Sucor Sekuritas Recommends BRPT As High Alpha Stock

Illustration. (Photo: Doc. Antara)

JAKARTA - Sucor Sekuritas recommends the validity of PT Barito Pacific Tbk (BRPT) as High Alpha Stock, or shares with returns that far exceed the market average. BRPT shares can be an attractive option for investors supported by a combination of strong fundamental factors and significant momentum drivers.

Arief Putra, an analyst from Sucor Sekuritas, stated that historically, BRPT has emerged as the main beneficiary of this situation.

"This time, we believe that BRPT is likely to reappear as a stock with high-alpha potential, driven by four strong fundamental factors and two significant momentum catalysts," he said, Tuesday, September 10.

In the context of historical performance, BRPT has shown a price increase of more than 600 percent since 2000, outperforming many similar companies that recorded only a 500 percent increase during the last seven market rallies.

However, at the latest market rally, the stock price of BRPT only rose 2 percent, 12 percent behind its competitors. This shows that there is a growth space that has not been fully utilized and is an opportunity for investors to enter.

Strong fundamental factors, as Arief means, are BRPT through its subsidiary, PT Chandra Asri Pacific Tbk (TPIA), where BRPT owns 35 percent of the shares. TPIA is on the verge of two major developments, the first is the acquisition of 80 percent of Shell's shares by TPIA which is expected to increase TPIA's revenue by up to six times, encouraging favorable recovery.

Second, Chandra Daya Investasi (CDI) spin-off, a subsidiary of TPIA infrastructure owned by 80 percent, was recently carried out and is believed to open values and increase the valuation of TPIA and BRPT.

In addition, two other subsidiaries that are no less important are the 2000 MW full commercial operation of power plants, where BRPT owns 34 percent of the shares, which is estimated to generate association revenue of up to 51 million US dollars per year by 2025, as well as the collaboration of property subsidiary Griya Idol.

Griya Idol collaborates to sell 400 hectares of industrial and residential land at Patimban and Cikupa ports, with annual revenues estimated at 5 million US dollars starting in 2025.

In addition to fundamental factors, BRPT is also supported by two significant momentum catalysts. The first is the entry of one of BRPT's subsidiaries, namely PT Barito Renewables Energy Tbk (BREN) to the Global Equity FTSE Index. This is expected to increase the demand for BREN shares and encourage an increase in share prices.

Second, if this increase continues, investors can anticipate BREN entering the MSCI index which will further increase stock demand.

Another opinion comes from Andreas Jordan Tarigan, analyst at Sucor Sekuritas, declaring BRPT a holding for TPIA and BREN, with a better value proposition and diversified business risk.

BRPT telah terbukti menjadi saham dengan kinerja luar biasa di pasar bullish. Oleh karena itu, target harga kami sebesar Rp3,500 dapat dicapai mengingat pasar bullish jangka panjang, ujarnya.

With positive financial projections, strong business diversification, as well as attractive valuations, BRPT shares deserve to be considered as part of a long-term investment portfolio.