Merdeka.com – The share buyback corporate action carried out by PT Bank Rakyat Indonesia (Persero) Tbk is a positive signal for the potential growth of the company’s performance in the future. Analysts believe that the buyback action by BRI has also boosted investor confidence in the company’s performance.
Head of Equity Berdikari Investment Management Agung Ramadoni explained that the implications of this corporate action can be seen from the Earning per Share (EPS) or the representation of the entire amount of funds that can be received by shareholders for each share owned by investors.
“With the improvement in the company’s performance, so will the liquidity of the company itself. So, I still believe that the BBRI share buyback program will have a positive impact on the performance of its shares,” he explained.
“In addition, this corporate action also indicates that BRI sees BBRI’s shares are still undervalued. So it is hoped that the buyback action which has direct implications for outsanding shares can lift BBRI’s current valuation and share price,” he added.
Opening early 2022 with optimism for economic recovery, BBRI shares were observed to experience a positive movement at Rp4,180. A month later, BBRI shares grew 6.5% to a level of Rp4,450 in the first week of February 2022.
On April 26, 2022, BBRI shares touched an all-time high or the highest price since the company was listed on the stock exchange, which was at the level of Rp4,940. Then it moves in the range of Rp.4,250 to Rp.4,600.
The market capitalization of BBRI in the second week of September 2022 was at Rp. 675.95 trillion. With EPS or net income per share of Rp327, the PER share is 13.64 times and price to book value (PBV) is 2.39 times.
For information, the shares from the buyback will be kept as treasury shares in order to provide incentives to BRI employees. This is a form of appreciation for the company to its employees who have given their best performance.
Meanwhile, RHB Sekuritas Analyst Ryan Santoso said that BRI’s ability to create new growth is the key for the company to remain optimistic in the midst of the current economic challenges.
Overshadowed by the increase in the benchmark interest rate, Ryan said that it is very likely that BRI’s credit growth will touch 9%-11% Year on Year (YoY). In his research, he said that BRI’s micro sector credit growth could reach 13% -15% YoY.
BRI’s credit growth performance is getting stronger thanks to the consolidation of Holding Ultra Micro with PT Pegadaian and PT Permodalan Nasional Madani (PNM). Loans from PNM’s subsidiary are also projected to grow 17%-20% yoy and PT Pegadaian’s loans to increase by 10%-11% yoy.
Until the first half of this year, BRI Group posted a net profit of Rp24.88 trillion or grew 93.38% YoY. This profit achievement is the largest as well as the highest growth in Indonesia.
With this profit performance, the bank recorded a return on equity (ROE) of 17.54% and a rate of return on assets or Return on Assets (ROA) of 3%.