Picture
Other stocks here

BHIT, a 68% higher target price
Current 56 Target 94 +68%

December 8th 2021
1 minute read
​
Sales declined -15%
  • Sales declined -15% in the third quarter to 3,885 billion rupiah vs our 4,471 billion rupiah forecast.
  • This brings the quarterly average to 2% growth.
  • We predict faster average growth of 6% in this next 12 months to bring sales to 4,573 billion rupiah in the third quarter of 2022.
​
Costs 3 points lower
  • The cash cost ratio was 3 points lower at -71% in the third quarter giving a 717 billion rupiah net profit.
  • The average Cashflow cost ratio is at -66% now.
  • We use the latest -71% cost ratio to predict a 915 billion rupiah profit in the third quarter of 2022.
​
Cashflow much higher
  • Free cashflow was much higher at 1,094 billion rupiah in the third quarter with -1,274 billion rupiah investment Cashflow.
  • Average quarterly Cashflow is at 362 billion rupiah now.
  • We assume lower -822 billion rupiah investment spending which with higher sales gives a 497 billion rupiah Cashflow in the third quarter of 2022.
​
Balance sheet, lower leverage
  • Cash jumped from 1,751 to 3,149 billion rupiah in the third quarter.
  • Liabilities increased from 25,623 to 26,960 billion rupiah so net cash improved from -23,872 to -23,811 billion rupiah.
  • With our forecast cashflow & a -329 billion rupiah equity payout net cash will be -22,524 billion rupiah in 12 months time.
​
Valuation, a 68% higher target price
  • BHIT capital from the last 15 quarters was lower at 139 billion rupiah in the third quarter with 305 billion rupiah new liabilities but will be 1,754 billion rupiah in12 months time.
  • At the current market value of 4,820 billion rupiah based on our forecasts it’s at 0.07 X assets with a 38 years payback & a 7% yield.
  • Our 12 month cashflow forecast is 1,615 billion rupiah which means an 3 X valuation. A 5 X valuation gives a 68% higher target price of 94 rupiah.