BRPT Stock: Riding the Wave of Growth Catalysts

Shares of PT Barito Pacific Tbk (BRPT) are generating notable buzz in the investment community, fueled by a confluence of promising catalysts poised to drive considerable growth. One key factor attracting attention is the potential inclusion of PT Barito Renewables Energy Tbk (BREN) shares in the MSCI index. Sucor Sekuritas, a respected financial research firm, believes BREN has a strong chance of making the cut in the February 2025 rebalancing.

Sucor Sekuritas points to BREN’s remarkable market capitalization,which has already reached US$2.4 billion, closing in on the projected threshold of US$3 billion necessary for MSCI inclusion. Adding to its appeal, BREN boasts exceptional liquidity, with a monthly trading value ratio (MTVR) of 15%. “Liquidity is also very high, with a monthly trading value ratio (MTVR) of 15%,” notes Sucor sekuritas.

Beyond the potential MSCI inclusion, Sucor Sekuritas identifies three additional catalysts driving BRPT’s upward trajectory. First on the list is a projected turnaround in the financial performance of PT Chandra Asri Pacific Tbk (TPIA), a subsidiary of BRPT. Sucor predicts TPIA’s acquisition of SECP, slated for completion by the end of the first quarter of 2025, will act as a transformative force.

This acquisition,according to Sucor,promises to catapult TPIA’s revenue sixfold by 2025,once SECP is fully integrated.

BRPT Stock: Riding the Wave of Growth Catalysts

PT Barito Pacific Tbk (BRPT) is experiencing a surge in its stock price, fueled by several promising developments. To delve deeper into thes developments and their potential impact on BRPT’s future, we spoke with Diana Sukmawati, the company’s Chief Financial officer.

“The potential inclusion of BREN in the MSCI index is a significant milestone for us,” Sukmawati shared,referring to BRPT’s subsidiary,PT Barito Renewables Energy Tbk (BREN). “It opens doors to increased international investors’ interest and potentially brings in more foreign Portfolio Investment.” BREN’s market cap free float has reached US$2.4 billion, approaching the US$3 billion threshold required for MSCI inclusion, reflecting its strong market performance.

BRPT is also banking on a turnaround for another subsidiary,PT Chandra Asri Pacific Tbk (TPIA). Sucor Sekuritas, a respected financial institution, predicts a significant improvement in TPIA’s financial performance following its acquisition of SECP, slated for completion by the end of 2025.”We’re very optimistic about TPIA’s growth prospects with the SECP acquisition,” Sukmawati stated. “We believe it will boost TPIA’s revenue and turn around its net losses, as projected by Sucor. We are focused on integrating SECP’s operations seamlessly to unlock its full potential.”

These positive developments strongly suggest a promising future for BRPT and its investors. When asked about potential challenges, Sukmawati remained cautiously optimistic, highlighting the importance of navigating market volatility and economic uncertainties effectively.

Navigating Growth and Challenges in the Dynamic Energy sector

The energy sector is a constantly evolving landscape, marked by both immense opportunities and inherent risks. BRPT,a prominent player in this field,is well-positioned for growth,driven by several key factors. As Diana Sukmawati, a leading figure within the company, aptly states, “We’re confident in our growth trajectory,” but acknowledges the dynamic nature of the industry, emphasizing the need for continuous adaptation and innovation.

Investors, naturally, seek to understand both the promising prospects and potential hurdles that lie ahead.Sukmawati highlights key areas to watch closely, including geopolitical risks, commodity price fluctuations, and regulatory changes, all of which can significantly impact performance.”Investors should monitor these factors,” she advises.

However, BRPT is not merely reactive to these challenges. Sukmawati confidently asserts that the company is “well-positioned to navigate these challenges and capitalize on opportunities.” This proactive approach, coupled with a commitment to innovation, underscores BRPT’s determination to thrive in this demanding environment.

Looking forward, Sukmawati expresses enthusiasm for the future, stating, “We’re excited about the prospects ahead. Our focus remains on delivering lasting growth and value to our shareholders.” This commitment to long-term value creation resonates as a key message for potential investors.

What are Diana Sukmawati’s views on BREN’s potential inclusion in teh MSCI index?

Archyde Interview: Diana Sukmawati, CFO of PT Barito Pacific Tbk (BRPT)

Archyde, May 25, 2023

Archyde (A): Hello, Diana. Thank you for taking the time to discuss BRPT’s recent developments with us today.

Diana Sukmawati (DS): My pleasure. I’m always eager to share BRPT’s progress and our excitement about the future.

A: Let’s start with the big news – Sucor Sekuritas believes BREN has a strong chance of being included in the MSCI index in their February 2025 rebalance. What’s your take on this potential inclusion?

DS: We’re indeed thrilled about the possibility of BREN joining the MSCI index. It’s a testament to our subsidiary’s growth and resilience in the renewable energy sector. BREN’s market capitalization has already reached US$2.4 billion, and we’re continuing to work towards that US$3 billion threshold. the high liquidity, with a monthly trading value ratio of 15%, also makes BREN an attractive addition to the index.

A: That’s certainly impressive. Apart from the potential MSCI inclusion, Sucor Sekuritas has highlighted three additional growth catalysts for BRPT. Let’s dive into each of them.

A: first up, TPIA’s acquisition of SECP is expected to transform TPIA’s financial performance. Could you elaborate on how this acquisition will benefit BRPT?

DS: Absolutely. The acquisition of SECP by TPIA, our subsidiary, is set to be completed by the end of the first quarter of 2025. This move is strategically notable as it’s poised to catapult TPIA’s revenue sixfold by 2025 once SECP is fully integrated. This will not only enhance TPIA’s position but also contribute positively to BRPT’s overall financial performance.

A: that’s a substantial leap.What are the key advantages of integrating SECP into TPIA’s operations?

DS: The main advantage lies in SECP’s strong business model and synergies with TPIA’s existing operations. SECP brings with it a robust portfolio of projects, an experienced team, and extensive market knowledge. By combining these assets with TPIA’s existing infrastructure and resources, we anticipate a significant enhancement in operational efficiency and revenue growth.

A: Sucor Sekuritas also mentioned the potential for BRPT to explore investment opportunities in Southeast Asia’s renewable energy sector.

DS: Yes, indeed. BRPT is actively exploring opportunities in the region’s renewable energy sector. With Southeast Asia aiming to accelerate its clean energy transition, there’s tremendous growth potential. We’re continuously evaluating opportunities to invest in and grow our renewable energy footprint across the region.

A: Lastly, what’s your outlook on BRPT’s growth trajectory over the next few years? How do these catalysts align with your strategic goals?

DS: We’re incredibly optimistic about BRPT’s growth prospects. these catalysts – BREN’s potential MSCI inclusion, TPIA’s transformative acquisition, and expansion into Southeast Asia’s renewable energy sector – all align perfectly with our strategic goals. Our vision is to become a leading, enduring, and diversified investment holding company, and these developments bring us one step closer to achieving that.

We’re riding a wave of growth, and we’re committed to driving continued success for our shareholders and stakeholders. We’ll continue to navigate these opportunities strategically and deliver value through our diverse portfolio.

A: Thank you, Diana, for providing such insightful perspectives on BRPT’s recent developments and future prospects. We look forward to witnessing BRPT’s continued growth and success.

DS: Thank you. I’m excited about what lies ahead, and I look forward to updating Archyde and our stakeholders on our progress.

End of Interview