Igniting the growth engine
SPTO IJ / SPTO JK | ADD - Initiation | Rp950.00 tp:Rp1,400.00
Mkt.Cap:US$177.20m | Avg.Daily Vol:US$0.22m | Free Float:40.00%
Building Materials
Author(s): Kevie ADITYA +62 (21) 3006 1738,
SPTO is the sole distributor of TOTO sanitary products. Its 51%-owned East Java subsidiary plans to boost its capacity by c.500k pieces (pcs) p.a.
An opportune time to Add as a bottoming property market will lead a demand recovery while demographics fuel secular growth in the sanitary ware market.
We believe product repositioning catering to the rising middle class will further ignite demand, underpinning 20% core profit CAGR over 2017-20F.
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