In today’s briefing:
- Prodia (PRDA IJ): Digital Initiative Cannot Be a Game Changer in Near-Term
- PT Nippon Indosari Corpindo (ROTI IJ) – Bring on the Baker
Prodia (PRDA IJ): Digital Initiative Cannot Be a Game Changer in Near-Term
- Prodia (PRDA IJ) has released a new app called U by Prodia. Initially, U by Prodia users will be able to access laboratory examination, health supplement purchasing, and home services.
- Given its expected miniscule contribution of 15–17% to total revenue, digital platform even if being on a higher growth trajectory, cannot be a significant revenue driver.
- Declining COVID testing revenue are negatively impacting diagnostic players globally. During 9M2022, Prodia reported revenue of IDR1,580B, representing 21% decline, while net profit plunged 46% to IDR275B.
PT Nippon Indosari Corpindo (ROTI IJ) – Bring on the Baker
- PT Nippon Indosari Corpindo (ROTI IJ) booked results well above market expectations despite pressure from wheat flour and packaging costs, with greater efficiencies and cost savings boosting operating margins.
- Modern trade continues to be the growth driver but general trade continues to grow plus the company’s new Sari Kue cake products showed a strong performance at the margin.
- PT Nippon Indosari Corpindo (ROTI IJ) should see further positive growth in 2023, with the potential for improving margins as input costs subside. Valuations are significantly below historical levels.
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