As is known, in the prospectus published Tuesday (31/8), BRI offered a maximum of 28.213 billion Series B New Shares in the name with a nominal value of Rp 50 per share or a maximum of 18.62% of the company’s issued and fully paid capital after Capital Increase with Pre-emptive Rights (PMHMETD) I.
The capital market analyst and economist from the LBP Institute Lucky Bayu Purnomo projects that BRI’s shares in the future after the rights issue and the official formation of the holding, will again penetrate the price in the range of Rp4,800 in the short term.
The increase in BBRI’s stock performance was not only triggered by the company’s strong fundamentals, it was also driven by the establishment of a BUMN Ultra Micro (UMi) holding that was able to integrate and strengthen the empowerment of the MSME ecosystem, including the ultra micro businesses in it. “Currently BBRI still tends to strengthen to Rp 4,800,” he said optimistically, Thursday (2/9/2021).
According to the prospectus, the price for the BBRI rights issue is Rp 3,400 per share. The government will exercise all of its rights in accordance with the portion of its share ownership in BRI by depositing shares in forms other than money (Inbreng) in accordance with PP No. 73/2021.
All government-owned Series B shares in PT Pegadaian (Persero) and PT Permodalan Nasional Madani (Persero) or PNM will be transferred to BRI through an inbreng mechanism. The total value of PMHMETD I which has taken into account the inbreng and the exercise of rights of the Public Shareholders is a maximum of Rp 95.92 trillion. The proceeds from the corporate action will, among other things, be used by BRI for the establishment of the UMi BUMN Holding together with Pegadaian and PNM.
Lucky explained, BRI’s performance growth was still positive despite the Covid-19 pandemic. The company was able to record a profit of Rp 12.54 trillion by the end of the first semester of 2021. This achievement grew by around 22.93% compared to the same period last year.
The main factor driving this increase was credit which grew positively above the national banking industry average. Until the end of June 2021, BRI’s consolidated lending reached Rp 929.40 trillion. The same period last year amounted to Rp 922.97 trillion.
Lucky also said that the company was even able to encourage various digital innovations to strengthen its business in the MSME segment. BRI will also be able to work on a larger market, namely ultra micro as a new source of growth through holding. He added, BRI, Pegadaian and PNM will be able to add more potential customers who have not yet met the requirements for disbursing funds from formal financial institutions, to enlarge their business base.
Thus, Lucky assesses that BBRI is Himbara’s bank stock with the most potential to grow in the future. In addition, he said, BBRI’s shares were considered prospective because the three SOEs in the holding had the same good financial performance and business fundamentals.
“In the end, this will increase investor appreciation even higher. Among state banks, BRI is the most prospective. He is superior. He will strengthen because the long term is the best,” he said optimistically.
BBRI Soars, Retail Investors Profit
In line with MNC Sekuritas’ Head of Equity Trading Frankie Wijoyo Prasetyo said investors would be more interested in absorbing BBRI’s new shares because the funds would be used to establish a holding that would optimize the performance of the three state-owned companies.
He also assessed that the price of the rights issue of Rp. 3,400 was very attractive, in which BBRI’s share price was currently not far apart and still tended to be sideways at the level of Rp. 3,800-Rp. 3,900. “The impact of the issuance of new shares with a jumbo capitalization for the short term target price could be at the level of Rp 4,500,” he said.
In addition, investors are optimistic about BRI’s fundamental performance which is growing and strong in the midst of economic challenges due to the Covid-19 pandemic. In the MSME segment market, including UMi, Pegadaian and PNM, they will complement each other and strengthen performance with BRI.
Similar optimism was expressed by Capital Market observer and Founder of Indonesia Superstocks Community Edhi Pranasidhi. According to him, the price offered by the company of Rp. 3,400 is very attractive. This, he said, could be a momentum for retail investors to gain profits. “So I think that redeeming BBRI’s rights will be profitable for an investment of 6-12 months,” he said.
He also believes that after the rights issue, BBRI’s fundamental business performance will shine even more. There is an increase in net income of around Rp 1.5 trillion to Rp 2 trillion from Pegadaian and PNM as well as an increase in book value to around Rp 1,900 rupiah per share from the current Rp 1,690 rupiah per share.
Thus, from the PBV, BBRI’s share price looks still cheap. In addition, if it is traded at a normal level of 2.5 times the book value, then BBRI’s share price should be 2.5 times Rp 1,900, which is Rp 4,750 rupiah per share.
“This makes the potential return after buying the rights around 40% and if we use the theoretical price with the theoretical ex right price calculation, then the investment return is between 24% -30% or more attractive than deposit interest or any ORI or FR bond coupons. ,” he concluded.