The opening of 1.400 Sumber Alfaria Trijaya Tbk (AMRT) new retails will encourage earning per share (EPS) growth by 47.7% this year. By the assumption of same store sales (SSS) growth by 9% per year and new retail growth by 11.7%, its revenue will increase by 22,3%.
UOB Kay Hian said that SSS growth on the first term 2016 is by 10%, higher than the previous growth by 6% in 2015. The increase in SSS gives a positive signal for its revenue growth on the second term 2016. “AMRT sales is usually the highest sales and contributes 36.1% for total sales for a year,” said Villya Christin, Analyst of UOB Kay Hian.
The expansion of 1.400 retails will add its network into 12.600 retails. The company has 39 distribution and capacity centers to supply until 13.000 retails around Indonesia.
According to Nielsen’s research, the penetration rates of convenience stores in Indonesia are lower than in Malaysia and Thailand. One convenience store in Indonesia serves 11.212 customers while in Malaysia serves 7.404 customers and in Thailand serves 6.887 customers. This shows a big opportunity retail expansion for AMRT in the future.
UOB Kay Hian recommended BUY for AMRT with a target price of IDR 715. (*)
| Performance of Sumber Alfaria |
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| IDR billion | |||
| Indikator | 2015 | 2016F | 2017F |
| Net turnover | 48,265 | 59,047 | 66,781 |
| EBITDA | 2,419 | 2,971 | 3,395 |
| Operating profit | 772 | 990 | 1,071 |
| Net profit | 464 | 717 | 889 |
| EPS (Rp) | 11.7 | 17.3 | 21.4 |
| PE (x) | 51.3 | 34.8 | 28 |
| Net margin (%) | 1 | 1.2 | 1.3 |
| Consensus net profit | na | 630 | 818 |
| Source: UOB Kay Hian | |||
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