Jakarta, CNBC Indonesia – Shares of PT Bank Jago Tbk. (ARTO) has re-entered a weakening or bearish trend for almost this week. The decline caused Bank Jago’s stock price to fall to Rp 8,150 from the previous price level of Rp 19,000/share.
In trading this week, ARTO shares have closed for three days in a row touching the lower auto rejection limit (ARB) and today again hit the ARB. Then, on a monthly basis, only three times the shares of this digital bank issuer were closed in the green zone.
In trading this morning, Friday (13/5/2022), ARTO’s shares were traded at Rp 8,150/unit, down 6.86%. In a week, ARTO’s share price fell 30.04%.
Judging from the highest closing price in the last six months, ARTO shares have lost more than half of their market capitalization.
One of the reasons for this weakening was the company’s financial performance, which although improved from the previous year’s stock period, was still far below analysts’ expectations.
In the first quarter of 2022, Bank Jago reported a net profit of Rp 19 billion, reversing the condition of the previous year, when the company still recorded a loss of Rp 38 billion.
Even though it looks brilliant, the profit actually dropped significantly (-84%) from the previous quarter at the end of last year. Ciptadana Sekuritas Asia’s research report also stated that the first quarter’s profit was also lower than Ciptadana’s internal forecast and overall market consensus.
As a technology-based bank embedded in the ecosystem, Bank Jago has disbursed credit and sharia financing of Rp 6.14 trillion in the first quarter of 2022, an increase of 376% on an annual basis or an increase of 14% from the last quarter of 2021. This growth is mainly supported by partnerships & ecosystem lending and financing.
The slow profit growth was offset by the net profit margin (NIM) which increased to 11.2% in the first quarter of this year from 10.2% in the previous quarter and was able to exceed market expectations. The increasing NIM is also driven by the high interest loans offered by the company whose value continues to grow.
Ciptadana in its report revealed that in the future it “sees” [ARTO] unaffected by rising interest rates. “
Ciptadana also revealed that it had lowered its profit projection for this year to Rp 224 billion or 61% lower than the previous estimate. Meanwhile, for the long term, the projected profit is also cut by 5%. This is in large part because Ciptadana assumes higher operating costs while maintaining its forecast for asset expansion.
Despite the suboptimal conditions that may occur, Ciptadana maintains a buy recommendation on ARTO shares with a target price of Rp 19,800, a cut from the previous Rp 22,500/share.
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