SIDO
Contact our analyst Eka
27% upside, BUY
24th March 2025
Price Rp 560
Target price Rp 710
24th March 2025
Price Rp 560
Target price Rp 710
Lower raw material Costs and ASP adjustments
- SIDO’s sales increased by 10% YoY to IDR 3.92 trillion in 2024, with Q4 2024 sales rising 5.6% YoY and 77% QoQ to IDR 1.29 trillion. Growth was driven by higher sales volumes across all business segments in both domestic and export markets.
- Export sales continued to expand, contributing 6.8% of total revenue in 2024, up from 5.5% in the previous year. SIDO aims for 9%-10% export market growth, with further expansion in Indochina and Africa.
- In the herbal and supplement segment, sales increased by 8% YoY to IDR 2.48 trillion in 2024, reaching IDR 942.7 billion in Q4 2024—a 118% QoQ and 5.6% YoY increase. Growth was driven by double-digit expansion in essential oils and high-margin products such as Esemag, Tolak Angin, and Tolak Angin Cough, resulting in a gross profit margin (GPM) of 69.7% for the full year and 70.8% in Q4 2024. Tolak Angin maintained its market leadership with a 72% market share in 2024.
- The pharmaceutical segment saw 10.2% YoY growth, reaching IDR 127.4 billion in 2024, with Q4 2024 sales at IDR 32.16 billion. This was supported by the lifting of the syrup medicine ban, leading to a recovery in sales and a GPM of 38.4%.
- The Food & Beverage (F&B) segment grew 18.3% YoY to IDR 1.3 trillion in 2024, driven by double-digit volume growth in energy drinks and coffee, while milk products performed strongly. The F&B margin improved to 39.8%, supported by lower raw material prices for taurine, aspartame, citric acid, and creamer.
- We expect higher demand in 1H2025, boosted by long holidays in January, an extended rainy season, and the Lebaran period. Additionally, ASP adjustments for select products in line with inflation levels in 2025 will support revenue growth.
Trade what you want (exciting shares like SIDO) when you want & wherever you are. Simply sign up for our Binaartha Online Trading
⬇️ here.⬇️
⬇️ here.⬇️
2024 Financial Result: Margin Improvement Maintained
Valuation: Maintain Buy, TP 710
- SIDO’s net profit rose by 23% YoY to IDR 1.17 trillion in 2024, with Q4 2024 net profit reaching IDR 392 billion, up 7.9% YoY and 132% QoQ. Profitability was supported by improved operating leverage and cost efficiency, particularly in salaries and allowances (-10% YoY), leading to a record net profit margin (NPM) of 29.9% in 2024 and 30.4% in Q4 2024.
- Cost of goods sold (COGS) increased slightly by 4.6% YoY to IDR 1.62 trillion, while gross profit rose by 14% YoY to IDR 2.3 trillion, with an improved GPM of 58.7% due to higher sales volumes of high-margin products.
- SIDO has maintained an average dividend payout ratio of over 90% since 2013, which is expected to continue in FY 2024.
Valuation: Maintain Buy, TP 710
- SIDO aims for 10% sales and net profit growth in 2025, supported by margin improvements from lower raw material prices, demand recovery, and ASP adjustments for select products. We maintain our BUY recommendation with a target price (TP) of IDR 710, representing a 27% upside, and a projected P/E ratio of 15x.
Previously
