Company Update / Click here for full PDF version
Author(s):Kevie Aditya,Elbert Setiadharma
- We estimate weak 4Q19 SSSG to drag
- Increase in CPO price, along with delay in electricity price hike and faster social assistance disbursement shall allow better FY20 SSSG of 2%.
- With positive catalysts emerging, we are more upbeat than we were two months ago. Maintain Buy with a higher TP of Rp1,400.
We expect a very weak 4Q19 with a negative sales growth
2020 may not be as gloomy as we initially thought
While we cut our FY19 earnings forecast by 1.6%, we increase our FY20/21 earnings forecast by 4.2/4.9% as we regain confidence on better SSSG for FY20F on the back of improving CPO price (which is highly correlated with outer Java's SSSG ; which contributes c.36% to
New store openings to be expected in 1H20
With all the store openings scheduled in 2H19 delayed, we expect
Maintain Buy with a higher TP Rp1,400
As we see emerging catalyst that may help to support
Sumber : IPS