JPM Bank Central Asia

Valuation update from Aditya Srinath after BCA posted 14% rally in two days. The stock trades on 19.2x and 15.9x P/E for FY10-11, with 4.5x PBV multiple for FY10. He is not expecting major surprises from the company: (1) acquisition plans into 2 wheeler finance business have been well flagged. (2) he thinks BCA will pay out 45-50% of profits, and believe sthat capital conservation needs may preclude a large one off payout. (3) His FY09 EPS estimate is already 7% higher than consensus, expecting 4Q profits of Rp 1.74 trn.