BBRI - Will propose share buyback at the 2025 GMS

BBRI - Will propose share buyback at the 2025 GMS Bank Rakyat Indonesia (Persero) (BBRI) plans to propose a share buyback at the company's upcoming General Meeting of Shareholders (GMS). This was conveyed by BRI President Director Sunarso amid the recent correction in BBRI's stock performance. "Buyback [shares] will be proposed at the GMS," he said when met after the BRI Microfinance Outlook event in Tangerang, quoted on Friday (30/1/2025). Regarding the performance guidelines for 2024, Sunarso acknowledged the economic challenges that occurred throughout the past year. However, he is optimistic that BRI will continue to achieve positive results. "I am confident that BRI has the capacity and quality to maintain its profit levels, even though its shares are being dumped," he said. (Source : Bisnis Indonesia) Comment : We believe, the buyback program could potentially increase shareholder value. The announcement of the buyback program may improve investor sentiment towards BRI, potentially attracting new investors and supporting the stock price. The buyback program can be seen as a strong signal of confidence from the management in the bank's future prospects. Maintain BUY BBRI, GGM-TP of IDR5,960 (2.6x ‘25F P/B), currently at 1.8x ‘25F P/B, slightly above -1SD of 1.7x.