ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

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<a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma</a> had a tough year in 2023, with high raw material prices and product mix impacting margins but these headwinds have abated in 1Q2024 with promising growth ahead. </li>
<li>Distribution &amp; Logistics and the pharmaceutical segment led growth in 1Q2024, with growth in the latter driven by more specialty drugs and unbranded generics.</li>
<li>Consumer health and nutritionals give Kalbe a consumer edge, with price rises in 1Q2024 and new products helping to drive profitability. Valuations look reasonable versus history with lustre around profits. </li>
</ul>



Kalbe Farma had a tough year in 2023, with high raw material prices and product mix impacting margins but these headwinds have abated in 1Q2024 with promising growth ahead. 
Distribution &amp; Logistics and the pharmaceutical segment led growth in 1Q2024, with growth in the latter driven by more specialty drugs and unbranded generics.
Consumer health and nutritionals give Kalbe a consumer edge, with price rises in 1Q2024 and new products helping to drive profitability. Valuations look reasonable versus history with lustre around profits. 


Kalbe Farma (KLBF IJ) - Back to Fighting Fit Form

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<li>
<a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> continued to experience a high post-COVID base effect in 3Q2023, with consumer habits shifting to leisure versus health plus there was a softening of consumer demand.</li>
<li>The company also experienced higher raw material prices and higher operating expenses which depressed margins but expectations are for a recovery in margins in 4Q2023 and FY2024. </li>
<li>
<a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma</a> stands out as Indonesia's largest pharmaceutical company with strong exposure to consumer health and nutritional products with rising health consciousness amongst Indonesians. Valuations do not reflect impending recovery.</li>
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Kalbe Farma (KLBF IJ) continued to experience a high post-COVID base effect in 3Q2023, with consumer habits shifting to leisure versus health plus there was a softening of consumer demand.
The company also experienced higher raw material prices and higher operating expenses which depressed margins but expectations are for a recovery in margins in 4Q2023 and FY2024. 

Kalbe Farma stands out as Indonesia's largest pharmaceutical company with strong exposure to consumer health and nutritional products with rising health consciousness amongst Indonesians. Valuations do not reflect impending recovery.


Kalbe Farma (KLBF IJ) - The End of a Long Transition

<section class="figure"><section class="figure"><div class="content-highlight"><p><a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> is South-East Asia's largest pharmaceutical company, with the majority of its sales in Indonesia. The company booked a respectable and resilient set of 1H2021 results with sales rising supported by organic volume growth. After the recent correction , we see this as a key process to rising levels of health-conscious in Indonesia.</p></div></section><p><a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> saw a solid performance from its prescription pharmaceuticals division, with sales growth of +5.4% YoY in 1H2021.</p>
<p>The company's nutritionals division saw a slight drop of -0.5% in sales in 1H2021, mainly due to a change in products mix towards slightly more affordable products , which bodes well for future growth and its ESG credentials.</p>
<p>As a core part of the company's ESG initiative, <a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> is proactively extending access to healthcare through a number of different strategies.</p></section><section class="figure"></section><section class="figure"></section><section class="figure"><section class="figure"><p>The company expects continuing improvement in 2H2021, which will support sales growth of +7-10% for FY2021, with EPS growth of +7-10%, and a dividend payout ratio of 45-55%.</p>
<p><a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> currently trades in 22.9x FY21E PER and 20.9x FY22E PER versus its 5-year average forward PER of 26.3x forward PER, making it look attractive at current levels. </p></section></section>

Kalbe Farma (KLBF IJ) is South-East Asia's largest pharmaceutical company, with the majority of its sales in Indonesia. The company booked a respectable and resilient set of 1H2021 results with sales rising supported by organic volume growth. After the recent correction , we see this as a key process to rising levels of health-conscious in Indonesia.Kalbe Farma (KLBF IJ) saw a solid performance from its prescription pharmaceuticals division, with sales growth of +5.4% YoY in 1H2021.
The company's nutritionals division saw a slight drop of -0.5% in sales in 1H2021, mainly due to a change in products mix towards slightly more affordable products , which bodes well for future growth and its ESG credentials.
As a core part of the company's ESG initiative, Kalbe Farma (KLBF IJ) is proactively extending access to healthcare through a number of different strategies.The company expects continuing improvement in 2H2021, which will support sales growth of +7-10% for FY2021, with EPS growth of +7-10%, and a dividend payout ratio of 45-55%.
Kalbe Farma (KLBF IJ) currently trades in 22.9x FY21E PER and 20.9x FY22E PER versus its 5-year average forward PER of 26.3x forward PER, making it look attractive at current levels. 

Kalbe Farma (KLBF IJ)- Back to the Business of Health

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma (KLBF IJ)</a> is one of the key proxies for increasing healthcare penetration and health consciousness in Indonesia through prescription drugs, consumer health, and nutritional products.</li>
<li>The company saw a solid sales performance in 1H2023 driven by prescription drugs. There was some lingering margin pressure from higher materials but this should abate in 2H2023.</li>
<li>
<a href="https://www.smartkarma.com/entities/kalbe-farma-tbk-pt" target="_blank" data-smartkarma-citation="entities:6303:1" rel="noopener">Kalbe Farma </a>continues to develop its digital capabilities, as well as export markets helping to drive efficiencies and growth. Valuations remain below the historical average despite strong earnings recovery ahead.</li>
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Kalbe Farma (KLBF IJ) is one of the key proxies for increasing healthcare penetration and health consciousness in Indonesia through prescription drugs, consumer health, and nutritional products.
The company saw a solid sales performance in 1H2023 driven by prescription drugs. There was some lingering margin pressure from higher materials but this should abate in 2H2023.

Kalbe Farma continues to develop its digital capabilities, as well as export markets helping to drive efficiencies and growth. Valuations remain below the historical average despite strong earnings recovery ahead.


Kalbe Farma (KLBF IJ) - Back to The Future

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Cisarua Mountain Dairy / Equity Capital Markets

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<li>PT Cisarua Mountain Dairy (CMD), a producer of dairy and consumer foods, aims to raise up to US$263m in its Indonesian IPO.</li>
<li>It is a market leader in the overall yogurt sub-category as well as in the spoonable and drinking yogurt segments with a market share of 53.2%, 71.9% and 50.3%, respectively. </li>
<li>In our previous notes, links <a href="https://www.smartkarma.com/insights/cisarua-mountain-dairy-cimory-ipo-the-negatives-losing-market-share-margin-sustainability" target="_blank" rel="noopener">here</a> and <a href="https://www.smartkarma.com/insights/cisarua-mountain-dairy-cimory-ipo-the-negatives-losing-market-share-margin-sustainability" target="_blank" rel="noopener">here</a>,  we spoke about the various aspects of the deal. In we will do a peer comparison and talk about valuations.</li>
</ul>


PT Cisarua Mountain Dairy (CMD), a producer of dairy and consumer foods, aims to raise up to US$263m in its Indonesian IPO.
It is a market leader in the overall yogurt sub-category as well as in the spoonable and drinking yogurt segments with a market share of 53.2%, 71.9% and 50.3%, respectively. 
In our previous notes, links here and here,  we spoke about the various aspects of the deal. In we will do a peer comparison and talk about valuations.


Cisarua Mountain Dairy  (Cimory) IPO - Giving It the Benefit of Margin Doubts

Indonesia

PT Kalbe Farma Tbk produces and develops pharmaceutical products for human and animal healthcare.  Through its subsidiaries, the Company also operates in the pharmaceutical, health food, and packaging industries.

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Kalbe Farma (KLBF IJ)