Natalia Sutanto, analyst at Danareksa Sekuritas, noted in a new report that both sales and net profit of Unilever Indonesia in 2016 were for nearly 99 percent in line with the estimates of Danareksa Sekuritas. Another important matter is that the company managed to keep its gross margin and net margin stable at 51.1 percent and 16 percent, respectively (similar to the margins in the preceding year).

Danareksa Sekuritas maintained its share price target for Unilever Indonesia at IDR 47,000 a piece. So far this year, shares of Unilever Indonesia (listed on the Indonesia Stock Exchange) have risen 11 percent to IDR 43,100 per share.

Stock Quote Unilever Indonesia - UNVR:

Andy Ferdinand, analyst at Samuel Sekuritas, agrees with Sutanto regarding the positive development of Unilever Indonesia's earnings. The company's rising sales and profit are supported by the strengthening macroeconomic condition of Indonesia. Indonesia's accelerating economic growth gives rise to people's strengthening purchasing power and therefore people (or households) can purchase more consumer goods. Another reason that explains Unilever Indonesia's rising sales are the company's ability to introduce new, innovative products to the market.

The future for Unilever Indonesia in Southeast Asia's largest economy seems bright due to expectation of Indonesia's accelerating economic growth, people's rising purchasing power and the company's strong presence in Indonesia (strong brand and commanding a good distribution network across the archipelago). Another strength is that the company's products are used by all segments of society, from the near-poor to the wealthy people.

Herman Bakshi, President Director of Unilever Indonesia, said the company will keep its capital expenditure at IDR 1.6 trillion in 2017. These funds will be used to increase production capacity at its factories. Currently, Unilever Indonesia operates nine factories in Indonesia.