BBRI Recommended for Buying Friday, 3 August 2007 11:46:20 StockWatch (Jakarta) - Kim Eng Securities' analyst Yusuf Ade Winoto has upgraded his recommendation for PT Bank Rakyat Indonesia Tbk's shares (BBRI) from "hold" to "buy" and raised the target price from IDR6,250 to IDR7,000 per share.
At 11:27 JATIS time today (3/8) in the JSX regular market, BBRI stayed at IDR6,150 per share, so the new target price of IDR7,000 implies a potential increase of 13.82%. Winoto said BRI booked net profit of IDR2.358 trillion as of June 2007 or rising by 17.43% from IDR2.008 trillion in the same period of 2006, which is the highest net profit among banks in the country. "We have raised our projections for the bank's net interest income, provision and commission, as well as net profit," he said. He said Kim Eng has increased the target of 2007 net interest income from IDR14.807 trillion to IDR16.107 trillion, while increasing the projection of provision and commission from IDR1.757 trillion to IDR1.88 triliun, and the net profit prediction from IDR4.771 trillion to IDR5.255 trillion. He said BRI is committed to cooperating with other banks in financing tollroad projects. "The total loan for tollroad projects is IDR2.658 trillion which will be disbursed in 2007-2001, nut the value is small compared to the bank's loan portfolio," he said in a research report. Compared to BRI's total loan as of June 2007 that reached IDR98.779 trillion, the loan for tollroad project is merely 2.69%, while the bank's loan to micro-, small- and medium-scale businesses was 85.8% of the total or approximately IDR84.752 trillion."It shows that BRI remains committed to being a provider of loan for small and medium enterprises," he said. (dwi/bud)
