Comprehensive Analysis of Listed Companies – November 14, 2024
Comprehensive Analysis of Listed Companies – November 14, 2024
Broker: UOB Kay Hian
Date of Report: November 14, 2024
Aspirasi Hidup Indonesia (ACES IJ)
Company Overview
Aspirasi Hidup Indonesia (ACES) is a prominent retailer specializing in tools, home improvement products, lawn and garden supplies, plumbing, furniture, sporting goods, and pet supplies. The company is strategically positioned within the Consumer Discretionary sector and has a significant market presence.
Stock Data
Share Price: Rp835
Target Price: Rp1,200
Upside: +43.7%
Bloomberg Ticker: ACES IJ
Shares Issued: 17,120.4 million
Market Cap: Rp14,295.5 billion (approx. US\$905.7 million)
3-month Avg Daily Turnover: US\$2.6 million
52-week High/Low: Rp975/Rp680
Major Shareholders
Kawan Lama Sejahtera: 60.0%
Financial Performance
In the third quarter of 2024, ACES reported a Net Profit After Tax (NPAT) of Rp208 billion, marking a 13.7% year-on-year (yoy) increase and a 29.5% quarter-on-quarter (qoq) rise. The cumulative NPAT for the first nine months of 2024 reached Rp574 billion, slightly surpassing consensus forecasts.
Key Metrics
- Revenue: Rp6,228 billion (up 13.4% yoy)
- Gross Profit: Rp3,020 billion (up 14.2% yoy)
- Operating Profit: Rp748 billion (up 20.3% yoy)
- Net Profit: Rp574 billion (up 18.2% yoy)
- Gross Margin: 48.5%
- Operating Margin: 12.0%
- Net Margin: 9.2%
Operational Highlights
ACES has demonstrated robust operational efficiency in 3Q24, with a notable improvement in EBIT due to strong operational expense management. The company also opened 20 new stores in the first nine months of 2024 and plans to accelerate store expansion in 2025, focusing on third-tier cities.
Expansion Plans
ACES is set to open 20-25 new stores per year, primarily in third-tier cities with populations exceeding 200,000. The company has revised its 2024 guidance, now expecting a Same-Store Sales Growth (SSSG) of 8% (up from 5%) and sales growth of over 11% (up from 10%).
Market Challenges and Strategic Responses
ACES acknowledges the potential impact of tariffs on Chinese imported electronics and appliances. The company is proactively working with local suppliers, assemblers, and joint ventures with Chinese vendors to mitigate these impacts. Additionally, ACES is addressing rising professional fees and freight costs due to its expansion into tier 3 cities.
Financial Projections
| Year |
2023 |
2024F |
2025F |
2026F |
| Net Turnover (Rpb) |
7,612 |
8,619 |
9,688 |
10,813 |
| EBITDA (Rpb) |
1,000 |
1,233 |
1,476 |
1,703 |
| Operating Profit (Rpb) |
1,000 |
1,233 |
1,476 |
1,703 |
| Net Profit (adj.) (Rpb) |
764 |
945 |
1,135 |
1,311 |
| EPS (Rp) |
44.5 |
55.1 |
66.2 |
76.4 |
| PE (x) |
18.8 |
15.2 |
12.6 |
10.9 |
| P/B (x) |
2.31 |
2.33 |
2.15 |
1.97 |
| EV/EBITDA (x) |
14.6 |
12.8 |
10.7 |
9.3 |
| Dividend Yield (%) |
3.7 |
3.5 |
4.2 |
4.9 |
Valuation and Recommendation
The recommendation for Aspirasi Hidup Indonesia remains a “BUY” with a target price of Rp1,200. This target is derived using the historical average of 21.3x PE applied to the average of 2024F EPS. ACES is currently trading at an attractive 13.2x 2024F PE, which is below its historical -1SD PE of 15.8x.
Future Outlook
With robust financial health, strategic expansion plans, and proactive measures to mitigate market challenges, Aspirasi Hidup Indonesia is well-positioned for continued growth. Investors can expect a favorable return on investment given the company’s sound operational strategies and market positioning.
