ASEAN FIRST TO MARKET

Research evidence excerpt

ASEAN FIRST TO MARKET

Asia Pacific Equity Research

ASEAN First to Market 27 July 2026

Top Stories

ASEAN (Charnon Boonnuch)

• BI left its policy rate unchanged at 5.75% but introduced targeted FX measures

• We expect BI to hike again in September to 6% and continue to see risks of additional hikes

• Singapore’s June core CPI came in at a benign 1.6%oya, pointing to still-contained inflation pressures

• We expect the MAS to stay on hold next week, but the odds of an October slope tightening are rising

Init | Bank Syariah Indonesia (Harsh Wardhan Modi) (BRIS IJ, OW, PT Rp2,250), Indonesia

Sachet Banking powered by Islamic and Gold; initiating at OW

Bank Syariah Indonesia has emerged as the pre-eminent Islamic financial services company in Indonesia. Post merger of three

state-owned Syariah banks in 2021, BSI has delivered 17/10% loan and PPoP CAGRs. This was led by bottom-of-the-pyramid

innovations as well as shifting customer behavior. BSI’s innovations remind us of consumer staples companies elsewhere in

EM broadening the FMCG pie by offering single-use sachets (link). BRI approached the segment by building deposit culture

and offering micro loans (link). These innovations led to multi-year moats. BSI management prioritized quality and innovative

banking rather than waiting for customers with a preference for Islamic products to lead adoption. The bank is now well

positioned for multi-year growth on back of these shifts. Yet, tight system liquidity and higher technology spend should limit

immediate positive revisions, with our FY26-28 EPS estimates 3-6% below Bloomberg consensus. That said, with the stock at

10.3/8.9x 2026/27E PE, these negatives appear to be adequately reflected. We initiate on the stock with an OW rating and Jun-

27 PT of Rp2,250.