Jakarta, CNBC Indonesia – Seasoned investor Lo Kheng Hong revealed that he also invested in banking stocks and non-bank financial services. It’s just that the portion has not yet reached above 5% so that it cannot be seen by public investors.
“I have bank and non-bank shares, only 4%,” Lo told CNBC Indonesia recently. However, the shareholder investor of PT Petrosea Tbk (PTRO) and PT Gajah Tunggal Tbk (GJTL) has not disclosed the bank shares and non-bank financial services it has purchased.
“The number of my shares is only 4%, not above 5%, so it has not been seen by the public,” said this investor in PT Global Mediacom Tbk (BMTR) shares.
Based on KSEI data, Lo Kheng Hong’s non-bank financial services stock is a finance company, PT Clipan Finance Indonesia Tbk (CFIN).
Based on the announcement in the information disclosure of the Indonesia Stock Exchange, Lo bought 19,215,800 shares at a price of Rp 246 per share and Rp 270 per share. This share purchase transaction was carried out on April 6 and April 8, 2021.
Thus, Lo’s percentage of ownership in CFIN rose to 205,376,800 shares or the equivalent of 5.15%. Previously, it was reported that Lo Kheng Hong owns 204,491,000 units of CFIN shares, equivalent to 5.13% ownership.
“The purpose of the transaction is for investment with direct share ownership status,” said Director and Corporate Secretary of CFIN, Jahja Anwar, Friday (23/4/2021).
Clipan Finance is a finance company whose shares are currently controlled by PT Bank Pan Indonesia Tbk or Panin Bank with 51.48% ownership. BBH Luxembourg 8.23% and the remaining 40.29% public shareholders.
Furthermore, according to LKH, as he is familiarly called, the banking sector is very prospective.
When asked whether to choose banking stocks based on price to book value (PBV) or the ratio of price to book value, Lo said yes, but one of the considerations for choosing bank shares is because currently bank interest rates are low.
He admitted that he saw bank shares through the PBV ratio, as well as considering the issuer’s net profit, price to profit ratio or price to earnings ratio (PER), and whether the size of the bank is a BUKU bank (business group commercial bank) 4 or not. BUKU 4 banks are banks with core capital above Rp 30 trillion.
As an illustration, PBV is a valuation method that compares the book value of an issuer with the market price. The lower the PBV, usually the company will be judged to be cheaper. By rule of thumbPBV will be considered cheap if the ratio is below 1 times.
Meanwhile, PER is also a valuation method that compares earnings per share with its market price.
The lower the PER, usually the company will also be considered cheaper, For PER usually generally rule of thumb will be considered cheap when this ratio is below the 10 -fold figure.
“Besides price to book, also see the profit, price earning ratio, sizeit’s book 1 or book 4 and so on,” said the investor, who is nicknamed Indonesia’s Warren Buffett.