CIMB Securities expects to see a 14 percent (y/y) growth in Mayora Indah's sales to IDR 16.9 trillion (approx. USD $1.3 billion) in 2016 supported by an improving Indonesian economy (giving rise to strengthening purchasing power) and the positive impact of the tax amnesty program. Meanwhile, the company's net profit is forecast to rise 7 percent (y/y) to IDR 1.2 trillion (approx. USD $92 million) this year.

So far this year, corporate earnings of Mayora Indah have been impressive. In the first quarter of 2016, the company's net profit surged a whopping 84 percent (y/y) to IDR 392 billion, supported by jumping revenue (IDR 4.68 trillion in Q1-2016) and the company's higher profit margin. One of the factors that caused the higher profit margin is that the company can still benefit from the low commodity prices. Another positive matter is that Indonesia finally managed to get inflation under control. According to the latest data from Statistics Indonesia, inflation eased to 3.33 percent (y/y) in May 2016.

Financial Performance Mayora Indah:

    2011   2012   2013   2014   2015  2016F  2017F
 2018F
Net Revenue  9,454 10,511 12,018 14,169 14,819 16,860 19,154 22,199
Net Profit    471   730   997   404  1,220  1,306  1,526  1,861
EBITDA    956  1,428  1,663  1,302  2,331  2,535  2,887  3,426
P/E Ratio (x)   50.3   33.9   29.9   83.9   31.3   26.7   22.9   18.7
P/BV (x)   6.12   8.75   6.87   5.73   4.79   3.98

in billion IDR rupiah, unless stated otherwise
Source: CIMB Securities (30/06/2016)

Mayora Indah produces all sorts of snacks under the Roma, Royal Choice, Kopiko, Astor, Bengbeng, Choki-Choki, Energen and Torabika brands. So far this year, the company's shares have surged 27.70 percent to IDR 38,950 a piece. CIMB Securities advises investors to invest in Mayora Indah with its (revised) price target at IDR 46,000 a piece (before the stock split).

Stock Quote Mayora Indah - MYOR:

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