BINAARTHA SEKURITAS
  • Home
  • Research
  • Company
  • Online Trading
  • SSF
  • E-IPO
  • NEWS
  • FAQ
  • sbn
  • Blog

INDF

Contact our analyst Eka
Buy, 35% upside
25th May 2023
​Price Rp 6950

Target price Rp 9400
Strong performance from ICBP
  • INDF maintained double-digit sales growth of +11.3% YoY or +1.8% QoQ to IDR 30.5 trillion with strong growth and improved margins from ICBP and the distribution business.
  • ICBP sales grew by +9.4% YoY to IDR 18.5 trillion with ICBP’s EBIT margin increasing to 22.3% from 19.5%, in line with softer raw material prices and a sales price hike.
  • Distribution revenue increased by +38% YoY to IDR 1.96 trillion with a higher EBIT margin of 9.3%.
  • Bogasari growth was +16.4% YoY or +3.3% QoQ to IDR 8.8 trillion while Bogasari's EBIT margin decreased to 5.7% from  1Q2022’s  7.2% on lower wheat prices but was still on target for 5% - 7% in 2023F.
  • Agribusiness sales declined by -1.7% YoY or -26.6% QoQ to IDR 4.01 trillion while the Agribusiness EBIT margin decreased to 11.6% due to lower CPO prices in 1Q2023.
  • Volume growth was positive in 1Q2023, and we are expecting higher demand in 2Q2023. We expect INDF's top line sales will reach IDR 119.2 trillion which is +8% growth in 2023F.

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

1Q2023: Higher profit margin
  • INDF’s bottom line profit margin was lifted by ICBP’s higher net, plus gains on forex from financing activities. INDF net profit increased +63.1%  YoY or +124.7% QoQ to IDR 3.85 trillion with a higher NPM of 12.6% from 8.6% in 1Q2022.
  • INDF booked +4.9% YoY growth of gross profit to IDR 9.48 trillion with a lower GPM of 31.1% due to a +14.4% higher cost of sales.
  • Operating income decreased -4.5% YoY or -9.8% QoQ to IDR 4.97 trillion in 1Q2023 with a lower OPM of 16.3%.
  • INDF’s profit before tax increased to IDR 6.47 trillion with higher forex gains of IDR 2.05 trillion in 1Q2023.
  • With the positive impact to margins from softer commodity prices and positive demand growth, we expect INDF’s profit to reach  IDR 9.68 trillion in 2023F or +52% growth.

Valuation: Maintain BUY with TP 9,400
  • We are targeting INDF to reach IDR 4,400 or 35% upside, which is a 9x PE valuation within one year. Maintain BUY.
Read the full report
Previously
​INDF Apr2023
​INDF Dec2022
​INDF Sep2022
​INDF Jun2022
​INDF Apr2022
​INDF Dec2021
​INDF Sep2021
​INDF Jul2021
PT. Binaartha Sekuritas

Setiabudi Atrium, Jl. HR Rasuna Said No.62, RT.18/RW.2, Karet Kuningan, Setia Budi, Jakarta Selatan, DKI Jakarta 12920

+62215206678 | email: [email protected]
Follow Our Social Media
Picture
binaarthasekuritas
Picture
​binaartha sekuritas​
Picture
Linkedin
Picture

Binaartha Sekuritas

Picture
@binaartha_sekuritas
Picture
Binaartha research
PT. Binaartha Sekuritas berizin dan diawasi oleh Otoritas Jasa Keuangan
  • Home
  • Research
  • Company
  • Online Trading
  • SSF
  • E-IPO
  • NEWS
  • FAQ
  • sbn
  • Blog