BBNI - Will ask for stock split approval at the EGMS

BBNI - Will ask for stock split approval at the EGMS Bank Negara Indonesia (BBNI) will split its nominal shares (stock split) with a ratio of 1:2. The bank will ask for approval from shareholders at the extraordinary general meeting of shareholders (EGMS), which will be held today. As quoted from the information disclosure, management stated that the aim of this corporate action was to increase demand for BBNI shares by expanding the investor base. The stock split will make the company's share price affordable for individual investors. As of end of June 2023, the composition of BNI shareholders is 60.0% the Government of the Republic of Indonesia, 26.1% foreign institutional investors, 9.1% domestic institutional investors, and 4.8% retail investors. (Source: Kontan). Comment: We like the corporate action plan by BBNI and expect the stock split will be approved on its EGMS. Post stock split, despite it only creates psychological effect, BBNI stocks will become more affordable and we expect to get more attractive especially for retail investor base. Considerably cheaper compared to its peers at 1.1x ‘23F P/B, we think at think juncture BBNI stock looks very attractive. Maintain our BUY stance for BBNI with TP IDR11,160 (1.4x ‘23F P/B).