SIDO
Contact our analyst Eka
25% upside, Buy
18th February 2022
Price Rp 955
Target price Rp 1200
18th February 2022
Price Rp 955
Target price Rp 1200
Record High Sales
- In 4Q2021, SIDO sales grew 15% YoY and 11% QoQ to IDR 1.24 trillion, a new record high. 4Q2021 sales were boosted by higher herbal and supplement sales which is a trend which will likely continue in 2022 in line with increasing health awareness. For 2021FY, SIDO had +21% sales growth to IDR 4.02 trillion. The results are +8% above our 2021 sales estimate.
- Herbal & supplement sales increased +19% YoY or 31% QoQ to IDR 925.7 billion in line with volume and demand increases in 4Q2021. Tolak Angin, Vitamin C1000, Ginger Drinks, Tolak Linu, and Supplements became the growth driver of sales. Pharmacy had the highest growth at +80% YoY but declined -33% QoQ to IDR 28.1 billion in 4Q2021.
- While the F&B segment increased slightly +2.6% YoY to IDR 291 billion in 4Q2021.
- Export sales reached SIDO’s target for 2021 at a 4% contribution to total sales driven by a recovery in export sales to Negeria and Malaysia, and from higher shipments of essential oils to France.
- We are expecting double-digit sales growth in 2022F as we expect the health awareness trend will continue in 2022 inline with growing consumer demand for health products.
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4Q2021 Result: higher Margins
Valuation: Maintain BUY with TP 1,200
- In 4Q2021, SIDO recorded net profit growth of +35% YoY or +8.8% QoQ to IDR 395.4 billion with a higher NPM of 31.8% compared to 4Q2020’s 27.2%. For 2021FY, SIDO recorded net profit of IDR 1.26 trillion with a higher NPM of 31%.
- Operating profit margins slightly declined compared to 3Q2021 from 40.8% to 40% in 4Q2021, because of higher opex in 4Q2021. However operating profit still grew 8.8% QoQ or 36.5% YoY to IDR 498 billion. For 2021, operating profit grew +32% to IDR 1.15 trillion with a higher OPM of 39%.
- Gross profit grew +16.5% YoY to IDR 724 billion in 4Q2021 with a higher GPM of 58.2% from 56.3% in 3Q2021. For 2021, gross profit grew +24% YoY to IDR 2.28 trillion with a higher GPM of 57%.
- We are targeting SIDO’s net profit to grow +14% to IDR 1.93 trillion in 2022F as we expect demand will continue to grow.
Valuation: Maintain BUY with TP 1,200
- We are targeting SIDO to reach IDR 1,200 or 25% upside, which is a 25x PE valuation within one year. Maintain BUY.
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