Despite booking soft revenue numbers, UNVR succeeded to record margin improvement in 3Q20. When looking into 3Q20 numbers, our concern is the continued weakness in the F&R segment. However, we believe that its portfolio expansion and A&P also started back on track would support its near to medium-term earnings growth.
SIDO managed to record outstanding performance, despite uncertainty situation. On a more positive note, we believe several key initiatives from SIDO’s management including launching product and tapping new export market offers a significant leap for long-term outlook
ERAA posted below-expected performance throughout the second quarter, which mainly due to store closures and a sharp decline in demand. Going forward, we are expecting a better performance in 2H20 with the upcoming high season of phone sales along with the planned launchings of several smartphone products.
Retail has been one of the industries being hit the hardest by the pandemic, especially during 2Q20. However, we still believe MAPI could bounce back stronger in 2H20, mostly driven by the recovery in SSSG and all series of strategies made by MAPI’s management. Therefore, we maintain our BUY recommendation on MAPI.
In the middle of an unprecedented pandemic, ICBP still enjoyed stronger earnings growth along with revenue growth. We also expected ICBP outlook remains positive due to lucrative earnings form Pinehill acquisition. Thus, we upgraded our rating on ICBP from Hold to BUY.
KLBF 2Q20 earnings exceeded our expectations, with the modest growth in distribution and consumer health segment, but weighed down by prescription drugs and nutrition segment. We also see the new catalyst which is vaccine development will have a double edged sword effect on KLBF. Meanwhile, we expect a better second half of 2020 both revenue and earnings, thus we maintain our Buy recommendation.
GGRM showed its ability to endure the tough quarter, even though the outlook is a bit more muted than last year. Our new estimates suggest lower growth in top line and bottom line for FY20F, as we factor in excise tax hikes issues linger coupled with softer purchasing power.
We already expected KINO to record weak performance in 2Q20 as the consequences of lower demand amid the pandemic. This also affected export sales, which dropped significantly due to lockdown restriction in several export destination. At this stage, we still maintain a Hold recommendation.
In the midst of unfavourable situation, INDF recorded a low single digit growth in 1Q20. This growth was mainly supported by Consumer Branded Product (CBP) and Distribution segment. This was an opposite to Bogasari and Agribusiness segment which recorded contraction, pressured by lower commodity prices. Nevertheless, at this point, we expect better growth shall be recorded as Consumer Confidence Index (CCI) was higher and Rupiah stays stable.
