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BBRI, a 108% higher target price
Current, target price 3,850, 8,016 (+108%)
August 9th, 2021
1 minute read
Sales inch up
Costs stay low
1 minute read
Sales inch up
- Sales increased by 1% in the second quarter to 40,034 billion rupiah which is below our forecast 42,381 billion rupiah.
- This brings the average quarterly growth to 6%.
- We predict average growth of 3% in this next 12 months to bring sales to 44,978 billion rupiah in the second quarter 2022.
Costs stay low
- The cash cost ratio of net profit add on cash costs minus sales as a percent of sales was lower at -59% in the second quarter but profit declined to 5,680 billion rupiah in higher provisions.
- Average quarterly costs are now at -59%.
- We use the same -59% costs to predict a 7,963 billion rupiah net profit in the second quarter of 2022.
Cashflow higher
Balance sheet faster growth
Value, a 108% higher target price
- Cashflow was up to 18,386 billion rupiah with investment spending of -1,356 billion rupiah in the second quarter.
- Average quarterly Cashflow has now improved to 15,328 billion rupiah.
- We use the same -1,356 billion rupiah investment spending which with higher sales gives a 17,196 billion rupiah cashflow in the second quarter 2022.
Balance sheet faster growth
- Other asset growth was positive again 3% in the second quarter & average growth is at 1%.
- Liabilities also increased by 3% in the second quarter & average growth is now also 1%.
- The sales to asset ratio was 2.8% in the second quarter compared to the average 2.7%.
Value, a 108% higher target price
- BBRI capital from the last six years increased to 58,662 billion rupiah in the second quarter.
- At the current market value of 468,100 billion rupiah, based on our forecasts, it’s at 2.74X sales & 0.32X assets with a 4% yield.
- Our free cashflow forecast is 64,978 billion rupiah. At 15X (a 6.7% yield), this gives a 108% higher target price of 8,016 rupiah.
