KONTAN.CO.ID - JAKARTA. The performance of multifinance issuer shares varies. Throughout the year, several multifinance issuer shares have moved up, but some have weakened.

For example, at the close of trading on Wednesday (4/6), shares of PT Adira Dinamika Multi Finance Tbk moved stagnantly at Rp8,875 per share. However, year to date (ytd) ADMF shares fell 9.90%.

Then, shares of PT BFI Finance Indonesia Tbk (BFIN) rose 0.57% to Rp885 per share, but year to date fell 6.35%. Then, shares of PT Clipan Finance Indonesia Tbk (CFIN) fell 0.51% to Rp394 per share, while year to date they have soared 27.92%.

Meanwhile, the share price of PT Mandala Multifinance Tbk (MFIN) fell 0.31% to Rp3,200 per share and year to date also fell 24%.

The share price of PT Wahana Ottomitra Multiartha Tbk (WOMF) rose 0.57% to IDR 350 per share on Wednesday (4/6). However, year to date it has corrected by 1.69%.

Lastly, PT Buana Finance Tbk (BBLD) shares fell 1.44% to IDR 685 per share, but year to date they have increased by 5.38%.

Kiwoom Sekuritas Indonesia analyst, Miftahul Khaer analyzed that the fundamental performance of multifinance issuers in the first quarter of 2025 was still quite varied. He highlighted that several issuers recorded performance growth, while others experienced pressure.

"For example, the BFIN issuer showed quite positive performance, driven by cost efficiency and growth in used vehicle financing," Khaer told Kontan, Wednesday (4/6).

Meanwhile, several issuers such as ADMF and BBLD are considered to still be facing slowing growth, mainly due to margin pressure and the still high cost of funds.

"In general, operational costs and credit risks are still the main challenges," he said.

Khaer views the multifinance sector as a whole will still move stably throughout this year, although it has not fully recovered.

He said several external challenges are still looming over the industry, such as the high ratio of non-performing loans (NPF) and weak purchasing power.

"For this year, we think the multifinance sector is still stable, but has not fully recovered due to purchasing power pressures and the industry's still high NPF," he continued.

Even so, the segment targeting MSMEs and productive financing is said to remain a promising area, especially if interest rates continue their improving trend in the second half of this year.

Stock Recommendations
From a technical perspective, Khaer assesses that BFI Finance Indonesia (BFIN) shares have the potential for further increase, in line with relatively strong fundamental conditions. Khaer recommends paying close attention to BFIN shares with a target price of IDR 920 per share.

In agreement, Infovesta Utama Analyst, Ekky Topan said, the performance of this sector still tends to be limited and less liquid compared to issuers in the banking sector. He explained that there are a number of factors that are suppressing the performance of the industry.

"Slowing car sales, high benchmark interest rates, weak public purchasing power, and increasing competition from fintech companies and digital banks that are starting to enter the consumer financing segment," Ekky told Kontan, Wednesday (4/6).

Even so, Ekky assessed that BFIN is still one of the multifinance issuers that is quite attractive amidst industry pressure. According to him, BFIN's strength lies in its indirect financing strategy which dominates around 70% of the total portfolio.

"This strategy allows BFIN to be more flexible in credit risk management and maintaining operational efficiency," he explained.

Furthermore, Ekky highlighted BFIN's efficiency and profitability which are considered superior in the industry. This is reflected in the Return on Equity (ROE) which has been in the range of 20% in the last five years.

However, he reminded that the challenges in this sector are still big, especially related to consumer purchasing power that has not recovered and pressure on asset quality. For the 2025 outlook, the challenges are also said to be quite big.

In addition, the car sales projection is expected to remain weak as people's purchasing power has not recovered, while pressure on asset quality remains, reflected in the potential for an increase in Non-Performing Loans (NPL) which is still ongoing.

From a technical and valuation perspective, Ekky gave a buy recommendation for BFIN shares with a long-term target of IDR 1,100 per share, in line with the company's solid financial position.

"However, investors need to pay attention to macro dynamics and the automotive sector which will still be the main challenge for the multifinance sector as a whole," he concluded.