ACES: Fit as a Fiddle, BUY with new fair value of Rp1,750
29 Aug 2018
ACES: Fit as a Fiddle, BUY with new fair value of Rp1,750
During 1H18, ACES booked an outstanding sales growth of 22.6% YoY from Rp 2.76 trillion in 1H17 to Rp 3.38 trillion in 1H18, on the back of strong 13.4% SSSG. This was slightly above our expectation, made up 49.8% of our FY18E Rp6.8 trillion (3-year average 1H sales contributed c.46% to annual sales). The net profit, in line with solid topline, grew by 29.8% YoY to Rp 426 billion, thanks to efficiencies in opex coupled with forex gain of Rp 8.6 billion. To reflect the better than expected result and using 2019F as our base year, we come up with new fair value of Rp 1,750/ share. With 27.7% upside potential, we maintain our BUY recommendation on the stock.
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