waterfront securities indonesia - bank jatim target price 560 (buy)

Date: 16 april 2014

Categories : IRU

The composition Funding Offers 

Over the past 11 years, BJTM CASA ratio, ie the ratio between current accounts and savings deposits compared to the whole, an average of 75.6%. The higher the CASA ratio, the better because it shows the company's funding composition obtained cheap. At the end of 2013, CASA ratio of 75.6% BJTM.

Microcredit Expansion With High Yield. Composition BJTM credits at the end of 2013 is a majority of consumer credit is equal to 64%, then 19% of commercial loans and SME loans 17%. The portion of the largest credit Multipurpose credit, which contributed for 56.4% of total loans. At the end of 2013, loans increased by 16% YoY Multipurpose. This multipurpose loans give a high yield with interest about 16% -18% with a relatively low risk because the majority of borrowers are civil servants salary payments through payroll BJTM.

Growth Sustainable Financial Performance. Over the past five years, BJTM interest income recorded a CAGR growth of 12.7%. While the CAGR of interest expense during the period. of 6.5%. The Company recorded a CAGR for operating profit and net profit respectively 12% and 13.3%.

The High Yield Dividend provide. BJTM dividend for the financial year 2013 amounted to Rp40, 61 per share that gives a yield of 8.55%. The dividend yield is relatively higher than the dividend yield on stocks of other banks.

Valuation and Recommendation. By using the DDM method, the target stock price BJTM within the next 12 months amounted to Rp560 per share. The price reflects 14E PER and PBV of 8.92 x 1.41 x 14E. When compared with the average PBV banking industry of 1.8 x, then the stock price valuation BJTM still relatively cheap.