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03 Juni 2020

BCAP - MNC Sekuritas Equity Report 03 June 2020

 

PT MNC Kapital Indonesia Tbk (BCAP IJ)

 

Financial Sector

 

Continue in Enhancing its Digital Services

 

Consolidated Revenues Grew by 2.83% YoY in FY19

BCAP posted its consolidated revenues of IDR2.74 trillion in FY19, 2.83% YoY higher than IDR2.66 trillion in FY18. The biggest contribution came from interest and dividends which amounted to IDR1,278.16 billion (+11.15% YoY), making up 46.70% of the total revenues which was driven primarily from the growth of MNC Bank’s total interest revenues. Second largest revenue contributor came from financing income and operating lease at IDR588.96 billion or equivalent to 21.52%. Furthermore, net profit stood at IDR56.48 billion in FY19.

 

Upgrading its Value: SPIN is QRIS Compatible

Since its successful launch last year, SPIN earned a 4.9 star rating followed by more than 10,000 downloads through Android's Play Store. Other than the unique aspect of SPIN catering to MNC Group's ecosystem, users are also able to transfer funds, top-up mobile data and pay electricity and water bills. For the initial stage, SPIN will serve the MNC Group ecosystem, such as the MNC Vision pay-TV subscription, MNC Play, and the MNC Now OTT platform. In March 2020, SPIN received approval from Bank Indonesia as QRIS (Quick Response Code Indonesian Standard) transaction organizer, enabling SPIN to interconnect with other providers’ standardized QR codes such as Gopay and OVO. With the national implementation of the QRIS, SPIN benefitted from already-available nationwide QRIS merchants, without putting up a big investment on its own for merchant acquisitions. Furthermore, BCAP is planning to launch additional feature for SPIN, a loyalty program called SPIN Points, in the near future.

 

Strengthen its Capital Structure

BCAP has conducted Right Issue on February 12, 2020 by issuing 854,483,000 new shares at the exercise price of IDR140 which were fully subscribed. Funds received by the Company shall be used as an additional working capital for the Company and its subsidiaries. In 2020, BCAP is also developing its peer to peer lending app and equity crowd funding platform to enter into micro financing, which can be used as the financing channeling agent for SPIN and MNC Bank.

 

Valuation and Recommendation

BCAP has committed itself to become the front runner in integrated financial services in Indonesia. It is achievable through synergies and digitalization supported by an advanced innovation center and the strong ecosystem of media platforms owned by the Group today. BCAP was traded at 1.19x trailing PBV as of December 31, 2019. Due to its affiliation with the Company, MNCS does not give any recommendation related to company prospect. Recommendation: NOT RATED.

 

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