Kim Eng Bank Rakyat Indonesia (BBRI IJ): BUY - Top-class earnings with solid growth

Bank Rakyat Indonesia’s (BRI) net profit surged to Rp7.3t in 2009. The reported headline NPAT is the largest among peers and exceeded our forecasts. We raise both our loan growth and deposit growth estimate on the back of more cross-selling opportunities. These adjustments take our 2011 earnings estimate to Rp11.4t (+25.7% y/y). We raise our TP for BRI to Rp9,800, but expect a possible pull-back in the share price in the short term as BRI’s price has increased 16% in the past two months in anticipation of 2009 results. BUY on weakness.