Kategori: Consumer Goods

The outlook on Japfa Comfeed Indonesia, Tbk (JPFA IJ) had been revised to stable from negative by S&P. While its long term corporate rating affirmed at ‘B’ along with its senior unsecured notes. The outlook revision due to Japfa’s improving liquidity and declining refinancing risk after equity sale to KKR & Co. (KKR) that now.

Unilever Indonesia, Tbk (UNVR IJ), company’s based consumer goods business, expanding its plant production capacities  worth IDR1.4trn, from its capital spending budget totally IDR2trn. Its expansion to support company’s performance amid the economic condition, that are more stable than last year. The company’s projecting overall consumption goods market could grow between 5% up to 7%..

Based on our recent ground checks visiting several Sumber Alfaria Trijaya’s (Alfamart) (AMRT IJ, Neutral, TP: IDR570) minimarkets, we have found that Tolak Linu is gaining more acceptance. The stores we had visited confirmed that Tolak Linu’s sales are increasing. Its leading herbal cold remedy, Tolak Angin, continued to rebound with Jan-Mar 2016’s sales volume.

As it imports 95% of its raw material in USD, Kalbe is the primary beneficiary of the strengthening IDR vs USD. This is evidenced by the QoQ margin expansion in 1Q16. Consumer health and nutritionals are its key growth drivers as the two divisions contribute c.45% of its total sales. Its liquid milk manufacturing plant.

Investors have been buying an inventory growth story and lower ROE since FY12. As ACE’s inventory growth has always exceeded its sales growth since FY11, there might be inventory write-offs or aggressive discounts given in the future to reduce its excessively high c.200 inventory days (as at end-FY15). Furthermore, due to its high inventory, the.

We continue to see a sustained, strong rebound of Sido’s leading herbal medicine product Tolak Angin in early 2016, while the new herbal medicine Tolak Linu has been gaining good sales traction since its launch in Jun 2015. Sido’s cash conversion cycle also improved significantly in FY15. Maintain BUY with a higher IDR650 TP (27%.

Kalbe’s source of growth is its consumer health and nutritionals divisions, which collectively contribute c.47% of total sales. We are less concerned with its pharmaceutical division (contributes c.25% of total sales) as we see Kalbe can alter its product mix for the BPJS sales, resulting in relatively stable margins for this division. Considering its very.

While its low-margin energy drink sales could still decline this year, sales volume of Sido’s high-margin flagship herbal medicine product, Tolak Angin, has rebounded strongly and its new herbal medicine product, Tolak Linu, has been gaining solid traction since its launch in Jun 2015. Sido would continue its share buyback as it had used only.

The company is having another up-to-50% sales promotion this month to reduce its excessively high 227 inventory days as of 9M15 – the highest among retailers under our retail coverage. Better Consumer Confidence Index in Dec 2015. Indonesia’s Consumer Confidence Index rose for the second time above 100 in Dec 2015 (Oct 2015: 99.3; Nov.

The Indonesian Government is at an early stage of evaluating a few schemes to possibly control prices of licenced and branded generic drugs circulated in Indonesia, by considering upper price caps for those drugs and/or opening up the Indonesian pharmaceutical industry by allowing more competition in the market to enhance industry efficiency. As the potential.