Despite higher interest expenses assumption, we expect ICBP to deliver strong earnings CAGR of 15.9% over FY19-22E with Pinehill inclusion. We also believe that ICBP’s refinancing strategy will improve their cash flow in years ahead.
ERAA closed 1Q21 with an exceptional performance, maintaining the company’s momentum from last year. The double-digit revenue growth and margins were driven by a jump in sales of cellular phone segment, which also benefited from remote work, online school and extended stay-at home scenario.
Going into 2021, we still prefer SIDO simply because it has a better margin among its peers, a healthy balance sheet, and relatively stable raw materials. All in all, SIDO booked positive performance in 1Q21 and we believe the company will be able to maintain it.
Although MYOR successfully posted strong revenue growth in 1Q21, higher raw material cost caused earnings to contract. As a result, MYOR also booked margin depreciation all across the board. However, we still expect better earnings in the upcoming quarter supported by solid growth of domestic and export sales along with growing demand due to Ramadhan season.
KLBF reported 1Q21 results in line with market expectation. Meanwhile, we view KLBF is still attractive for a long-term investment due to its solid financial position and solid business plans.
The company faced a multitude of challenges in 2020 from Indonesia’s large-scale social restriction and curfew. However, MAPI showed strong quarterly improvement mainly driven by the recovery in SSSG and domestic sales. In our view, MAPI is still in the midst of recovery, but successfully recording net profit in 4Q20, after booking two consecutive quarterly net losses.
We believe strong noodle and agribusiness sales will boost up INDF’s sales outlook. Meanwhile, we saw the overall margin remain stable despite rising commodity prices and weakening IDR against USD. Thus, we maintain BUY recommendation.
While we predict rising raw material price and weakening IDR will still continue this year, strong sales contribution from Pinehill succeeded in boosting sales and margin in 4Q20. Thus, we maintain BUY recommendation.
SIDO is our top pick in the healthcare sector given its resilience performance amid the unfavorable economic condition, with the healthiest balance sheet among peers, and benefited from rising health awareness. We believe key initiatives from management will accelerate the performance this year.
