JAKARTA - The shares of PT Industri Jamu and Pharmacy Sido Muncul Tbk (SIDO) are considered still attractive to be included in the portfolios of investors in the capital market. The reason is that the performance of the Tolak Angin and KukuBima Ener-G producers will increase, supported by demand growth.
Head of Research Henan Putihrai Sekuritas Robertus Hardy in his research quoted on Saturday, July 16, said that the revenue growth target of 15 percent set by Sido Muncul management this year could be achieved. He believes SIDO's performance will be boosted by export sales, where in the first quarter this sector rose by 125 percent.
Robertus added that in the future the export contribution will be very high because SIDO has established a distribution subsidiary in Nigeria, to market products to surrounding countries. In addition, in the Southeast Asia region, SIDO has also opened outlets in the Philippines and Malaysia.
"In fact, SIDO plans to export products to Vietnam, Benin, Ghana and China this year," he explained.
Furthermore, Robertus said, SIDO was also not too affected by the increase in raw prices. This is because SIDO has increased the average selling price (ASP) of products, especially for beverage and packaging products.
Meanwhile, Analyst of BRI Danareksa Sekuritas, Natalia Sutanto in her research, also agreed to say that SIDO's expansion abroad would be a factor driving financial performance. He believes SIDO will focus its expansion on the Nigerian area to the north, by opening new outlets to absorb potential demand growth.
As for Malaysia, SIDO will focus on ensuring product availability in modern trade channels.
"It is hoped that the export contribution can reach 5-7 percent of SIDO's total revenue this year," Natalia said.
Natalia added that in the food & beverages (F&B) segment, SIDO has increased the selling price by an average of 3-4 percent to offset the increase in raw material prices and normalize margins in the second quarter of 2022.
Natalia sees this segment will continue to grow in volume. Growth will be supported by export sales, particularly to Nigeria and Malaysia, as well as domestic sales.
Natalia estimates that the contribution of the herbal segment to revenue in the second quarter of 2022 will be much higher than the previous quarter. In the first quarter of 2022, the herbal segment contributed 65 percent.
"With the momentum of Eid in the second quarter, the demand for Tolak Angin can increase," he said.
In the pharmaceutical segment, SIDO cooperates with a new national distributor. Natalia sees this can support SIDO's growth this year. He also predicts SIDO can book revenue of IDR 4.61 trillion, with a projected net profit of IDR 1.44 trillion.
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