Bank Syariah Indonesia (BRIS)

Recommendation: BUY (Maintained)

Target Price: Rp3,450 (Upside: +14.2%)

Bank Syariah Indonesia (BRIS), Indonesia’s largest syariah bank, has shown impressive financial performance in 2024, surpassing expectations with a net profit growth of 22% year-on-year (yoy). The bank’s 4Q24 net profit rose by 10.9% quarter-on-quarter (qoq) and 23.5% yoy, driven by strategic changes in its loan mix and robust growth in gold financing.

Key Financial Highlights

• 2024 net profit: Rp7.003 trillion, exceeding market expectations by 2%.
• Financing growth: 15.9% yoy to Rp278 trillion, led by 78% growth in gold financing and a 16.9% jump in payroll financing.
• Deposits increased by 11.5%, with savings accounts growing 12.7% and Wadiah accounts rising 9.7%.
• Net Interest Margin (NIM): 5.66%, with a quarter-on-quarter improvement due to higher loan yields.
• Non-interest income surged by 32.6% yoy, fueled by fee and commission income, and gold pawning business income.

Operational and Strategic Insights

The bank’s management has upgraded its 2025/26 earnings forecasts, anticipating a 15.8% net profit growth in 2025. Factors driving this growth include strong financing expansion, stable NIM, and improved cost-to-income ratio (CIR). BRIS also plans to secure its bullion bank license in 1Q25, which could significantly enhance fee income.

The cost of credit (CoC) decreased to 0.83% in 2024, reflecting manageable asset quality with a non-performing loan (NPL) ratio of 1.9%. Despite tighter liquidity, BRIS has maintained a robust capital adequacy ratio (CAR) of 21.4%.

Valuation

The target price of Rp3,450 is based on a 3.1x 2025F price-to-book ratio (P/B), supported by a 21% return on equity (ROE). The recommendation is underpinned by strong earnings growth and ROE improvement.

Bank Central Asia (BBCA)

Recommendation: Technical BUY

Target Price: Rp12,000 (Fundamental Target)

Bank Central Asia (BBCA) is showing promising technical signals, with its share price closing significantly higher and forming a long-body bullish candlestick. This suggests potential for further rebounds in the short term, targeting resistances at Rp9,250 and Rp9,750.

Technical Insights

• Resistance levels: Rp9,250 and Rp9,750.
• Support levels: Rp9,150 and Rp8,825.
• Stop-loss level: Rp8,800.

Indicators such as the Relative Strength Index (RSI) are trending upwards, while the Moving Average Convergence Divergence (MACD) is on a bearish crossover. Analysts suggest buying at Rp9,325 with a profit-taking level at Rp9,750 within a 2-4 week timeframe.

Astra International (ASII)

Recommendation: Technical BUY

Target Price: Rp6,000 (Fundamental Target)

Astra International (ASII) has shown a positive performance, with its share price closing higher and forming a neutral candlestick. This indicates potential for a rally towards resistance levels of Rp4,720 and Rp4,850.

Technical Insights

• Resistance levels: Rp4,720 and Rp4,850.
• Support levels: Rp4,520 and Rp4,450.
• Stop-loss level: Rp4,510.

The RSI is moving away from its oversold zone, and the MACD is on a bearish crossover. Analysts recommend buying at Rp4,650 and taking profits at Rp4,850 within a 2-4 week timeframe.