Company Update / Click here for full PDF version
Author(s) : Kevie Aditya, Elbert Setiadharma
- We conservatively pencilled in 6.4%/3.8% yoy sales and earnings growth for FY20 to anticipate worsening purchasing power.
- We, however, feel direct impact from coronavirus can be minimized shall Rupiah appreciates. We maintain our Buy call with lower TP Rp1,500.
Weak FY19 indicative results; below our and consensus' expectations
Decent FY20F growth guidance despite coronavirus outbreak
For this year, here ).
Cautious stance for FY20F
As weak purchasing power is likely to linger as we enter into 2020F, we pencilled in 6.4% and 3.8% yoy sales and earnings growth, respectively, more conservative than company's guidance. We expect regulatory issues on consumer health products (blue-labelled OTC pharma products, i.e. Komix, Woods, Procold) to slowly resolve but we conservatively expect the segment to post +2% sales growth (lower than company's 4-6% target; but rebound from -2% in FY19). Growth from its RTD beverages (i.e. Hydro Coco) also may see risk if sweetened beverages excise is applied.
Maintain BUY; strengthening rupiah will remain as
We do believe strengthening rupiah may still be
Sumber : IPS
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