Invest Indonesia:- CIMB-NIAGA..Better Financial Result

Share Price : Rp1850 (18-2-2011) Stock Code : BNGA.JK ( Yahoo finance)

CIMB Niaga reported its FY2010 result as follows:
1. EPS qoq increase by 31.48% (expect to grow at this pace for another 1-2year)
2. FY2010 EPS of Rp106.46 (current share price trading at 17.4x PE)
3. Expect EPS for FY2011 grow by at least 20%-30%. Therefore, Target price for 2011 is Rp2035 - Rp2200.

Comments:
Recap on my call on CIMB Niaga for Post dated 18-12-2010. Accumulate for level below Rp1900-Rp1560 because CIMB Niaga being the 5th largest bank in Indonesia will be able to perform better for coming 1-2 years. Secondly, only country with huge population can provide strong growth rate and I like that kind of MOMENTUM.

TARGET PRICE = Rp2,200:-
1. If the average purchase price is Rp1700 - +29% UPSIDE
2. If the average purchase price is Rp1800- +23.5% UPSIDE

Trading opportunities in Indonesia market:
The daily volume traded in Indonesia is at least 3-4 higher than Malaysia share market. Therefore, certain active counter like CIMB Niaga may provide good short term trading opportunity for investor to make some money.

Example: share price from Jan 2011 - 18 February 2011 :
Lowest = Rp1,440 ( 20-1-2011)
Highest = Rp2050 ( 14-2-2011)


Buy 100,000 shares @ Rp1600 ( RM55,200)
Sell 100,000 shares @Rp2000 ( RM67,600)
Profit = RM12,400 ( +22% return )

Currency Rate : RM1 = Rp2930