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Good morning,
Bank
Pan Indonesia – Company Meeting Key Highlights
On Wednesday, we had meeting with Bank Pan Indonesia (PNBN IJ, NR). Few highlights:  Panin
would continue to focus on SME and commercial lending (ticket size of
IDR5-10bn) while selectively corporate loans that Panin already familiar
with. As such, Panin targets merely 10% loan growth at max for this year.Panin
expect mild pressure in asset quality issue. Having said that, gross NPL
ratio would hover around 2.7-2.9% by end of year (Dec-16: 2.8%).Liquidity
should not be a major issue as Panin already trimmed its TD rate since
November last year yet the customer deposits still growing. With soft loan
growth projection, LDR would remain manageable for Panin.Panin
would issue subordinated bonds of IDR2.4trn this year with indicative coupon
rate of 10.25% to refinance its 2010 subordinated bonds (IDR2.46trn size and
10.5% coupon rate).Panin
also view that most of its customers utilize Panin’s deposits accounts as
their secondary reserve bank account. As such, customer deposits are
relatively sticky yet fee-income would remain minor given Panin is not
customers’ transactional account.ANZ’s
plan to divest its ownership in Panin would continue this year with Mizuho as
one of the potential buyer. Panin
trades at a relatively attractive valuation of 0.62x 2017 P/BV multiple yet
low liquidity shares in the market remain our main concern on Panin. ROAE would still linger at single digit figure (8.7% FY17 based on
consensus estimate). This is because Panin has not distributed dividend since
10 years ago despite that the management always propose 20% payout ratio each
year. The shareholders’ prefer Panin to own ample capital level to support
its business expansion going forward. (Eka
Savitri)
Link
to Daily report: Indonesia Morning Cuppa 230317
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Company Update:
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Astra International (ASII IJ, BUY, TP: 9,100), Robust 2M17 Cars Wholesale
Astra’s 2M17 cars wholesale increased by
32% YoY to 106,000 units, much faster than that of national growth which was
merely 6% YoY. In our calculation non-Astra 4W wholesale declined by 17% YoY
in the same period. Astra market shares increased to 58% in 2M17 (from 47% in
2M16).
Astra
robust wholesale growth was driven by higher Toyota and Daihatsu
brands thanks to strong demand on its LCGC-MPV and MPV models. On our phone
call to Astra management, dealers stocking inventories was also part of the
driver Astra 2M17 sales growth. Our DCF-based TP on Astra is IDR9,100
(19x/16x FY17/18F P/Es) offers a 8% upside. (Andrey
Wijaya)
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Media Highlights:
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Economics
March inflation
slows down
World Bank revises
down Indonesia economic growth projection
Corporate
Surya Semesta
postpones AGM
Bukit Asam eyes
inorganic expansion
Pembangunan
Perumahan books 12 new projects
Tower Bersama books
positive revenue growth
Siloam allocates
IDR1.8trn for capex
Sri Rejeki Isman’s
bond coupon at 6.875%
Timah to buy six new
production vessels to improve production capcacity
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Our
Recent Publication:
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Company Update: Perusahaan Gas Negara –
Disapppointing Quarter, Investment Thesis Intact
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Results Review: Bumi Serpong Damai –
Catalyst To Propel Growth
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Results Review: Unilever Indonesia – Higher
ASPs Likely To Boost Margin
Link to report: Unilever
Indonesia – Higher ASPs Likely To Boost Margin
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Company Update: Bank Tabungan Negara – A
Bright Future Lies Ahead
Link to report: Bank
Tabungan Negara – A Bright Future Lies Ahead
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Results Review: Indocement Tunggal Prakarsa
– Competition Likely To Remain Intense
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Economics Update: BI Holds Key Policy Rate
In March
Link to report: BI Holds Key Policy Rate In March
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Corporate News Flash: Bank Rakyat
Indonesia: New CEO, No major Kitchen-Sinking Expected
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Company Update: Arwana Citra Mulia –
Building a Path To Recovery
Link to report: Arwana Citra Mulia : Building a Path To Recovery
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Results Review: Bukit Asam – Further
Earnings Boost From Cheaper Contractor Fees
Link to report: Bukit
Asam : Further Earnings Boost From Cheaper Contractor Fees
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Results Review: Indosat – Freedom For Less
Link to report: Indosat : Freedom For Less
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Sector Update: Oil and Gas – The
Double-Edged Sword
Link to report: Regional
Oil & Gas : The Double-Edged Sword
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Best regards,
Helmy Kristanto
Director
Head of Indonesia Research
PT. RHB Securities Indonesia
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