BREN and TPIA Have the Opportunity to Enter the MSCI Index

ISSUER NEWS – JAKARTA. Shares of PT Barito Pacific Tbk (BRPT) are expected to gain more momentum in 2024. BRPT is likely to get a boost from the potential inclusion of its subsidiary in the MSCI index membership.

For your information, MSCI stands for Morgan Stanley Capital International, which is a stock index launched by the international research institution Morgan Stanley. 

Morgan Stanley Capital International (MSCI) will perform rebalancing of the MSCI Index scheduled for February 2024.

Sucor Securities analyst Andreas Yordan Tarigan sees the potential for shares of BRPT's subsidiaries to be included in the MSCI index.

BRPT's subsidiaries, PT Chanda Asri Petrochemical Tbk (TPIA) and PT Barito Renewable Energy Tbk (BREN), are considered to have a good chance of being included in the MSCI index rebalancing.

Andreas explains that this projection is due to TPIA achieving an average free float market capitalization of 3M of US$ 1.7 billion. This is higher than the average of ANTM and INKP of US$0.9 billion and US$1.3 billion.

TPIA also has good stock liquidity with a 3M-ADTV of Rp 172.5 billion, higher than the average of ANTM and INKP of Rp 64.8 billion and Rp 61.7 billion.

Read Also: Green Business Expansion is Booming Among Indonesian Corporations

BREN is also considered to have the same opportunity to be included in the MSCI index. With a free float assumption of 11.7%, BREN has a free float market capitalization of US$5.7 billion and good stock liquidity with a 3M ADTV of Rp282.7 billion.

On the other hand, Andreas sees the fundamentals of BREN and TPIA strengthening with a series of acquisitions. BREN, with a focus on renewable energy business, will acquire another wind energy company, while TPIA, which focuses on the petrochemical and infrastructure segments, has the potential for even larger acquisitions.

Following the acquisition of Sidrap 1, a 75 MW wind energy asset, BREN has announced plans to acquire four additional wind energy companies with a potential collective capacity of 320 MW.