Banking Sector
Analyst: Yap Swie Cu

Margin pressure emerges in July
• Earnings have started to be affected by margin compression
• BBTN faced the most significant margin pressure
• BRIS also experienced some margin compression in July
• BMRI and BBNI experienced relatively less pressure on NII
• BBCA – our top pick - bucked the trend with stronger NII growth in July

Bank Syariah Indonesia (BRIS IJ)
BUY / TP: IDR:2,840 (+57.3%)
Analyst: Yap Swie Cu

Reports in-line 1H26 results
• Resilient core earnings thanks to strong fee income
• Lower provisioning boosted bottom-line profit
• Guidance and earnings estimates maintained – Re-iterate BUY on solid fundamentals and attractive growth prospects

Indofood CBP Sukses Makmur (ICBP IJ)
BUY / TP: IDR:9,700 (+27.2%)
Analyst: Erdji Herlando

Resilient domestically, strong overseas
• Strong position in domestic market
• Build position in overseas markets
• Continuing supply chain efficiency
• We re-initiate coverage with re-iterated BUY recommendation and a target price (TP) of IDR9,700 (US$0.55), which offers an upside of +27.2%

Sarana Menara (TOWR IJ)
BUY / TP: IDR:610 (+44.5%)
Analyst: Chandra Pasaribu

Delivers little change in 1H26
• In-line with expectations
• Operation matrix still affected by MNO consolidation
• Surplus cash for capex, debt repayment and dividend
• Re-iterate BUY call with TP of IDR610

Bank CIMB Niaga (BNGA IJ)
Not rated
Analyst: Yap Swie Cu

Upholds prudent approach
• Resilient core earnings despite NII pressure
• Higher provisions weighed on bottom line
• Conservative stance amid challenging environment
• Undemanding valuation with resilient fundamentals

XL Smart (EXCL IJ)
BUY / TP: IDR:3,400 (+32.8%)
Analyst: Chandra Pasaribu

Enters optimization stage
• Result was largely in line
• Stable operation matrix amid integration
• Upping guidance in capex and EBITDA margin
• Re-iterate BUY