2024 Off To A Good Start
Key Takeaways :
▪️HMSP delivered a 1Q24 performance that was mostly in-line with our estimates. 1Q24 revenue came in at IDR29.1 tn, or grew nicely by +1.5% QoQ/+18.8% YoY. The bottom-line remained solid, with 1Q24 net profit experiencing growth of +18.8% QoQ/+4.0% YoY to IDR2.2 tn.
▪️What we found notable in the 1Q24 performance extended to the SKM segment as well. SKM sales in 1Q24 increased by +11.4% QoQ/+1.6% YoY to IDR17.3 tn. In our previous report (Gearing Up into FY24F), we estimated ASP for flagship products post the implementation of a 10% excise tax hike in FY24. As of 4M24, Sampoerna A Mild’16 has reached 95%-97% of the target. With the realization of this ASP increase, we anticipate it will serve as a cushion for margins to sustain profitability in the future.
▪️We assess HMSP's current valuation as attractive, trading near at -2.0 STD PE level and with a TTM PE of 10.7x, supported by strong pricing in the SKM segment to maintain its growth and a solid SKT segment amidst limited consumer spending.
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