PT MNC Kapital Indonesia Tbk (BCAP)
Financial Sector
Financial Performance 9M19: MNC Bank is still The Main Player
BCAP recorded revenue of IDR2.04 trillion in 9M19, 4.61% YoY higher than IDR1.95 trillion in 9M18. As the key driver of 9M19 performance, investment banking income and other income grew significantly by 38.61% YoY to IDR141.22 billion in 9M19, while the biggest contribution was from interest and dividends which amounted to IDR932.40 billion (+9.70% YoY), making up 45.76% of the total revenue, followed by the 10.22% YoY increase in net premium income amounting to IDR420.87 billion. Meanwhile, sharia profit sharing expenses and other expenses decreased by 62.28% YoY and 38.09% YoY respectively. Therefore, EBITDA successfully increased by 54.04% from 1H19, reaching IDR995.93 billion with EBITDA margin at 48.88% in 9M19. As the result, net profit surged by 170.17% on quarterly basis (IDR35.50 billion in 3Q19 vs IDR13.14 billion in 2Q19) amounting to IDR61.00 billion in 9M19.
Smart Payment Indonesia (SPIN): Newcomer to Synchronies Financial Services
After receiving the license from Bank Indonesia as an e-money issuer, e-wallet, digital remittance arranger and loyalty program, SPIN was launched by PT MNC Teknologi Nusantara (MTN) on 3 November 2019 which became a new fintech player in Indonesia. Since the pre launching of the application, SPIN earned a 4.9 star rating followed by around 2,000 downloads through Android's Play Store and App Store, it will be operational after grand launch. 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. On the other hand, the SPIN's QR Code technology is also will be integrated into other e-money services like OVO and Gopay which are established applications as a strategy to reduce merchant acquisition costs for MTN.
Hario Apps: Another Apps to Complete Customer Services
Hario Apps is an application developed by MNC Life (MNCL) which was launched on 10 October 2019. This application supports MNCL's growing business as it provides an innovative health and life insurance which are simple, instant and affordable. MNCL understands that currently the public favors the convenience of mobile applications, especially for millenials as they are the main target who have better knowledge of insurance these days. Through Hario Apps, MNCL offers a promotion of "buy any products and receive a bonus protection scheme worth IDR11 million".
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 9M19, BCAP has a BV of IDR130.53 per share while the stock is trading at 1.18x trailing PBV, near to 0 STD of PBV. Due to its affiliation with the Company, MNCS does not give any recommendation related to company prospect. Recommendation: NOT RATED.
