Kategori: Consumer Goods

Despite a weakened IDR and DOC price capping headwinds, Malindo deserves attention at this juncture. This is due to: 1. Its attractive valuation – it is currently trading at 10-9x FY16F-17F P/E, close to -2SD from its 5 years mean of 15x; 2. 4Q16 to be another strong quarter – average broiler and DOC prices.

The were two rating action over the week; 1) Fitch rating upgraded Japfa Comfeed Indonesia, Tbk’s (JPFA IJ) to AA-(idn)/Stable from A+(idn)/Negative and 2) Gajah tunggal, Tbk (GJTL IJ) suffered another rating downgrade at Moodys’ with its rating slashed to B3 from B2 with negative outlook. Similar to S&P, the downgrade was caused mainly by.

S&P Global Ratings raised its long-term corporate credit rating on Japfa Comfeed Indonesia, Tbk (JPFA IJ) to ‘B+’ from ‘B’ with stable outlook. The upgrade reflects Japfa’s initiatives to lengthen its debt maturity profile and better than expected operating and financial performances. The company’s EBITDA nearly reached IDR3trn in 9M16, almost 30% higher than whole.

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.