Analisa Saham ACES | 1 Agustus 2018

FR CGD-CIMB (YU) : Ace Hardware Indonesia
As strong as ever
ACES IJ / ACES.JK | ADD - Maintained | Rp1,330.00 tp:Rp1,700.00
Mkt.Cap:US$1,582.00m | Avg.Daily Vol:US$0.45m | Free Float:40.00%
Retail
Author(s):Kevie ADITYA +62 (21) 3006 1738,

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Despite higher employee costs in 2Q18, ACES’s core net profit grew by 23.7% yoy in 1H18 to come in above our and consensus’ expectations.
ACES’s 13.4% SSSG in 1H18 was impressive, in our view. As such, we raise our 2018F SSSG estimate to 10%, above the company’starget of 8%.
Despite the depreciation of the rupiah vs. US$, ACES managed to maintain its GPM at above 46%. We think it shows strong merchandising and product mix capabilities.
We have assumed a 0.3% pt lower GPM in FY18F, but with better operating leverage, we expect ACES’s EBITDA margin to expand by 0.6% pt to 16.5%.
We maintain our Add call and Rp1,700 TP, pegged to 26.1x 2019 P/E.