KONTAN.CO.ID - JAKARTA. Some multifinance issuers that have released financial statements recorded a positive performance in 2021. This could open up opportunities for investors to re-collect multifinance sector stocks in 2022.

Noted, out of 16 multifinance companies listed on the Indonesian Stock Exchange (IDX), there are 10 companies whose share prices rose if viewed year to date (ytd) until Wednesday (23/2). The issuers, among others, PT Intan Baruprana Finance Tbk (IBFN), Danasupra Erapacific Tbk (DEFI), PT Fuji Finance Indonesia Tbk (FUJI), PT BFI Finance Tbk (BFIN), PT Adira Dinamika Multi Finance Tbk (ADMF), PT Indomobil Multi Jasa Tbk (IMJS), PT Clipan Finance Indonesia Tbk (CFIN), PT Mandala Multifinance Tbk (MFIN), PT Buana Finance Tbk (BBLD) and PT Trust Finance Indonesia Tbk (TRUS).

Head of Investment Research Infovesta Utama, Wawan Hendrayana said, the prospects for multifinance this year will be better. Because, the performance of some multifinance issuers has experienced growth compared to the previous year.

However, in the I-2022 quarter, the multifinance industry will be slightly depressed in the short term. Given that, there is an increase in the level of PPKM in some areas due to the increase in Omicron variants.

"There will be some clients who delay to buy motor vehicles, especially those that are the core for this multifinance," said Wawan.

However, this does not rule out the possibility for investors to start collecting these stocks. However, keep in mind that multifinance stocks would be better to keep in the medium or long term given that the economic recovery will not yet return to normal like pre -pandemic this year.

"In fact, there will be a correction later, this could be a good entry point. But the time frame requirement is two to three years "added Wawan.

In addition, Wawan said, the multifinance industry also benefits from conditions where commodity prices are high. As a result, the demand for such heavy equipment will also increase to multifinance companies.

In choosing which multifinance stocks are worth collecting, Wawan explained that there are several that must be considered, namely the company's profitability and growth from sales owned.

"If these two things were experienced at least in the third and fourth quarters of last year, it will definitely continue until this year," explained Wawan.

Meanwhile, one of the multifinance issuers recommended by Wawan is ADMF. The reason is, from a fundamental point of view, the performance of ADMF is quite good. Although, this subsidiary of Bank Danamon does not include shares that are liquid and do not enter LQ45.

In his opinion, Kiwoom Sekuritas Indonesia analyst Abdul Aziz also recommended ADMF shares. Not without reason, this ADMF is considered to have a stable dividend ratio and is included in the IDX High Dividend.

"Historically, the DPR is at 50% and there is a potential for a dividend yield of 7%," he said.
 

As for Abdul, he said that currently the dividend ratio is one of the things worth watching. Given that the dividend month is now approaching, stocks that have a high and stable dividend ratio are very attractive.

In contrast to multifinance stocks that have begun to be eligible for collection today, insurance issuer stocks are still not recommended for investors to keep.

Wawan argues that the majority of these insurance stocks are not liquid coupled with satisfactory performance. Indeed, he acknowledged that insurance sales during a pandemic tended to rise, but it was also accompanied by an increasing burden so that net income remained low.

"Other financial sectors are still more interesting," said Wawan.

No different, Mirae Asset Sekuritas Indonesia analyst Muhammad Nafan Aji Gusta agrees that in general these insurance issuers are not liquid. Meanwhile, the value of capitalization is not as large as in the banking sector.

Meanwhile, Nafan recommends wait and see if investors want to enter the insurance sector stocks. Moreover, the role of the insurance industry in the country is still low in the national economy.