BTPS: Stay Focused on Consumer Empowerment

30 Okt 2024 Valdy

BTPS’s net profit fell 24% yoy to IDR771 billion in 9M24. This performance is the impact of BTPS being more conservative in distributing financing in 2024 to maintain BTPS’s asset quality.

BTPS continues to make efforts to improve asset quality. Net Non-Performing Financing (NPF) of 0.0% in 9M24 is lower than 0.7% in 9M23 and 0.3% in FY23.

Consumer empowerment to increase consumer loyalty.The number of customers is 265.7 thousand communities, with the number of active customers being 3.87 million in 9M24 compared to 258 thousand communities in 9M23.

BTPS focuses on developing new features for Tepat mobile banking.BTPS will facilitate the receipt of cash waqf and develop the Cash Waqf Linked Deposit feature (so that waqf funds can be invested in sharia financial instruments such as deposits).

Using the Discounted Cash Flow method with a Required Return of 10.10% and Terminal Growth of 2.08%, we estimate BTPS’ fair value at 1,315 (12.52x expected P/E). Considering BTPS’ fair price and relative valuation below 1.82x –1 standard deviation of 5-year P/B, we give BTPS a buy rating with a potential upside of 21.70%.

By PHINTRACO SEKURITAS | Research
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