BCAP IJ - MNC Sekuritas Equity Report 26 January 2021

PT MNC Kapital Indonesia Tbk (BCAP IJ)

Financial Sector

Future Game-Changer

Accelerating International Expansion: acquired 75% stake of AGCO

• BCAP IJ has acquired a controlling stake of Auerbach Grayson & Company LLC (AGCO), a New York based brokerage firm previously owned by Egypt's Beltone Financial Holding, specializing in global trade execution and exclusive in-depth research for U.S. institutional investors.
• By acquiring a 75% stake of AGCO, BCAP will benefit from AGCO's strong international network and access to its 126 local partners around the world.
• AGCO is expected to be a distribution network of MNC Group for placement and fundraising in the U.S. as well as Europe.
• The acquisition aims to complement MNC Sekuritas’ distribution network for its services in the equity capital market (placement and stockbroking), debt capital market, investment banking, research and online trading, for reaching global investment communities, particularly in the USA, UK and Europe regions as well as expanding MNC Sekuritas’ research distribution network among international fund managers. MNC Sekuritas will also cover all AGCO’s transactions in Indonesia. 

The Rise of "Influencer"Mology

• "Influencer"Mology began with the new investor wave. Based on KSEI data, the number of securities sub-accounts at C-BEST has increased from 1.37 million in 12M19 to 2.18 million in 12M20.
• Coincidentally, the rise of retail investors has been accompanied by the growing prominence of so-called “stock influencers” which carried weight in the decision-making of retail investors.

Flash Mobile: All-Round Payment Gateway

• Flash Mobile, a new payment system service provided by BCAP, has obtained a license from Bank Indonesia through PT MNC Teknologi Nusantara. Flash Mobile is an all-round payment gateway and biller aggregator with Fraud Detection System and invoicing services features.
• Flash Mobile can serve all transactions within MNC Group Ecosystem such as MNC Vision, MNC Play, Vision+ and Hario bills, to shopping at The F Thing, Mister Aladin, MNC Shop and a collaboration for payments with external partners will be carried out later.

9M20 Performance: Interest and Dividends still became the largest contributor

• BCAP posted revenue of IDR1.77 trillion -13.25% YoY in 9M20.
• The largest contribution came from interest and dividends of IDR906 billion (-2.8% YoY), followed by net premium income of IDR364 billion (-13.5% YoY).
• Operating cost decrease by -10.9% YoY or by IDR1.76 trillion in 9M20.
• Operating Profit Margin was recorded at 34.46%, and Net Profit Margin decrease to 0.95%.
• BCAP managed to record a net profit of IDR16.8 billion in 9M20

Valuation and Recommendation

PT MNC Sekuritas is affiliated with PT MNC Kapital Indonesia Tbk, therefore MNC Sekuritas Institutional

Research Team does not recommend anything related to the prospect of the Company - NOT RATED

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