UNVR – Limited Room to Grow
Our rating is on the back of an expected pressure on F&R and HPC segment to do quick turnaround amid uncertain economic condition. Thus, we still maintain conservative stance on UNVR’s earnings growth.
INDF – Solid Growth Outlook
INDF experienced relatively modest performance of sales and net foreign exchange loss during the quarter. Nonetheless, we note that EBIT margin has improved across all segment, benefitted from upward trend commodity prices. We still upbeat with INDF’s outlook and maintain recommendation BUY.
ICBP – Hoping for Better Performance
In 3Q20, ICBP recorded soft performance due to weak purchasing power in domestic market. Meanwhile, ICBP earning had understandably contracted as finance expense hike due to additional new bank loan. However, we still expect the consolidation of Pinehill in ICBP will have a greater impact on FY21. Thus, we maintain BUY.
ACES – Gradual Recovery in Sales
ACES showed improving profitability in 3Q20 despite the reimpose of large-scale social restriction. We expect ACES could deliver strong result for the coming quarter coupled with SSSG improvement due to high seasonal sales.
MAPI – Positive Sign of Improvement
A significant quarterly improvement in 3Q20 has proven that management succeeded to overcome the challenging situation. We remain excited for next quarter as we believe MAPI can take the momentum of the upcoming festive season to boost sales.
HMSP – 3Q20 Result Driven By Volume Growth Recovery
HMSP’s performance in 3Q20 improved on quarterly basis, mainly driven by sales volume recovery in both SKM and SKT Products. Meanwhile, limited ASP increase due to unfavora-ble economic condition supported HMSP to secure its market share.
MYOR – 3Q20 Lifted By Strong Performance in All Segments
We see that MYOR is bucking the trend, as many other FMCG players booked soft 3Q20 sales growth. We believe this growth was supported by significant improvement of domestic sales along with the relaxation of lockdown restriction, and will likely act as positive catalyst for the next quarter.
GGRM – 3Q20 Performance Driven By Robust Top Line Growth
GGRM reported solid revenue growth on the back of decent performance from both segments – hand rolled cloves and machine rolled cloves. Meanwhile, GGRM has declared not to distribute dividend this year and settled short term loan which resulted in improvement of DER.
KLBF – Prepping Up for Softer Growth
KLBF reported top line below our expectation, mainly due to a relatively slower pace growth in some segments. With the expectation of further improvement supported by stable rupiah combined with cost efficiency, we remain positive about KLBF’s outlook for near to medium term.
