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BYAN Resources: End-of-Year Market Cap Gainer



Reflecting market’s positive sentiment on coal mining industry, BYAN (PT Bayan Resources Tbk) share price surged 10,77% on Monday (12/26), followed by it’s in-group contenders namely GTBO that went up 9,32%, AIMS which rose by 2,86%, and BOSS by 2,745%. This headway strengthen BYAN’s position as the cantilever of IHSG along with other stocks. With the unstoppable stock hike, the company's market capitalization had skyrocketed to Rp 780 billion as of Tuesday (27/12) surpassing PT Bank Rakyat Indonesia Tbk (BBRI) as the second largest stock based on market capitalization before falling back to third place due to BYAN's share price declining for two consecutive days. Currently, BYAN has a market capitalization of Rp691 trillion. However, two ranks above it, namely PT Bank Central Asia Tbk (BBCA) has market cap value of Rp1,047 trillion and BBRI Rp738,09 trillion as of Friday (30/12). Since the beginning of the year, BYAN stock price has grown by 766,67% year-to-date. Despite the weakening of IHSG, BYAN is seen to be quite fierce with only 8 declines throughout December 2022. In the last week alone, BYAN has toughened by 43,56%. This recent upward trend is fueled by Low Tuck Kwong’s initiative as the largest shareholder in the company, adding his ownership in PT Bayan Resources Tbk (BYAN). He purchased 387.900 shares with an average of Rp16.183 per share totaling at around Rp6 billion.


Quoting the disclosure of information on the Indonesia Stock Exchange (IDX), the purchase of shares by Low Tuck Kwong was carried out during the period from 19 to 23 December 2022. The purchase of BYAN shares is an investment with direct ownership of the company and in which he spent Rp6 billion to execute this action. After the investment, Low Tuck Kwong owns 20,31 billion shares of BYAN or around 61% of the company. Senior Investment Information of Mirae Asset securities Indonesia, Muhammad Nafan Aji Gusta assessed that one of the reasons for BYAN shares getting stronger was due to market participants appreciating the corporate actions carried out by BYAN such as the 1:10 stock split. The strengthening of BYAN shares is also inseparable from sectoral sentiment due to the increase in coal commodity prices. As winter approaches, countries in the north, especially in Europe, urgently need energy supplies for warmth, thus driving up the price of this so-called black gold. Meanwhile, the increase in global coal prices and the outlook for the coal industry are still positive in both short and medium term. Apart from that, investor enthusiasm was also triggered by the action of massive shares accumulation by BYAN’s largest shareholder, Low Tuck Kwong, who has been actively buying BYAN shares since last year. By the end of the third quarter of 2022, BYAN posted a revenue of US$3,34 billion, up 91,42% from the same period of previous year which amounted to US$1,74 billion. Meanwhile, the company's net profit escalated to US$1,62 billion from the previous US$650,32 million.


This year, BYAN is deemed to be one of the most phenomenal stocks due to the success of the appreciation of share price to a new higher level. The market capitalization had reached the second-highest, cementing a position for the new wealthiest person in Indonesia, and distributing the largest interim dividend in 2022. Apart from being successful in making new history in terms of market capitalization, on behalf of BYAN shares, the order of the wealthiest people in Indonesia has changed with the overthrowing of the Hartono brothers from the number one spot. According to the latest data by Forbes Real-Time Billionaire List, Low Tuck Kwong as the 60,94% shareholder of BYAN is now known as the richest person in Indonesia with assets of Rp475,25 trillion and has a net worth of US$25,2 billion. Meanwhile, the wealth of the Hartono brothers (Budi Hartono and Michael Hartono) is not far behind at US$22,1 billion and US$21,3 billion respectively. Low Tuck Kwong has grown much more prosperous since the beginning of 2022 as the skyrocketing share price of BYAN has made him even wealthier. Currently, the share price of the coal company has added to around 608,97% on an annual basis to Rp21.125 per share. BYAN had also made history with the distribution of the largest interim dividend so far this year, reaching US$1 billion (around Rp15.5 trillion) or as much as US$0.03 per share.


Sources:

CNBC Indonesia

IDX Channel

Kontan


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