INDF Dec2021

INDF

Contact our analyst Eka

Buy, 33% upside
15th December 2021
Price Rp 6,450
Target price Rp 9,140

Highest sales QoQ

In 3Q2021, INDF booked sales of IDR 25.5 trillion, +31.6% YoY and +12.2% QoQ, the highest quarterly growth rate in 2021. For 9M2021, INDF’s sales grew +24% YoY to IDR 72.9 trillion.
ICBP and Agribusiness enjoyed the fastest growth.
Consumer Branded Products (ICBP) recorded growth of +32.7% YoY or +9.4% QoQ to IDR 14.5 with a slightly lower EBIT margin of 17.8% from 18.2% last year from a higher cost of goods sold.
Agribusiness had double-digit growth of +51% YoY and +25% QoQ to IDR 5.19 trillion and the EBIT margin jumped from 10% last year to 16.7% in 3Q2021 due to higher CPO prices.
Bogasari also booked double-digit sales growth to IDR 6.56 trillion up +17.6% YoY and 9.7% QoQ but with a lower EBIT margin of 6.3% from 8.5% last year.
Distribution growth was also strong at +19% from a year ago, +9% QoQ to IDR 1.3 trillion.
We expect a strong sales performance in 2021, with double-digit growth of +17.7% YoY to IDR 96.2 trillion.

Trade what you want (exciting shares like INDF) when you want & wherever you are. Simply sign up for our Binaartha Online Trading
⬇️ here.⬇️

Higher profit

INDF 3Q2021 net profit grew +117.2% from a year ago and +16% QoQ to IDR 1.97 trillion with a higher net profit margin of 7.7% from 4.7% last year with lower finance expenses and higher gains from JVs.
For 9M2021, INDF net profit reached IDR 5.4 trillion, up +44% YoY with a higher NPM of 7.4% from 6.4% last year.
Operating income grew +25% YoY, +4.5% QoQ to IDR 3.7 trillion in 3Q2021 with a lower OPM, 15.5% vs 14.7%. But the OPM in 9M021 was higher at 16.8% from 14.7% because of higher operating profit growth of 41.8% YoY to IDR 12.2 trillion.
INDF’s gross profit grew +28.5% YoY or +11% QoQ to IDR 8.1 trillion with a stable GPM of 32%.
We believe INDF will maintain a good performance in 2021, and we expect double-digit growth in profit of +23% YoY to IDR 7.9 trillion.

Valuation: Maintain BUY with TP 9,140

As we expect a better INDF performance in 2021, We are targeting INDF to reach IDR 9,140 or 33% upside, which is an 8x PE valuation within one year. Maintain BUY.

Previously

INDF Sep2021