FR CGS-CIMB (YU ) : Bank Tabungan Pensiunan
A fair preposition; stronger combined entity ahead
BTPN IJ / BTPN.JK | ADD - Upgrade | Rp3,990.00 tp:Rp4,600.00▲
Mkt.Cap:US$1,612.00m | Avg.Daily Vol:US$0.40m | Free Float:40.00%
Banks
Author(s):Timothy HANDERSON +62 (21) 30061724, Jovent GIOVANNY
--------------------------------------------------------------------------------
■ BTPN disclosed the terms of its merger with SMBC Indonesia yesterday. The merger will involve BTPN issuing 2.2bn new shares to be swapped with SMBC assets.
■ We view the merger as relatively fairly valued. The merger should boost overall capital, providing upside to loan growth and/or dividend and ultimately better ROE.
■ SMBC Indonesia’s focus on the corporate segment complements BTPN’s focus on the micro and SME segments. Higher fee based income is another upside.
■ Offer price of Rp4,282/share (1.3x May 2018 P/BV) also seems reasonable compared to historical, though upside from robust capital and synergy cannot be overlooked.
■ Upgrade to Add on the back of brighter outlook and valuation.
Komentar
Posting Komentar