Company Update

26 September 2019

BCAP 1H19 - MNC Sekuritas Equity Report

PT MNC Kapital Indonesia Tbk (BCAP)

Financial Sector


Go Digital through SPIN!


Financial Performance 1H19: MNC Bank Still The Main Player

BCAP recorded 1H19 revenue at IDR1.33 trillion in 1H19, 1.27% YoY higher than IDR1.31 trillion in 1H18. The biggest contribution was from MNC Bank’s interest revenue which amounted to IDR520.60 billion (+12.50% YoY), making up 47% of the Company's total 1H19 revenue. MNC Bank was able to manage low-cost funding worth IDR1,536.5 billion with a 18.2% ratio in relation to Third Party Deposits (DPK). This is in accordance with the increase in the Company's main revenue from interest and dividend by 6.92% YoY or IDR613.4 billion in 1H19 (vs IDR573.68 billion in 1H18). In addition, the company's EBITDA was recorded at IDR646.53 billion with EBITDA margin at 48.63%. All of these increases led to the Company's bottom-line of IDR25.50 billion in 1H19. 


MNC Teknologi Nusantara (MTN) : Innovation through Digital Technology

Following the rapid growth of digital economy market, MNC Teknologi Nusantara (MTN) opened a new financial technology (fintech) business unit under the name SPIN (Smart Payment Indonesia). Supported by a captive database of 10 million people, MTN is creating a "centralized" single ID for its customers across all business units. All data will be stored and processed by Big Data Analytics. The goal is to unite the digital capabilities of all BCAP subsidiaries and access to MNC Group's diverse range of products. Meanwhile, MTN is currently developing its fintech infrastructure and looking for merchant platforms to work with.


Smart Payment Indonesia (SPIN): New and Better Features!

Smart Payment Indonesia (SPIN) is a product of MTN which features digital payment, e-money, e-wallet, digital remittance and loyalty programs. SPIN synergizes with MNC Media to generate traffic by giving cashback to customers through ads barter with merchants. The cashback leverages MNC's FTA channels by redirecting customers to SPIN's partner landing page and utilizing all MNC’s Digital Platform as marketing channels. SPIN also becomes a payment solution as well as a gateway for all MNC Services, by providing big data insights and analytics. Available on both Android and iOS, SPIN provides financial advisory for all its user based on their spending habit. In addition, the application can be used for all domestic transactions in Indonesia by using Indonesian QR standards (QRIS) released by Bank Indonesia.


MNC Bank: Becoming Bank with 5-star services

PT Bank MNC Internasional Tbk (BABP) plans a corporate action through rights issue to increase their funds approximately IDR206.32 billion by issuing 4.13 billion new shares with a nominal value of IDR50. This action will dilute ownership of BABP with a maximum of 14.29% of initial capital for public that not exercise its right. During 1H19, Company's total liabilities remains at IDR9.34 trillion and total equity at IDR1.45 trillion. The main objective of this corporate action is to enhance productivity of the assets through lending, placement of the funds and purchase of securities while paying attention to the provision of the Minimum Capital Requirement (KPMM).


Valuation and Recommendation

Connecting MNC business units within a one-stop financial ecosystem, developments in financial technology become one of the factors driving the Company's performance in the future. At this time in 1H19, BCAP has a BV of IDR129.58 per share while the stock is trading at 2.05x trailing PBV, near to +1 STD of PBV. Due to its affiliation with the Company, MNCS does not give any recommendation related to company prospect. Recommendation: NOT RATED.



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