The shares of KLBF, MIKA, LPPF, MNCN, BHIT will be bought back, what is the analyst’s recommendation?

Reporter: Kenia Intan | Editor: Adi Wikanto

KONTAN.CO.ID – JAKARTA. The plan to buy back shares or buy back shares will be crowded on the Indonesia Stock Exchange (IDX) in the coming period. The buyback plans include shares of MIKA, KLBF, MNCN, LPPF, BHIT etc.

Then what should investors do with the plan buyback the stock? Check out analyst recommendations so that investors can get money from the plan buyback share.

The Director of IDX Assessment, I Gede Nyoman Yetna, revealed that until August 20, 2021, there were 12 issuers that had submitted information disclosure regarding their plans to buyback shares and is still in the exercise period.

Total repurchase plan or buyback the shares reached Rp 4.9 trillion. As for action buyback the shares referred to in accordance with SE OJK No. 3/SEOJK.04/2020 concerning Other Conditions as Market Conditions that Fluctuate Significantly in the Implementation of Shares Buyback Issued by Issuers or Public Companies (SE OJK 3/2020).

Citing disclosure of information, plans buyback the newest share is PT Mitra Keluarga Karyasehat Tbk. Code issuer MIKA it will roll out buyback shares in the period from August 23, 2021 to November 22, 2021. Meanwhile, MIKA plans to: buyback a maximum of 83 million shares.

Kiwoom Sekuritas Indonesia analyst Sukarno Alatas observes that so far the price movement of MIKA does not reflect the company’s performance which is still growing. Just so you know, MIKA’s shares have dropped by 14.65% year to date (ytd).

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The same thing also happened to other issuers of the health sector, namely PT Kalbe Farma Tbk (KLBF). The price movement of KLBF which was depressed by 9.46% ytd, according to Sukarno, did not describe the company’s performance which was still the best so far.

Just so you know, KLBF also announced that it would buyback a maximum of 250 million shares on August 20, 2021 until November 19, 2021. “If there is no high selling pressure, the planned target number of shares can hold the price from falling further and has the opportunity to raise the price,” explained Sukarno to Kontan, Wednesday (25/8).

In his view, the plan buyback KLBF shares will be more attractive considering the number of shares to be repurchased is greater than MIKA’s shares.

As for the two stocks, Sukarno tended to recommend hold or trading buy. Considering currently both of them have signal buy in the short term. So, there is a chance the stock price will strengthen again.

Similarly, analyst Phillip Securities Helen observes, buyback shares are generally carried out by issuers who think their share prices are still undervalue. As for buyback the stock is considered to be able to withstand further declines in stock prices. “Because there are parties who are ready to make purchases if the price drops,” explained Helen to Kontan, Wednesday (25/8).

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Therefore, the steps taken by MIKA and KLBF are considered interesting. For MIKA and KLBF shares, Helen still recommends for the long term with a target price of Rp 1,750 per share for MIKA and Rp 3,000 per share for KLBF.

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Check out the stock recommendations for other buybacks on the next page

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