (FREIT), a subsidiary of <a href="https://www.smartkarma.com/entities/filinvest-land-inc" target="_blank" data-smartkarma-citation="entities:23026:1" rel="noopener">Filinvest Land (FLI PM)</a> as it aims to raise USD240m in its Philippines listing.</p><p><a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" data-smartkarma-citation="entities:33764:1" rel="noopener"></a>In<a href="https://www.smartkarma.com/insights/filinvest-reit-ipo-hard-to-get-excited-despite-the-yield" target="_blank" rel="noopener"> Filinvest REIT IPO - Hard to Get Excited, Despite the Yield</a>,<a href="https://www.smartkarma.com/profiles/sumeet-singh" target="_blank" rel="noopener"> Sumeet Singh</a> returns to look at<a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" rel="noopener"> Filinvest REIT (FILRT PM)</a>'s and puts its IPO valuations through his ECM framework.</p><p><a href="https://www.smartkarma.com/entities/filinvest-reit" target="_blank" data-smartkarma-citation="entities:33764:1" rel="noopener"></a>In<a href="https://www.smartkarma.com/insights/bukalapak-ipo-initiation-island-shopping" target="_blank" rel="noopener"> Bukalapak IPO Initiation: Island Shopping</a>,<a href="https://www.smartkarma.com/profiles/arun-george" target="_blank" rel="noopener"> Arun George</a> provides his view on<a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" rel="noopener"> Bukalapak (BUKA IJ)</a> as the company prepares for its Jakarta IPO.</p><p><a href="https://www.smartkarma.com/entities/bukalapak" target="_blank" data-smartkarma-citation="entities:33575:1" rel="noopener"></a>In<a href="https://www.smartkarma.com/insights/advanc-expect-2q21-earnings-to-drop-both-yoy-and-qoq" target="_blank" rel="noopener"> ADVANC: Expect 2Q21 Earnings to Drop Both YoY and QoQ</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> maintains BUY rating for<a href="https://www.smartkarma.com/entities/advanced-info-service-pcl" target="_blank" rel="noopener"> Advanced Info Service (ADVANC TB)</a> due to growth potential from 5G, given it has the largest total spectrum of bandwidth compared to peers.</p><p>In<a href="https://www.smartkarma.com/insights/gpsc-34-capacity-expansion-from-new-overseas-investment" target="_blank" rel="noopener"> GPSC: 34% Capacity Expansion from New Overseas Investment</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> revisits <a href="https://www.smartkarma.com/entities/global-power-synergy-company-ltd" target="_blank" rel="noopener">Global Power Synergy Company Ltd (GPSC TB)</a> after it announced an investment of THB30bn in an overseas renewable energy project, including THB15bn for 41.65% stake in Avaada energy India (1.6GWe) and another Bt15bn for 25% stake in Ci Changfang &amp; Ci Xidao Taiwan (149MWe).</p><p>In<a href="https://www.smartkarma.com/insights/delta-expected-2q21e-recurring-profit-at-bt531m-21-yoy-6-qoq" target="_blank" rel="noopener"> DELTA: Expected 2Q21E Recurring Profit at Bt531m (-21%YoY, +6%QoQ)</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> maintains a SELL rating for<a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" rel="noopener"> Delta Electronics Thai (DELTA TB)</a> but do expect stronger profitability in 2H2021 due to Baht depreciation, better efficiency and more balancing raw material supply.<a href="https://www.smartkarma.com/entities/delta-electronics-thai-pcl" target="_blank" rel="noopener"> Delta Electronics Thai (DELTA TB)</a> would also benefit from the rise of the EV industry and order relocation from China due to US-China trade tension.</p><p>In<a href="https://www.smartkarma.com/insights/auct-expect-2q21-earnings-should-be-the-bottom-quarter-of-the-year" target="_blank" rel="noopener"> AUCT: Expect 2Q21 Earnings Should Be the Bottom Quarter of the Year</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> revisits Thailand's largest car auction company ahead of its results and continue to take a positive view of the company. </p><h3>Sector and Thematic </h3><p>In<a href="https://www.smartkarma.com/insights/energy-sector-outlook-3q21" target="_blank" rel="noopener"> Energy Sector Outlook 3Q21</a>,<a href="https://www.smartkarma.com/companies/country-group" target="_blank" rel="noopener"> Country Group</a> takes a closer look at the energy sector outlook for the 3Q21.</p><h3>Credit Insights</h3><p>In<a href="https://www.smartkarma.com/insights/morning-views-asia-agung-podomoro-land-china-south-city" target="_blank" rel="noopener"> Morning Views Asia: Agung Podomoro Land, China South City</a>, credit specialist<a href="https://www.smartkarma.com/profiles/trung-nguyen" target="_blank" rel="noopener"> Trung Nguyen</a> maintains his "Hold" recommendation on the <a href="https://www.smartkarma.com/entities/agung-podomoro-land-tbk-pt" target="_blank" rel="noopener">Agung Podomoro Land (APLN IJ)</a> 5.95 2s after Moody’s downgraded ratings on<a href="https://www.smartkarma.com/entities/agung-podomoro-land-tbk-pt" target="_blank" rel="noopener"></a>the company from B3 to Caa1.</p><h3>Smartkarma Webinar</h3><p>In<a href="https://www.smartkarma.com/insights/smartkarma-webinar-overweight-and-underweight-in-indonesia-amidst-the-covid-crisis" target="_blank" rel="noopener"> Smartkarma Webinar | Overweight and Underweight in Indonesia Amidst the Covid Crisis</a>,<a href="https://www.smartkarma.com/profiles/henry-soediarko" target="_blank" rel="noopener"> Henry Soediarko</a> will host a webinar on overweight and underweight in Indonesia as the country's healthcare system has been overwhelmed due to COVID-19. This raises questions about hospital operators such as<a href="https://www.smartkarma.com/entities/mitra-keluarga-karyasehat-tbk" target="_blank" rel="noopener"> Mitra Keluarga Karyasehat Tbk (MIKA IJ)</a> and <a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" rel="noopener">Siloam International Hospital (SILO IJ)</a>, while tighter testing and vaccination regulations could bode well for <a href="https://www.smartkarma.com/entities/prodia-widyahusada" target="_blank" rel="noopener">Prodia (PRDA IJ)</a> as the only listed entity in Indonesia with expertise on testing. The webinar will be hosted on Wednesday, 21 July 2021, at 17:00 SGT/HKT.</p>


The week that was in ASEAN@Smartkarma is filled with another eclectic mix of differentiated, substantive, and actionable insights from across South East Asia and includes macro, top-down and thematic pieces, as well as actionable equity bottom-up and credit insights over the past week.
We add below a NEW section, which includes emerging themes in ASEAN and selects important news flow or developments for commentary, which may impact SE Asian companies and markets.
Macro InsightsIn The Philippines: An Uninspiring Recovery Fuelled Mainly By Base Effects, Nicholas Chia provides his current views on the Philippine economy. Equity Bottom UpIn Mayora Indah (MYOR IJ) - Lovely Biscuits, CrossASEAN insight provider Angus Mackintosh presents an initial view on Indonesian consumer staples company Mayora Indah (MYOR IJ) after a post-results call with the management.In AKR Corporindo (AKRA IJ) - Freeport Smelter a Boon for JIIPE, Angus Mackintosh circles back to  AKR Corporindo (AKRA IJ) after Freeport Mcmoran (FCX US) announced it will not proceed with plans to build a new copper smelter with China’s Tsingshan Holding Group in Indonesia but will focus on its JIIPE smelter. In Bank Negara Indonesia (BBNI IJ) - Digitally Remastered in Style, Angus Mackintosh takes a look at Bank Negara Indonesia Persero (BBNI IJ) after a call to discuss the bank's digital strategy and what really makes it stand out from competitors.In Kimia Farma (KAEF): Legitimate Pharmacy, Henry Soediarko returns to look at Kimia Farma Persero (KAEF IJ) as the COVID cases in Indonesia are on the increase. Kimia Farma Persero (KAEF IJ) carries the majority of what are thought to be COVID-19 related medications, such as Favipavir, Chloroquine, Hydroxychloroquine, Azithromycin, and Immunomodulator. In Bukalapak IPO - Peers &amp; Valuation - Betting on Its Potential, Zhen Zhou, Toh looks at Bukalapak (BUKA IJ)'s valuations as the company moves towards its IPO.  In Filinvest REIT IPO - Almost like a Single Asset REIT, COVID Hasn't Been Kind, Sumeet Singh takes a closer look at Filinvest Reit (FILRT PM) (FREIT), a subsidiary of Filinvest Land (FLI PM) as it aims to raise USD240m in its Philippines listing.In Filinvest REIT IPO - Hard to Get Excited, Despite the Yield, Sumeet Singh returns to look at Filinvest REIT (FILRT PM)'s and puts its IPO valuations through his ECM framework.In Bukalapak IPO Initiation: Island Shopping, Arun George provides his view on Bukalapak (BUKA IJ) as the company prepares for its Jakarta IPO.In ADVANC: Expect 2Q21 Earnings to Drop Both YoY and QoQ, Country Group maintains BUY rating for Advanced Info Service (ADVANC TB) due to growth potential from 5G, given it has the largest total spectrum of bandwidth compared to peers.In GPSC: 34% Capacity Expansion from New Overseas Investment, Country Group revisits Global Power Synergy Company Ltd (GPSC TB) after it announced an investment of THB30bn in an overseas renewable energy project, including THB15bn for 41.65% stake in Avaada energy India (1.6GWe) and another Bt15bn for 25% stake in Ci Changfang &amp; Ci Xidao Taiwan (149MWe).In DELTA: Expected 2Q21E Recurring Profit at Bt531m (-21%YoY, +6%QoQ), Country Group maintains a SELL rating for Delta Electronics Thai (DELTA TB) but do expect stronger profitability in 2H2021 due to Baht depreciation, better efficiency and more balancing raw material supply. Delta Electronics Thai (DELTA TB) would also benefit from the rise of the EV industry and order relocation from China due to US-China trade tension.In AUCT: Expect 2Q21 Earnings Should Be the Bottom Quarter of the Year, Country Group revisits Thailand's largest car auction company ahead of its results and continue to take a positive view of the company. Sector and Thematic In Energy Sector Outlook 3Q21, Country Group takes a closer look at the energy sector outlook for the 3Q21.Credit InsightsIn Morning Views Asia: Agung Podomoro Land, China South City, credit specialist Trung Nguyen maintains his "Hold" recommendation on the Agung Podomoro Land (APLN IJ) 5.95 2s after Moody’s downgraded ratings onthe company from B3 to Caa1.Smartkarma WebinarIn Smartkarma Webinar | Overweight and Underweight in Indonesia Amidst the Covid Crisis, Henry Soediarko will host a webinar on overweight and underweight in Indonesia as the country's healthcare system has been overwhelmed due to COVID-19. This raises questions about hospital operators such as Mitra Keluarga Karyasehat Tbk (MIKA IJ) and Siloam International Hospital (SILO IJ), while tighter testing and vaccination regulations could bode well for Prodia (PRDA IJ) as the only listed entity in Indonesia with expertise on testing. The webinar will be hosted on Wednesday, 21 July 2021, at 17:00 SGT/HKT.

The Week That Was in ASEAN@Smartkarma - Indonesia's Peak, Mayora Indah, and IPOs

Bank Negara Indonesia Persero / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> held an analyst call late last week to outline the bank's already well-developed digital strategy both wholesale and retail plus what really makes it stand out from competitors and what the future holds.</p>
<p>The bank has just launched the newest version of its BNI App which also commemorates the bank's 75th Anniversary and gets a high rating. <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a>'s strategy on its ongoing digital transformation has been to embrace the new wave of digital disruption through collaboration with third parties rather than going it alone.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia Persero (BBNI IJ)</a> works with leading P2P lenders such as Kredivo, Amartha, and Investree, as well as the major digital payments actors such as GoPay, OVO, and Dana. </p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener"></a>BBNI bases its service on its good use case for its customers rather than burning money to acquire new customers. </p>
<p>The bank is also leveraging its open API providing services for digital players and as a result, now offers 260 different services through its app with more than 3,000 partners, the most compared to any of its peers in Indonesia. </p>
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<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia  (BBNI IJ)</a> is linked with many different e-commerce and Fintech companies helping to facilitate payments, collections, providing liquidity, and providing audits, as examples of some services. </p>
<p>The app is also very popular with younger customers with Gen x at 21% of users, Millennials 43%, and Gen C at 33% making up a large portion of tye 8.9m users.</p>
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<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a>'s increasing integration with Indonesia's digital economy also stands it in good stead to benefit from the vibrant growth from the space. The bank's progression in building its digital capabilities and its integration with the Indonesian digital economy is not yet fully appreciated, with the bank trading on 0.7x FY21E PBV.</p>
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Bank Negara Indonesia (BBNI IJ) held an analyst call late last week to outline the bank's already well-developed digital strategy both wholesale and retail plus what really makes it stand out from competitors and what the future holds.
The bank has just launched the newest version of its BNI App which also commemorates the bank's 75th Anniversary and gets a high rating. Bank Negara Indonesia (BBNI IJ)'s strategy on its ongoing digital transformation has been to embrace the new wave of digital disruption through collaboration with third parties rather than going it alone.
Bank Negara Indonesia Persero (BBNI IJ) works with leading P2P lenders such as Kredivo, Amartha, and Investree, as well as the major digital payments actors such as GoPay, OVO, and Dana. 
BBNI bases its service on its good use case for its customers rather than burning money to acquire new customers. 
The bank is also leveraging its open API providing services for digital players and as a result, now offers 260 different services through its app with more than 3,000 partners, the most compared to any of its peers in Indonesia. 

Bank Negara Indonesia  (BBNI IJ) is linked with many different e-commerce and Fintech companies helping to facilitate payments, collections, providing liquidity, and providing audits, as examples of some services. 
The app is also very popular with younger customers with Gen x at 21% of users, Millennials 43%, and Gen C at 33% making up a large portion of tye 8.9m users.

Bank Negara Indonesia (BBNI IJ)'s increasing integration with Indonesia's digital economy also stands it in good stead to benefit from the vibrant growth from the space. The bank's progression in building its digital capabilities and its integration with the Indonesian digital economy is not yet fully appreciated, with the bank trading on 0.7x FY21E PBV.





Bank Negara Indonesia (BBNI IJ) - Digitally Remastered in Style

US Banks - Weekly Balance Sheets, Negative C&I Growth, Nearly First Time This Year, Other Negatives

External broker reports(aggregated public sources), Scotiabank

Scotiabank

External broker reports(aggregated public sources)

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FX & Rates

<ul><li>FX Market Update—The Fed decision added little to the near-term rate outlook on the face of it.</li><li>The policy statement was barely changed at all from September’s but did give a nod to strong growth whilst acknowledging tighter financial (alongside credit) conditions.</li><li>Fed Chairman Powell played it straight at the press conference—not thinking about rate cuts, not confident that policy is restrictive enough and leaving the door open to more tightening. But markets were sniffing out whiffs of dovishness from the chairman— ”proceeding carefully” came up a lot and he did seem to put a bit of distance between where the FOMC is now and the September dots which implied one more hike. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

FX Market Update—The Fed decision added little to the near-term rate outlook on the face of it.The policy statement was barely changed at all from September’s but did give a nod to strong growth whilst acknowledging tighter financial (alongside credit) conditions.Fed Chairman Powell played it straight at the press conference—not thinking about rate cuts, not confident that policy is restrictive enough and leaving the door open to more tightening. But markets were sniffing out whiffs of dovishness from the chairman— ”proceeding carefully” came up a lot and he did seem to put a bit of distance between where the FOMC is now and the September dots which implied one more hike. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FX Daily - USD Softer as Market Sees Fed Dovishness

CAD

FX Daily - USD Softer as Market Sees Fed Dovishness