Slightly above for ERAA, 4Q18 NPAT jumped +83% YoY on strong sales growth
on behalf of Michael W. Setjoadi & Jessica Pratiwi – RHB Sekuritas Indonesia
♦ ERAA booked 4Q18 NPAT at IDR214bn (+6% QoQ and 83% YoY), bringing FY18 NPAT at IDR850bn (+150% YoY) translating to 102%/ 104% of RHB/cons FY18 estimates.
♦ 4Q18 revenue grew 14% QoQ and 24% YoY to IDR9.4trn while its FY18 revenue grew 43% YoY to IDR34.7trn.
♦ FY18 interest expenses recorded at IDR350bn (41% of FY18 NPAT), +146% YoY due to high working capital needs for Xiaomi. Net gearing stood at 1.5x.
♦ As at 4Q18, Erajaya has launched 11 new phones, 30+ phones for FY18. 1Q19, Erajaya to launch 6 new phones.
♦ Maintain Buy at TP of IDR3,000, valuation is cheap as ERAA is trading at only 7x PE, 60% disc. than peers.
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