ROTI

Contact our analyst Eka

Fresh funds, an acquisition & outlook for a better 4Q, 20% upside. BUY
​4th December 2017
Price Rp1,270
Target price Rp1,520

Fresh Funds

• ROTI has fresh fund from a rights issue in October. Proceeds amounting to IDR. 1.43 trillion will be used for expanding.

An acquisition

• In November 23rd 2017, ROTI signed a conditional share subscription agreement with PT Prima Top Boga (PTB). With the 51% acquisition of PTB, ROTI will expand into an exciting new segment, frozen dough for bread and cakes.

Expecting Higher 4Q2017

• As the peak season for ROTI is in the fourth quarter, we estimate 4Q2017 will be significantly better than the previous quarter

Valuation: TP 1,520 with 20% Upside

• Using a DCF valuation with WACC at 9.03%, we estimate ROTI shares​ will rise by 20% to IDR. 1,520 within a year. BUY

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