FR CGS-CIMB (YU) : Unilever Indonesia
Seasonality boost
UNVR IJ / UNVR.JK | REDUCE - Maintained | Rp46,200.00 tp:Rp44,500.00▲
Mkt.Cap:US$25,446.00m | Avg.Daily Vol:US$7.12m | Free Float:15.00%
Personal Products
Author(s):Patricia GABRIELA +62 (21) 3006 1734,
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■ The festive season could push sales growth to north of 3% yoy in 2Q18, assuming a relatively conservative view, against 1Q18’s -1% yoy.
■ More positive is the expected one-off gain from the disposal of Blue Band for Rp2.9tr (15x FY18F P/E or 2.5x price/sales), which will cut FY18F’s net gearing to 9.2%.
■ We lift our FY18F earnings growth estimate to 29% yoy but believe core net profit will still decline by c.2%. Our FY19F earnings growth is 8% on higher projected margins.
■ Sticking to mean P/E, our target price rises to Rp44,500 while our Reduce call is unchanged. An upside risk is higher-than-expected sales recovery.
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