Observer: BREN Still Has Opportunity To Enter The MSCI Index, Its Shares Are Estimated To Return To Level 6,800

Illustration. (Photo: Doc. Antara)

JAKARTA - Shares of PT Barito Renewable Energy Tbk (BREN) have the opportunity to enter a global major index such as MSCI (Morgan Stanley Capital International) because it has good share liquidity aspects, as reflected in the average volume of daily trading or average daily trading volume (ADTV) and trading frequency in several evaluation times.

Investment Consultant Reliance Sekuritas Indonesia, Reza Priyambada assessed that in terms of liquidity, BREN could enter because the stock movement experienced a fairly high increase in liquidity and volatility.

It's just that he reminded the BREN as recently listed on the Exchange trading board in October 2023 so that historically its financial performance after the IPO was only seen as of September 2023.

"This is also a consideration whether MSCI will consider entering (BREN) into its index," said Reza, Friday, January 12.

Based on financial reports, BREN's financial performance until the end of September 2023 is fairly solid, the Company recorded a net profit of 84.47 million US dollars, or grew 12 percent compared to the same period in 2022 which reached 75.15 million US dollars.

Supporting it, the company's nine-month-long revenue in 2023 was recorded at US$445.27 million. This means that revenue grew 5.2 percent compared to the same period in 2022 which was recorded at US$423.51 million.

Currently, BREN is also aggressively acquiring green energy power plants. BREN through Barito Wind Energy and ACEN HK, which is a subsidiary of ACEN Renewables International, has completed the transaction process for the acquisition of wind power plants in South Sulawesi (Sidrap 2), Sukabumi and Lombok.

"These three assets have the potential for a power plant of 320 MW," said BREN Merly, through information disclosure, last Wednesday, January 3.

Responding to the rampant acquisition of BREN, Reza said investors were waiting for added value from the acquisition action.

If this can be known, it should have a positive impact on the movement of its share price in the future. For the time being, he said, BREN is cooling down, consolidating first after experiencing a previous high increase.

"The closest target price is expected to return to the range of 6,500-6,800," concluded Reza