In-Depth Analysis of Indonesia’s Top Companies

Date: 10 December 2024

Broker: PT UOB Kay Hian Sekuritas

Introduction

In the ever-evolving financial markets of Indonesia, staying informed is vital for investors seeking to maximize returns. PT UOB Kay Hian Sekuritas has released a comprehensive report detailing the performance, prospects, and recommendations for some of Indonesia’s leading companies. This article provides an engaging analysis of these companies, offering valuable insights into their market positions and future trajectories.

Astra International (ASII)

Astra International, a prominent player in the Indonesian automobile sector, is recommended as a “BUY” with a target price of Rp 6,000, offering a potential upside of 14.8%. The company holds a market capitalization of US\$13,330 million. With a projected price-to-earnings (PE) ratio of 6.7x for 2024 and 6.6x for 2025, ASII presents a compelling investment opportunity. The company’s low price-to-book value (PBV) of 1.0x in 2024 emphasizes its promising return on equity (ROE) of 17.3% in 2025.

Bank Mandiri (BMRI)

Bank Mandiri, a key player in the banking sector, is set to achieve a target price of Rp 8,120, translating to a significant potential upside of 27.4%. The company’s market cap stands at US\$37,497 million. With a forward PE ratio of 10.5x for 2024 and 9.7x for 2025, BMRI offers a strong investment case. Its PBV of 2.1x in 2024 and a robust ROE of 22.4% in 2025 underscore its financial strength and growth potential.

Bank Negara Indonesia (BBNI)

Bank Negara Indonesia is rated as a “BUY” with a target price of Rp 6,560, indicating a substantial potential upside of 31.2%. With a market capitalization of US\$11,752 million, BBNI is well-positioned for growth. The bank’s PE ratios are forecasted at 8.4x for 2024 and 7.4x for 2025. Additionally, its PBV of 1.2x and ROE of 14.6% in 2025 reflect its promising financial outlook.

Bank Tabungan Negara (BBTN)

Bank Tabungan Negara offers an attractive investment opportunity with a “BUY” recommendation and a target price of Rp 1,740, representing a potential upside of 40.9%. The bank’s market cap is US\$1,092 million. Its forward PE ratio is projected at 5.2x for 2024 and 4.5x for 2025. BBTN’s PBV of 0.5x in 2024 and a ROE of 12.4% in 2025 highlight its growth potential in the banking sector.

Bank Syariah Indonesia (BRIS)

Bank Syariah Indonesia is identified as a “BUY” with a target price of Rp 3,400, offering a potential upside of 13.0%. The bank’s market capitalization stands at US\$8,750 million. BRIS’s PE ratios are forecasted at 20.2x for 2024 and 16.6x for 2025. Its PBV of 3.1x in 2024 and ROE of 15.8% in 2025 indicate its solid market position and growth potential.

Cisarua Mountain Dairy (CMRY)

Cisarua Mountain Dairy is recommended as a “BUY” with a target price of Rp 6,000, translating to a potential upside of 10.6%. The company’s market cap is US\$2,713 million. With a forward PE ratio of 28.4x for 2024 and 24.6x for 2025, CMRY presents a promising investment case. Its PBV of 6.1x in 2024 and a ROE of 22.2% in 2025 underscore its strong market standing.

Sido Muncul (SIDO)

Sido Muncul, a leader in the pharmaceutical sector, is highlighted with a “BUY” recommendation and a target price of Rp 800, offering a potential upside of 36.8%. The company’s market capitalization is US\$1,106 million. SIDO’s forward PE ratios are projected at 15.5x for 2024 and 14.4x for 2025. Its PBV of 4.9x in 2024 and ROE of 27.6% in 2025 reflect its robust financial health and growth prospects.

Kalbe Farma (KLBF)

Kalbe Farma is recommended as a “BUY” with a target price of Rp 1,800, representing a potential upside of 21.2%. The company’s market cap stands at US\$4,387 million. With a forward PE ratio of 21.8x for 2024 and 19.9x for 2025, KLBF offers a solid investment opportunity. Its PBV of 3.0x in 2024 and a ROE of 13.2% in 2025 highlight its promising market position.

Summarecon Agung (SMRA)

Summarecon Agung is identified as a “BUY” with a target price of Rp 865, translating to a significant potential upside of 63.2%. The company’s market capitalization is US\$551 million. SMRA’s forward PE ratios are projected at 7.9x for 2024 and 9.4x for 2025. Its PBV of 0.8x in 2024 and a ROE of 8.1% in 2025 underscore its growth potential in the property sector.

Ciputra Development (CTRA)

Ciputra Development is recommended as a “BUY” with a target price of Rp 1,570, offering a potential upside of 47.4%. The company’s market cap is US\$1,244 million. CTRA’s forward PE ratios are forecasted at 9.6x for 2024 and 8.8x for 2025. Its PBV of 0.9x in 2024 and a ROE of 9.6% in 2025 highlight its strong market position and growth prospects.

Aspirasi Hidup Indonesia (ACES)

Aspirasi Hidup Indonesia is highlighted with a “BUY” recommendation and a target price of Rp 1,200, representing a substantial potential upside of 55.8%. The company’s market capitalization is US\$831 million. ACES’s forward PE ratios are projected at 15.3x for 2024 and 13.2x for 2025. Its PBV of 2.0x in 2024 and a ROE of 12.7% in 2025 underscore its promising growth potential.

Gojek Tokopedia (GOTO)

Gojek Tokopedia is recommended as a “BUY” with a target price of Rp 85, translating to a potential upside of 9.0%. The company’s market cap is US\$5,855 million. Although the PE ratios are not available, GOTO’s PBV of 2.5x highlights its market potential. The company’s prospects in achieving positive adjusted EBITDA by 2025 across all business segments, except e-commerce, indicate its growth trajectory.

Conclusion

PT UOB Kay Hian Sekuritas has provided a comprehensive analysis of these leading Indonesian companies, highlighting their market positions, growth potential, and investment opportunities. Investors are encouraged to consider these insights when making informed decisions in the dynamic Indonesian financial markets.