Listed Company Analysis – BDMN

Listed Company Analysis – BDMN

Opening

This episode analysis goes to a banking company based in Indonesia that partnered with MUFG Japan (one of the megabanks in Japan). Their cooperation wants to penetrate the Indonesian market better by local knowledge and global expertise in the financial sector.  

Company Information

Bank Danamon Indonesia Tbk PT provides general banking services. The Bank’s head office is located in Jakarta with branch offices throughout Indonesia. The president director is Yasushi Itagaki, a Japanese citizen who was the Managing Executive Officer Deputy Chief Executive, Global Business Unit The Bank of Tokyo-Mitsubishi UFJ, Ltd A member of Mitsubishi UFJ Financial Group (MUFG). Itagaki Graduated with a Bachelor of Laws degree from Kyoto University in 1987. This company IPO-ed on 06 December 1989 by PT ASEAN, Bapindo, PT IFI as the underwriters.

Key Financial Statistics

Pictures provided.

BDMN Financial Statements
BDMN Financial Ratios

Highlights of 2020

  • CSAP (Catur Sentosa Adiprana Tbk) guaranteed its intangible assets with IDR 26 B in return for working capital CSAN (Catur Sentosa Anugerah).
  • Net Profit BDMN IDR 892.47 B. Lower than 2019 of IDR 1.91 T, drop 53,28% year on year (yoy).
  • the Cost-to-income ratio at 46%, 4,4% better than the last year’s period.
  • Bank Danamon Current Account and Savings Account up 14% to IDR 62,1 T.
  • Commercial banking and the financial institution or EB & FI up 16% to IDR 51,2 T, boosted by collaboration with MUFG.
  • Small banking commercial for small and medium enterprises and consumer mortgage loans at IDR 27,3 T and IDR 8,7 T at the end of June 2020.
  • Vehicle loan credit, Adira Finance recorded a total IDR 50,4 T in the first semester of 2020 despite the slowing down in the automotive sector.
  • The total portfolio of credit and trade finance at IDR 142,7 T at the end of Juni 2020. Bank Danamon using the implementation of risk assessment procedures, and collection process and credit recovery along with the prudence principle in the quality assets management.
  • NPL at 4.1% at the end of June 2020 and actively giving credit restructuration to the victims of COVID.
  • Fee Income increase 18% yoy to IDR 1,96 T. This increase due to growth in Bancassurance and wealth management service and gain from marketable securities and foreign currency transactions at 134%.

Target Price

Yuanta SecuritiesHold Rating3.000
MacquarieBuy Rating3.300
Maybank Kim EngSell Rating2.600
RHB ResearchNeutral Rating2.900
Morgan StanleySell Rating2.584
Trimegah SecuritiesBuy Rating3.100
BCA SekuritasHold Rating2.600
HopemityBuy Rating2.900
BDMN Target Price

Closing

PT Bank Danamon Tbk may be not as active as Bank Rakyat Indonesia or Bank Central Asia stocks in IHSG, but in terms of growth and likelihood to improve, this company has good credibility. Joining the club of “Book 4” in Indonesian Banking Sector, BDMN has a lot of room to improves. Before COVID, it’s share worth IDR 3210, my predictions before the end of 2020 the share’s worth would likely to catches up. Beware of second coming of crisis, but if we able to avoid it, the end of 2020 will be a good ending for 2020 despite the COVID which start in the end of Q1 in Indonesia market.


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