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MAPI: Fire Up! New Target Price Rp8,500
27 Apr 2018


Fire Up! New TP Rp8,500 Already Priced In

During FY17, MAPI booked a solid 15.2% YoY sales growth of Rp16.31 trillion, on the back of 4% SSSG (vs 3% SSSG in FY16), in line with our FY17E of Rp15.95 trillion, while its bottomlinecame in Rp334.7 billion (below our estimates, made up 80.7% of our FY17E of Rp414.5 billion), but mainly related to strategy of closing underperforming stores (resulted in notable increase in loss on sales of fixedasset& provision for decline in value of inventory). However, we believe the homework has been performed and MAPI is ready to soar this year. We made a slight adjustment to our projection and come up with a higher TP of Rp8,500/ share. However, we believe the current share price is already priced in, hence our recommendation on the stock is NEUTRAL.

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