Analisis Saham PZZA | 7 September 2018

FR CGS - CIMB (YU) : Sarimelati Kencana PT
Say hello to Pizza Hut Express
PZZA IJ / PZZA.JK | ADD - Maintained | Rp1,100.00 tp:Rp1,500.00
Mkt.Cap:US$222.60m | Avg.Daily Vol:US$0.16m | Free Float:30.50%
Food Retail
Author(s):Kevie ADITYA +62 (21) 3006 1738,

--------------------------------------------------------------------------------

■   PZZA’s first food court outlet, Pizza Hut Express (PHE), was opened ina South Jakarta mall. PHE offers less variety of products but at a lower price point.
■   In our view, PHE should help PZZA meet the expansion quota set by Yum Brandsmore quickly, given the ease of setting up and smaller capex requirements.
■   PHE may have a shorter payback period than the two older formats, in our view. PHE’s lower price point should be comfortably offset by its better product mix.
■   The government’s recent plan to relax franchise regulations is a catalyst.
■   We project c.26% yoy earnings growth in FY18F despite the risk of rupiah depreciation. Maintain Add.Our Rp1,500 TP is based on22.0x 2019 P/E.