JAKARTA - PT Industri Jamu dan Pharmacy Sido Muncul Tbk (SIDO) posted double-digit performance growth in 2021. SIDO's sales and net profit skyrocketed by 20.55 percent year on year (yoy) and 35 percent, respectively.
SIDO's sales reached Rp. 4.02 trillion in 2021. Meanwhile, its net profit was recorded at Rp. 1.26 trillion.
Analyst from Kanaka Hita Solvera Raditya Pradana said SIDO's performance in 2021 was very positive. The increase in SIDO's performance was supported by sales of herbal products and supplements that managed to grow along with increasing public awareness of healthy living.
"For 2022, we assess that SIDO's performance will increase again. The increasing number of COVID-19 cases has occurred recently and the catalyst from the booster vaccine has become a positive catalyst for SIDO for 2022," Raditya told VOI, quoted on Wednesday 9 February.
SIDO itself has budgeted a capital expenditure (capex) of IDR 200 billion for 2022, which is allocated for the addition of COD2 product facilities so that the capacity increases by up to 30 percent. In addition, Capex is also allocated for the completion of green house projects, additional facilities in essential units, cold storage, and others.
Regarding Sido Muncurl's stock, according to Raditya's analysis, SIDO is more suitable for the long term. The reason is, SIDO's fundamental condition is solid. In addition, based on the valuation, the intrinsic value of SIDO in our opinion is at the level of Rp1,100.
"The current condition of SIDO's share price is still undervalued. SIDO is loyal to distribute dividends. In 2019-2021, SIDO always distributes dividends twice a year," concluded Raditya.
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