Bank Negara Indonesia (BBNI) – Maintain BUY
Price: Rp3,775 – Target Price: Rp4,000
Impact from Right issue
- Facing Rights issue and we see no reason from Parliament to not approve the rights issue.
- BBNI will release 3.376 billion (ratio 9:2) with 18% maximum dilution.
- Management seeks Rp10 trillion from the rights issue, which is reasonable and a discount of 21.5% from yesterday’s closing price.
- Divestment of BNI securities will not have a significant impact.
- Maintain Hold, TP of Rp4,000 reflects PBV’10-11E 2.3-2.2x.