Bank Neo Commerce: 1Q24 earnings beat: a profitable 1Q from lower provisions, ST challenges on NIM and disbursement (BBYB.IJ Rp 232; BUY; TP Rp 600)

  • Driven by qoq lower provisions, BBYB recorded a positive 1Q24 net profit of Rp14bn, but at the expense of lower coverage.
  • 1Q24 NIM fell due to lower loans and resilient deposits (hence a sharply lower LDR) due to the absence of Akulaku Finance loans disbursement. 
  • Maintain Buy rating with an unchanged TP of Rp600 with a low LDR and sufficient coverage to drive loans and earnings growth. 

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Key takeaways – ERAA meeting (21 May 2024)

  • ERAA 1Q24 SSSG:
  • Consolidated: 5%
  • Active Lifestyle segment: 5-7%
  • F&B: double-digit

Increased mall traffic due to multiple long weekends in May 2024 is expected to further boost sales.

  • Store Expansion Plans for FY24:
  • FY24 target: 200 new stores this year
  • This is a reduction from 600 new stores in FY23 and around 500 new stores in FY22
  • Store Productivity and Product Launches
  • Affordable Handsets: More affordable handsets (priced under Rp 3 million) will be launched in the upcoming quarters.
  • 1Q24 saw the launch of 15 new series compared to 5 new series in 1Q23.
  • Slow 3Q24, stronger 4Q24 with the launch of iPhone 15:
  • 3Q24 is traditionally the slowest quarter due to clearance sales and high marketing costs, resulting in lower margins.
  • Improvement anticipated in 4Q24 with the launch of iPhone 15.


  • Erablue – Electronic stores
  • Total stores (April 2024): 55 stores (vs FY24 Target: 80 stores)
  • Focused on the mid-to-low market segment.
  • Reported solid growth in April 2024 and is expected to maintain steady growth in the coming quarters.
  • Erablue offers a 2-3% price difference compared to general trade (especially in home appliances).

(Natalia Sutanto, Sabela Nur Amalina – BRIDS)











BI will Announce the BI Rate Today at 2.00 pm

Bank Indonesia (BI) will announce the BI Rate today at 2.00 pm. We expect BI to leave the rate unchanged following a strengthening IDR due to easing external risks. Domestic inflation also eased in April as key commodity prices cool with increasing supply. From a monetary perspective, we still see BI maintaining a contractionary stance, making a rate change unnecessary at this point. (Economic Research - BRIDS)



CPIN Distributes Dividends of Rp2.13tr

At the AGMS, CPIN decided to distribute a dividend of Rp130/share (yield: 2.5%), of which Rp100/share was distributed on November 29, 2023, as an interim dividend. Thus, CPIN will distribute total dividends of Rp2.13tr for FY23 or a dividend payout ratio of 92%. (Bisnis)


ISAT Distributes Dividends of Rp2.16tr

ISAT has approved the distribution of cash dividends totaling Rp2.16tr or Rp268.4/share, representing 48% of the company's net profit for the year and to be paid within 30 days of the meeting's summary. The remaining net profit of Rp2.34tr will be allocated to retained earnings. (Emiten News)


RALS Distributes Dividends of Rp296bn

RALS has approved the distribution of cash dividends of Rp50/share (yield: 10.6%), totaling Rp296bn or a 98% payout. (Emiten News)