CGS-CIMB Research analysts Andrea Choong and Darren Ong have initiated coverage on Credit Bureau Asia (CBA) with an ‘add’ rating and target price of $1.53, with CBA’s defensive business model and market dominance in Singapore cited as key factors.
CBA operates as a credit and risk information solutions (CRIS) provider. It aggregates and repackages credit information into useable reports and data packets for sale to its customers, which span both financial institutions (FI) and non-FI clientele. Their products include one-off reports for loan applications, pre-employment checks and pre-screening of business partners, as well as customised monitoring services for higher-risk exposures.
In a research note dated March 16, Choong and Ong highlight CBA’s position as a market leader (by revenue) in Singapore’s CRIS space via its subsidiary Credit Bureau Singapore (CBS), which is underpinned regulatory requirements.