In today’s briefing:
- Erajaya Swasembada (ERAA IJ) – In Ramping Up Mode
- Acer Hardware Indonesia (ACES IJ) – Cementing a Positive Performance
Erajaya Swasembada (ERAA IJ) – In Ramping Up Mode
- Erajaya recently released its 1Q2023 results with net sales increasing by +29% YoY but with -20.5% decrease in net profit due to increased opex related to its expansion and inventory build.
- The company plans to add 400 new outlets this year, lower than last year’s 575, as it ramps up its newer stores, which should help to improve profitability in 2H2023.
- Erajaya continues to add to its stable of brands outside mobile handsets, including JD Sports, Wellings, Grand Lucky, The Face Shop, Paris Baguette, and has launched EraBlue with Mobile World.
Acer Hardware Indonesia (ACES IJ) – Cementing a Positive Performance
- Ace Hardware‘s June SSSG confirmed very strong growth momentum and the positive impact of its BOOM sale, with headline SSSG at +10.7% YoY, after a flat post-Lebaran performance in May.
- The company’s strategy of using influencers to promote the company has been a great success for its #Bisakejadian campaign, and BOOM sale with foot traffic continuing to improve at stores.
- Ace Hardware plans to step up its store expansion and ramp up new store formats to drive growth, with up to 15 new stores this year. Valuations are attractive.
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