## PNBN, other revenue surges

Target price Rp2,180

Last 12-month cashflow +Rp 6.7 trillion

February 18th,, 2021

1 minute read

Sales

Cashflow

1 minute read

Sales

- Sales, thanks to strong other operating income, jumped by +28% in the third quarter to Rp 5.55 trillion after declining -5% in the second quarter, -10% in the first.
- Average quarterly growth is now at +4%.
- We predict +2% average quarterly growth in the next 12 months, sales to rise to Rp 6 trillion by the third quarter of 2021.

Cashflow

- Thanks to surging deposits, cashflow was a positive +Rp 6 trillion in the fourth quarter from -Rp 1.2 trillion in the second quarter.
- Last 12 months average quarterly Cashflow is Rp 1.7 trillion.
- We use average investment Cashflow of Rp 369 billion, which with higher sales gives an average quarterly Cashflow of Rp 1.05 trillion in the next 12 months.

## Other revenue surges, cashflow positive, assets growing, higher target price...

Balance sheet

Profit

Value

- Higher sales was derived from a surge in the sales to assets ratio to 2.6% in the third quarter from 2.1% in the second quarter.
- Assets also grew by 2.6% in the third quarter. Average quarterly non cash asset growth is now at +0.5%...
- ...& we expect this to rise to +2% average quarterly growth in this next 12 months.

Profit

- With higher sales, net profit increased to Rp 993 billion in the third quarter from Rp 618 billion in the second quarter.
- The cash costs ratio of net profit add non cash costs minus sales as a percent of sales was low at 66%.
- We use 76% costs to predict a flat next 12 months profit of Rp 3.3 trillion

Value

- PNBN has raised a net capital of Rp 10 trillion in the last five years.
- At the current market value of Rp 27.9 trillion, it’s 1.2X sales, 0.13X non cash assets, 0.62X equity with a 7.3% profitability & a 3.5% yield.
- Our cashflow forecast is Rp 4.2 trillion. At 1.6% with a 0.2X adjustment, gives a higher target price, Rp2,180.