Undervalued

Indonesian Listed
Digital Bank
PT Bank Amar Indonesia Tbk. (“AMAR”)
 Disclaimer
This is not an investment advice. You
must not buy, hold, or sell any
securities based on this material. If
you want to buy, hold, or sell any
securities please consult with your
professional investment advisor.

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 30%
Company Disbursement
• Working Capital Credit

Overview 70% Public

•
•
Investment Credit
Micro-Lending
• Unsecured Lending

Incorporated
1991
AMAR is a public company focusing Industry
on banking services through digital Digital Banking

means. Tolaram Group,
multinational company based in
Singapore with businesses ranging
from consumer goods, fintech, to
infrastructure and industrials is the
majority shareholder of AMAR.
Consumers
a 400.000 debitors with Funding
• Aster Savings
IDR 1.72 trillion managed
• Employee Saving
Business
• Collecting funds from public
• FTTH Drop Wire
• Term Deposit
through current account and
• On Call Deposit
deposits
• Amar Cemerlang Savings
• Micro Lending through
• Amar Term Savings
Tunaikku
• Investment
• Amar Current Account
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Tunaiku
Tunaiku is the first financial technology or FinTech in
Indonesia that is engaged in providing online loans without
collateral.

5.000.000+ downloads
Installments In Tunaiku Can Be Paid Monthly
In contrast to other fintech sites, Tunaiku provides online collateral-free
credit that does not burden customers due to the large Tunaiku limit
ranging from 2 million to 20 million and a long tenor from 6-20 months.

Interest and Low Installment

The interest rate at Tunaiku is competitive, namely 2% - 5% per month

Online Submission is Easy and Practical

Users only need an ID card and a computer/mobile phone to apply for an
online KTA at Tunaiku by filling out the application form in only 10
minutes.

Fast Liquid Process

After applying for a 24-hour online cash loan, users just have to wait 1 - 7
working days (according to our operational standards) for the approval
process, sign the contract via the official Tunaiku courier until the cash is
liquidated into the bank account. 04
Senyumku
Senyumku is a banking application to help users
carry out financial activities such as saving,
transacting, or managing finances more safely,
smartly, and simply.

50.000+ downloads
Celengan Senyumku
Users can create a Wishlist that they want to achieve according
to their needs and then simulate the allocation of money that
must be set aside every month to achieve that target.

Auto Categorization
Allows users to categorize every transaction that is done
automatically.

Spending Alert
This feature provides a warning if the expenditure is almost
close to the budget.

Spending Meter, Monthly Spending, and Daily Digest

It is possible to compare the current financial situation with the
target budget and the average in the previous month, which will
automatically analyze expenses and provide recommendations
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regarding financial management.
 Digital Bank
Indonesian Listed Digital
Banks (with running
apps/platforms)

More than 50% of fintech companies in Indonesia

offer lending services. Fintech is start-up companies
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that provide financial services through technology.
Macroeconomics Lack of access to credit for
MSMEs and individuals in
Indonesia might boost the
With more than 70% of individuals and growth for fintech industry

MSMEs have no access to credit

combined with high growth of internet and
smartphones users in Indonesian, it is
expected that digital banking industries
will have a significantly high growth in the
future. INDONESIA
Growth of Internet User and
MSMEs: 64.2 million units Smartphone User in Indonesia
(99.99%) enables fintech companies to
Fintech Loans: IDR 272.43 reach out more consumers.
trillion
Internet User: 190.92 million
GDP Growth (Q2 2021): 7.07% 07
y.o.y.
Industry
Overview
With the rise of fintech lending and firms offering micro-
unsecured loans to MSMEs and individual, there is immense
and multiplying growth in total lending disbursement of the
fintech company. For instance, the total loan disbursement in
October 2021 (IDR 272 T) has multiplied by more than 90
times in a span of 3 years compared to total loan
disbursement in January 2018 (IDR 3 T).
Even though, NPL rate steadily rising in the midst of
pandemic COVID-19 to all time high of 8.27%, in 2021, the
NPL rate can be controlled to below 2 percent. It is a positive
sign for fintech industry where the NPL rate is in the safe
zone (below 3 percent).
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Revenue & Profit Growth
AMAR Revenue from Loans (2020) Almost all revenue of Bank Amar is
generated from loans interests. Bank
Amar able to generate 38.07% of
IDR 1.7 trillion annual interest in average from the
Total Loans in 2020 total loan of IDR1.7 trillion.

38.07% This means Bank AMAR is able to

Annual Interest exercise its debt collection function
effectively to generate significant
IDR 652 billion revenue from its loans disbursement
Interest Revenue in 2020

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Comparison
with other Digital Banks (per September 2021)

Comparing the listed digital banks on IDX with PBV

comparables we can see that AMAR PBV is significantly
lower compared to BBYB (bank Neo), BBHI (Bank Allo),
ARTO (Bank Jago). Not only that, AMAR’s net interest
revenue ranked the second highest of all. This is the
reason why Amar could potentially match out ARTO,
BBHI, and BBYB Valuation

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Comparison
PBV with other Digital Banks (per September 2021)

Highest Other Digital Bank PBV: 91,21x

Other Digital Bank average PBV: 47.57x

Indicative AMAR Fair PBV : 14-40x

Lowest other Digital Bank PBV:19,81x

AMAR has significantly lower PBV compared to other listed digital bank in Indonesia, AMAR’s fair PBV should be around 14-40x
discounted from other digital bank average PBV and lowest other digital bank PBV.

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Revenue & Profit Growth

AMAR Revenue and Profit

Growth Prediction (2017-
2026) (in billion IDR)

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Source: Research Estimate
Valuation using Free Cash Flow to Equity

With the CAGR of 50%, AMAR’s share is

currently at IDR480-520 per share. We
forecast that with Free Cash Flow to Equity
method of valuation the intrinsic value of
AMAR’s share is IDR3,960.
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Valuation using Residual Income

With the CAGR of 50%, AMAR’s share is

currently at IDR480-520 per share. We
forecast that with Residual Income method
of valuation the intrinsic value of AMAR’s
share is IDR3,807.
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Blue/Grey Sky Scenario

Blue Sky Scenario: IDR9,004

IDR9,004: Blue
Sky

Our Blue Sky Scenario involves the assumption that

AMAR successfully achieve CAGR of 75% in
revenue and profit streams in the next five years.

IDR3,883:
Fair Price Grey Sky Scenario: IDR531

Our Grey Sky Scenario involves the assumption of

AMAR’s failure in becoming top 3 digital bank in
Share Price
IDR531: Indonesia resulting in PBV of only 4x.
IDR464: Grey Sky
Current Price 15
Football Field Analysis

Price to Book Value

(15x-40x)

Free Cash Flow To Equity

(Growth: 50%-75%)

Residual Income
(Growth: 50%-75%)

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Thank You