Download PDFwe just went to Erajaya's ( IJ; Rp1,040; Not Rated) investor gathering, here are some of the key takeaways from the meeting:
Globally, smartphone sales declined by -6% yoy in 1Q19, while China experienced a worse decline at -20% yoy.
In Indonesia, smartphone sales are expected to be flattish in 1H19 due to political situation, but should expect a recovery in 2H19.
Significant increase in black market products has affected 's sales since 4Q18, which is still continuing into 1Q19. However, it is expected to improve going forward as the company is getting better deals frombrand principals, which should reduce price disparity.
The company in targeting 330 new store openings in 2019 and they have been appointed to manage Oppo's retail stores. This will add around 70 new stores on top of the 330 new stores planned for this year.
Expansion will still be focused in 2nd and 3rd tier cities, as their presence in these cities is still minimal, so the company is seeing a lot of growth opportunities.
The company already got the distribution rights for Juul, which will be announced in 3Q19. The brand is expected to be consolidated under but will not be sold in Erafone stores. (Company).
Sumber : IPS RESEARCH