PT Panin Sekuritas Tbk, together with its subsidiaries, provides securities brokerage, underwriting, and investment management services in Indonesia. The company was formerly known as PT. Nusamas Panin and changed its name to PT Panin Sekuritas Tbk in June 1995. PT Panin Sekuritas Tbk was founded in 1989 and is headquartered in Jakarta Selatan, Indonesia.

Indonesia

PT Panin Sekuritas Tbk

Financial Services

The company has a track record of regular dividend payments. It has paid dividends in each of the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has been outstanding and can be rated excellent compared to its peers. At the same time, the average five-year yield has been significantly higher and exceeded nearly all its peers. On average, the company pays dividends annually. 

PANS.JK reported revenue of IDR 296 826mn in the last 12 months, down 7% from FY23. The dynamics of cash flow, as measure by free cash flow (FCF), were rather similar. EPS fell 13% from FY23 to IDR 159.09.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Within the past six months, its performance has trailed this peer group's by 8ppts and its growth accelerated by 3ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported very strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 57.5% in the last 12 months, a decline from 58.1% in FY23. 

Historically, PANS.JK has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 38.1%, down from 41.1% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 5.3% in the last 12 months, a decrease from 6.0% in FY23. 

PT Panin Sekuritas Tbk reported a return on equity (RoE) of 7.5% in the last 12 months, down from 8.4% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 7.1%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.2 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

PANS.JK has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is relatively stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note robust profitability, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, and excessive margin volatility.

In highly turbulent market conditions, PANS.JK is highly volatile. In other words, the stock will fall substantially more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be significant. 

In normal market circumstances, PANS.JK is volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move much wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from low to minimal. 

Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITDA, underpriced on P/FCF. 

PT Panin Sekuritas Tbk

IDR 1520

5

PT Panin Sekuritas Tbk

IDR 1520

5

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

IDR 1520

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