Undervalued despite strengthening rupiah
PZZA IJ / PZZA.JK | ADD - Maintained | Rp930.00 tp:Rp1,550.00▲
Mkt.Cap:US$198.00m | Avg.Daily Vol:US$0.03m | Free Float:30.50%
Food Retail
Author(s): Kevie ADITYA +62 (21) 3006 1738,
We believe SSSG picked up in 4Q18F, backed by better purchasing power and aggressive promotions by various fintech players.
PZZA met its target of 59 net new outlets in 2018. We expect its franchise fee to go down by 20/30/20bp in FY18/19/20F, respectively.
The strengthening of the rupiah could significantly benefit PZZA, which we believe is not priced in. We maintain Add with a higher TP of Rp1,550.
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