ACE Hardware Indonesia

Stock Quote ACE Hardware Indonesia - ACES:

Business Summary

Ace Hardware Indonesia sells more than 80,000 products. These products are categorized in three main segments:

• Home improvement
• Lifestyle
• Toys

In 2010, ACE Hardware introduced the 'Toys Kingdom' retail concept to Indonesia. Its Toys Kingdom outlets are toy stores that specifically aim at children but also at the adult and adolescent markets through a diverse collection of collectible items, family games and baby products (including world-class brands). At end-2016, the company had 26 Toys Kingdom stores in 11 Indonesian cities.

ACE Hardware has been recording solid growth in recent years as Indonesia's retail business is growing amid a positive macroeconomic environment: the country has a large population with increasingly higher purchasing power. One characteristic of the Indonesian economy is that household consumption is the main driver of economic growth, accounting for approximately 55 percent of the country's total GDP growth. Important for ACE Hardware is that this growth gives rise to a booming property and real estate sector, and thus people need more home appliances.

The company’s main strategy for business expansion is the opening of new stores throughout Indonesia. ACE Hardware also provides online shopping for consumers through www.ruparupa.com (a subsidiary of Kawan Lama Sejahtera). Ruparupa allows customers to order products online and pick them up at the local ACE Hardware store.

ACE Hardware Indonesia's Financial Highlights:

	2014	2015	2016	2017
Net Sales	4,541.5	4,742.5	4,935.9
Gross Profit	2,193.6	2,253.7	2,351.8
Net Income	556.7	584.9	706.2
Operational Income	728.5	768.9	880.6
Income before Tax	692.3	736.6	836.1
Total Assets	2,958.4	3,267.5	3,731.1
Total Liabilities	629.2	638.7	682.4
Earnings per Share¹²	32,90	34,50	41,69
Cash Dividend per Share¹²	6.0	16.0

 

	2009	2010	2011	2012	2013
Net Sales	1,358.8	1,641.1	2,409.9	3,223.3	3,895.4
Gross Profit	552.4	708.6	1,119.6	1,551.6	1,933.5
Net Income	154.4	171.0	279.5	428.8	503.0
Operational Income	178.2	208.7	381.6	562.5	651.2
Income before Tax	206.3	220.0	370.8	537.3	623.0
Total Assets	974.9	1,198.0	1,451.7	1,916.9	2,478.9
Total Liabilities	120.3	173.4	219.9	298.9	563.4
Earnings per Share¹²	9,18	10,0	16,29	24,98	25,00
Cash Dividend per Share¹²	0.76	0.92	5.19	2.50	10.0

^{in billion IDR rupiah unless otherwise stated
¹ in IDR rupiah
² numbers adjusted to 1:10 stock split
Source: ACE Hardware, Annual Report 2016}

Projection Ace Hardware Indonesia's Future Corporate Earnings:

	2018	2019	2020F	2021F	2022F
Net Revenue	7,240	8,143	7,830	9,284	10,247
Net Profit	965	1,030	888	1,136	1,252
EBITDA	1,168	1,279	1,083	1,347	1,478
P/E Ratio (x)	27.6	25.9	30.0	23.5	21.3
P/BV (x)	6.3	5.6	4.9	4.5	4.1
ROAA (%)	19.8	18.3	14.1	16.2	16.3

^{in billion IDR, unless otherwise stated
Source: Danareksa Sekuritas (23.09.2020)}