External broker reports(aggregated public sources), MNC Sekuritas

MNC Sekuritas

External broker reports(aggregated public sources)

MNC Sekuritas, the first wholly-owned subsidiary established by the Group back in 1989, provides a complete range of services, from equity, fixed income, investment banking to providing research to optimize clients’ investments. Thus far, the company has more than 140 points of sales with over 100,000 clients. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Bank Syariah Indonesia Tbk PT / Equity Bottom-Up

<ul><li>BRIS's YTD 2024 performance has been impressive, with its share price rallied +42% YTD, driven by a substantial 69% increase in avg.</li><li>transaction volume and a doubling of transaction value compared to 2023. Notably, net foreign inflow reached IDR564bn in Jan-Feb 2024 (vs IDR125bn in 4Q23), especially post the release of the strong FY23 financial report.</li><li>▪To bolster its IT security system, BRIS is gearing up for a capex of IDR1.5tn, marking a substantial increase from previous years' budgets which primarily designated for 4-key areas, including security measures &amp; infrastructure enhancements.</li></ul>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.

BRIS's YTD 2024 performance has been impressive, with its share price rallied +42% YTD, driven by a substantial 69% increase in avg.transaction volume and a doubling of transaction value compared to 2023. Notably, net foreign inflow reached IDR564bn in Jan-Feb 2024 (vs IDR125bn in 4Q23), especially post the release of the strong FY23 financial report.▪To bolster its IT security system, BRIS is gearing up for a capex of IDR1.5tn, marking a substantial increase from previous years' budgets which primarily designated for 4-key areas, including security measures &amp; infrastructure enhancements.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.

BRIS IJ - MNC Sekuritas Equity Report February 20, 2024

External broker reports(aggregated public sources), BRI Danareksa Research

BRI Danareksa Research

As a one-stop financial solution with the vision to be the most valuable securities house, BRI Danareksa Sekuritas (BRIDS) has maintained an excellent track record and extensive experience in the capital market as an underwriter, broker, and financial advisor for individual, institutional, foreign and domestic, private and government clients. Established in 1992, PT Danareksa Sekuritas is a securities company that performs activities as a securities broker, underwriter, or arranger and financial advisor.

<ul><li>Driven by above-peers’ financing growth, low-cost funding, and better efficiencies, we expect BRIS to deliver c. 15% EPS growth in FY24-25F.</li><li>Given its sustainable leadership in the fast-growing Sharia banking market, we believe BRIS’ scarcity premium valuation is justified.</li><li>We reinitiate coverage on BRIS with a Buy and TP of Rp2,700, based on an inverse cost of equity GGM with CoE of 8.0%, implying 2.6x PBV.</li></ul>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.

Driven by above-peers’ financing growth, low-cost funding, and better efficiencies, we expect BRIS to deliver c. 15% EPS growth in FY24-25F.Given its sustainable leadership in the fast-growing Sharia banking market, we believe BRIS’ scarcity premium valuation is justified.We reinitiate coverage on BRIS with a Buy and TP of Rp2,700, based on an inverse cost of equity GGM with CoE of 8.0%, implying 2.6x PBV.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.

Bank Syariah Indonesia - Sustainable Growth Outlook Through Dominance in the Sharia Market

<ul><li>We reiterate our BUY call on BSI with a new GGM-derived TP of IDR2,000 (implying 2.5x 2023F PBV) post the release of decent 1Q23 results.</li><li>Consumer financing is expected to grow by 15.9% yoy driven by the payroll-based segment.</li><li>Cost efficiency should also be a key focus for the bank until 2024F as BSI will continue to review its underperforming outlets.</li></ul>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.

We reiterate our BUY call on BSI with a new GGM-derived TP of IDR2,000 (implying 2.5x 2023F PBV) post the release of decent 1Q23 results.Consumer financing is expected to grow by 15.9% yoy driven by the payroll-based segment.Cost efficiency should also be a key focus for the bank until 2024F as BSI will continue to review its underperforming outlets.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.

Bank Syariah Indonesia (BRIS IJ): Maintain Looking to Make Further Progress

Thematic (Sector/Industry)

<ul><li>We estimate the big-4 banks’ FY24F earnings to be potentially 1-6% lower if the BI rate is unchanged; BBCA as the least affected bank.</li><li>While previously a higher-for-longer scenario drove a lower ROE and sharp de-rating, FY24F ROE is resilient amid better asset quality.</li><li>We remain Overweight on the banking sector at the current implied CoE of 9.0%, -1SD to its 5-year average. BBCA remains our top pick.</li></ul>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.

We estimate the big-4 banks’ FY24F earnings to be potentially 1-6% lower if the BI rate is unchanged; BBCA as the least affected bank.While previously a higher-for-longer scenario drove a lower ROE and sharp de-rating, FY24F ROE is resilient amid better asset quality.We remain Overweight on the banking sector at the current implied CoE of 9.0%, -1SD to its 5-year average. BBCA remains our top pick.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.

Banks: Solid asset quality and capital to weather macro uncertainties (OVERWEIGHT)

<ul><li>Our FY23 results recap shows market EPS growth of -12% yoy, but growth would reach +4.1% if we exclude one-offs (mainly from GOTO).</li><li>We see mixed growth prospects for 1Q24 with ST headwinds in Banks and Telco, but possible outperformers in Consumers, Retail, Healthcare.</li><li>We reiterate our view on commodities as a possible ST tactical play, along with the defensive domestic names for preferred 2Q24 exposure.</li></ul>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.

Our FY23 results recap shows market EPS growth of -12% yoy, but growth would reach +4.1% if we exclude one-offs (mainly from GOTO).We see mixed growth prospects for 1Q24 with ST headwinds in Banks and Telco, but possible outperformers in Consumers, Retail, Healthcare.We reiterate our view on commodities as a possible ST tactical play, along with the defensive domestic names for preferred 2Q24 exposure.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.

Equity Strategy: Short-Term Domestic Growth Challenges in 2Q24 May Drive Further De-Risking

Indonesia

PT Bank Syariah Indonesia Tbk. operates as a bank. The Bank offers checking accounts, credit and debit cards, loans, insurance, payment protection, phone banking, bill pay, fund transfer, and merchant services. Bank Syariah Indonesia serves customers in Indonesia.

Bank Syariah Indonesia Tbk PT (BRIS IJ)

BRIS IJ - MNC Sekuritas Equity Report February 20, 2024

BRIS's YTD 2024 performance has been impressive, with its share price rallied +42% YTD, driven by a substantial 69% increase in avg.

MNC Sekuritas

Bank Syariah Indonesia - Sustainable Growth Outlook Through Dominance in the Sharia Market

Driven by above-peers’ financing growth, low-cost funding, and better efficiencies, we expect BRIS to deliver c. 15% EPS growth in FY24-25F. Given...

BRI Danareksa Research

Bank Syariah Indonesia (BRIS IJ): Maintain Looking to Make Further Progress

Bekasi Fajar Industrial Estate (BEST.IJ IDR 150 HOLD.TP IDR 140) Solid revenues recognition to startContent is external broker report sourced from...

BRI Danareksa Research

Banks: Solid asset quality and capital to weather macro uncertainties (OVERWEIGHT)

We estimate the big-4 banks’ FY24F earnings to be potentially 1-6% lower if the BI rate is unchanged; BBCA as the least affected bank.

BRI Danareksa Research

Equity Strategy: Short-Term Domestic Growth Challenges in 2Q24 May Drive Further De-Risking

Our FY23 results recap shows market EPS growth of -12% yoy, but growth would reach +4.1% if we exclude one-offs (mainly from GOTO).

BRI Danareksa Research