Sido Muncul Shares Emerging Strongly To Rp800, This Becomes The Boost Sentiment

Photo: Doc. Sido Muncul

JAKARTA - Shares of PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) are projected to increase to Rp800, and are recommended to buy. The revision describes better sales volume, increased profit margins, and opportunities for the distribution of interim dividends. BRI analyst Danareksa Sekuritas Natalia Sutanto in her research, quoted on Tuesday, October 18, estimates that despite the decline in Sido Muncul's net profit to Rp1.07 trillion this year, compared to last year's realization of Rp1.26 trillion, performance in terms of sales showed an increase in the July-August 2022 period compared to June 2022 and the average sales volume in the second quarter of 2022. In fact, SIDO recorded a fast sales volume throughout September 2022, compared to July and August 2022. "The company is aggressively holding promotions in the third quarter of 2022 through bundling products, discounts, and other bonuses. This has made sales volume soar. However, the sales volume will not match last year's realization," wrote Natalia. The increase in sales volume, according to him, will trigger an increase in the company's net profit in the third quarter of 2022, compared to the second quarter of 2022. The increase in sales volume of herbal products is the main factor supporting this growth. Meanwhile, production costs are estimated to remain high. BRI Danareksa Sekuritas also estimates that Sido Muncul will distribute interim dividends in the last quarter of this year. Dividends will be taken from the company's profits in the first semester of 2022 and are expected to be a positive sentiment towards the movement of SIDO's share price. "With the assumption that 90 percent of the dividend ratio from the first semester of 2022, the dividend value per share reaches IDR 13.4 per share or reflects the dividend yield to reach 5.5 percent," explained Natalia.