9 Cheapest and Most Promising Blue Chip Stocks in Indonesia
Rancakmedia.com – When investing, investors should check out the latest blue chip stocks for cheap before putting money in. For now, we've concluded that stocks are the best place to put your money.
Now is a good time to buy stocks, by buying stocks you can increase your money and grow your investment by acquiring stocks and assets.
What Are Blue Chip Stocks
Blue chip stocks refer to the stocks of large, well-established and well-known companies that have a strong reputation in the stock market. The term "blue chip" comes from the game of poker, where the blue chip is considered to have the highest value.
Blue chip stocks are usually issued by companies that have been operating for many years, with stable and diversified businesses across a wide range of industry sectors. For example, several well-known blue chip stocks in Indonesia include BCA, Telkom and Unilever.
Investors tend to be attracted to blue chip stocks because of the potential return on investment that is stable and relatively safe.
Because companies that issue blue chip stocks have proven stability and have a good reputation, investors tend to have more confidence in the long-term prospects of these stocks.
However, even though blue chip stocks are considered stable and safe stocks, it does not mean that investing in blue chip stocks does not carry any risk at all.
As is the case with other stock investments, blue chip stock prices can go up and down according to market conditions, so investors still have to do research before making investment decisions.
In general, blue chip stocks are considered a good choice for investors looking for long-term investments with the potential for stable returns and relatively low risk.
However, the decision to invest in blue chip stocks must be based on thorough research and analysis of the company that issued the shares.
List of Cheapest Blue Chip Stocks
A large number of shares are traded in Indonesia, and may be traded on the Indonesia Stock Exchange (IDX) for investors to view and review. In a short period of time, there have been constant updates on blue chip stocks.
And here are Indonesia's blue chip stocks for 2021, based on their most positive reputation and exemplary performance:
1. Bank Central Asia (BCA) – BBCA
BCA, Indonesia's largest private bank, with a client base of over one million. The reason why BCA is often considered one of the best private banks in Indonesia is because of its large customer base.
Today, Bank BCA is an important component of the Salim Group, which includes the group's many holdings and controlled companies. It was first established under the name Bank Central Asia NV on February 21, 1957.
One of the largest tobacco companies in Indonesia has the largest private bank in Indonesia. In this banking class, the rate of return on assets (ROA) of this company's assets is higher than that of other banks. This is partly due to the fact that it is better managed than other banks.
In addition to the worst credit rating, it is also widely reported as the best in the field. With a total volume of BCA shares of 11.378 million, and the latest share price at IDR 30,225, it seems that these shares are traded on the IDX or the Indonesia Stock Exchange (IDX).
Bank BCA distributes Rp. 8.3 trillion in cash dividends for 2018 on April 30 2019. So far, BCA in 2020 has distributed dividends of IDR 455 per share for the 2019 financial year.
IDX or BEI, on the other hand, has announced a dividend of IDR 100 for each share in December 2019. Thus, each share of Bank BCA distributes a dividend of IDR 555.
Given BCA's excellent fundamentals, its shares are worth buying and are widely chosen by investors.
2. Bank Rakyat Indonesia (BRI) – BBRI
BRI-Bumiputera, a joint venture between Bank Rakyat Indonesia (BRI) and BBRC Malaysia, said it will lend $5 billion to grow SMEs (small and medium enterprises) over the next five years.
Many investors are curious to invest in the shares of the second bank they are interested in, Bank Rakyat Indonesia or BRI.
Bank BRI, a company engaged in the banking sector, conducted an initial public offering (IPO) after listing on the capital market on November 10, 2003. The Government of the Republic of Indonesia controls the majority of shares in Bank BRI, and this control is often more than 50 percent.
BRI shares, which are named BBRI, have been on the rise on the stock exchange, so they are in great demand by investors who want to improve their performance. March 31, 2020 market valuation for this share is IDR 372.35 trillion.
In fact, outstanding shares are above 123 billion. BRI's share price managed to increase in 2019 and resulted in a net share of IDR 34.42 trillion.
An excellent form of dedication when BRI continues to offer credit loans to MSMEs, which affects the performance of BRI's shares.
To generate public interest, Bank BRI will conduct a stock split. A stock split is done to create interest in the stock so that more people will buy it.
BRI's share price is around IDR 15 thousand per share and management decided to conduct a 1-5 stock split in October 2017.
3. Unilever Indonesia – UNVR
In Indonesia, a place that specializes in all kinds of products for personal and household use, Unilever, a company specializing in the production of food, beverage, household and personal hygiene products, became one of the largest public companies on 11 January. 1982.
Due to its good profitability, Unilever has generated positive returns on equity of more than 100 percent in the last five years, and 14 percent in the past year.
Unilever has profits growing every year and exceeding IDR 9 trillion in 2018, the same year Anglo-Dutch profits saw its shares jump 20% after years of stagnation.
The profit shown in this ROE shows that Unilever Indonesia can generate consistent returns for shareholders through its equity. UNVR provides more than IDR one profit for every IDR 1 shareholder with ROE exceeding 100.
UNVR is short of bank loans because of the size of Unilever's revenue, which is far greater than the company's assets. This indicator shows how well the company operates in terms of efficiency. From January 2018 to January 2019, UNVR's share price rose from 54,400 per share to Rp. 16,820.
According to statistics, this movement was extremely fast. UNVR distributed dividends of IDR 430 per share in 2019, worth 3.28 trillion. That's why Unilever stock is a long-term investment: Because stocks are backed by strong fundamentals.
4. Telkom Indonesia – TLKM
Telkom Indonesia is one of the country's telecommunications companies. The business became a public entity on November 14, 1995, with the Indonesian government controlling a 50 percent shareholding, giving it a majority stake.
One of the leading stocks in Indonesia is Telkom, as it has maintained a consistent level of net profit over the last few years. Telkom's share price seems to remain stable despite claims that the economy is not doing well.
Telkom is without a doubt the strongest company in the telecommunications industry, with Telkom shares (stock symbol TLKM) seeing interest from investors as a result. Since TLKM values are stable over time, TLKM values will be maintained over a long period of time.
TLKM's shares now have a value of around Rp. 313 trillion with 99 million shares issued as of March 31, 2020. There are positive results from Telkom's side, namely the company's ROE continues to increase and is now at the level of 22.03 percent.
So that Telkom annually distributes dividends to its shareholders. The business has so far spent 16.2 trillion rupiah in dividends this year (which represents 90% of profits).
In short, Telkom continues to pay dividends because of its consistently excellent performance. However, when the company's performance decreases, the ability to pay dividends is eliminated. Profits are kept to support business operations.
5. PT Indofood CBP – ICBP
PT Indofood paid dividends of IDR 171 per share (approximately $125 million) to shareholders in 2019, which amounts to just over $1.5 trillion.
This ICBP (US SEC: “this” is singular) has an ROE of 21% and an ROA of 13.7% over the specialty food sector shares on the IDX (or IDX).
PT Indofood CBP Sukses Makmur Tbk, an instant noodle manufacturer, is well known especially in the local Indonesian community. Its stock code is ICBP. ICBP has seen generally steady revenue growth in recent years.
6. Bank Mandiri Persero – BMRI
one of the largest commercial banks in Indonesia, As a government initiative, Bank Mandiri was formed on October 2, 1998 in order to revive the Indonesian economy.
The banking company Bank Mandiri, or BMRI, generally has a moderate performance in the market. After experiencing a share price increase of 9.9 percent in 2019, up from the previous year, this performance looks stable. So that BMRI can reap a net profit of IDR 27.5 trillion.
BMRI is considered stable because it balances credit with net profit growth. Even if the shares of Bank Mandiri or BMRI fall by 6.57% (possible increase in market share), the shares will remain stable in the long run. However, it was later up 0.24% or 12.68 points to trade at $5,149.49.
7. PT PGAS (State Gas Company)
Just as Telkom Indonesia is included in the blue chip stock, there are BUMN businesses including PT Perusahaan Gas Negara or PGAS. The company participates in distributing natural gas to serve residential and domestic transportation needs.
Investing in top stocks is qualifying and straightforward, thanks to PGAS' wealth of information and resources. Of the PGAS shares, 56.96 percent is held by the Indonesian government, which represents a value per share equivalent to IDR 13.8 billion through PT Pertamina.
When PGAS shares fell to Rp 605 per share, this became a big opportunity for the company's investors, especially those interested in increasing their shares. PGAS shares will rise from depression and towards prosperity in the future.
The profit margin for PGAS, as shown by the revenue chart and net profit figures, increased to $2.58 billion in 2012, and to even higher levels in the following years.
Despite having an annual loss of $2.9 billion in 2016, the stock has been growing and increasing in value again. PGAS' revenue is equivalent to around IDR 54.4 trillion (US$ 3.4 billion), at an exchange rate of IDR 14,148 to $1.
8. PT Astra International – ASII
Astra International ASII, with its six divisions covering the automotive, heavy equipment, information technology, infrastructure and logistics industries, has been a mainstay of the market for a long time.
And assisted by its subsidiaries, which are engaged in vehicle and machinery manufacturing, leasing, and other industries. These companies are among others responsible for the service finance, information technology, and infrastructure.
Although a large number of businesses are classified through this stock, it has blue-chip status and has emerged as a major corporation in Indonesia. ASII's share price has experienced a downward trend over the past five years, with the share price below two standard deviations each year.
And in 2019, ASII posted a net profit from bookkeeping of IDR 21.7 trillion, an increase of 6% from the previous year. It is profitable to buy shares of blue chip companies when prices are low.
9. PT Bank Negara Indonesia – BBNI
BNI with the stock code BBNI is a bank that is part of the BUMN sector and was founded in 1946. This company has one of the largest share capital bases and is one of the most secretive stock companies.
The company serves corporate, consumer and retail clients in the insurance, finance and securities industries. Foreign investors will often trade IDX BNI shares in 2020, so BNI shares are IDX which can be found in almost all stocks.
Acquisition of shares in BBNI reached IDR 8.25 million; This number includes the top active share holders who bought around Rp 1.8 million shares.
It builds on information collected by IDX and IDX. Following the news release on 11 June 2020, the IDX weakened, which impacted many blue chip companies, causing a sizeable price correction among some equities from their usual levels.
On July 11, 2020, BBNI's share price rose to IDR 4,520 per share. Because the move had such a pronounced effect, it was an attractive opportunity to invest, as the stock price fell.
On the contrary, but based on the company's long-term potential, it is estimated that BBNI's share value will increase.
Conclusion
Blue chip stocks refer to the stocks of large, well-established and well-known companies that have a strong reputation in the stock market. The term "blue chip" comes from the game of poker, where the blue chip is considered to have the highest value.
Thus the information about the cheapest and most promising blue chip stocks in Indonesia, I hope the above article can be useful and helpful for all of you.