FR CGS-CIMB (YU) : HM Sampoerna
Growth remains a challenge
HMSP IJ / HMSP.JK | HOLD - Maintained | Rp3,840.00 tp:Rp3,800.00
Mkt.Cap:US$29,395.00m | Avg.Daily Vol:US$3.47m | Free Float:7.50%
Tobacco
Author(s): Patricia GABRIELA +62 (21) 3006 1734,
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■ HMSP’s 3Q18 sales volume grew by 1.2% yoy, bringing 9M18 sales volume to +0.1% yoy, which was better than -0.4% in 1H18.
■ Growth, however, was still paced by the low-margin brand Magnum Mild, which may compress GPM.
■ Given guidance of higher opex in 3Q18, earnings growth in 3Q18 would likely remain muted. Maintain Hold with unchanged TP.
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