Analisa Saham MYOR | 9 Mei 2018

Mayora Indah(MYOR IJ) 

Growing export revenues

MYOR reported 1Q18 earnings of IDR396bn, up 5.1% yoy but down 38.6%

qoq, thanks to high gross margins and forex gains. In 1Q18 the contribution

of export revenues increased to 43% of total revenues (1Q17: 39%). The

1Q18 earnings are above consensus estimates (27.2%) and our forecast

(29%).

Solid 1Q18 top line with 43% contribution from exports. MYOR booked 1Q18

revenues of IDR5.4tn (+8.7% yoy and -16.9% qoq), supported by the food

processing division (+7.6% yoy) while the coffee/chocolate business booked

+2.8% yoy revenues growth. The 1Q18 revenues are in line with our target

(22.9%) and the consensus estimates (23.6%). In 1Q18 the contribution of

export revenues increased to 43% of total revenues (1Q17: 39%).

Solid earnings thanks to high gross margins and forex gains. In 1Q18, MYOR

reported a 25.6% gross margin. By division, coffee and chocolate reported

continued high gross margins of 27% - mainly supported by soft raw material

prices (Wheat, CPO), while food processing reported maintained gross margins

at 24.4%. However, MYOR reported slightly lower 1Q18 operating margins

(1Q17: 11.8%) given lower food processing margins. Based on our channel

checks, Mayora has undertaken many promotional activities for its food

processing division in the past few months. Thanks to strong margins in the

coffee and chocolate business, MYOR reported 1Q18 operating margins at

11.2%. Below the operating level, forex gains supported the pretax profits of

IDR642bn (+30.9% yoy). This filtered through to 1Q18 net profits of IDR396bn

(+5.1% yoy and -38.6% qoq). %). The 1Q18 earnings are above consensus

estimates (27.2%) and our forecast (29%).

Maintain HOLD. We continue to like MYOR given its solid fundamentals,

growing export revenues and continued innovations, which have helped the

company to maintain market share. The festive season in the coming quarters

followed by the presidential election in 2019 should also support demand for

consumer products. We will revisit our forecast following the release of the

1Q18 result.

Natalia Sutanto

(62-21) 2955 5888 ext.3508

natalia.sutanto@danareksa.com