Daily Brief Equity Bottom-Up: Bank Mandiri (BMRI IJ) - Growing By Digital Means and more

In today’s briefing:

Bank Mandiri (BMRI IJ) – Growing By Digital Means

Bank Mandiri (BMRI IJ) is seeing significant rewards already being harvested from its digital strategy as it attracts low-cost fund through both its Livin’ app and its KOPRA platform.
The bank’s 9M2022 results reflected the changing shape of its business, with lower costs and higher returns being generated through its move to higher-yielding assets and digital strategy.
Bank Mandiri (BMRI IJ) remains a core holding among the Indonesian banks as a proxy for the overall economy with valuations attractive given rising and sustainable returns.

The competitive position and demand environment for Eicher Motors (EIM IN)‘s “Classic 350” remains intact.
The recent launch “Hunter 350” is expanding markets by taking on the competition.
Cannablisation fears from Hunter 350, remain unfounded, and unlikely to have any major impact on margin trajectory.

Intel outperformed TSMC in 1H December, and then TSMC outperformed after some negative rumors about an Intel product delay/cancellation.
After a quiet December, January will be a big month as we will have 4Q22E result for both companies. The expectatioins bar for INTC is set very low.
We see a potential Long INTC vs. Short TSMC opportunity after TSMC has released results and before INTC has released its results.

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