His Performance Is Stable, SIDO's Share Price Is Predicted To Reach IDR 1,000

Photo: Doc. Sido Muncul

JAKARTA - The share price of PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) closed at the level of Rp810 on Thursday 4 May trading. HP Financials in its research targets SIDO's share price to reach Rp1,000 in the near future.

"We maintain SIDO with BELI rankings at TP 1,000 due to price raw material stabilization which will increase the net profit margin of SIDO full year 2023 (34.2 percent vs previously 32.6 percent)," explained HP Financials research, quoted Thursday, May 4.

HP Financials assessed that the price target reflected the bright performance of the Tolak Angin producer in the first quarter of 2023.

Sido Muncul recorded sales of IDR 907.30 billion in the first quarter of 2023. This achievement in the first three months of 2023 increased by 3.04 percent year on year (YoY) compared to SIDO's sales in the first quarter of 2022, which amounted to IDR 880.49 billion.

In SIDO's financial report, quoted on Friday, April 28, the company's sales in the first three months of this year were dominated by the herbal medicine and supplement business segment of IDR 553.26 billion. Followed by sales of food and beverages amounting to IDR 330.75 billion and pharmaceuticals amounting to IDR 23.29 billion.

SIDO's cost of goods sold increased 7.07 percent YoY to IDR 444.11 billion in the first quarter of 2023, compared to the company's cost of goods sold in the first quarter of 2022 of IDR 396.11 billion.

In contrast, SIDO's selling and marketing expenses fell 10.07 percent YoY to IDR 76.60 billion in the first quarter of 2023, compared to sales and marketing expenses in the same quarter the previous year of IDR 85.18 billion.

Until the end of the first quarter of 2023, SIDO posted a net profit for the period attributable to owners of the parent entity of Rp300.28 billion. This result increased 1.78 percent YoY compared to the company's net profit in the first quarter of 2022 of Rp295.04 billion.

Although the government had restricted the sale of drugs in the form ofgalos, HP Financials assessed that the contributo of the pharmaceutical segment to Sido Muncul's sales was still stable.

"There was controversy caused by EG and DEG molecular compounds in bankruptcy drugs, and it suspended sales of several SIDO products in the pharmaceutical segment, which cut half of revenue. However, the pharmaceutical segment in the first quarter of 2023 has historically stabilized between 3-5 percent." explained HP Financials research.