11 Issuers Will Buyback Shares, Which Is Attractive?

Reporter: Kenia Intan | Editor: Khomarul Hidayat

KONTAN.CO.ID – JAKARTA. Stock buybacks or buybacks are rife. A number of issuers announced that they would buy back shares or buyback share. According to Kontan.co.id’s search, from the beginning of the year to Friday (11/2), there were 11 issuers who stated that they would hold buyback or extend the period buyback.

The issuers are PT Provident Agro Tbk (PALM), PT Mitra Keluarga Karyasehat Tbk (MIKA), PT Asuransi Multi Artha Guna Tbk (AMAG), PT Kalbe Farma Tbk (KLBF), PT Matahari Department Store Tbk (LPPF), and PT Kino Indonesia Tbk (KINO).

There are also PT Bank Rakyat Indonesia Tbk (BBRI), PT Royal Prima Tbk (PRIM), PT Nippon Indosari Corpindo Tbk (ROTI), PT Medikaloka Hermina Tbk (HEAL), and PT Jaya Real Property Tbk (JRPT).

Head of Investment Information Mirae Asset Sekuritas Indonesia Roger MM had previously responded, the action buyback what the issuers do is considered reasonable. The common stock repurchase action was carried out by the management of the issuer who felt that the stock price in the market was considered too low.

Also Read: Kalbe Farma (KLBF) Plans to Buyback Shares, Check Out Analyst Projections Below

“Buyback This is a positive corporate action which investors usually respond positively to,” explained Roger at Mirae Asset Media Day which was held on Thursday (10/2).

One of the highlights is buyback BBRI shares, which are planned to reach a nominal value of Rp. 3 trillion. The share repurchase action will be carried out after obtaining shareholder approval at the EGMS, assuming 1 March 2022 – 31 August 2023.

As a reminder, BBRI scored a satisfactory performance throughout 2021. Mirae Asset Sekuritas estimates that BBRI will post strong profit growth in 2022, often with the consolidation of Pegadaian and PNM. So, it is recommended to buy BBRI shares with a target price of Rp 5,540 per share.

For your information, until February 4, 2022, the Indonesia Stock Exchange (IDX) informs that there are 133 issuers that have completed their period buyback. The realization value has reached Rp 9.3 trillion since SE OJK No. 3/SEOJK.04/2020 is enforced on March 9, 2020.

The stock exchange also noted, as of February 4, 2022, there were 11 companies that were still in the buyback period. Seven of them have carried out buybacks with a total implementation of Rp 2.3 trillion.

Also Read: Buyback, Family Planning Partners Get 200 Million Shares