Ditopang Holding Ultra Micro, Analyst Targeted BRI Price Tembus IDR 62,000 Per Share

Investment BBRI (IG @bankbri_id)

JAKARTA - Trimegah Sekuritas analyst Adi Prabowo stated that the ultra micro holding corporate action brought new growth to BRI. Adi also recommended buying for the issuer bank codenamed BBRI with a target price of IDR 6,200 per share.

This is in accordance with the strategy that was revealed by BRI President Director Sunarso, namely that the company now has a new source of growth (new source of growth) that is sustainable after the formation of an ultra micro holding.

In terms of forming a new source of growth, the formation of the UMi Holding is a manifestation of BRI's commitment to go smaller. So because we have an upward growth strategy to follow the class of existing customers, down we look for new sources of growth or new customers, then go smaller. From there we made the concept of forming an ultra-micro holding with PNM and Pegadaian," he explained in a written statement, Saturday, February 11.

Adi continued, for more than a year the UMi holding has been formed, slowly Pegadaian and PNM have made a positive contribution to the performance of the BRI Group as a whole.

"Although the scale is small compared to BBRI, there is a value more because banks have new customer bases, expand service offerings, ultra micro ecosystems, business growth, and investment contributions from Pegadaian," Adi wrote.

Adi explained that Pegadaian has now developed in accordance with the times. State-owned companies that have a long history in the pawnshop business have expanded to other businesses, such as multipurpose credit, vehicle financing, gold, assessment and certification services, remittances, and safe deposit boxes. The pawnshop is also relatively aggressive in digital transformation significantly, marked by the launch of Digital Pegadaian in 2019. The platform has collected 7 million registered users out of a total of 21.86 million subscribers. A total of 4.7 million accounts at Pegadaian Digital are active users.

Furthermore, Adi continued that the entry of Pegadaian to BBRI provides complete services to ultra-micro customers to high net worth individuals (HNWI). With a capital of 4,085 branch offices, Pegadaian will make BRI touch the unbanked population more widely.

"In addition to synergies, in the long term we see the acquisition of BBRI and Pegadaian as mutually beneficial," added Adi., Pegadaian contributed 7.1% to the company's net profit (BBRI).

Meanwhile, another member of the UMi Holding, namely PNM, also had a positive impact on the performance of the BRI Group as a whole. Until the end of the third quarter of 2022, PNM was recorded to have more than 13 million active customers of pre-sesejahtera women through PNM Mekaar.

As is known, the Government officially transferred shares owned by Pegadaian and PT Permodalan Nasional Madani (PNM) to BRI on September 13, 2021. This is in line with the establishment of an ultra micro holding where BRI is the parent company.

Minister of State-Owned Enterprises (BUMN) Erick Thohir at that time said the establishment of the holding would strengthen access to financing for MSMEs, in line with the government's target to increase the portion of financing by 30% in 2024 to the MSME sector including the ultra micro in it.